Ingersoll Rand Gains From Business Strength Amid Persisting Headwinds

Ingersoll Rand Inc. IR is poised to gain from the exposure to various end markets, including industrial manufacturing, mining & construction, energy, transportation, medical and laboratory sciences, food and beverage packaging, as well as chemical processing. The company continues to see higher orders across its product portfolio of industrial vacuums and blowers, power tools and compressors, which will drive the Industrial Technologies & Services (IT&S) segment. The segment’s order totaled $1.55 billion, up 9% year over year in the fourth quarter of 2025. 

Strong momentum in the life sciences business, driven by growth in fluid handling product orders within the legacy Gardner Denver Medical platform, is likely to be a tailwind for the Precision and Science Technologies segment. Strength in the precision technologies business and an increase in demand for biopharma solutions also bode well. The segment reported an order of $402.2 million in the fourth quarter, up 6.5% year over year.

Ingersoll Rand believes in expanding its market presence, solidifying its customer base and enhancing product offerings through acquisitions. In the fourth quarter of 2025, acquisitions contributed 4% to total revenues. In November 2025, it acquired Transvac Systems Ltd., which enhanced Ingersoll Rand’s portfolio of engineered solutions with advanced ejector and hybrid systems. Transvac is incorporated into the company’s Industrial Technologies and Services segment. In August 2025, IR acquired Dave Barry Plastics, which boosted its life science portfolio. Dave Barry Plastics is incorporated into Ingersoll Rand’s Precision and Science Technologies segment.

In June 2025, the company acquired Lead Fluid (Baoding) Intelligent Equipment Manufacturing Co., Ltd (Lead Fluid), which boosted its life science business in China. Lead Fluid is incorporated into the Precision and Science Technologies segment. In April 2025, Ingersoll completed the acquisition of G & D Chillers, Inc. (G&D) and Advanced Gas Technologies Inc. (“AGT”). The acquisitions expanded the company’s air treatment portfolio. The acquired companies are incorporated into the Industrial Technologies & Services segment. In February 2025, the company acquired SSI Aeration, Inc. (“SSI”), which enhanced its ability to offer integrated low-pressure compressor and aeration solutions. SSI is incorporated into its IT&S segment. 

IR’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In 2025, the company paid out dividends of $31.8 million and repurchased treasury stocks worth $1.02 billion. In April 2024, the company’s board of directors approved a $1 billion increase to the share repurchase authorization. Also, in May 2025, Ingersoll Rand’s board of directors authorized an additional $1 billion increase to its existing share repurchase program. This is in addition to the company’s previous share repurchase program.

However, cost inflation is weighing on Ingersoll Rand’s operations. The company’s cost of sales increased 6.1% year over year in 2025, due to the increasing cost of raw materials and component parts. Ingersoll Rand’s selling and administrative expenses rose 7.1% year over year in 2025. The selling and administrative expenses, as a percentage of revenues, increased 20 basis points to 18.8%. The company has been witnessing high costs associated with investments to support growth in areas like demand generation, digital and other IT-related investments. It expects to incur corporate costs of approximately $170 million in 2026.

IR has considerable exposure to regions outside the United States. Its significant international presence exposes it to political and economic disruptions, all of which can directly affect its profits. Also, the company is exposed to headwinds arising from unfavorable movements in foreign currencies.

Ingersoll Rand, which belongs to the Manufacturing - General Industrial industry, faces stiff competition from peers like Gates Industrial Corporation plc GTES, Helios Technologies, Inc. HLIO and Crane Company CR.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research