Ingersoll Rand 2025 Q2 Earnings Misses Targets as Net Income Declines 163%

Ingersoll Rand reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company missed expectations with a net loss of $0.29 per share, down from a profit of $0.46 per share in the previous year. Ingersoll Rand raised its guidance for revenue, adjusted EBITDA, and adjusted EPS, signaling confidence in future performance despite current challenges. The company continues to focus on strategic investments and maintaining a strong financial position.

Revenue

Earnings/Net Income
Ingersoll Rand swung to a loss of $0.29 per share in 2025 Q2 from a profit of $0.46 per share in 2024 Q2 (163.0% negative change). Meanwhile, the company reported a net loss of $-113.80 million in 2025 Q2, reflecting a 161.0% deterioration from the net income of $186.50 million achieved in 2024 Q2. The EPS indicates a significant financial setback for the company.

Price Action
The stock price of Ingersoll Rand has edged down 0.87% during the latest trading day, has edged down 2.60% during the most recent full trading week, and has edged up 1.74% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Ingersoll Rand shares after a quarter with increased revenue on the financial report release date and holding for 30 days has historically delivered strong returns over the past three years. This approach has achieved a 151.97% return, significantly outperforming the benchmark return of 85.57% by 66.40%. With a compound annual growth rate of 20.46% and no maximum drawdown, the strategy has demonstrated robust performance in terms of both returns and risk management.

CEO Commentary
Vicente Reynal, chairman and chief executive officer of Ingersoll Rand, expressed confidence in the company's performance, highlighting record second quarter orders, revenues, and adjusted EBITDA. He noted strong organic orders growth and a robust book-to-bill ratio, while also mentioning an active M&A pipeline and progress towards annual inorganic growth targets. Reynal emphasized that the combination of the Economic Growth Engine and Execution Excellence (IRX) will continue to drive long-term value creation, reflecting an optimistic outlook for the company's future.

Guidance
Ingersoll Rand raised its guidance for revenue, adjusted EBITDA, and adjusted EPS, indicating expectations for continued strong performance. The CEO noted momentum in organic orders growth and highlighted an active M&A pipeline, suggesting a focus on strategic investments to support future growth. The company remains committed to achieving its annualized inorganic growth target and maintaining a strong financial position to capitalize on opportunities ahead.

Additional News
Ingersoll Rand has been actively pursuing inorganic growth, as evidenced by its recent acquisition of SSI Aeration, Inc., a leader in wastewater treatment solutions. This acquisition, announced on February 3, 2025, is intended to extend Ingersoll Rand's capabilities in this high-growth, sustainable market. The acquisition aligns with the company's strategy of optimizing its solutions and expanding in industries that offer energy efficiency and productivity improvements for customers. Additionally, Ingersoll Rand has returned $508 million to shareholders, including $500 million in share repurchases, underscoring its commitment to enhancing shareholder value.