Ingersoll Rand 2025 Q3 Earnings Beats Estimates, Net Income Up 10%

Ingersoll Rand (IR) reported fiscal 2025 Q3 earnings on Oct 31, 2025, with results aligning with estimates and a revised guidance outlook. The company’s revenue and EPS exceeded expectations, but full-year adjusted EPS guidance was trimmed to $3.28 from $3.40, reflecting tariff pressures and delayed pricing realization.

Revenue

The total revenue of Ingersoll Rand increased by 5.1% to $1.96 billion in 2025 Q3, up from $1.86 billion in 2024 Q3. The Industrial Technologies and Services segment led with $1.54 billion in revenue, driven by acquisitions and foreign currency gains, while the Precision and Science Technologies segment contributed $414.50 million. The Industrial segment saw organic sales decline 2.1%, offset by strong performance in the Precision segment, which posted 1.7% organic growth.

Earnings/Net Income

Ingersoll Rand's EPS rose 12.7% to $0.62 in 2025 Q3 from $0.55 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $245.80 million in 2025 Q3, marking 10.0% growth from $223.40 million in 2024 Q3. The EPS performance reflects disciplined execution and cost optimization, underscoring positive operational momentum.

Post-Earnings Price Action Review

Despite meeting earnings expectations and beating revenue forecasts, Ingersoll Rand’s stock price declined 0.13% during the latest trading day, dropped 4.32% during the most recent full trading week, and tumbled 8.59% month-to-date. The post-earnings weakness stemmed from revised guidance, which factored in incremental Section 232 tariffs and delayed pricing realization. Investors reacted cautiously to the downward adjustment in adjusted EPS guidance, which fell short of consensus estimates. The stock’s underperformance reflects heightened sensitivity to macroeconomic volatility and margin pressures, though the company emphasized resilience through IRX-driven efficiency and disciplined M&A.

CEO Commentary

Vicente Reynal, Chairman, CEO & President, highlighted durable growth driven by disciplined execution and IRX, noting year-to-date organic orders up 2% with a book-to-bill of 1.04x. He emphasized disciplined M&A as a key growth driver, with 14 transactions closed and 9 under LOI, averaging 9.5x pre-synergy multiples. Challenges included macro volatility and tariff-related margin pressures, though proactive cost measures and IRX-driven resilience were underscored. Strategic priorities focused on capital allocation, leveraging free cash flow for acquisitions and shareholder returns, and expanding the Life Science platform via targeted bolt-ons like Dave Barry Plastics. Reynal expressed cautious optimism, stressing control over execution and confidence in long-term margin expansion targets, while acknowledging near-term tariff uncertainties.

Guidance

Ingersoll Rand revised 2025 adjusted EBITDA guidance to a midpoint of $2.075B, reflecting incremental Section 232 tariffs and delayed pricing realization. Q4 adjusted EBITDA margins are expected flat sequentially, with full-year adjusted EPS guidance reduced to $3.28 (from $3.40). Quantitative targets include a 23.5% tax rate, $220M net interest expense, 2% revenue-based CapEx, and ~402M shares outstanding. The guidance excludes potential tariff reductions announced post-call, with pricing actions anticipated to materialize in 2026.

Additional News

Over the past three weeks, Ingersoll Rand announced 14 completed M&A transactions and nine under letters of intent, averaging 9.5x pre-synergy multiples, underscoring its disciplined acquisition strategy. The company also executed a $193 million share repurchase in Q3, adding to its $703.3 million year-to-date buybacks, reflecting a strong commitment to shareholder returns. Additionally, the CEO highlighted the acquisition of Dave Barry Plastics as a strategic addition to its Life Science platform, positioning the company to capitalize on high-growth markets. These moves align with the firm’s focus on capital allocation and long-term value creation.

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