Ingersoll Rand 2025 Q3 Earnings Strong Revenue Growth and 10% Net Income Surge

Ingersoll Rand (IR) reported Q3 2025 earnings with revenue growth and a net income increase, though the stock faced short-term volatility. The company beat revenue estimates and raised EPS, but lowered full-year guidance due to tariff pressures and margin challenges.

Revenue

Ingersoll Rand’s total revenue rose 5.1% year-over-year to $1.96 billion in Q3 2025, exceeding the $1.95 billion consensus estimate. The Industrial Technologies and Services segment led with $1.54 billion in revenue, driven by acquisitions and foreign currency gains, though organic sales dipped slightly. The Precision and Science Technologies segment added $414.50 million, reflecting 5.3% year-over-year growth, supported by organic sales and strategic acquisitions.

Earnings/Net Income

Earnings per share (EPS) increased 12.7% to $0.62, outpacing the $0.55 result from Q3 2024. Net income surged 10.0% to $245.80 million, reflecting improved cost management and operational efficiency. The EPS growth underscores strong profitability, aligning with the company’s disciplined execution.

Post-Earnings Price Action Review

The stock experienced mixed short-term performance following the earnings report. While Q3 revenue beat estimates, the 30-day returns after revenue beats in 2023Q4 (-1.2%) and 2025Q3 (-4.6%) were negative, attributed to market skepticism over tariff impacts and margin pressures. Long-term fundamentals, including robust cash flow and strategic acquisitions, remain intact, though short-term volatility persists. <visualization dataurl="https://cdn.ainvest.com/news/visual/visual_components/viz_vdgozrbr.json"></visualization>

CEO Commentary

Vicente Reynal, CEO, highlighted disciplined execution and M&A activity, with 14 transactions closed in 2025. He emphasized resilience amid macroeconomic challenges and confidence in long-term growth through innovation and cost optimization.

Guidance

Ingersoll Rand revised full-year 2025 adjusted EBITDA guidance to a midpoint of $2.075 billion, citing incremental tariffs and delayed pricing realization. Adjusted EPS guidance was lowered to $3.28, reflecting margin pressures. The company anticipates margin normalization in 2026 but expects Q1-Q2 2026 to remain muted.

Additional News

Ingersoll Rand announced a $0.02 per share quarterly dividend, yielding 0.1%, and repurchased $703.3 million in shares year-to-date. The company closed 14 acquisitions in 2025, enhancing its technological capabilities, and has nine transactions under letter of intent. Strategic priorities include capital allocation for M&A and shareholder returns, targeting 400-500 bps of inorganic revenue annually.

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