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- **M&A Driven Growth**: 14 acquisitions in 2025 at 9.5x multiple, adding 400-500bps annually.
- **Innovation Leadership**: META 45 compressor delivers 14% energy savings, showcasing R&D investment.
- **Tariff Mitigation**: $100M tariff headwind in 2025, with pricing actions to offset costs in 2026.
- **Segment Strength**: PST at 30.8% EBITDA margin, ITS at 29%, with sequential improvement in both.
- **Balance Sheet Flexibility**: $3.8B liquidity, $700M buybacks YTD alongside M&A.

**【CEO Summary Section】**
- Organic orders grew 2% year-to-date, with a book-to-bill ratio of 1.04x, driven by disciplined M&A and execution. 
- Acquired 14 companies in 2025, averaging a 9.5x pre-synergy multiple, targeting 400-500bps of inorganic growth annually.
- Introduced META 45 compressor, delivering 11% flow increase and 14% energy savings, showcasing innovation in industrial solutions.
- ITS segment orders up 7% YoY, PST orders up 11% YoY, with both segments showing sequential improvement.
- 2025 guidance adjusted for $100M tariff headwind, with pricing actions expected to offset costs in 2026.

**【CFO Financial Commentary】**
- Q3 revenue growth driven by M&A and FX,2025, with adjusted EBITDA of $545M (27.9% margin) and free cash flow of $326M.
- Deployed $460M in M&A and $700M in share buybacks, maintaining 1.8x leverage ratio.
- 2025 adjusted EPS guidance reduced to $3.28 due to tariff impacts, but free cash flow remains strong.
- Sequential EBITDA margin expansion in both segments, with PST at 30.8% and ITS at 29%.

**【Q&A Highlights】**
- Tariffs ($100M annualized) expected to mute 2026H1 margin expansion, but pricing actions in backlog will offset costs by 2026H2.
- ITS organic orders up mid-single digits in Americas, mid-teens in Asia Pacific, offsetting EMEA weakness.
- PST Life Science business seeing 55% to 90% yield improvement in Flexan product line, driving margin expansion.
- 2025 book-to-bill expected to finish above 1x, supporting 2026 revenue visibility.
- Share buybacks to continue alongside M&A, with $193M executed in Q3 and $700M YTD.

Ingersoll Rand Inc. (IR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

IR

IR fundamentals

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