Ingersoll Rand's Q4 Earnings & Revenues Top Estimates, Up Y/Y

Ingersoll Rand Inc. IR reported fourth-quarter 2025 adjusted earnings of 96 cents per share, which surpassed the Zacks Consensus Estimate of 91 cents. The bottom line increased 14.3% year over year.

Total revenues of $2.09 billion beat the consensus estimate of $2.05 billion. The top line increased 10.2% year over year. Acquisitions contributed 4% to revenues while organic revenues increased 2.9%. Foreign currency movements had a positive impact of 3.3%.

Orders totaled $1.95 billion, up 8.5% year over year. Organically, orders increased 1.1%.

For 2025, the company’s adjusted earnings came in at $3.34 per share, up 2% year over year. For the year, it generated revenues of $7.65 billion, reflecting an increase of 6%.

IR’s Segmental Discussion

The Industrial Technologies & Services segment generated revenues of $1.67 billion, accounting for 80% of net revenues. Sales increased 10.7% year over year. Acquisitions contributed 4.7% while movement in foreign currencies had a positive impact of 3.3%. The segment’s organic sales increased 2.7%. Our estimate for the segment’s sales was $1.63 billion.

Segmental orders were up 8.9%. Adjusted EBITDA increased 5.8% year over year to $484.1 million. Our estimate for adjusted EBITDA was $478 million.

The Precision & Science Technologies segment’s revenues totaled $419 million, representing 20% of net revenues. Our estimate for segmental revenues was $408 million. On a year-over-year basis, the segment’s revenues increased 8.1%. Organic sales increased 3.7% while movement in foreign currencies had a positive impact of 3.1%. Acquisitions contributed 1.3% to revenue growth.

The segment’s orders increased 6.5% on a year-over-year basis. Adjusted EBITDA increased 19.3% year over year to $127.4 million. Our estimate for adjusted EBITDA was $126 million.

Ingersoll Rand Inc. Price, Consensus and EPS Surprise

Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote

IR’s Margin Profile

IR's cost of sales increased 10.8% year over year to $1.20 billion. Selling and administrative expenses were up 7.7% to $357.1 million.

Adjusted EBITDA increased 9% year over year to $580.1 million. The margin decreased to 27.7% from 28.0% in the year-ago period.

Balance Sheet & Cash Flow of IR

While exiting the fourth quarter, Ingersoll Rand had cash and cash equivalents of $1.25 billion compared with $1.54 billion at the end of December 2024. Long-term debt (less of current maturities) was $4.78 billion compared with $4.75 billion in December 2024.

In 2025, the company paid out dividends of $31.8 million and repurchased treasury stocks worth $1.02 billion.

For the year, IR generated net cash of $1.36 billion from operating activities, down 2.9% year over year. Capital expenditure totaled $135.6 million compared with $149.1 million in the year-ago quarter. Free cash flow decreased 2.2% to $1.22 billion.

Ingersoll Rand’s 2026 Outlook

Ingersoll Rand expects revenues to increase 2.5-4.5% year over year. Organic revenues are estimated to increase in the range of 0-2%. Foreign currency translation and acquisitions are expected to have a positive impact of 1% and 1.5%, respectively, on revenues.

Adjusted EBITDA is expected to be in the $2.13-$2.19 billion band, indicating an increase of 3-6% from the prior-year level. Adjusted earnings are anticipated to be in the range of $3.45 - $3.57 per share. This indicates 5% growth at the mid-point from the year-earlier actual.

IR’s Zacks Rank & Key Picks

The company currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RBC Bearings Incorporated RBC presently sports a Zacks Rank of 1. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has increased 3.9%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank #2 (Buy). Parker-Hannifin’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.8%. In the past 60 days, the Zacks Consensus Estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 2.1%.

Ferguson plc FERG currently carries a Zacks Rank of 2. Ferguson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 9.8%. In the past 60 days, the Zacks Consensus Estimate for Ferguson’s fiscal 2026 earnings has increased 3.1%.

Free Report: Profiting from the 2nd Wave of AI Explosion

The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.

Investors who bought shares like Nvidia at the right time have had a shot at huge gains.

But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.

Zacks'  AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.

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