NYSE:IR
Ingersoll Rand Inc.
A diversified industrial powerhouse delivering critical power transmission solutions across heavy-duty sectors like aerospace and mining.
Key Metrics
Investment Thesis
Bull Case
The stock offers a compelling value play with a massive cash pile of $1.25B enabling aggressive share repurchases totaling $1.02B, alongside a stable revenue growth trend from $5.92B in 2022 to $7.65B recently.
Bear Case
Investors should be cautious regarding the sharp drop in net income and substantial non-operating losses of $209.3M, which compressed profitability despite rising revenues and significant goodwill exposure of $8.48B.
About Ingersoll Rand Inc.
Ingersoll Rand Inc. is a global industrial technology leader providing power transmission solutions, including air tools, fluid power systems, and specialized equipment for aerospace, automotive, construction, and mining industries.
Analysis
Management Discussion
While the company generated strong operating cash flow of $1.36B, net profit declined significantly in 2025 to $588.8M from $846.3M in 2024, likely due to non-operating losses and discontinued operations.
Industry Overview
The industrial power transmission sector is cyclical yet resilient, driven by essential infrastructure needs in aerospace, energy, and manufacturing where reliability and safety standards create long-term demand.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.92B | $6.88B | $7.24B | $7.65B |
| Cost of Revenue | $3.59B | $3.99B | $4.07B | $4.31B |
| Gross Profit | $2.33B | $2.88B | $3.17B | $3.34B |
| Operating Expenses | $1.51B | $1.72B | $1.87B | $2.19B |
| Operating Income | $817.3M | $1.16B | $1.30B | $1.14B |
| R&D | $91.0M | $108.0M | $116.6M | $114.3M |
| G&A | $1.10B | $1.27B | $1.34B | $1.44B |
| Stock-Based Comp | $78.9M | $51.9M | $58.8M | $53.0M |
| D&A | $432.8M | $459.1M | $482.0M | $505.8M |
| Amortization | $347.6M | $367.5M | $373.0M | $387.5M |
| Other OpEx | $321.5M | $337.2M | $408.9M | $638.1M |
| Non-Operating Income | $-75.1M | $-133.2M | $-167.3M | $-209.3M |
| Interest Expense | $103.2M | $156.7M | — | — |
| Pre-Tax Income | $742.2M | $1.03B | $1.13B | $935.3M |
| Income Tax | $149.6M | $240.0M | $262.5M | $219.4M |
| Continuing Ops | $593.3M | $785.1M | $846.3M | $715.9M |
| Discontinued Ops | $15.2M | $0 | $0 | $-127.1M |
| Net Income | $608.5M | $785.1M | $846.3M | $588.8M |
| Minority Interest | $3.8M | $6.4M | $7.7M | $7.4M |
| Net to Common | $604.7M | $778.7M | $838.6M | $581.4M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.97B | $4.05B | $4.16B | $4.25B |
| Cash & Equivalents | $1.61B | $1.60B | $1.54B | $1.25B |
| Accounts Receivable | $1.12B | $1.23B | $1.34B | $1.52B |
| Inventory | $1.03B | $1.00B | $1.05B | $1.17B |
| Other Current Assets | $206.9M | $219.6M | $231.9M | $308.3M |
| Long-Term Assets | $10.80B | $11.51B | $13.85B | $14.05B |
| PP&E (Net) | $624.4M | $711.4M | $842.1M | $930.3M |
| Intangibles | $3.58B | $3.61B | $4.37B | $4.24B |
| Goodwill | $6.06B | $6.61B | $8.15B | $8.48B |
| Operating Leases | $126.9M | $164.4M | $226.6M | $236.4M |
| Other LT Assets | $404.5M | $416.5M | $256.7M | $158.1M |
| Total Assets | $14.77B | $15.56B | $18.01B | $18.30B |
| Current Liabilities | $1.67B | $1.83B | $1.82B | $2.07B |
| Accounts Payable | $778.7M | $801.2M | $843.6M | $996.1M |
| Current Leases | $39.6M | $41.6M | $56.3M | $64.8M |
| Deferred Revenue | $305.6M | $331.2M | $318.6M | $347.2M |
| Other Current Liab | $-308.7M | $-342.2M | $-371.8M | $-410.6M |
| Long-Term Liabilities | $3.83B | $3.89B | $5.95B | $6.08B |
| LT Operating Leases | $80.4M | $116.9M | $165.5M | $168.0M |
| Other LT Liab | $3.75B | $3.77B | $5.78B | $5.91B |
| Total Liabilities | $5.51B | $5.72B | $7.76B | $8.14B |
| Shareholders' Equity | $9.26B | $9.85B | $10.25B | $10.15B |
| Retained Earnings | $950.9M | $1.70B | $2.50B | $3.05B |
| AOCI | $-251.7M | $-227.6M | $-468.5M | $-148.3M |
| Total L&E | $14.77B | $15.56B | $18.01B | $18.30B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $608.5M | $785.1M | $846.3M | $588.8M |
| Non-Cash Adjustments | $-388.8M | $561.1M | $541.7M | $520.8M |
| Working Capital Changes | $640.6M | $31.2M | $8.7M | $246.1M |
| Cash from Operations | $860.3M | $1.38B | $1.40B | $1.36B |
| Cash from Investing | $-332.9M | $-1.06B | $-3.11B | $-660.6M |
| Debt Issuances | $0 | $1.49B | $3.30B | $0 |
| Debt Repayments | $655.6M | $1.52B | $1.24B | $0 |
| Share Buybacks | $261.1M | $263.0M | $260.7M | $1.02B |
| Dividends Paid | $32.4M | $32.4M | $32.3M | $31.8M |
| Cash from Financing | $-954.0M | $-337.5M | $1.71B | $-1.05B |
| FX Effect | $-70.0M | $3.1M | $-50.8M | $66.3M |
| Net Change in Cash | $-496.6M | $-17.5M | $-54.3M | $-292.4M |
| Beginning Cash | $2.11B | $1.61B | $1.60B | $1.54B |
| Ending Cash | $1.61B | $1.60B | $1.54B | $1.25B |
Frequently Asked Questions
How does Ingersoll Rand Inc. make money?
The company operates primarily through three core segments: Power Transmission Solutions (air tools and fluid power), Industrial Automation & Robotics, and Engineered Systems for specialized applications such as aerospace and oil & gas drilling.
What are the main risks for IR?
Macroeconomic downturns reducing industrial capital expenditure, potential supply chain disruptions affecting component costs, exposure to foreign exchange rate fluctuations impacting international earnings, and integration risks from recent acquisitions.
What is IR's competitive advantage?
Ingersoll Rand benefits from a robust global service network, high barriers to entry in niche industrial markets, and a diversified revenue base that mitigates sector-specific cyclicality.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.