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what it is
Ingersoll Rand sells the pumps, compressors, and flow-control gear factories need to keep air, liquids, and production moving.
how it gets paid
Last year Ingersoll Rand made $7.7B in revenue. Aftermarket was the main engine at $2.81B, or 36% of sales.
why it's growing
Revenue grew 5.7% last year. Revenue reached $2.09B in the fourth quarter of 2025.
what just happened
The latest quarter beat on earnings, with EPS at $0.96 versus a $0.92 estimate.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
95/100 earnings predictability — you can trust these numbers
24.6x trailing p/e — priced about right
0.1% dividend yield — cash in your pocket every quarter
9.0% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Ingersoll Rand sells the pumps, compressors, and flow-control gear factories need to keep air, liquids, and production moving.
This business wins because it sells equipment you cannot let fail. If your compressor dies, your line stops, and that pain keeps customers close for parts and service. About 36.46% of sales come from aftermarket work, according to CSIM data, which means installed machines keep pulling revenue after the first sale.
How they make money
$7.7B
annual revenue · their business grew +5.7% last year
Aftermarket
$2.81B
Compressors
$2.16B
Specialty pumps
$1.39B
Vacuums and blowers
$0.77B
Other flow-control products
$0.58B
The products that matter
compressed air equipment
Compressors
part of a $7.7B revenue base
these machines create the installed base that feeds service demand later. in a company where 36% of sales already come from aftermarket work, the first sale is the opening act.
installed-base anchor
air and flow systems
Vacuums & Blowers
supports the 29.5% margin profile
this sits inside the broader industrial platform that spreads costs across a $7.7B business. the product matters. the service tail after the product matters more.
service tail
precision fluid handling
Specialty Pumps
one more source of repeat parts revenue
pumps are maintained, repaired, and kept in service. that matters when organic sales are guided from flat to down 2% and you need the installed base to do the defensive work.
defensive mix
Key numbers
24.6x
trailing p/e
P/E → how many years of current earnings you are paying for → you are paying a premium for a company with only 9.0% return on capital.
9.0%
return on capital
Return on capital → profit from each dollar invested → 9.0% says this is decent, not elite.
$7.7B
annual revenue
This is a real scale business, but 2024 growth was only 5.7%, which is steady industrial, not hypergrowth.
15.0%
operating margin
Operating margin → profit after running the business → 15.0% gives some cushion, but not enough to justify fantasy pricing.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $4.8B (13% of capital)
- net profit margin 20.3% — keeps 20 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in IR 3 years ago → it's now worth $15,650.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
The latest quarter beat on earnings, with EPS at $0.96 versus a $0.92 estimate.
Revenue reached $2.09B in the fourth quarter of 2025, up 10.1% vs. prior year, according to the company release. Gross margin was 44.0%, which helped turn modest revenue growth into a cleaner profit print.
$2.09B
revenue
$0.96
eps
44.0%
gross margin
the number that mattered
The important number was 44.0% gross margin, because margin held up even while management had been warning about slow inventory turnover and weak sales.
-
management tempered its 2025 outlook for ingersoll rand in late october.
-
leadership conceded that earnings at the maker of industrial pumps and compressors would likely come in at $3.25–$3.31 a share, little changed from 2024’s $3.29 tally and shy of its previous $3.34–$3.46 target range that implied, at best, 5% bottom-line growth.
-
the positive impact of recent price hikes may be realized a bit later than initially anticipated.
-
that’s partly because of slow inventory turnover and generally weak sales.to wit, excluding any contribution from acquisitions and favorable currency swings, ingersoll’s 2025 organic sales were expected to be flat with 2024’s tally in a best-case scenario.
-
at worst, management cautioned that they could be down 2%.
source: company earnings report, 2026
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What could go wrong
IR is not facing an abstract "macro" problem. The specific risk is paying 24.6x earnings for a business that just guided organic growth to flat at best and down 2% at worst.
med
organic demand stays weak
Management already said 2025 organic sales could be flat at best and down 2% at worst. That means the core business is not expanding right now.
A 2% move on a $7.7B revenue base is roughly $154M. That matters when the stock still carries a premium multiple.
med
price hikes keep arriving late
Management said the benefit from recent pricing actions is showing up later than expected. When pricing slips, margin support slips with it.
Q4 operating margin was 23.9%. If pricing does not catch up, investors stop underwriting expansion and start defending the current level.
med
reported growth keeps leaning on deals more than the core engine
The business grew 5.7% last year, but management also said organic sales could be flat to down 2%. That gap tells you acquisitions and currency are doing part of the lifting.
If core demand does not recover, the market stops treating IR like a steady compounder and starts treating it like a roll-up with slower internals.
The stock can still work from here, but the easy version of the thesis needs organic growth to turn positive again. Until then, you are paying up for resilience.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
The next report on May 5, 2026 is the first clean check on whether weak demand is stabilizing. If management is still defending flat to down 2% organic sales, the rebound case stays delayed.
metric
organic growth versus reported growth
Revenue grew 5.7% last year, but management framed organic growth at flat to down 2%. That spread is the cleanest test of what is actually improving.
trend
operating margin durability
A 29.5% operating margin is what makes this business better than the average machinery name. If that starts slipping while demand is soft, the premium multiple loses its best defense.
flow
institutional selling
Institutions were net sellers for 2 straight quarters, with 364 buyers versus 389 sellers in 3Q2025. That is not panic. It is a vote to wait for better proof.
Analyst rankings
short-term outlook
average
outlook rank 3 — in human-speak, analysts think IR probably tracks the market until the growth data improves.
risk profile
average
risk rank 3 — this is neither a bunker stock nor a land mine. the risk is mostly paying too much for a slowdown.
chart momentum
below average
momentum rank 4 — the tape is not confirming a clean rebound yet.
earnings predictability
95 / 100
management usually gives dependable guidance. when they cut it, you should pay attention.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 364 buyers vs. 389 sellers in 3q2025. total institutional holdings: 0.4B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$67
$143
$81
current price
$105
target midpoint · +29% from current · 3-5yr high: $130 (+60% · 13% ann'l return)
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