Ingersoll Rand Inc. (IR) Stock Analysis and Metrics

Ingersoll Rand

NYSE: IR

$84.39 ▲ +0.08 (+0.09%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap32.99 Bn

P/E46.13

P/S4.24

Div. Yield0.00

ROIC (Qtr)1.40

Total Debt (Qtr)4.78 Bn

Revenue Growth (1y) (Qtr)7.60

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About

Ingersoll Rand Inc. is a diversified global provider of mission-critical flow creation products and industrial and life science solutions. The company designs manufactures and services a broad range of compressors pumps vacuum blowers fluid transfer equipment loading systems power tools lifting equipment and specialized fluid handling systems. It operates across markets such as life sciences food and beverage clean energy industrial manufacturing infrastructure water and wastewater treatment and others.

Ingersoll Rand generates revenue primarily through the sale of its compressors pumps vacuum blowers and related industrial equipment as well as aftermarket parts consumables and service contracts. The company’s aftermarket business contributed 36.5% of total revenue in 2025 reflecting the value of its large installed base. Products are sold under more than 90 market leading brands including Ingersoll Rand and Gardner Denver.

The company operates through the following segments: Industrial Technologies and Services and Precision and Science Technologies.

• Industrial Technologies and Services: This segment designs manufactures markets and services air and gas compression treatment equipment vacuum and blower products fluid transfer equipment loading systems power tools lifting equipment and other specialized industrial products supported by aftermarket parts consumables and service offerings.

• Precision and Science Technologies: This segment designs manufactures and markets specialized pumps liquid handling systems life science tools and single use powder and liquid handling containment solutions for industrial life science medical and aerospace applications.

Ingersoll Rand holds a leading market position in both its Industrial Technologies and Services and Precision and Science Technologies segments supported by a broad product portfolio global manufacturing footprint and deep application expertise. In the industrial compression vacuum and blower market its main competitors are Atlas Copco Flowserve IDEX Corporation Kaeser Compressors Kaishan Group and Elgi Equipments. In the precision fluid handling and life science tools market it competes with Dover Graco IDEX Corporation KNF Neuberger Netzsch NOV Sartorius SPX Flow Thermo Fisher Scientific. The company’s competitive advantages include its over 165 years of engineering heritage strong brand recognition and a large installed base that generates recurring aftermarket revenue.

The company serves a diverse range of customers including industrial manufacturers life science firms food and beverage processors water and wastewater treatment plants energy companies and infrastructure developers.

Investment Thesis

▲ Bull case

In the recent earnings call, management highlighted the successful integration and performance of the ILC Dover acquisition, particularly its Life Science business, which delivered double-digit organic order growth in Q1 and maintains a strong mid-single-digit two-year organic order stack. This indicates sustained momentum beyond a temporary rebound, driven by strategic investments in biopharma and API production reshoring in the U.S., where the company is actively collaborating with major biopharma firms to accelerate productivity through its vacuum technology solutions. The Life Science segment’s ability to outperform expectations and contribute meaningfully to PST’s 4% organic revenue growth in Q1 suggests a durable competitive advantage in high-growth, mission-critical markets that are less sensitive to industrial cyclicality. With the PST segment now representing a growing portion of the portfolio and benefiting from IRX-enabled operational excellence, the Life Science franchise is positioned to become a consistent margin-accretive growth engine, especially as the company continues to bolt on additional acquisitions into this platform. The fact that management explicitly cited this as a “good platform for M&A” and noted ongoing integration of bolt-ons into ILC Dover underscores a deliberate strategy to scale this high-potential business, which the market may be underestimating given its current contribution to overall revenue.
Ingersoll Rand’s disciplined M&A strategy continues to generate significant value through its acquisition pipeline, with over 200 companies in the funnel and 10 transactions currently at the LOI stage, more than 90% of which are internally sourced. The company recently announced the signing of Fox s.r.l., a leading manufacturer of hydropneumatic accumulators and position dampeners, which enhances its pump technology by protecting downstream equipment from pressure pulses—thereby increasing ROI for customers in metering and dosing applications. Fox will join the PST segment and complements the company’s existing flow creation technologies, enabling end-to-end solutions that strengthen its value proposition in precision industrial and life science markets. Management reiterated its expectation of acquiring 400 to 500 basis points of annualized inorganic revenue in 2026, supported by a strong value creation flywheel that generates durable free cash flow for high-return capital deployment. Given the company’s $4 billion in total liquidity and leverage well below 2x, it has ample financial flexibility to execute on this pipeline without compromising balance sheet strength. The market may be overlooking the compounding effect of these bolt-on acquisitions, which not only add revenue but also enhance cross-selling opportunities, improve technological differentiation, and reinforce the IRX operating model—creating a self-reinforcing cycle of growth and margin expansion that is not fully reflected in current valuations.
Despite near-term headwinds from tariffs and delayed long-cycle orders in the Middle East, Ingersoll Rand is positioned to benefit from a structural tailwind in Europe driven by persistently high energy prices, which management views as a potential long-term catalyst for demand. The company cited specific examples where its energy efficiency solutions are delivering upwards of $15,000 in monthly savings per location, with compressor paybacks as short as one year—demonstrating a clear return on investment that is resonating with industrial customers seeking to mitigate operating costs. Unlike temporary stimulus-driven demand spikes seen in 2022, the current environment is characterized by sustained energy cost pressures and a focus on operational efficiency, aligning closely with Ingersoll Rand’s core value proposition in flow creation and industrial productivity tools. The company is actively leveraging its demand generation tools to reassess ROI with customers and communicate energy efficiency benefits, suggesting that the sales cycle is improving as clients recognize the economic value of its technology. This shift toward efficiency-driven capital expenditure represents a structural change in customer behavior that could support sustained demand for Ingersoll Rand’s compressors, vacuum systems, and related technologies, particularly in energy-intensive industries across Europe, and is not yet fully priced into expectations for organic recovery in the second half of 2026.

In the recent earnings call, management highlighted the successful integration and performance of the ILC Dover acquisition, particularly its Life Science business, which delivered double-digit organic order growth in Q1 and maintains a strong mid-single-digit two-year organic order stack. This indicates sustained momentum beyond a temporary rebound, driven by strategic investments in biopharma and API production reshoring in the U.S., where the company is actively collaborating with major biopharma firms to accelerate productivity through its vacuum technology solutions. The Life Science segment’s ability to outperform expectations and contribute meaningfully to PST’s 4% organic revenue growth in Q1 suggests a durable competitive advantage in high-growth, mission-critical markets that are less sensitive to industrial cyclicality. With the PST segment now representing a growing portion of the portfolio and benefiting from IRX-enabled operational excellence, the Life Science franchise is positioned to become a consistent margin-accretive growth engine, especially as the company continues to bolt on additional acquisitions into this platform. The fact that management explicitly cited this as a “good platform for M&A” and noted ongoing integration of bolt-ons into ILC Dover underscores a deliberate strategy to scale this high-potential business, which the market may be underestimating given its current contribution to overall revenue.
Ingersoll Rand’s disciplined M&A strategy continues to generate significant value through its acquisition pipeline, with over 200 companies in the funnel and 10 transactions currently at the LOI stage, more than 90% of which are internally sourced. The company recently announced the signing of Fox s.r.l., a leading manufacturer of hydropneumatic accumulators and position dampeners, which enhances its pump technology by protecting downstream equipment from pressure pulses—thereby increasing ROI for customers in metering and dosing applications. Fox will join the PST segment and complements the company’s existing flow creation technologies, enabling end-to-end solutions that strengthen its value proposition in precision industrial and life science markets. Management reiterated its expectation of acquiring 400 to 500 basis points of annualized inorganic revenue in 2026, supported by a strong value creation flywheel that generates durable free cash flow for high-return capital deployment. Given the company’s $4 billion in total liquidity and leverage well below 2x, it has ample financial flexibility to execute on this pipeline without compromising balance sheet strength. The market may be overlooking the compounding effect of these bolt-on acquisitions, which not only add revenue but also enhance cross-selling opportunities, improve technological differentiation, and reinforce the IRX operating model—creating a self-reinforcing cycle of growth and margin expansion that is not fully reflected in current valuations.
Despite near-term headwinds from tariffs and delayed long-cycle orders in the Middle East, Ingersoll Rand is positioned to benefit from a structural tailwind in Europe driven by persistently high energy prices, which management views as a potential long-term catalyst for demand. The company cited specific examples where its energy efficiency solutions are delivering upwards of $15,000 in monthly savings per location, with compressor paybacks as short as one year—demonstrating a clear return on investment that is resonating with industrial customers seeking to mitigate operating costs. Unlike temporary stimulus-driven demand spikes seen in 2022, the current environment is characterized by sustained energy cost pressures and a focus on operational efficiency, aligning closely with Ingersoll Rand’s core value proposition in flow creation and industrial productivity tools. The company is actively leveraging its demand generation tools to reassess ROI with customers and communicate energy efficiency benefits, suggesting that the sales cycle is improving as clients recognize the economic value of its technology. This shift toward efficiency-driven capital expenditure represents a structural change in customer behavior that could support sustained demand for Ingersoll Rand’s compressors, vacuum systems, and related technologies, particularly in energy-intensive industries across Europe, and is not yet fully priced into expectations for organic recovery in the second half of 2026.

▼ Bear case

Ingersoll Rand’s full-year 2026 guidance calls for only 1% organic revenue growth at the midpoint, which implies a modest recovery from a slightly negative Q1 performance and low single-digit growth in the subsequent quarters. This tepid outlook is underpinned by persistent challenges in the ITS segment, where organic orders were down 3% in Q1 (flat when excluding Middle East delays) and adjusted EBITDA margin declined year-over-year due to flow-through from organic volume pressures, tariff impacts, and continued commercial investments for growth. Despite management’s confidence in a margin expansion in the second half driven by pricing actions, productivity initiatives, and volume recovery, the ITS business has experienced five consecutive quarters of year-over-year margin decline, signaling deeper structural pressures beyond temporary headwinds. The reliance on pricing actions taken in 2025 to offset tariff impacts suggests a reactive rather than proactive strategy, and the company’s admission that it is not implementing additional incremental tariff-related pricing in 2026 raises concerns about its ability to sustain margin improvement if input cost pressures persist. Furthermore, the emphasis on cost mitigation through restructuring and direct material savings—benefits that are historically more visible in the back half of the year—indicates that near-term profitability remains fragile and contingent on execution risks that may not materialize as expected.
The company’s growth strategy remains heavily dependent on M&A, with management guiding for approximately 2% of full-year revenue growth to come from inorganic sources in 2026, including the carryover from prior transactions and the recently signed Fox s.r.l. deal. While the acquisition pipeline appears robust, with over 200 targets and 10 at the LOI stage, the nature of these deals is predominantly bolt-on in character, as confirmed by management’s discussion of the pipeline with Stephen Volkmann of Jefferies, who noted that none of the current LOIs approach the size of the ILC Dover acquisition (~$1 billion). This suggests that the incremental revenue and synergies from M&A may be more modest than implied by the pipeline size, and that achieving meaningful scale through acquisitions will require larger, riskier deals that have not yet materialized. Moreover, the integration of acquired businesses—while aided by the IRX operating model—still carries execution risk, particularly in realizing revenue and cost synergies, and any failure to deliver on these expectations could undermine the value creation flywheel that management cites as a core engine of performance. Overreliance on M&A to drive growth, especially in a rising rate environment where financing costs remain elevated, could strain capital allocation discipline and divert focus from organic innovation.
Although Ingersoll Rand highlights the Life Science business as a bright spot with double-digit organic order growth in Q1 and strong momentum in biopharma and API production, the segment remains a relatively small portion of the overall portfolio, and its ability to sustain this growth rate is unproven over a full business cycle. Management’s encouragement is based on early-stage wins and customer collaboration, but there is no evidence yet that this momentum is translating into durable, scalable revenue streams independent of specific project timing or customer-specific investments. The Life Science margin profile, while described as “comparable to the overall segment,” is not explicitly stated to be superior, and the company acknowledged that double-digit growth over the entirety of the year is not something they have called for—suggesting internal recognition of growth volatility. Furthermore, the segment’s success is tightly coupled with the integration of ILC Dover and its vacuum technology, meaning that any slowdown in biopharma cap-ex or delays in customer decision-making—particularly in a sector known for lengthy approval cycles and regulatory scrutiny—could quickly reverse the current positive trend. Given that PST’s overall organic revenue growth was only 4% in Q1, and Life Science drove much of that, the segment’s outsized influence on performance raises concerns about the diversity and resilience of the company’s growth sources, especially if industrial end markets remain weak.

Ingersoll Rand’s full-year 2026 guidance calls for only 1% organic revenue growth at the midpoint, which implies a modest recovery from a slightly negative Q1 performance and low single-digit growth in the subsequent quarters. This tepid outlook is underpinned by persistent challenges in the ITS segment, where organic orders were down 3% in Q1 (flat when excluding Middle East delays) and adjusted EBITDA margin declined year-over-year due to flow-through from organic volume pressures, tariff impacts, and continued commercial investments for growth. Despite management’s confidence in a margin expansion in the second half driven by pricing actions, productivity initiatives, and volume recovery, the ITS business has experienced five consecutive quarters of year-over-year margin decline, signaling deeper structural pressures beyond temporary headwinds. The reliance on pricing actions taken in 2025 to offset tariff impacts suggests a reactive rather than proactive strategy, and the company’s admission that it is not implementing additional incremental tariff-related pricing in 2026 raises concerns about its ability to sustain margin improvement if input cost pressures persist. Furthermore, the emphasis on cost mitigation through restructuring and direct material savings—benefits that are historically more visible in the back half of the year—indicates that near-term profitability remains fragile and contingent on execution risks that may not materialize as expected.
The company’s growth strategy remains heavily dependent on M&A, with management guiding for approximately 2% of full-year revenue growth to come from inorganic sources in 2026, including the carryover from prior transactions and the recently signed Fox s.r.l. deal. While the acquisition pipeline appears robust, with over 200 targets and 10 at the LOI stage, the nature of these deals is predominantly bolt-on in character, as confirmed by management’s discussion of the pipeline with Stephen Volkmann of Jefferies, who noted that none of the current LOIs approach the size of the ILC Dover acquisition (~$1 billion). This suggests that the incremental revenue and synergies from M&A may be more modest than implied by the pipeline size, and that achieving meaningful scale through acquisitions will require larger, riskier deals that have not yet materialized. Moreover, the integration of acquired businesses—while aided by the IRX operating model—still carries execution risk, particularly in realizing revenue and cost synergies, and any failure to deliver on these expectations could undermine the value creation flywheel that management cites as a core engine of performance. Overreliance on M&A to drive growth, especially in a rising rate environment where financing costs remain elevated, could strain capital allocation discipline and divert focus from organic innovation.
Although Ingersoll Rand highlights the Life Science business as a bright spot with double-digit organic order growth in Q1 and strong momentum in biopharma and API production, the segment remains a relatively small portion of the overall portfolio, and its ability to sustain this growth rate is unproven over a full business cycle. Management’s encouragement is based on early-stage wins and customer collaboration, but there is no evidence yet that this momentum is translating into durable, scalable revenue streams independent of specific project timing or customer-specific investments. The Life Science margin profile, while described as “comparable to the overall segment,” is not explicitly stated to be superior, and the company acknowledged that double-digit growth over the entirety of the year is not something they have called for—suggesting internal recognition of growth volatility. Furthermore, the segment’s success is tightly coupled with the integration of ILC Dover and its vacuum technology, meaning that any slowdown in biopharma cap-ex or delays in customer decision-making—particularly in a sector known for lengthy approval cycles and regulatory scrutiny—could quickly reverse the current positive trend. Given that PST’s overall organic revenue growth was only 4% in Q1, and Life Science drove much of that, the segment’s outsized influence on performance raises concerns about the diversity and resilience of the company’s growth sources, especially if industrial end markets remain weak.

Segments Breakdown of Revenue (2025)

Peer Comparison

Companies in the Specialty Industrial Machinery

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	GEV	GE Vernova Inc.	270.93 Bn	28.46	6.55	2.79 Bn
2	ETN	Eaton Corp plc	156.55 Bn	39.19	5.50	21.05 Bn
3	PH	Parker-Hannifin Corp	124.04 Bn	35.64	5.91	9.58 Bn
4	CMI	Cummins Inc	91.66 Bn	34.29	2.70	6.89 Bn
5	EMR	Emerson Electric Co	82.90 Bn	67.34	4.53	13.36 Bn
6	ITW	Illinois Tool Works Inc	81.54 Bn	26.02	5.03	9.15 Bn
7	AME	Ametek Inc/	55.40 Bn	36.26	7.29	2.18 Bn
8	ROK	Rockwell Automation, Inc	51.78 Bn	53.05	5.88	3.69 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

Research Tools

Developers

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer Comparison

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