Ingersoll Rand (IR) investor relations material

Executive summary

• Q3 2025 revenues increased 5–5.1% year-over-year to $1,955 million, driven by acquisitions, higher pricing, and favorable currency, with organic orders up 2% and book-to-bill at 1.04x.

• Net income for Q3 2025 was $244–$245.8 million, up from the prior year, with adjusted net income at $346 million and adjusted EPS at $0.86.

• Adjusted EBITDA for Q3 2025 was $545 million (27.9% margin), up 2% year-over-year, though margin declined 70 bps due to cost leverage and acquisition impacts.

• Closed 14 bolt-on acquisitions year-to-date, including Dave Barry Plastics, with nine more under letters of intent, enhancing technological and portfolio strength.

• Liquidity stood at $3.8 billion as of September 30, 2025, supporting continued M&A and shareholder returns.

Financial highlights

• Q3 2025 gross profit was $855.2–$1,099.8 million (43.7% margin), with operating income at $375.5 million and net income at $244–$245.8 million.

• Adjusted EBITDA was $545 million (27.9% margin); adjusted diluted EPS was $0.86, up 2% year-over-year.

• Free cash flow for Q3 was $326 million, nearly flat year-over-year; free cash flow margin was 16.6%.

• Share repurchases in Q3 totaled $193 million, with $700 million returned to shareholders year-to-date.

• Leverage ratio was 1.7–1.8x net debt/adjusted EBITDA.

Outlook and guidance

• Full-year 2025 revenue growth expected at 4–6%, with organic revenue flat to down 2%.

• Adjusted EBITDA guidance midpoint revised to $2,075 million due to tariffs; adjusted EPS guidance midpoint lowered to $3.28.

• Adjusted tax rate expected at 23.5%, net interest expense at $220 million, CapEx at 2% of revenue.

• Guidance does not reflect potential tariff reductions; pricing actions expected to offset tariffs in 2026.

• Management monitoring macroeconomic, tariff, and currency impacts; no specific quantitative forward guidance beyond 2025.