Ingersoll Rand (IR) Q3 2025 earnings summary

Executive summary

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

• Net income for Q3 2025 was $245.8 million, up from $223.4 million in Q3 2024, with adjusted net income at $346 million ($0.86 per share).

• Adjusted EBITDA for Q3 2025 was $545 million, margin at 27.9%, 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 $249 million deployed to M&A in Q3.

• Strong free cash flow generation and liquidity of $3.8 billion support disciplined capital deployment and strategic flexibility.

Financial highlights

• Q3 2025 orders up 8% year-over-year to $1,942 million; revenue up 5% to $1,955 million; book-to-bill ratio at 0.99x for the quarter, 1.04x year-to-date.

• Adjusted EBITDA margin for Q3 was 27.9%; adjusted 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 at 16.6%.

• Net income for Q3 was $245.8 million; diluted EPS was $0.61.

• Total liquidity at $3.8 billion; leverage at 1.8x net debt/EBITDA.

Outlook and guidance

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

• Adjusted EBITDA guidance midpoint revised to $2,075 million (from $2,130 million); adjusted EPS guidance midpoint lowered to $3.28 (from $3.40), reflecting tariff impacts and delayed price realization.

• Adjusted tax rate expected at 23.5%, net interest expense at $220 million, CapEx at 2% of revenue, and share count at 402 million.

• Margin expansion expected to be muted in the first half of 2026, with improvement in the second half as pricing actions take effect.

• Management continues to monitor macroeconomic, tariff, and currency impacts, adapting cost structure as needed.