# Ingersoll Rand (IR)

Sector: Industrial machinery (compressors, pumps and flow equipment)

| Field | Value |
|---|---|
| Price | $85.08 |
| Market cap | $33B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-12 |
| Next earnings | 2027-02-11 (estimate) |

Analysts: Leaning bullish

Picks: Research only

Discount category: Close to intrinsic value

## In short

The market prices Ingersoll Rand as a cyclical industrial company with pressure on margins, and orders that turn into revenue with a margin recovery can lift its value.

## Themes and gap

- Themes: Tariffs and trade (trade-tariffs)
- Gap type: Can close (closable)
- Why: The Q4 report in February 2027 shows whether orders turn into revenue and whether margins recover.

## About

Ingersoll Rand Inc. makes mission-critical flow creation and life science and industrial equipment, from its base in Davidson, North Carolina. It has two segments. Industrial Technologies and Services (IT&S) sells compressors, vacuum products, blowers, air treatment, power tools and lifting equipment, and made $1,620 million of Q3 2026 revenue. Precision and Science Technologies (P&ST) sells liquid, gas, air and powder handling equipment for life sciences, industrial, aerospace and defense uses, and made $445 million. Q3 2026 orders were $2,345 million, up 21%, revenue was $2,065 million, up 6%, and adjusted EBITDA was $584 million, which is 28.3% of revenue. Vicente Reynal is Chairman and Chief Executive Officer. Ingersoll Rand grows by buying companies: it bought Lone Star Blower for $88.9 million on August 3, 2026. The pick is the common stock on the NYSE (IR), in US dollars.

## Thesis

The market prices Ingersoll Rand as a cyclical industrial company whose margins are under pressure from inflation and tariffs. The IT&S adjusted EBITDA margin without tariff refunds fell 1.2 percentage points from a year earlier to 27.8% in Q3 2026. Reported Q3 profit also included a $380.1 million gain from the ILC Dover insurance settlements and a tariff refund, so adjusted results without the refunds are the cleaner measure. For the price to rise, the orders that grew 18% organically in Q3 must turn into revenue above the 2% to 3.5% organic growth that the company guides for 2026, margins must recover from inflation, and buybacks and acquisitions must keep adding to earnings per share. The board added $2 billion to the buyback program. The Q4 report in February 2027 and its 2027 plan are the next test. If orders convert and margins recover, the gap can close within about two years. If costs keep rising faster than prices, or if industrial demand weakens, the gap could last longer.

## Checkpoints

- Feb 11, 2027 (estimate): Q4 2026 results and 2027 guidance. Status: Pending. Watch: Full-year adjusted EBITDA of $2,130 million or more without tariff refunds, with growth guided for 2027, passes; lower EBITDA or flat guidance fails.
- Apr 29, 2027 (estimate): Q1 2027 results: IT&S margin. Status: Pending. Watch: An IT&S adjusted EBITDA margin above the Q3 2026 level of 27.8% without refunds passes; a lower margin fails.

## Balance sheet

At September 30, 2026, Ingersoll Rand had cash of $1,342.7 million and debt of $4,736.5 million ($700.2 million due within a year and $4,036.3 million long-term), so net debt was $3,393.8 million. Net debt to adjusted EBITDA was 1.6 times. Liquidity was $3.9 billion, which includes $2.6 billion of undrawn credit lines. Equity attributable to Ingersoll Rand was $10,503.0 million and noncontrolling interests were $65.0 million. It had 384,019,778 shares outstanding at October 23, 2026. In Q3 2026 it bought back $350 million of shares. The share repurchase authorization is $313 million remaining plus a $2 billion increase. All amounts are in US dollars.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/1699150/000162828026068577/iri-20260930.htm
- https://www.sec.gov/Archives/edgar/data/1699150/000162828026068260/ir2026q3ex991.htm

## Dividends

- Dividend yield: 0.1% (last 12 months, at the current price)
- Paid per share, last 12 months: $0.08 (4 payments)
- Current annual rate: $0.08 ($0.02 x 4 a year)
- Payout ratio: 6% of the earnings of the last fiscal year (the year ended 2025-12-31)
- Latest ex-dividend date: 2026-11-12, $0.02 per share

Dividends per share by year: 2016: $0.00, 2017: $0.00, 2018: $0.00, 2019: $2.12, 2020: $0.00, 2021: $0.02, 2022: $0.08, 2023: $0.08, 2024: $0.08, 2025: $0.08.

Source: company filings and market data, read on 2026-11-13.

## Recent events

- 2026-10-30: Ingersoll Rand said that Michael Weatherred, Senior Vice President of the Precision and Science Technologies segment, retired on October 27, 2026 and will advise the company through May 2028. The board also approved a new performance-based equity award for Vicente Reynal, the Chief Executive Officer.
- 2026-10-29: Ingersoll Rand reported Q3 2026 results. Orders were $2,345 million, up 21%, revenue was $2,065 million, up 6%, and adjusted net income was $415 million ($1.07 per share). Without IEEPA tariff refunds, adjusted EBITDA was $552 million and adjusted earnings per share were $1.01. It updated its 2026 guidance and added $2 billion to its share repurchase program.
- 2026-10-29: Ingersoll Rand said that it reached settlements with insurance carriers and other parties for the ILC Dover transaction, with gross recoveries of about $425.1 million. It collected $25.0 million in Q2 and $162.5 million in Q3 2026 and expects the rest in Q4 2026. It also expected to close the purchase of a US pump manufacturer on October 30, 2026.
- 2026-08-03: Ingersoll Rand completed the purchase of Lone Star Blower, Inc. for $88.9 million in cash. Lone Star makes blowers and compressors and joins the IT&S segment.

## Latest news and filings

- Last earnings: 2026-10-29 (8-K: https://www.sec.gov/Archives/edgar/data/1699150/000162828026068260/)
- Next earnings: 2027-02-11 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-10-30 | 8-K | Change of directors or officers and Investor disclosure |  |  | https://www.sec.gov/Archives/edgar/data/1699150/000114036126041330/ef20084631_8k.htm |
| 2026-10-30 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | iri-20260930 | https://www.sec.gov/Archives/edgar/data/1699150/000162828026068577/iri-20260930.htm |
| 2026-10-29 | 8-K | Earnings release |  | iri-20261029 | https://www.sec.gov/Archives/edgar/data/1699150/000162828026068260/ |
| 2026-07-31 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | iri-20260630 | https://www.sec.gov/Archives/edgar/data/1699150/000162828026051415/iri-20260630.htm |
| 2026-07-30 | 8-K | Earnings release |  | iri-20260730 | https://www.sec.gov/Archives/edgar/data/1699150/000162828026051068/ |
| 2026-06-16 | 8-K | Change of directors or officers and Shareholder vote results |  |  | https://www.sec.gov/Archives/edgar/data/1699150/000114036126025458/ef20076198_8k.htm |
| 2026-04-29 | 10-Q | Quarterly report for the period ended Mar 31, 2026 | 2026-03-31 | iri-20260331 | https://www.sec.gov/Archives/edgar/data/1699150/000162828026028401/iri-20260331.htm |
| 2026-04-28 | 8-K | Earnings release |  | iri-20260428 | https://www.sec.gov/Archives/edgar/data/1699150/000162828026027949/ |
| 2026-02-17 | 10-K | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | iri-20251231 | https://www.sec.gov/Archives/edgar/data/1699150/000162828026008617/iri-20251231.htm |
| 2026-02-12 | 8-K | Earnings release |  | iri-20260212 | https://www.sec.gov/Archives/edgar/data/1699150/000162828026007710/ |

Every filing on SEC EDGAR (CIK 1699150): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001699150&type=&dateb=&owner=include&count=40

## Risks

- High: Industrial cycle. Orders for compressors, pumps and other equipment follow industrial spending. A fall in demand would cut revenue, and fixed costs would cut profit faster.
- Medium: Margin pressure. The IT&S adjusted EBITDA margin without tariff refunds was down 1.2 percentage points from a year earlier in Q3 2026, mainly because of inflation. Tariffs add costs, and refunds of IEEPA tariffs may not repeat.
- Medium: Acquisitions. Ingersoll Rand grows through many purchases. A purchase can fail to deliver its profit. In 2025 it booked impairments of $229.7 million on businesses from the ILC Dover transaction.
- Medium: Debt. Debt was $4,736.5 million at September 30, 2026, of which $700.2 million, the 5.197% notes due June 2027, is current. Net debt to adjusted EBITDA was 1.6 times.
- Low: Leadership changes. The segment head of Precision and Science Technologies retired in October 2026, and the board gave the Chief Executive Officer a new equity award tied to performance.

## Links

- Page: https://picks.utilarium.app/company/IR/
- History of changes: https://picks.utilarium.app/company/IR/history/
- JSON with full history: https://picks.utilarium.app/data/company/IR.json

> Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.