# Ingersoll Rand Inc. (IR) Q2 2025 Financial Results Summary
Ingersoll Rand Inc. (NYSE: IR) released its financial results for the second quarter of 2025 on July 31, 2025. The company reported record performance driven by strong operational execution.
## Q2 2025 Highlights
– **Total Orders:** $1,940 million, **up 8%** from Q2 2024
– **Total Revenues:** $1,888 million, **up 5%** from Q2 2024
– **Net Income (Loss):** $(115) million, or $(0.29) per share
– **Adjusted Net Income:** $325 million, or $0.80 per share
– **Adjusted EBITDA:** $509 million, **up 3%**, with an Adjusted EBITDA margin of **27.0%**
– **Operating Cash Flow:** $246 million
– **Free Cash Flow:** $210 million
– **Liquidity:** $3.9 billion as of June 30, 2025, including $1.3 billion in cash and a $2.6 billion undrawn capacity under credit facilities
– **Shareholder Returns:**
– Approximately **$508 million** returned to shareholders through **$500 million** in share repurchases and **$8 million** in quarterly dividends.
## Segment Performance
### Industrial Technologies and Services Segment (IT&S)
– **Orders:** $1,561 million, **up 7%** (1% organic growth)
– **Revenues:** $1,492 million, **up 2%** (down 4% organic)
– **Adjusted EBITDA:** $427 million, **down 2%**
– **Adjusted EBITDA Margin:** **28.6%**, down **110 basis points**
### Precision and Science Technologies Segment (P&ST)
– **Orders:** $379 million, **up 13%** (down 5% organic)
– **Revenues:** $396 million, **up 17%** (down 2% organic)
– **Adjusted EBITDA:** $117 million, **up 14%**
– **Adjusted EBITDA Margin:** **29.5%**, down **80 basis points**
## Financial Position
– **Free Cash Flow Margin:** **11.1%**, down from **15.7%** in Q2 2024
– **Net Debt to Adjusted EBITDA:** 1.7x, a decrease of **0.3x** compared to Q2 2024
– The company remains financially strong with ample liquidity of **$3.9 billion**.
## Capital Allocation and Acquisitions
– In Q2 2025, Ingersoll Rand allocated **$47 million** to mergers and acquisitions.
– Significant acquisitions include:
– Lead Fluid, an advanced fluid handling manufacturer
– Termomeccanica Industrial Compressor S.p.A., a provider of engineered solutions in the renewable natural gas industry.
## Guidance and Outlook
– Ingersoll Rand has raised its full-year 2025 guidance for revenue, Adjusted EBITDA, and Adjusted EPS.
– **Revenue Growth:** 4-6% (with organic growth projected between -2% to 0%)
– **Adjusted EBITDA:** $2,100 million – $2,160 million, up **4-7%** YoY
– **Adjusted EPS:** $3.34 – $3.46, up **2-5%** YoY
## Summary
Ingersoll Rand’s Q2 2025 results reflect robust growth in orders and revenues, despite a net loss attributed primarily to non-cash impairments. The company maintains significant liquidity and continues to invest in M&A while modeling a positive outlook for the remainder of 2025.
For additional details, Ingersoll Rand will host a live earnings conference call on August 1, 2025, at 8:00 a.m. (Eastern Time).
Here are the extracted tables from the press release:
### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
*(Unaudited; in millions, except per share amounts)*
| For the Three Month Period Ended June 30, | For the Six Month Period Ended June 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenues | $ 1,887.9 | $ 1,805.3 | $ 3,604.7 | $ 3,475.4 |
| Cost of sales | 1,063.0 | 1,012.0 | 2,014.3 | 1,935.8 |
| Gross Profit | 824.9 | 793.3 | 1,590.4 | 1,539.6 |
| Selling and administrative expenses | 371.2 | 342.1 | 721.2 | 678.4 |
| Amortization of intangible assets | 91.6 | 91.2 | 182.9 | 182.8 |
| Impairment of goodwill | 229.7 | — | 229.7 | — |
| Impairment of other intangible assets | 36.1 | — | 36.1 | — |
| Other operating expense, net | 19.9 | 88.2 | 41.6 | 113.4 |
| Operating Income | 76.4 | 271.8 | 378.9 | 565.0 |
| Interest expense | 62.7 | 50.8 | 123.9 | 87.6 |
| Loss on extinguishment of debt | — | 3.0 | — | 3.0 |
| Other income, net | -14.4 | -18.1 | -26.2 | -31.3 |
| Income Before Income Taxes | 28.1 | 236.1 | 281.2 | 505.7 |
| Provision for income taxes | 21.0 | 46.1 | 79.5 | 100.5 |
| Loss on equity method investments | -120.9 | -3.5 | -127.1 | -14.2 |
| Net Income (Loss) | -113.8 | 186.5 | 74.6 | 391.0 |
| Less: Net income attributable to | 1.5 | 1.5 | 3.4 | 3.8 |
| noncontrolling interests | ||||
| Net Income (Loss) Attributable to | $ -115.3 | $ 185.0 | $ 71.2 | $ 387.2 |
| Ingersoll Rand Inc. | ||||
| Basic earnings (loss) per share | -0.29 | 0.46 | 0.18 | 0.96 |
| Diluted earnings (loss) per share | -0.29 | 0.45 | 0.18 | 0.95 |
### CONDENSED CONSOLIDATED BALANCE SHEETS
*(Unaudited; in millions, except share amounts)*
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,310.6 | $ 1,541.2 |
| Accounts receivable, net of allowance for credit losses of $66.2 and $57.3, respectively | 1,387.9 | 1,335.4 |
| Inventories | 1,205.6 | 1,055.0 |
| Other current assets | 284.3 | 231.9 |
| Total current assets | 4,188.4 | 4,163.5 |
| Property, plant and equipment, net of accumulated depreciation of $653.7 and $567.5, respectively | 879.4 | 842.1 |
| Goodwill | 8,276.6 | 8,148.1 |
| Other intangible assets, net | 4,334.6 | 4,372.8 |
| Deferred tax assets | 27.4 | 26.1 |
| Other assets | 352.7 | 457.2 |
| Total assets | $ 18,059.1 | $ 18,009.8 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Short-term borrowings and current maturities of long-term debt | $ 2.0 | $ 3.1 |
| Accounts payable | 832.8 | 843.6 |
| Accrued liabilities | 997.6 | 972.2 |
| Total current liabilities | 1,832.4 | 1,818.9 |
| Long-term debt, less current maturities | 4,781.4 | 4,754.4 |
| Pensions and other postretirement benefits | 149.8 | 139.3 |
| Deferred income tax liabilities | 665.7 | 757.6 |
| Other liabilities | 472.4 | 294.3 |
| Total liabilities | $ 7,901.7 | $ 7,764.5 |
| Stockholders’ equity: | ||
| Common stock, $0.01 par value; 1,000,000,000 shares authorized; 431,525,684 and 430,745,964 shares issued as of June 30, 2025 and December 31, 2024, respectively | $ 4.3 | $ 4.3 |
| Capital in excess of par value | 9,672.2 | 9,633.6 |
| Retained earnings | 2,558.6 | 2,503.5 |
| Accumulated other comprehensive loss | -140.8 | -468.5 |
| Treasury stock at cost; 34,098,049 and 27,865,885 shares as of June 30, 2025 and December 31, 2024, respectively | $ -2,007.0 | $ -1,493.9 |
| Total Ingersoll Rand stockholders’ equity | $ 10,087.3 | $ 10,179.0 |
| Noncontrolling interests | 70.1 | 66.3 |
| Total stockholders’ equity | $ 10,157.4 | $ 10,245.3 |
| Total liabilities and stockholders’ equity | $ 18,059.1 | $ 18,009.8 |
