Ingersoll Rand (IR) Q4 2025 earnings summary

Executive summary

• Ended 2025 with low single-digit organic order growth and positive adjusted EPS growth, supported by robust recurring revenue and disciplined M&A, despite global challenges and tariff pressures.

• Recurring revenue exceeded $450 million in 2025, with a $1.1 billion backlog from existing contracts.

• Closed 16 M&A transactions in 2025, investing $525 million and generating $275 million in annualized inorganic revenue.

• Completed first 2026 acquisition (Scinomix) to advance life sciences strategy.

• Leveraged operational agility and a global manufacturing footprint to outperform in key markets.

Financial highlights

• Q4 2025 orders up 8% year-over-year to $1,952M; full-year orders up 9% to $7,716M.

• Q4 2025 revenue up 10% to $2,091M; organic revenue up 3% year-over-year.

• Q4 adjusted EBITDA: $580M, up 9% year-over-year; margin 27.7%.

• Q4 adjusted EPS: $0.96, up 14% year-over-year; adjusted tax rate 21.2%.

• Full-year adjusted EBITDA: $2,094M, up 4% year-over-year; margin 27.4%.

• Full-year adjusted EPS: $3.34, up 2% year-over-year; adjusted tax rate 22.8%.

• Free cash flow in Q4: $462M; full-year: $1,220M; total liquidity $3.8B; leverage well under 2x.

• $1 billion in share repurchases and $32 million in dividends in 2025.

Outlook and guidance

• 2026 revenue expected to grow 2.5%-4.5%, driven by 1% organic order growth, 1.5% M&A, and 1% FX tailwind.

• 2026 adjusted EBITDA guidance: $2,130M–$2,190M; corporate costs $170M.

• 2026 adjusted EPS: $3.45–$3.57 (up 3–7%); adjusted tax rate ~23%.

• Free cash flow to adjusted net income conversion expected at ~95%.

• No meaningful market recovery embedded in guidance; assumes current trajectory continues.

• Q1 2026 organic revenue expected to be flat or slightly down, with low single-digit growth in Q2-Q4.

• EPS growth expected to be mid-single digits in both halves of 2026.

• Revenue and earnings phasing: 1H 48%, 2H 52%.