01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Ingersoll Rand Inc. reported a net loss attributable to the company of $115.3 milliona for the three months ended June 30, 2025, compared with net income of $185.0 million a year earlier, as revenue rose to $1,887.9 million from $1,805.3 million.
The decline was driven mainly by non-cash impairments: $229.7 millionb of goodwill and $36.1 million of other intangible assets in the Precision and Science Technologies segment, plus a $120.9 million impairment of its equity method investment in the legacy High Pressure Solutions business. For the six months ended June 30, 2025, revenue was $3,604.7 million and net income attributable to the company was $71.2 million, versus $387.2 million in the prior-year period. Adjusted EBITDA rose to $509.4 million for the quarter and $969.1 million for the six months, while Free Cash Flow was $433.1 million for the six months, up from $382.4 million.
Acquisitions contributed $116.4 millionc to second-quarter revenue, offset by lower organic volumes of $94.7 million and higher pricing of $33.1 million. Interest expense increased to $62.7 million for the quarter from $50.8 million, reflecting debt raised to fund the ILC Dover acquisition. Cash and cash equivalents were $1,310.6 million at June 30, 2025, and the company had $2,600.0 million of unused availability under its Revolving Credit Facility and Commercial Paper Program.
Management stated that the goodwill and intangible impairments were partly driven by higher discount rates and reduced forecasts for the Biopharma and Aerospace & Defense reporting units. After the quarter end, on July 1, 2025, the company completed the acquisition of Termomeccanica Industrial Compressors S.p.A. and Adicomp S.p.A. for approximately €160 million. The company also repurchased $510.2 milliond of treasury stock in the six-month period, and its board increased the share repurchase authorization by $1.0 billion on May 1, 2025.
02—Key points
Key Highlights
- Net loss attributable to Ingersoll Rand Inc. of $115.3 million in Q2 2025, versus net income of $185.0 million in Q2 2024, driven by non-cash impairments.
- Impairment of goodwill of $229.7 million and other intangible assets of $36.1 million, with a further $120.9 million impairment of the equity method investment in the legacy HPS business.
- Revenue rose to $1,887.9 million in Q2 2025 from $1,805.3 million, with acquisitions adding $116.4 million, partly offset by lower organic volumes of $94.7 million.
- Adjusted EBITDA of $509.4 million in Q2 2025 versus $494.6 million a year earlier; Free Cash Flow of $433.1 million for the six months, up from $382.4 million.
- Interest expense rose to $62.7 million in Q2 2025 from $50.8 million, mainly from long-term debt used to fund the ILC Dover acquisition.
- Cash and cash equivalents of $1,310.6 million at June 30, 2025, with $2,600.0 million of unused revolving credit and commercial paper availability.
- Subsequent event: acquisition of Termomeccanica Industrial Compressors and Adicomp for approximately €160 million, completed July 1, 2025.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2025, Ingersoll Rand lost $0.06.
- Revenue$1.89B100.0%
- Cost of revenue−$1.06B56.3%
- Gross profit$824.9M43.7%
- Operating costs−$748.5M39.6%
- Operating income$76.4M4.0%
- Interest, other & tax−$191.7M10.2%
- Net income−$115.3M6.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.89B$1.81B | +4.6% |
| Cost of Revenue | $1.06B$1.01B | +5.0% |
| Gross Profit | $824.90M$793.30M | +4.0% |
| SG&A Expenses | $371.20M$342.10M | +8.5% |
| Operating Income | $76.40M$271.80M | −71.9% |
| Net Income | -$115.30M$185.00M | −162.3% |
| EPS (Basic) | $-0.29$0.46 | −163.0% |
| EPS (Diluted) | $-0.29$0.45 | −164.4% |
| Shares Outstanding (Basic) | 400.50M403.50M | −0.7% |
| Shares Outstanding (Diluted) | 400.50M407.40M | −1.7% |
05—Questions
Frequently Asked Questions
Why did Ingersoll Rand report a net loss in the second quarter of 2025?
The net loss of $115.3 million attributable to the company was primarily due to non-cash impairments: $229.7 million of goodwill, $36.1 million of other intangible assets, and $120.9 million on the equity method investment in the legacy High Pressure Solutions business. Management attributed the goodwill impairment for the Biopharma and Aerospace & Defense reporting units to higher discount rates, lower market multiples, and a reduced long-term forecast with a significant customer.
How did revenue and profitability trend excluding the impairments?
Revenue grew 4.6% in the quarter to $1,887.9 million, helped by acquisitions of $116.4 million and higher pricing of $33.1 million, while lower organic volumes of $94.7 million partly offset those gains. Adjusted EBITDA increased $14.8 million to $509.4 million, although its margin declined 40 basis points to 27.0%.
What is the company's liquidity position?
At June 30, 2025, the company held $1,310.6 million of cash and cash equivalents and total debt of $4,783.4 million. It had $2,600.0 million of unused availability under the Revolving Credit Facility and Commercial Paper Program and stated it was in compliance with all debt covenants.
What major transactions occurred during or after the quarter?
During the six months, the company completed several acquisitions for $210.4 million in net cash, including SSI Aeration, Lead Fluid and G & D Chillers. It repurchased $510.2 million of treasury stock and its board increased the share repurchase authorization by $1.0 billion on May 1, 2025. On July 1, 2025, it completed the acquisition of Termomeccanica Industrial Compressors and Adicomp for approximately €160 million.
06—Continue