01—Abstract
Summary
Summary of the 10-Q filed October 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Ingersoll Rand Inc. reported third-quarter 2025 revenues of $1,955.0 milliona, up from $1,861.0 million a year earlier, with net income attributable to Ingersoll Rand Inc. of $244.1 million versus $221.6 million.
Growth was driven primarily by acquisitions of $88.3 millionb and higher pricing of $49.4 million, partially offset by lower organic volumes of $73.7 million. Diluted EPS was $0.61 compared with $0.54. Adjusted EBITDA rose to $544.6 million from $532.7 million, though its margin declined to 27.9% from 28.6%, which management attributed to unfavorable cost leverage on lower organic volumes and tariff-related pricing.
Nine-month results were weaker, reflecting non-cash impairments recorded in the second quarter of 2025. The company recognized goodwill impairments of $229.7 millionc, a $36.1 million impairment of an indefinite-lived tradename, and a $127.1 million loss on equity method investments tied to its HPS stake. Net income attributable to Ingersoll Rand Inc. fell to $315.3 million from $608.8 million, and nine-month operating income declined to $754.4 million from $921.3 million.
Nine-month cash flow from operations was $856.7 milliond, and free cash flow was $758.6 million. Balance sheet capacity remains substantial. Cash and cash equivalents stood at $1,176.6 million, total debt at $4,788.1 million, and $2,600.0 million was available under the Revolving Credit Facility.
Acquisitions consumed $459.8 million of cash in the nine months, including TMIC/Adicomp for $193.7 million. The company also bought $703.3 million of treasury stock during the period, and $2,201.5 million of treasury stock now sits on the balance sheet.
02—Key points
Key Highlights
- Third-quarter revenues rose 5.1% to $1,955.0 million, driven by acquisitions of $88.3 million and higher pricing of $49.4 million, partly offset by lower organic volumes of $73.7 million.
- Third-quarter diluted EPS was $0.61 versus $0.54 a year earlier, and net income attributable to Ingersoll Rand Inc. was $244.1 million versus $221.6 million.
- Adjusted EBITDA increased to $544.6 million from $532.7 million, but its margin fell to 27.9% from 28.6%.
- Nine-month results include $229.7 million of goodwill impairments, a $36.1 million tradename impairment, and a $127.1 million equity method investment loss, reducing nine-month net income attributable to Ingersoll Rand Inc. to $315.3 million from $608.8 million.
- Nine-month cash flow from operations was $856.7 million and free cash flow was $758.6 million, compared with $870.5 million and $756.7 million a year earlier.
- The company spent $459.8 million on acquisitions and $703.3 million on treasury stock repurchases during the first nine months of 2025.
- At September 30, 2025, cash was $1,176.6 million, total debt was $4,788.1 million, and $2,600.0 million of revolver capacity was unused.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Ingersoll Rand kept $0.12.
- Revenue$1.96B100.0%
- Cost of revenue−$1.10B56.3%
- Gross profit$855.2M43.7%
- Operating costs−$479.7M24.5%
- Operating income$375.5M19.2%
- Interest, other & tax−$131.4M6.7%
- Net income$244.1M12.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 31, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.96B$1.86B | +5.1% |
| Cost of Revenue | $1.10B$1.05B | +5.1% |
| Gross Profit | $855.20M$815.00M | +4.9% |
| SG&A Expenses | $361.00M$334.30M | +8.0% |
| Operating Income | $375.50M$356.30M | +5.4% |
| Net Income | $244.10M$221.60M | +10.2% |
| EPS (Basic) | $0.62$0.55 | +12.7% |
| EPS (Diluted) | $0.61$0.54 | +13.0% |
| Shares Outstanding (Basic) | 396.00M403.40M | −1.8% |
| Shares Outstanding (Diluted) | 399.00M406.90M | −1.9% |
05—Questions
Frequently Asked Questions
Why did net income decline sharply in the first nine months of 2025?
Nine-month net income was $320.4 million versus $614.4 million a year earlier, mainly due to second-quarter non-cash charges: $229.7 million of goodwill impairment in the Precision and Science Technologies segment, $36.1 million of tradename impairment, and a $127.1 million loss on equity method investments. The Biopharma and Aerospace & Defense reporting units, both from the ILC Dover acquisition, drove the goodwill impairments.
How did the company's segments perform in the third quarter?
Industrial Technologies and Services revenues rose to $1,540.5 million from $1,467.2 million, but Segment Adjusted EBITDA slipped 0.5% to $447.5 million and its margin fell to 29.0% from 30.7%. Precision and Science Technologies revenues rose to $414.5 million from $393.8 million, and Segment Adjusted EBITDA increased 8.0% to $127.6 million, with its margin rising to 30.8% from 30.0%.
What is the company's liquidity position and how is it using cash?
The company held $1,176.6 million of cash at September 30, 2025, and had $2,600.0 million of unused availability under both its Revolving Credit Facility and Commercial Paper Program. Management believes operating cash flow and these facilities will fund obligations for the next twelve months. Cash was used for acquisitions of $459.8 million and treasury stock purchases of $703.3 million in the nine months, with the Board having authorized additional share repurchase capacity of $1.0 billion on May 1, 2025, leaving $1,300.1 million available under the program at the end of August 2025.
What drove the increase in interest expense?
Nine-month interest expense rose to $189.0 million from $151.4 million, primarily due to higher long-term debt used to fund the ILC Dover acquisition and the effects of interest rate derivative contracts. The weighted average interest rate including derivatives was approximately 5.0% for the nine months, compared with 5.2% a year earlier.
06—Continue