Why did Ingersoll Rand report a net loss in the second quarter when Adjusted net income was positive?

The reported net loss attributable to Ingersoll Rand Inc. of $115 million ($0.29 per share) reflects non-cash charges, including impairments of goodwill and other intangible assets totaling $265.8 million and a $120.9 million loss on equity method investments. The company states these items do not affect adjusted earnings or underlying operational performance. Adjusted net income was $325 million ($0.80 per share).

What drove the impairments recorded in the second quarter?

The filing attributes the majority of the impairment to revised long-term forecasts for the company's minority stake in the High Pressure Solution business, due to lower upstream oil and gas demand, and to a reduction in business with a significant customer in the ILC Dover Aerospace and Defense reporting unit. A smaller part reflects a lower value for the ILC Dover trade name. The ILC Dover Biopharma goodwill was impaired mainly due to an increased discount rate and contraction of peer market multiples, even though its long-term forecast remains robust.

What is the updated full-year 2025 outlook?

Ingersoll Rand raised full-year 2025 guidance for total revenue growth of 4% to 6%, Adjusted EBITDA of $2,100 million to $2,160 million (up 4% to 7% year over year) and Adjusted EPS of $3.34 to $3.46 (up 2% to 5%). Organic revenue guidance is (2)% to 0% for the company and for both segments, with FX impact of approximately 1% and M&A contribution of approximately $375 million.

How is the company returning capital and deploying cash?

In the second quarter, the company returned approximately $508 million to shareholders, consisting of $500 million in share repurchases and $8 million in dividends, and deployed $47 million to M&A. It closed the Lead Fluid acquisition, a Chinese maker of advanced fluid handling products for life science applications, and the Termomeccanica Industrial Compressor (TMIC) acquisition, an Italian provider of engineered-to-order solutions for the renewable natural gas industry. Management says it is more than halfway toward its annualized inorganic growth target.

IR 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.

Ingersoll Rand Inc. (NYSE: IR) reported second quarter 2025 results, which it described as record second-quarter orders, revenues and Adjusted EBITDA.

Reported orders were $1,940 million^a, up 8%, and reported revenues were $1,888 million, up 5%. The company reported a net loss attributable to Ingersoll Rand Inc. of $115 million, or $0.29 per share, driven by non-cash impairments of $265.8 million. Excluding these and other adjustments, Adjusted net income was $325 million, or $0.80 per share, and Adjusted EBITDA was $509 million, up 3%, with a margin of 27.0%.

By segment, Industrial Technologies and Services reported orders of $1,561 million^b, up 7% (up 1% organic), and revenues of $1,492 million, up 2% (down 4% organic). Precision and Science Technologies reported orders of $379 million, up 13% (down 5% organic), and revenues of $396 million, up 17% (down 2% organic). The company reported operating cash flow of $246 million and free cash flow of $210 million, and ended the quarter with liquidity of $3.9 billion, including $1.3 billion of cash on hand.

It returned approximately $508 million^c to shareholders, including $500 million in share repurchases, and deployed $47 million to M&A in the quarter. Management raised full-year 2025 guidance for revenue (4% to 6% growth), Adjusted EBITDA ($2,100 million to $2,160 million, up 4% to 7% year over year) and Adjusted EPS ($3.34 to $3.46, up 2% to 5%). Organic revenue guidance is (2)% to 0% for the company and for each segment.

02—Key points

Key Highlights

Reported second-quarter orders of $1,940 million, up 8%, and revenues of $1,888 million, up 5%.
Reported net loss attributable to Ingersoll Rand Inc. of $115 million ($0.29 per share), including $265.8 million of impairments of goodwill and other intangible assets; Adjusted net income was $325 million ($0.80 per share).
Adjusted EBITDA of $509 million, up 3%, with a margin of 27.0%; Industrial Technologies and Services segment Adjusted EBITDA margin was 28.6% and Precision and Science Technologies was 29.5%.
Operating cash flow of $246 million and free cash flow of $210 million; net debt to Adjusted EBITDA leverage of 1.7x, a decrease of 0.3x from the prior year.
Liquidity of $3.9 billion as of June 30, 2025, including $1.3 billion of cash and $2.6 billion of undrawn credit facility capacity.
Returned approximately $508 million to shareholders, including $500 million in share repurchases; closed the Lead Fluid and Termomeccanica Industrial Compressor (TMIC) acquisitions.
Raised full-year 2025 guidance for revenue (4% to 6%), Adjusted EBITDA ($2,100 million to $2,160 million) and Adjusted EPS ($3.34 to $3.46).

03—Questions

Frequently Asked Questions

Why did Ingersoll Rand report a net loss in the second quarter when Adjusted net income was positive?
The reported net loss attributable to Ingersoll Rand Inc. of $115 million ($0.29 per share) reflects non-cash charges, including impairments of goodwill and other intangible assets totaling $265.8 million and a $120.9 million loss on equity method investments. The company states these items do not affect adjusted earnings or underlying operational performance. Adjusted net income was $325 million ($0.80 per share).
What drove the impairments recorded in the second quarter?
The filing attributes the majority of the impairment to revised long-term forecasts for the company's minority stake in the High Pressure Solution business, due to lower upstream oil and gas demand, and to a reduction in business with a significant customer in the ILC Dover Aerospace and Defense reporting unit. A smaller part reflects a lower value for the ILC Dover trade name. The ILC Dover Biopharma goodwill was impaired mainly due to an increased discount rate and contraction of peer market multiples, even though its long-term forecast remains robust.
How did the segments perform on an organic basis?
Industrial Technologies and Services reported organic orders growth of 0.9% and organic revenue decline of 3.8% in the quarter; the filing notes its second consecutive quarter of organic orders growth and a first-half book-to-bill of 1.07x. Precision and Science Technologies reported organic orders decline of 4.7% and organic revenue decline of 1.6%, which the company attributes to large, long-cycle orders in the prior-year second quarter that did not repeat. Excluding those orders, P&ST organic orders grew low-single-digits.
What is the updated full-year 2025 outlook?
Ingersoll Rand raised full-year 2025 guidance for total revenue growth of 4% to 6%, Adjusted EBITDA of $2,100 million to $2,160 million (up 4% to 7% year over year) and Adjusted EPS of $3.34 to $3.46 (up 2% to 5%). Organic revenue guidance is (2)% to 0% for the company and for both segments, with FX impact of approximately 1% and M&A contribution of approximately $375 million.
How is the company returning capital and deploying cash?
In the second quarter, the company returned approximately $508 million to shareholders, consisting of $500 million in share repurchases and $8 million in dividends, and deployed $47 million to M&A. It closed the Lead Fluid acquisition, a Chinese maker of advanced fluid handling products for life science applications, and the Termomeccanica Industrial Compressor (TMIC) acquisition, an Italian provider of engineered-to-order solutions for the renewable natural gas industry. Management says it is more than halfway toward its annualized inorganic growth target.

04—Continue

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