Ingersoll Rand Inc (NYSE:IR) delivered a solid finish to its fiscal year, reporting fourth-quarter results that edged past Wall Street's profit expectations. The industrial equipment manufacturer posted revenue of $2.09 billion and adjusted earnings per share (EPS) of $0.96 for the quarter ended December 31, 2025.
Earnings and Revenue Performance Versus Estimates
The company's performance presented a nuanced picture when measured against analyst forecasts. While revenue growth was robust, the top-line figure came in just shy of expectations. Conversely, profitability was stronger than anticipated.
- Revenue: Reported sales of $2.09 billion represented a 10.1% increase year-over-year. This figure was slightly below the analyst consensus estimate of $2.10 billion.
- Earnings Per Share: The non-GAAP EPS of $0.96 surpassed the average analyst estimate of $0.93, marking a beat of approximately 6.6%.
This combination of a slight revenue miss and a clear earnings beat suggests the company managed its costs and operations effectively during the quarter, translating sales growth into profits more efficiently than expected.
Initial Market Reaction
The market's immediate response to the earnings report was moderately positive. In after-hours trading following the announcement, shares of Ingersoll Rand rose approximately 0.84%. This upward move indicates investor approval of the company's profitability performance and overall financial health, likely outweighing any minor concern about the revenue figure.
Full-Year 2025 Results and 2026 Outlook
Beyond the quarterly numbers, the company provided a comprehensive view of its full-year 2025 performance and issued formal guidance for the year ahead. For the full year 2025, Ingersoll Rand reported revenue of $7.65 billion, up from $7.24 billion in 2024.
Looking forward, management established its 2026 guidance, which offers a point of comparison with existing analyst projections:
- Revenue Growth: The company forecasts revenue growth of 2.5% to 4.5% for 2026. This guidance implies a revenue range of approximately $7.84 billion to $7.99 billion, using 2024 as the base year as specified in the release. This appears conservative compared to the current analyst sales estimate of $8.18 billion for 2026.
- Adjusted EPS: Ingersoll Rand expects adjusted EPS between $3.45 and $3.57, representing approximately 5% growth at the midpoint. This range brackets the current analyst EPS estimate of $3.67 for 2026, with the company's midpoint being slightly lower.
Key Takeaways from the Earnings Release
The earnings report highlighted several strengths in Ingersoll Rand's business:
- Segment Resilience: Both core segments—Industrial Technologies & Services (IT&S) and Precision & Science Technologies (P&ST)—achieved organic order growth in the fourth quarter and for the full year.
- Strong Cash Generation: The company generated $462 million in free cash flow during the quarter and maintains a healthy liquidity position of $3.8 billion.
- Active Capital Deployment: Consistent with its strategy, Ingersoll Rand returned $323 million to shareholders via buybacks and dividends in Q4 and continues to pursue mergers and acquisitions, exemplified by the January 2026 acquisition of Scinomix, Inc.
- Solid Balance Sheet: The company's net debt to adjusted EBITDA leverage remains manageable at 1.7x.
For a detailed breakdown of future earnings estimates and historical performance, investors can review more information on the company's earnings estimates page.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. The information presented should not be construed as a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
