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FY2025 Q4
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Ingersoll Rand Inc. earnings call
Buzzberg read
M&A pipeline strong with nine LOIs and capital deployment continues
Ingersoll Rand reported Q4 2025 results with orders up 8% year-over-year (1% organic) and increased its M&A activity pipeline to 9 companies under LOI. Management issued its FY2026 guidance with 2.5-4.5% total revenue growth and $1.1 billion in recurring revenue backlog. Q4 2025 organic orders grew 1% led by China and Life Sciences; management sees flat organic growth in Q1 2026.
Buzzberg read M&A pipeline strong with nine LOIs and capital deployment continues Ingersoll Rand reported Q4 2025 results with orders up 8% year-over-year (1% organic) and increased its M&A activity pipeline to 9 companies under LOI. Management issued its FY2026 guidance with 2.5-4.5% total revenue growth and $1.1 billion in recurring revenue backlog. Q4 2025 organic orders grew 1% led by China and Life Sciences; management sees flat organic growth in Q1 2026. Read full analysisCollapse analysis
Ingersoll Rand reported Q4 2025 results with orders up 8% year-over-year (1% organic) and increased its M&A activity pipeline to 9 companies under LOI. Management issued its FY2026 guidance with 2.5-4.5% total revenue growth and $1.1 billion in recurring revenue backlog. Q4 2025 organic orders grew 1% led by China and Life Sciences; management sees flat organic growth in Q1 2026.
- FY2026 guidance expects 1% organic revenue growth at the midpoint, with M&A contributing ~1.5% and FX adding ~1%.
- Management maintains a neutral stance on macro recovery; not basing guidance on a meaningful inflection in PMI.
- Recurring revenue backlog now $1.1 billion; more confident in long-term target, though growth will be non-linear.
Revenue$2.0912BReported
EPS$0.96Reported
Gross margin24.06%Reported
Operating margin31.73%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Recurring Revenue
Recurring revenue backlog reaches $1.1 billion
Guidance
Guidance implies no market recovery, with Q1 organic flat to down
Show 3 more callouts
Guidance
2026 EPS growth expected mid-single digit across halves
Demand
Life sciences orders up mid-teens in Q4 2025
Demand
China organic orders growth for third straight quarter
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $2.0912B | Reported |
| EPS | $0.96 | Reported |
| Gross margin | 24.06% | Reported |
| Operating margin | 31.73% | Reported |
| Free cash flow | $0.4615B | Reported |
| Capex | $0.0375B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $3.45–$3.57 | $3.51 | Guided |
| Operating margin | FY2026 | $2.13B–$2.19B | $2.16B | Guided |
| Revenue | FY2026 | 2.5%–4.5% | 3.5% | Guided |
AI, capex & demand read
Management read
Cautiously Optimisti
Management highlighted positive momentum and strong execution, but adopted a prudent approach to guidance, not baking in a market recovery.
Management AI read
The transcript does not discuss AI, its products, demand, or adoption.
Investment and capacity
The transcript does not explicitly discuss capital expenditure, but management noted $525 million invested in 16 M&A transactions and $1 billion in share repurchases, indicating continued capital deployment focus.
all 3 named companies below
Companiesreturns since call
Supply chain
Supply chain
Vicente Renal
China finished the year with a third consecutive quarter of positive organic order growth, while the rest of Asia was up mid-20s in Q4. — The persistent recovery in China and the rest of Asia, even without overall market growth, signals a competitive share shift and an improving demand environment for industrial equipment in the region.
Evidence
“This marks the third quarter in a row where we saw organic water growth in China, underscoring our agility through the effective use of IRX and the success of our demand generation activities delivering consistent growth in what remains a”
Supply chain
Vicente Renal
Life sciences organic order growth was mid-teens in Q4, while the aerospace and defense segment declined due to order timing and is expected to move sideways from 2025 to 2026. — A sideways aerospace business for IR contrasts with the strong demand from other aerospace suppliers, possibly pointing to different sub-segments or market share dynamics.
Evidence
“The last piece is basically the aerospace and defense business, which is down due to order timing. Nothing unexpected as the business is generally moving sideways from 2025 to 2026.”
External signals
Supply-chain alpha · 2returns since call
China finished the year with a third consecutive quarter of positive organic order growth, while the rest of Asia was up mid-20s in Q4.
Evidence
“This marks the third quarter in a row where we saw organic water growth in China, underscoring our agility through the effective use of IRX and the success of our demand generation activities delivering consistent growth in what remains a…”
Life sciences organic order growth was mid-teens in Q4, while the aerospace and defense segment declined due to order timing and is expected to move sideways from 2025 to 2026.
Methodology & coverage
Management-only analysis. All 3 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.