Ingersoll-Rand (IR) Stock Forecast & Price Target

Ingersoll Rand demonstrated robust order growth, with Americas orders increasing in the high teens and a 16% rise in backlog, indicating strong demand and operational efficiency across its portfolio. The company's revenue reached approximately $7.2 billion for 2024, showing resilience amidst a challenging environment with positive sequential order growth of 5%. Additionally, the favorable book-to-bill ratio of 1.05x, coupled with positive organic order growth for the second consecutive quarter, underscores the potential for sustained profitability and operational strength moving forward.

Ingersoll Rand experienced a modest earnings beat in the second quarter of 2025; however, it reduced its organic sales guidance for the year due to lower tariff-related pricing without offsetting organic volume expectations, resulting in a significant 11.4% decline in its stock. The company reported adjusted EBITDA of $427.2 million, translating to a margin of 28.6% of sales, which is a decrease from 29.7% in the same quarter of the previous year. Overall, the decline in adjusted EBITDA margins year-over-year was driven by factors including lower organic volume flow-through, the dilutive impact from recent acquisitions, and the offsetting nature of tariff pricing against costs, suggesting underlying challenges in maintaining profitability and growth.