Ingersoll-Rand (IR) Stock Forecast & Price Target

Ingersoll Rand has demonstrated strong regional order growth, with Americas orders increasing by the high teens, EMEA orders up in the high single digits, and APAC orders rising by low double digits, backed by growth seen in China due to IRX initiatives. The company reported a backlog increase of 16%, alongside positive momentum in longer-cycle orders, which positions Ingersoll Rand favorably for an improved financial outlook in 2026. Additionally, the company achieved a book-to-bill ratio of 1.05, marking a second consecutive quarter of organic order growth, suggesting a solid demand trajectory.

Ingersoll Rand experienced a notable decline in its stock performance, reflected in an 11.4% drop following reduced organic sales guidance for 2025 due to lower tariff-related pricing without expected volume offsets. The firm reported adjusted EBITDA of $427.2 million for the second quarter of 2025, representing a margin of 28.6%, which is a decrease from 29.7% in the same quarter of the previous year, driven by several factors including organic volume flow-through and dilution from recent acquisitions. Furthermore, the overall EBITDA margin decreased by 40 basis points year-over-year to 27.0%, indicating ongoing pressure on profitability despite a slight sequential improvement.