Ingersoll-Rand (IR) Stock Forecast & Price Target

Ingersoll Rand demonstrated robust regional growth across its business segments, with Americas orders increasing by high teens, EMEA orders rising in high single digits, and APAC orders reflecting low double-digit growth, particularly driven by initiatives in China. The company's backlog also saw significant improvement, reporting a 16% increase, which, along with momentum in longer-cycle orders, positions Ingersoll Rand favorably for enhanced performance in 2026. Overall, the firm achieved a year-to-date book-to-bill ratio of 1.07x and recorded positive organic order growth for two consecutive quarters, underlining a solid demand trajectory across its diverse product lines.

Ingersoll Rand's forecast for 2025 reflects a reduction in organic sales guidance due to lower tariff-related pricing, resulting in a notable decline of 11.4% in share value. The company's adjusted EBITDA for 2Q25 was $427.2 million, constituting 28.6% of sales, down from $436.2 million, or 29.7% of sales, in the same quarter of the previous year, indicating pressure on profitability. Furthermore, the adjusted EBITDA margins fell year-over-year primarily due to the dilutive effect of recent acquisitions and unmitigated tariff pricing impacts, compounded by continued investments in commercial growth.