Ingersoll-Rand (IR) Stock Forecast & Price Target

Ingersoll Rand reported a strong backlog growth of 16%, indicating robust demand momentum that positions the company favorably for improved performance in 2026. The company experienced positive order growth across regions, with Americas orders increasing in the high teens and notable growth in APAC, particularly from initiatives in China. Additionally, Ingersoll Rand has demonstrated stable revenue, achieving $1.49 billion in the latest quarter, while maintaining a book-to-bill ratio of 1.05x, signaling healthy order intake relative to revenue.

Ingersoll Rand experienced a decline in its 2025 organic sales guidance due to lower tariff-related pricing, leading to a significant drop in its stock value by 11.4%. The company's adjusted EBITDA in 2Q25 was reported at $427.2 million, translating to a margin of 28.6%, a decrease from the previous year's 29.7% margin, primarily impacted by reduced organic volume and dilutive effects from acquisitions. Furthermore, ongoing investment in commercial growth combined with the one-for-one offset from tariff pricing has contributed to a challenging financial environment, reflected in the 40 basis point year-over-year decline in EBITDA margins.