Ingersoll-Rand (IR) Stock Forecast & Price Target

Ingersoll Rand has demonstrated strong regional order growth, with a notable increase in the Americas by high teens, EMEA experiencing high single-digit growth, and APAC seeing low double-digit growth, particularly driven by performance in China. The company's backlog rose by 16%, indicating robust demand and positioning for improved performance in 2026, supported by longer cycle orders. Additionally, the firm reported a book-to-bill ratio of 1.05x, with organic order growth exhibiting positive momentum for the second consecutive quarter, highlighting a stable upward trajectory in operational performance.

Ingersoll Rand's financial performance in 2Q25 reflected a modest revenue beat, but challenges emerged with a reduction in organic sales guidance due to lower tariff-related pricing and disappointing organic volume expectations, leading to an 11.4% decline in shares. The company's adjusted EBITDA decreased to $427.2 million, representing 28.6% of sales, a decline from 29.7% in the prior year, primarily attributed to the flow-through on organic volume, dilutive impacts from acquisitions, and tariff pricing dynamics. Furthermore, the EBITDA margins shrank by 40 basis points year-over-year to 27.0%, highlighting ongoing pressures and the impact of commercial investments aimed at growth.