Ingersoll-Rand (IR) Stock Forecast & Price Target

Ingersoll Rand achieved approximately $7.2 billion in revenue for 2024, reflecting strong demand across various sectors such as industrial, medical, and energy. Notably, regional orders surged, with high teens growth in the Americas and low double-digit growth in the APAC region, particularly driven by initiatives in China. The company reported a 16% increase in backlog, coupled with a year-to-date Book to Bill ratio of 1.07x, indicating robust order momentum and a positive outlook for 2026.

Ingersoll Rand experienced a modest beat in its 2Q25 results but reduced its 2025 organic sales guidance due to lower tariff-related pricing, contributing to an 11.4% decline in its stock price. The company's adjusted EBITDA fell to $427.2 million, or 28.6% of sales, down from $436.2 million, or 29.7% of sales, in the previous year, reflecting declining margins influenced by organic volume flow-through and the impacts of recent acquisitions. Additionally, EBITDA margins for 2Q25 were reported at 27.0%, representing a 40 basis point year-over-year decrease, highlighting ongoing challenges in sustaining profitability amidst escalating operational costs.