Core Insights - Ingersoll Rand Inc. (NYSE: IR) was last analyzed in February 2023, receiving a 'Hold' rating due to anticipated growth driven by positive market trends [1] Company Overview - Ingersoll Rand is a US-based specialty industrial machinery provider [1] Investment Strategy - The investment approach focuses on acquiring undervalued, profitable stocks with strong balance sheets and minimal debt, while also considering writing calls to generate additional income [1]

Core Insights - Ingersoll Rand Inc. (IR) is a global provider of mission-critical air, fluid, energy, and medical technologies, with a market cap of $30.2 billion [1] - The company is expected to announce its fiscal third-quarter earnings for 2025 on October 30, 2023 [1] Financial Performance Expectations - Analysts anticipate IR to report a profit of $0.83 per share for the upcoming quarter, reflecting a 2.5% increase from $0.81 per share in the same quarter last year [2] - For the full fiscal year, EPS is projected to be $3.25, up 2.2% from $3.18 in fiscal 2024, with an expected rise to $3.50 in fiscal 2026, representing a 7.7% year-over-year increase [3] Stock Performance - Over the past 52 weeks, IR stock has declined by 24.6%, significantly underperforming the S&P 500 Index, which gained 13.4%, and the Industrial Select Sector SPDR Fund, which rose by 10.1% [4] - Following the Q2 results, which showed a revenue growth of 4.6% to $1.9 billion, IR's shares fell by 11.4% due to concerns over profitability, including a 3.6% year-over-year decline in adjusted EPS and a 25.7% decrease in free cash flow [5] Analyst Ratings - The consensus opinion on IR stock is moderately bullish, with a "Moderate Buy" rating; seven out of 15 analysts recommend a "Strong Buy," while eight suggest a "Hold" [6] - The average analyst price target for IR is $91.92, indicating a potential upside of 19% from current levels [6]

Core Points - Ingersoll Rand Inc. will release its third quarter 2025 earnings after market close on October 30, 2025 [1] - A live earnings conference call is scheduled for October 31, 2025, at 8 a.m. Eastern Time [2] - The conference call will be accessible via a real-time audio webcast on the Investor Relations website [3] Company Overview - Ingersoll Rand Inc. is focused on providing mission-critical flow creation and life science and industrial solutions [4] - The company emphasizes exceptional performance and durability, supported by over 80 respected brands [4] - Ingersoll Rand is committed to making life better for employees, customers, shareholders, and the planet [4]

Core Insights - Ingersoll Rand Inc. (IR) is experiencing increased orders across its product portfolio, particularly in industrial vacuums, blowers, and compressors, leading to a 6.5% year-over-year growth in the Industrial Technologies & Services (IT&S) segment, totaling $1.56 billion in orders for Q2 2025 [1] - The Precision and Science Technologies segment also showed strong performance, with orders rising 13.4% year-over-year to $378.7 million, driven by growth in fluid handling products within the Gardner Denver Medical platform [2] - Management anticipates a revenue growth of 4-6% for 2025, with adjusted earnings projected between $3.34 and $3.46 per share, indicating flat to 3% year-over-year growth [3] Acquisitions and Revenue Contributions - The company is actively expanding its business through acquisitions, including the purchase of Dave Barry Plastics and Lead Fluid, which enhanced its life science portfolio, and G & D Chillers, Inc. and Advanced Gas Technologies Inc., which expanded its air treatment offerings [4] - Acquisitions contributed 6.5% to IR's total revenues in Q2 2025 [4] Financial Performance - Ingersoll Rand generated strong free cash flow, which increased by 13.3% year-over-year to $433.1 million in the first half of 2025, supporting shareholder-friendly activities such as $510.2 million in stock repurchases and $16.1 million in dividends [5] - The company's cost of sales rose by 4.1% in the first half of 2025, influenced by rising raw material and component costs, while selling and administrative expenses increased by 6.3%, raising the percentage of revenues attributed to these expenses to 20% [6][7] Competitive Landscape - Ingersoll Rand operates in a competitive environment within the Zacks Manufacturing - General Industrial industry, facing competition from peers such as Flowserve Corporation, Graco, Inc., and IDEX Corporation [8]

Core Viewpoint - Ingersoll Rand (IR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade reflects an improvement in Ingersoll's underlying business, suggesting that investor sentiment will likely drive the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for Ingersoll has increased by 1.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7][9]. - Ingersoll's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

Core Insights - Investors are evaluating Oshkosh (OSK) and Ingersoll Rand (IR) for value investment opportunities, with a focus on their financial metrics and earnings outlooks [1][3]. Valuation Metrics - Both OSK and IR currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - OSK has a forward P/E ratio of 11.86, significantly lower than IR's forward P/E of 24.49, suggesting OSK may be undervalued [5]. - The PEG ratio for OSK is 1.63, while IR's PEG ratio is 4.52, indicating OSK's expected earnings growth is more favorable relative to its price [5]. - OSK's P/B ratio stands at 1.86, compared to IR's P/B of 3.23, further supporting the notion that OSK is a more attractive value option [6]. Value Grades - OSK has a Value grade of B, while IR has a Value grade of D, highlighting OSK's stronger position in terms of valuation metrics [6].

Group 1 - Ingersoll Rand Inc. share price is currently at $80.00, reflecting a 1.88% decrease in the market session, with a 1.32% increase over the past month and a 16.20% decline over the past year [1] - The company's price-to-earnings (P/E) ratio is 63.2, which is significantly higher than the Machinery industry average P/E ratio of 28.49, suggesting that shareholders may expect better performance or that the stock could be overvalued [6] - The P/E ratio serves as a useful metric for assessing market performance, but it has limitations and should be considered alongside other financial metrics and qualitative analysis [9] Group 2 - A lower P/E ratio may indicate that a company is undervalued or that shareholders do not anticipate future growth, highlighting the importance of context in P/E analysis [5][9] - Investors are encouraged to analyze the P/E ratio in conjunction with industry trends and business cycles to make informed investment decisions [9]

Core Viewpoint - The comparison between Oshkosh (OSK) and Ingersoll Rand (IR) indicates that OSK presents a better value opportunity for investors at this time [1]. Valuation Metrics - OSK has a forward P/E ratio of 12.53, significantly lower than IR's forward P/E of 23.35 [5]. - The PEG ratio for OSK is 1.72, while IR's PEG ratio is considerably higher at 4.31, suggesting OSK is more reasonably priced relative to its expected earnings growth [5]. - OSK's P/B ratio stands at 1.97, compared to IR's P/B ratio of 3.08, indicating that OSK is undervalued in terms of market value versus book value [6]. - These metrics contribute to OSK receiving a Value grade of B, while IR has a Value grade of D [6]. Earnings Outlook - OSK is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - The positive earnings estimate revisions for OSK suggest a more favorable earnings outlook compared to IR, which is rated as a Hold [3][7].

Group 1 - The company differentiates itself from broader industrials through a strong M&A engine, identifying 4 to 5 points of M&A growth annually and effectively integrating them to enhance margins [1] - The company promotes a unique ownership mindset culture among its 25,000 employees, teaching them to think like owners and focus on cash conversion cycles [2] - The combination of the ownership mindset and the Ingersoll Rand Execution Excellence (IRX) operational framework contributes to the company's unique approach to M&A, generating high free cash flow margins of nearly 20% [3]

Ingersoll Rand FY Conference Summary Company Overview - **Company**: Ingersoll Rand (NYSE: IR) - **Date of Conference**: September 11, 2025 - **Key Speakers**: CEO Vicente Reynal, CFO Vikram Kini Key Points M&A Strategy - Ingersoll Rand differentiates itself through a strong M&A engine, identifying 4-5 growth opportunities annually and integrating them effectively to enhance margins [3][4] - The company has completed 75 acquisitions over the past five years, with 90% being family-owned or founder-based, achieving an average pre-synergy EBITDA multiple of 9.5 times [4][12] - The integration process is decentralized, occurring within nine P&L leaders, allowing for rapid synergy realization [5][6] Financial Performance - The company generates a free cash flow margin of 15-20%, which is reinvested into bolt-on acquisitions [3][4] - Ingersoll Rand aims for a mid-teens return on invested capital (ROIC) by year three post-acquisition [4] Market Position and Growth - The company operates in a $75 billion addressable market with $7.5 billion in revenue, indicating significant growth potential in a fragmented market [11] - Ingersoll Rand focuses on acquiring companies with gross margins in the mid-30s or higher, emphasizing pricing power and unique technology [9][10] Energy Efficiency and ROI - Compressors account for 30-40% of energy consumption in manufacturing facilities, with 80% of ownership costs attributed to electricity over a 10-year lifespan [13][14] - The average payback period for energy-efficient compressors is now less than two years, with many customers realizing the need for energy savings [15][16] Service Model Transition - Ingersoll Rand is transitioning from a traditional parts business to a care model, targeting $1 billion in recurring revenue by 2027, with $300 million achieved in 2024 [17][18] - The care model includes performance guarantees and multi-year contracts, enhancing gross margins significantly [19][24] Market Dynamics - The company reports stable market conditions, with positive organic growth in China and strong performance in Europe, while North America remains cautious due to tariff uncertainties [26][29][30] - Ingersoll Rand is focusing on underpenetrated markets in Latin America and Southeast Asia, leveraging local partnerships to drive growth [33][34] Tariff Impact - The recent tariff policies have created uncertainty, but Ingersoll Rand believes its U.S. manufacturing capabilities provide a competitive advantage [51][52] - The company is managing cost increases due to tariffs without passing on margin increases to customers, maintaining a neutral impact on EBITDA [56] Pricing Strategy - Ingersoll Rand employs a total cost of ownership approach in pricing, ensuring that price increases are justified by ROI for customers [58][59] - There is some pricing fatigue in the market due to frequent price adjustments, but the company remains agile in navigating these dynamics [58][59] Margin Outlook - The company anticipates margin expansion in the second half of the year, driven by seasonal volume increases and prudent cost management [62][64] - Integration of recent acquisitions, such as ILC Dover, is expected to contribute positively to margins [64][65] Additional Insights - The care model is seen as the biggest organic growth initiative for Ingersoll Rand, with potential for expansion across various product lines [21][22] - The company is exploring innovative solutions to enhance recurring revenue and improve gross margins further [25][26] This summary encapsulates the key insights and strategic directions discussed during the Ingersoll Rand FY Conference, highlighting the company's focus on M&A, energy efficiency, service model transformation, and market dynamics.