Reasons Why You Should Avoid Betting on Ingersoll Rand Right Now

Core Viewpoint - Ingersoll Rand Inc. (IR) has underperformed in operational performance due to rising operating costs, high debt levels, and foreign currency challenges, leading to a Zacks Rank of 4 (Sell) [1][6] Rising Expenses - Ingersoll Rand's cost of sales increased by 4.4% year over year in the first nine months of 2025, driven by higher raw material and component costs [4] - Selling and administrative expenses rose by 6.9% year over year, increasing as a percentage of revenues by 50 basis points to 19.5% [4] - The company faces escalating costs related to investments in demand generation, digital initiatives, and IT, which are pressuring its bottom line [4] High Debt Level - Ingersoll Rand's long-term debt increased by 4.3% CAGR over the last five years, reaching $4.79 billion at the end of Q3 2025, slightly up from $4.78 billion at the end of Q2 [5] - Interest expenses in Q3 were $65.1 million, reflecting a 2% year-over-year increase, indicating rising financial obligations that could impact profitability [5] Forex Woes - The company's international operations expose it to risks from adverse currency fluctuations, particularly with a strengthening U.S. dollar, which may necessitate price increases or margin contractions [6] - The Zacks Consensus Estimate for 2025 earnings has been revised downward by 2.1% in the past 60 days, reflecting market concerns [6]