Ingersoll Rand (IR) Financials

Ingersoll Rand Inc. (NYSE: IR) has exhibited various trends in its financial performance and position over the past several years through Q2 2025.

Positive Highlights:

• Operating revenue has shown a general upward trend from approximately $1.52 billion in Q3 2022 to $1.89 billion in Q2 2025, indicating steady revenue growth over this period.
• Gross profit has increased, with Q2 2025 gross profit at around $825 million, up from approximately $575 million in Q3 2022, suggesting improved operational efficiency or pricing power.
• Operating expenses have been managed, with total operating expenses in Q2 2025 at $748.5 million compared to lower absolute figures in earlier years, fitting the growth in revenue and operations.
• Cash and equivalents rose from roughly $1.2 billion at the end of 2022 to $1.31 billion by Q2 2025, supporting solid liquidity.
• Net cash from continuing operating activities generally remained positive and strong, with Q2 2025 at approximately $246 million despite challenges in net income.

Neutral Observations:

• Net income has fluctuated significantly, with positive net income in most quarters but a loss of $113.8 million recorded in Q2 2025, driven by factors such as impairment charges and other losses.
• Interest expense remains a notable cost, hovering around $50 million to $63 million quarterly, reflecting ongoing debt servicing.
• Amortization expenses are consistently high (~$91 million in Q2 2025), reflecting significant intangible assets amortization.
• Increases in goodwill and intangible assets (totaling roughly $12.6 billion as of Q2 2025) suggest either acquisitions or investments in intangible assets that require monitoring for future impairments or returns.
• Total debt levels have increased over the years from approximately $7 billion to $6.6 billion in long-term debt plus smaller short-term debt components near $2 million to $33 million of short-term debt in latest data.

Negative Factors:

• Q2 2025 saw a significant consolidated net loss of approximately $114 million compared to profits in the past two years, primarily due to a $265.8 million impairment charge and other losses of $120.9 million.
• Repurchase of common equity remains large, with $500 million spent in Q2 2025 alone, which reduces cash and equity though potentially supports share price.
• Cash flows from financing activities have been strongly negative recently, including significant repayments of debt and equity repurchases reducing financial flexibility.
• The company has experienced fluctuations in accounts receivable and inventories, which may imply challenges in working capital management and sales collections.
• The accumulated other comprehensive income/loss is a negative balance around -$141 million as of Q2 2025, reflecting unrealized losses affecting equity.

Summary: Ingersoll Rand has grown its revenue and gross profit steadily over the last several years, indicating strong market demand or successful operational strategies. The company maintains healthy liquidity and generates significant operating cash flow. However, recent quarters (especially Q2 2025) show profitability pressures due to impairment charges and other losses, increased financing outflows from share buybacks and debt repayments, and a growing intangible asset base that may require close monitoring. Investors should watch how the company addresses these challenges and whether profitability stabilizes while continuing to support growth.