Trane Technologies (TT) Financials

Overview of Ingersoll Rand Inc. (NYSE: IR) Financial Performance and Trends (Q2 2022 to Q2 2025):

Ingersoll Rand has shown a generally gradual increase in revenues over the last several years, with quarterly operating revenues rising from approximately $1.63 billion in Q1 2023 to about $1.89 billion by Q2 2025. However, recent quarterly income statements reveal fluctuations and notable volatility, particularly in net income.

• Operating revenue grew from around $1.63 billion in early 2023 to approximately $1.89 billion in Q2 2025, pointing to solid top-line growth.
• Gross profit margins remained relatively stable, around 40-45%, supported by consistent management of cost of revenue alongside revenue growth.
• Consistent positive cash flow from operating activities, averaging around $200 million to $500 million per quarter, indicating operational cash generation capacity.
• Significant investments in property, plant, and equipment totaling roughly $20 million to $60 million per quarter, supporting long-term growth prospects.
• Large goodwill and intangible assets on the balance sheet (over $8 billion goodwill and over $4 billion intangible assets in 2025), possibly reflecting acquisitions and brand strength, but requiring monitoring for impairment risk.
• Debt levels are considerable, with long-term debt around $4.7 billion and short-term debt relatively low at about $2 million as of Q2 2025, indicating substantial leverage but manageable short-term obligations.
• The net income for Q2 2025 was negative $113.8 million, a sharp reversal from positive earnings in previous quarters, primarily impacted by impairment charges of about $266 million and other net losses.
• Amortization expense is high (around $91 million quarterly), pressuring net income and potentially linked with acquired intangible assets.
• There is significant repurchase of common equity, for example, $500 million in Q2 2025, which may reduce liquidity and increase financial risk.
• Net cash from financing activities was strongly negative in Q2 2025 (-$513 million), mostly due to repurchases and repayments, indicating a cash outflow that is not balanced by operations.

Trend Summary:

Ingersoll Rand's revenue growth and operational cash flow generation have generally been positive, reflecting solid business momentum. However, recent negative earnings due to impairment charges and high amortization expenses have pressured profitability. The company invests substantially in capital expenditures and acquisitions, fueling asset growth but also increasing intangible and goodwill balances with associated risks. High share repurchases and debt levels imply financial leverage that could constrain flexibility. Investors should watch for the company’s ability to return to consistent profitability and manage its leverage and cash outflows effectively.