Ingersoll Rand Inc.
IRIngersoll Rand wins by selling mission-critical equipment and then harvesting decades of service and replacement revenue.
Because the durability of industrial cash flows often matters more than flashy growth.
Business Model
Equipment plus aftermarket
It sells compressors and pumps, then earns recurring revenue from parts, service, and upgrades.
Economic Engine
High cash generation
Free cash flow is more than double reported net income, showing strong cash conversion.
Long-Term Lens
Margin durability
The key question is whether it can defend margins as cycles and competition shift.
On this page
Company Story
How do Ingersoll Rand Inc.'s business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“A steady industrial compounder with strong cash generation, but long-term returns hinge on disciplined acquisitions and protecting margins in a cyclical world.”
What does Ingersoll Rand Inc. actually do?
Ingersoll Rand designs and sells industrial compressors, pumps, blowers, and other flow control equipment used in factories and critical facilities.
- Air compressors that power tools and production lines
- Pumps and fluid management systems for chemicals, food, and energy
- Aftermarket parts and maintenance services to keep equipment running
Why it matters
Essential industrial backbone
Compressed air and fluid handling are basic inputs for modern industry, which creates steady, long-term demand.
How does Ingersoll Rand Inc. make money?
It makes money by selling equipment upfront and then earning ongoing revenue from service, parts, and replacements.
- New equipment sales to manufacturers and industrial customers
- Recurring service and spare parts over equipment lifecycles
- Bolt-on acquisitions that add niche products and cross-selling opportunities
Economic clue
15.9% free cash flow margin
A double-digit cash margin shows the business turns a meaningful portion of sales into real cash that can be reinvested or returned to shareholders.
Why do long-term investors keep Ingersoll Rand Inc. on the radar?
It sits inside the everyday operations of thousands of industrial customers, making it hard to replace and easy to revisit for future sales.
- Installed base creates repeat service revenue
- 5-year average revenue growth of 10.4% shows steady expansion
- Strong cash conversion gives management flexibility
Investor takeaway
Cash over accounting profits
Free cash flow at 2.10 times net income suggests reported earnings may understate the cash power of the business.
Based on company financial statements.
Benchmark Comparison
How has Ingersoll Rand Inc. performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,746
+74.6% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| IR | +74.6% | $1,746 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Ingersoll Rand Inc.
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- A steady industrial compounder with recurring service revenue
- Strong free cash flow to fund buybacks and acquisitions
- Exposure to global manufacturing without betting on one niche
Be Careful If You Expect
- Explosive technology-like growth rates
- Rapidly expanding margins every year
- Immunity from industrial recessions
What To Watch Over Time
- Whether operating margin stays near or above 18.5%
- Discipline and returns from ongoing acquisitions
- Balance between equipment sales and higher-margin service revenue
Key Metrics
Which metrics matter most for Ingersoll Rand Inc. right now?
Three durable business metrics that matter more than day-to-day price moves.
5-Year Average Growth: 10.4%
5-Year Average Growth: 1.8%
38.5% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 5-Year Average Growth: 10.4% | Shows whether the business has been expanding fast enough to create more long-term value. |
| EPS Growth | 5-Year Average Growth: 1.8% | Shows whether earnings per share are compounding for owners over time. |
| Margin Quality | 38.5% gross margin | Shows how much room the business has to fund growth, absorb shocks, and stay profitable. |
Based on company financial statements.
Fundamentals
What do Ingersoll Rand Inc.'s fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
6.6% ROIC
38.5% gross margin
15.9% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 6.6% ROIC | The business is currently showing poor capital efficiency. |
| Profitability | 38.5% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 15.9% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Ingersoll Rand Inc.?
Ingersoll Rand Inc. currently appears in these ETF and fund proxies.
IWB
iShares Russell 1000 ETF
SPY
SPDR S&P 500 ETF Trust
Questions & Answers
What questions come up most often about Ingersoll Rand Inc.?
Company-specific questions readers often ask about Ingersoll Rand Inc..
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
Ingersoll Rand makes industrial compressors, pumps, and flow systems that factories and facilities use to power tools, move fluids, and run daily operations.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
An installed base of compressors and pumps creates repeat service revenue for decades, embedding the company inside customer operations.
Global manufacturing, food production, and healthcare facilities will continue to require reliable compressed air and fluid systems, creating steady structural demand.
Gross margins near 38.5% suggest some pricing power and differentiation beyond pure commodity equipment.
Strong cash generation, with free cash flow more than double net income, gives management firepower for disciplined acquisitions and buybacks.
Bear case
What can break
Industrial equipment can become commoditized, and aggressive low-cost competitors could pressure pricing and erode the 18.5% operating margin.
A prolonged global manufacturing slowdown could reduce equipment orders and expose the cyclical nature of demand.
Poorly executed acquisitions could dilute returns and burden the balance sheet over time.
Technological shifts toward more energy-efficient or alternative systems could disrupt legacy compressor platforms.
Risk Radar
Key Risks
Where downside pressure can build.
Cyclicality: With revenue growth slowing to 5.7% year-over-year and earnings per share down 29.8%, a deep industrial downturn could materially cut profits.
Margin pressure: Operating margin at 18.5% is contracting, and a few percentage points of erosion would significantly reduce net income.
Acquisition risk: Ongoing bolt-on deals, if mispriced, could weaken returns on capital and strain cash flow.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $86.43
- Daily move
- -4.51%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.