Ingersoll Rand Reports Q2 2025 Revenue Growth but Net Income Declines Due to Impairments

Ingersoll Rand Inc. reported its financial results for the second quarter of 2025, revealing revenues of $1.887 billion, a 4.6% increase from $1.805 billion in the same period last year. For the first half of 2025, revenues reached $3.605 billion, up 3.7% from $3.475 billion in the prior year. The company's gross profit for the second quarter was $825 million, representing a gross margin of 43.7%, slightly down from 43.9% in the previous year. However, net income showed a significant decline, with a loss of $113.8 million for the quarter compared to a profit of $186.5 million in Q2 2024, primarily due to impairments of goodwill and other intangible assets.

The company experienced notable changes in its operational metrics, including a substantial impairment charge of $229.7 million related to goodwill and $36.1 million for other intangible assets. Selling and administrative expenses increased to $371.2 million, up 8.5% year-over-year, largely attributed to acquisitions. Ingersoll Rand's interest expense also rose to $62.7 million from $50.8 million, reflecting increased long-term debt primarily used for acquisitions. The effective tax rate for the quarter surged to 74.7%, influenced by nondeductible impairments and a lower benefit from windfall tax deductions.

Strategically, Ingersoll Rand has been active in acquisitions, completing several transactions in 2025, including the purchase of SSI Aeration, Excelsior Blower Systems, and G & D Chillers, among others, for a total cash consideration of approximately $236.7 million. These acquisitions are expected to enhance the company's product offerings and market reach, particularly in the Industrial Technologies and Services segment. The company also reported a significant increase in segment orders, with the Industrial Technologies and Services segment orders rising by 6.5% to $1.561 billion in Q2 2025.

In terms of operational performance, Ingersoll Rand's total assets increased to $18.059 billion as of June 30, 2025, compared to $18.010 billion at the end of 2024. The company reported a cash and cash equivalents balance of $1.311 billion, down from $1.541 billion at the end of the previous year. The company’s working capital also saw a slight increase, reflecting higher inventories and accounts receivable, which were partially offset by a decrease in accounts payable.

Looking ahead, Ingersoll Rand remains focused on integrating its recent acquisitions and optimizing its cost structure through ongoing restructuring initiatives. The company anticipates that these strategic moves will position it for improved profitability and growth in the coming quarters, despite the challenges posed by global economic conditions and market volatility.