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August 16, 2025 • 4 min read
Today, we're delving into the latest financial report from Ingersoll Rand Inc. (IR), a global provider of flow creation and industrial products. Their mission-critical systems, including compressors, pumps, and blowers, are essential across a wide range of industries. By examining their Q2 2025 10-Q filing with the SEC, we can get a clearer picture of their performance and the key factors shaping their business.
At first glance, Ingersoll Rand's top-line performance looks solid. The company posted total revenues of $1.89 billion for the second quarter of 2025, a 4.6% increase from the $1.81 billion reported in the same quarter last year. This growth, however, isn't uniform across the board.
The company operates through two main segments:
While revenues were up, the story changes dramatically as we move down the income statement. Ingersoll Rand reported a net loss of $115.3 million for the quarter, a stark reversal from a net income of $185.0 million in Q2 2024.
What caused this swing? The primary culprits were significant non-cash charges:
An impairment charge is an accounting measure used when the value of an asset on the books is deemed to be overstated compared to its current market value. In this case, the goodwill impairment was recorded within the Precision and Science Technologies segment, specifically tied to the "Biopharma" and "Aerospace & Defense" business units. This suggests that the company has lowered its future expectations for these specific acquisitions.
To help visualize how these expenses affect the company's journey from revenue to profit, this flow chart breaks down the income statement.
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To understand the core operational health of the business, companies often present non-GAAP (Generally Accepted Accounting Principles) metrics that exclude one-time or non-cash items like these impairment charges.
Ingersoll Rand's Adjusted EBITDA—a measure of earnings before interest, taxes, depreciation, and amortization, plus other adjustments—actually increased to $509.4 million from $494.6 million in the prior-year quarter. This metric suggests that, setting aside the accounting write-downs, the underlying profitability of the business remains strong.
Furthermore, the company's cash generation tells a positive story. For the first six months of 2025, cash flow from operations was $502.1 million, an improvement from $466.5 million in the same period of 2024. This demonstrates that despite the accounting loss, the company's ability to generate cash from its daily operations is not only intact but growing.
Ingersoll Rand's second quarter presents a tale of two realities. On one hand, the company is successfully growing its revenue, with its Precision and Science Technologies segment showing impressive momentum. On the other, significant impairment charges have wiped out GAAP profits for the quarter, reflecting a sober reassessment of past acquisitions.
While the net loss is a headline grabber, the strong Adjusted EBITDA and robust operating cash flow provide a more optimistic view of the company's core operational strength. The impairments are a backward-looking adjustment, but they highlight the inherent risks of an acquisition-heavy strategy. For investors, the focus will be on the company's ability to continue integrating its acquisitions effectively and maintain its strong cash-generating capabilities moving forward.
Last updated: August 16, 2025