stockrowWhat it does
Ingersoll Rand makes equipment that moves, compresses or controls air, gas, liquids and powders. Its products include compressors, pumps, vacuum equipment and blowers, as well as the parts and services needed to keep them operating. Customers use them in industrial manufacturing, life sciences, food and beverage production, energy, and water and wastewater treatment.
The company operates through two segments. Industrial Technologies and Services supplies equipment such as air compressors that power machinery and tools, vacuum pumps used in packaging, and blowers used to aerate wastewater. It also sells fluid-transfer equipment, loading systems, power tools and lifting equipment.
Precision and Science Technologies makes pumps and systems for dosing, transferring and dispensing liquids and powders. Its products include automated liquid-handling equipment used in laboratories and single-use handling and containment systems used in pharmaceutical production. The segment also supplies components and assemblies for medical devices.
Ingersoll Rand sells under brands including Ingersoll Rand, Gardner Denver, ARO and ILC Dover. It reaches customers through its own sales force, distributors and relationships with equipment manufacturers and engineering firms. Vicente Reynal is chairman, president and chief executive officer.
How it makes money
Ingersoll Rand earns revenue by selling original equipment and then supplying aftermarket parts, consumables and services. Its equipment is used in processes where failure or downtime can be costly, and wear creates demand for replacement parts and maintenance. Aftermarket revenue represented 36.5% of total company revenue in 2025 and 36% of revenue in Q3 2026.
Industrial Technologies and Services sells compression, vacuum, blower and fluid-transfer equipment, along with tools and lifting products. A compressor has an average useful life of between 10 and 12 years and requires service at regular intervals from installation onward. The company says the cumulative aftermarket revenue from a compressor will typically exceed its original sale price over its life.
Precision and Science Technologies sells pumps, flow-control products and life science equipment. Its life science offerings include single-use powder and liquid handling systems and contract production of components for medical devices. Its customers include equipment manufacturers, engineering firms and end users.
For 2025, Industrial Technologies and Services segment revenue was $6,056.4 million and Precision and Science Technologies segment revenue was $1,594.5 million; company revenue in Q3 2026 was $2.1 billion.
Revenue from short-duration contracts is generally recognized when equipment is shipped or delivered, or as services are performed. Some customer-specific engineering contracts are recognized over their duration or when the finished equipment is delivered. Pricing competes alongside quality, performance and availability. In Q3 2026, price-cost was slightly positive in dollars but remained a margin headwind.
Customers and how it sells
Ingersoll Rand serves manufacturers, life science businesses, utilities and other end users. Its equipment is used in applications ranging from food packaging and wastewater aeration to medical devices, chemical processing and industrial assembly. The company also sells to original equipment manufacturers and engineering, procurement and construction firms.
The company uses direct sales representatives and independent distributors, with the mix depending on the product and geography. Its direct sales force serves customers that need more technical assistance, coordinated shipments or complex service. Distributors carry equipment and parts and provide aftermarket services; most carry products from different suppliers, although Ingersoll Rand treats them as exclusive within a product category.
No customer individually provided more than 10% of consolidated revenue in 2025. The company has sales in all major geographic markets, with manufacturing facilities and service and repair centers across six continents. For the year ended December 31, 2025, 54% of revenue was denominated in currencies other than the U.S. dollar. Currency denomination does not necessarily identify where the end customer was located.
Suppliers and costs
Ingersoll Rand buys materials and components for its manufacturing operations. Its commodity exposures include cast iron, aluminum and steel. It also purchases motors and is exposed to copper prices because copper is a motor component. Most raw materials are generally available from multiple suppliers.
The company has expanded its supplier network for selected materials and components that it had historically obtained from sole sources. It continues to use single sources for certain castings, motors and other engineered components. It also seeks purchasing savings through consolidated buying and alternative sources.
Purchased materials make up the majority of cost of sales. Other production costs include labor, manufacturing overhead and depreciation of equipment and facilities. Service costs include labor, parts and overhead for repair, maintenance and field work. Selling and administrative expenses include employee costs, marketing, research and development, professional fees and other operating expenses. The company operates over 60 key manufacturing facilities and over 50 service and repair centers across six continents.
- Revenue$7.7B
- Cost of revenue−$4.3B
- Selling, general and administrative−$1.4B
- Other operating costs−$752.4M
- Operating income$1.1B
Competitive position
Industrial equipment markets are competitive, with buyers weighing product quality, performance, energy efficiency, service and local presence. The market for compression, vacuum and blower products is fragmented across technologies, applications and sales channels. Ingersoll Rand names Atlas Copco, Flowserve, IDEX Corporation, Kaeser Compressors, Kaishan Group and Elgi Equipments among its principal competitors in those products.
In Precision and Science Technologies, competition centers on quality and performance, and customers must qualify many products for a particular use. Competitors include Dover, Graco, IDEX, KNF Neuberger, Netzsch, NOV, Sartorius, SPX Flow, Thermo Fisher Scientific and Watson-Marlow, as well as regional and local manufacturers.
Our reading: The installed equipment base is a meaningful source of recurring business because compressors require periodic service and parts throughout their operating lives. Our reading: Application expertise and customer qualification can support the company’s position in specialized uses, although competing manufacturers also serve those markets. Our reading: Its manufacturing, service and distributor network helps it reach customers and support equipment locally, but the fragmented market and competition on price and availability limit the protection that network provides.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Atlas Copco | Compression, vacuum and blower products | Medium |
| Flowserve | Compression, vacuum and blower products | Medium |
| IDEX Corporation | Industrial equipment and precision technologies | Medium |
| Kaeser Compressors | Compression, vacuum and blower products | Medium |
| Kaishan Group Co., Ltd. | Compression, vacuum and blower products | Medium |
| Elgi Equipments Limited | Compression, vacuum and blower products | Medium |
| Dover | Precision and science technologies | Medium |
| Graco | Precision and science technologies | Medium |
Growth opportunities
Ingersoll Rand pursues growth through equipment sales, aftermarket service and acquisitions. Its acquisition strategy seeks complementary businesses that add technologies, expand offerings or provide access to new geographies. In 2025, it acquired wastewater equipment maker SSI Aeration and compressor businesses TMIC and Adicomp.
The company closed the acquisition of IVEC Corporation in Q3 2026. IVEC supplies precision liquid metering and dispensing systems, adds approximately $40 million in annual revenue and joins the life science business within Precision and Science Technologies. The company had closed or signed eight transactions year to date and had seven additional transactions at the letter-of-intent stage.
In Q3 2026, organic orders grew 18% and organic revenue grew 4%. Orders included an approximately $195 million engineered-to-order solution for data center infrastructure, combining backup power and a customer-specific filtration system. The company expects revenue from that order to convert over coming quarters, most meaningfully in 2027, and expects future orders in this area to be lumpy.
Ingersoll Rand is investing in capacity, engineering and supplier qualification for the order. It expects initial shipments to carry margins below the company average and margins to move toward portfolio levels as the program matures and additional orders follow. The company also sees potential demand from healthcare spending and expansion of healthcare systems for some Precision and Science Technologies businesses.
- $5.2BFY2021
- $5.9BFY2022
- $6.9BFY2023
- $7.2BFY2024
- $7.7BFY2025
Structural risks
- Industrial demand: Demand for most products depends on customers’ capital investment and maintenance spending. Industrial Technologies and Services demand generally correlates with industrial capacity utilization and changes in industrial production.
- Input and supplier exposure: The company buys metals and motors and relies on single sources for certain castings, motors and engineered components. A supplier disruption could impair its ability to meet customer commitments.
- Pricing and margins: Competitors challenge the company on price, quality, performance and availability. In Q3 2026, inflationary pressures and pricing dynamics in China contributed to a year-over-year margin decline.
- Global operations: Economic and political conditions, currency fluctuations and non-U.S. regulatory requirements can affect the business and acquisitions. A substantial portion of revenue and costs is denominated in currencies other than the U.S. dollar.
- Debt and acquisitions: Indebtedness can adversely affect financial condition. Acquisitions can require additional capital, and financing may not be available on acceptable terms; integrating geographically separated businesses also presents challenges.
Bottom line
Our reading
Ingersoll Rand combines industrial equipment sales with recurring parts and service revenue from products that customers use over long operating lives. Its opportunities include acquisitions and newer applications such as data center infrastructure, while demand remains tied to customer spending and industrial activity. Competition, input costs and the execution of acquisitions and engineered projects can affect results.