Ingersoll Rand Inc. (IR): BCG Matrix [Dec-2025 Updated]

You're looking for the clearest picture of where Ingersoll Rand Inc. is putting its capital as we head into late 2025, and the BCG Matrix cuts right to it. Honestly, the story shows a clear split: the Precision and Science Technologies Life Sciences platform is a clear Star, boasting a 30.8% Adjusted EBITDA margin in a booming market, while the massive Industrial Technologies and Services core keeps the lights on as a Cash Cow, generating $326 million in Q3 free cash flow despite slight revenue dips. Still, you've got those Question Marks-recent buys in areas like renewable natural gas-that required $249 million in M&A spending last quarter, needing a big decision soon, and you definitely need to know which legacy parts are just Dogs draining resources. Dive in to see the full breakdown of where Ingersoll Rand is winning, holding, and potentially divesting.

Background of Ingersoll Rand Inc. (IR)

Ingersoll Rand Inc. (IR), headquartered in Davidson, North Carolina, is a global provider of mission-critical flow creation and life science and industrial solutions. The company drives performance through its competitive differentiator, Ingersoll Rand Execution Excellence (IRX). As of late 2025, Ingersoll Rand Inc. reported strong financial results for the third quarter, with total revenues reaching $1,955 million, marking an increase of 5% compared to the third quarter of 2024. Total orders for the quarter were $1,942 million, up 8% year-over-year.

The company operates through two primary segments. The Industrial Technologies and Services Segment (IT&S) offers a broad range of compressor, vacuum, blower, and air treatment solutions, along with industrial technologies like power tools and lifting equipment. In the third quarter of 2025, IT&S generated revenues of $1,541 million, a 5% increase, though its organic revenue was down 2%. The segment's Adjusted EBITDA was $448 million, with a margin of 29.0%.

The second segment is Precision and Science Technologies Segment (P&ST), which focuses on mission-critical precision liquid, gas, air, and powder handling technologies for life sciences, industrial, and aerospace/defense applications. P&ST delivered revenues of $415 million in Q3 2025, up 5%, and saw organic revenue growth of 2%. This segment demonstrated strong profitability with an Adjusted EBITDA margin of 30.8%, which was up 80 basis points year-over-year.

For the consolidated company in the third quarter of 2025, Adjusted EBITDA was $545 million, up 2%, achieving a margin of 27.9%. Net income attributable to Ingersoll Rand Inc. was $244 million, or $0.61 per share, while Adjusted net income reached $346 million, or $0.86 per share. The company maintained a strong liquidity position of $3.8 billion as of September 30, 2025, with a Net debt-to-Adjusted EBITDA leverage ratio of 1.8x.

Ingersoll Rand Inc. actively manages its portfolio, deploying $249 million to Mergers & Acquisitions (M&A) in the third quarter, which included closing on Dave Barry Plastics. Furthermore, the company returned $201 million to shareholders through share repurchases of $193 million and dividend payments of $8 million during the same period. Year-to-date through Q3 2025, organic orders were up 2% with a book-to-bill ratio of 1.04x.

Ingersoll Rand Inc. (IR) - BCG Matrix: Stars

The Precision and Science Technologies (P&ST) Segment is positioned as a Star for Ingersoll Rand Inc., characterized by high growth in its end markets, particularly within the Life Sciences platform. This segment represents a key area for investment to maintain market leadership.

The strategic focus on Life Sciences is being reinforced through bolt-on acquisitions. For instance, the June 2025 acquisition of Lead Fluid, a China-based designer and manufacturer of advanced fluid-handling products, directly strengthens capabilities in this area. Lead Fluid, which joins the Life Sciences platform within P&ST, reported an annual revenue of approximately $8 million prior to the transaction, signaling an effort to increase exposure to high-growth, sustainable end markets like biotech and pharma.

Performance in the third quarter of 2025 confirms the segment's strong standing in a growing market, evidenced by superior profitability metrics compared to the consolidated company results. The specialized flow creation technologies for biotech and pharma within this segment demand significant capital deployment to support this expansion trajectory.

Here are the key financial metrics for the P&ST segment as of Q3 2025:

The high organic orders growth suggests strong underlying demand and market share capture, which aligns with the Star quadrant definition. However, this growth necessitates continued investment, which is typical for a Star business unit. The segment's ability to generate an Adjusted EBITDA margin of 30.8% in Q3 2025 demonstrates its high profitability, even while consuming cash for expansion.

The strategic imperatives driving this segment include:

• Strengthening capabilities in the Life Sciences platform.
• Integrating bolt-on acquisitions like Lead Fluid to deepen market penetration in China.
• Investing in specialized flow creation technologies for biotech and pharma applications.
• Maintaining operational execution to drive margin expansion, which saw sequential improvement of 130 basis points.

For context, the total Ingersoll Rand Inc. Q3 2025 Adjusted EBITDA margin was 27.9%, making the P&ST segment's 30.8% margin a clear indicator of its premium performance within the portfolio. The P&ST segment's orders growth of 11% outpaced the consolidated company's orders growth of 8% for the quarter.

Ingersoll Rand Inc. (IR) - BCG Matrix: Cash Cows

You're looking at the core engine of Ingersoll Rand Inc.'s current financial stability, the segment that funds the rest of the portfolio moves. This is where we find the classic Cash Cow: a business unit with a high market share in a mature, slow-growth market. For Ingersoll Rand Inc., that unit is the Industrial Technologies and Services (IT&S) core compressor and air treatment business.

This segment is the company's heavyweight, delivering Q3 2025 revenue of $1.541 billion, which represents the lion's share of the total company revenue of $1.955 billion for the quarter. That scale gives it significant market leadership, which is exactly what you want in a Cash Cow. It's a market leader that generates more cash than it consumes, so to speak.

A key driver of this stability is the aftermarket business. Aftermarket services and parts generate stable, recurring revenue, representing about 37% of total company sales. That steady stream means management doesn't need to spend heavily on promotion or aggressive placement to keep the lights on; they just need to maintain service quality. Still, you've got to keep the infrastructure supporting it efficient to maximize that cash flow.

Here's a quick look at the numbers that define this unit's cash-generating power in the third quarter of 2025:

The strong cash generation is evident when you look at the bottom line for the quarter. The IT&S segment is a major contributor to the $326 million in Q3 2025 free cash flow reported by Ingersoll Rand Inc. This cash is vital; it's what the company uses to service corporate debt, pay dividends, and fund the riskier Question Marks in the portfolio. That's the primary job of a Cash Cow.

The low organic revenue growth of down 2% in Q3 2025 is the tell-tale sign of a mature, high-share market position, which fits the Cash Cow profile perfectly. While the overall company saw positive organic orders growth, this segment's organic revenue decline suggests demand is flat or slightly contracting in its core areas, meaning market share defense, not aggressive expansion, is the focus here. It certainly isn't a Star, but it's the unit that keeps the lights on.

The characteristics defining the IT&S segment as a Cash Cow include:

• High market share in a mature market.
• Generates more cash than it consumes.
• Requires minimal investment for maintenance.
• Provides cash to fund other segments.
• Profit margins are typically high.

Finance: draft 13-week cash view by Friday.

Ingersoll Rand Inc. (IR) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Traditional, mature product lines within the vast Industrial Technologies and Services (IT&S) portfolio are the likely candidates for this quadrant. These areas are characterized by markets that aren't expanding rapidly, and the company's share within those specific niches may be modest against larger, more focused competitors.

Legacy power tools and basic lifting equipment, which are part of the IT&S segment, are showing signs of stagnation or decline in organic growth. For instance, in the third quarter of 2025, the IT&S segment reported organic revenues that were down 2% year-over-year. This contrasts with the company's overall 2025 organic revenue growth guidance, which is set between (2)% and 0%, suggesting these mature product lines are dragging down the average.

These specific areas contribute to the overall IT&S segment's margin pressure. While the segment's Adjusted EBITDA margin was 29.0% in Q3 2025, it was lower than the Precision and Science Technologies (P&ST) segment's margin of 30.8% for the same period. This indicates that the lower-growth product mix within IT&S is not commanding the same profitability.

You can see the financial context for the IT&S segment, which houses these potential Dogs, compared to the higher-growth P&ST segment:

These are products with minimal strategic investment, generating just enough cash to cover their own costs, or perhaps slightly less when considering overhead allocation. The company's focus remains on deploying capital toward higher-growth avenues, such as its M&A pipeline, which contributed an expected $300 million in revenue for fiscal 2025. The IT&S segment's total Q3 2025 revenue was $1,541 million, showing it is still a significant revenue base, but the negative organic growth signals a need for strategic action.

These units are potential divestiture candidates if they cannot be successfully integrated into the higher-margin aftermarket model. The aftermarket revenue was 37% of total revenue in Q2 2025, a key area where Ingersoll Rand Inc. (IR) aims to increase recurring, higher-margin sales. The performance of the core, lower-margin, low-growth product sales within the IT&S segment suggests they are not contributing significantly to the overall enterprise growth story.

• IT&S Segment Q3 2025 Orders: $1,522 million
• IT&S Segment Q3 2025 Adjusted EBITDA: $448 million
• Company Liquidity (Q3 2025): $3.8 billion
• Net debt-to-Adjusted EBITDA leverage (Q3 2025): 1.8x

Finance: draft 13-week cash view by Friday.

Ingersoll Rand Inc. (IR) - BCG Matrix: Question Marks

You're looking at the newer, less established parts of Ingersoll Rand Inc. (IR) portfolio-the Question Marks. These are the businesses operating in markets Ingersoll Rand sees as having high future growth, but where the company's current market share is still small. They are cash consumers right now, but the hope is they mature into Stars. This strategy is clearly visible in their recent, aggressive bolt-on acquisition activity.

Ingersoll Rand Inc. is actively deploying capital to build out these high-potential areas. For instance, in the third quarter of 2025 alone, the company deployed $249 million to M&A, signaling a strong commitment to inorganic growth in these nascent or expanding segments. This high capital deployment is characteristic of managing Question Marks-you spend now for potential future dominance.

The focus is clearly on sustainable and specialized technologies, which are generally high-growth end markets. These acquisitions are small relative to the overall company size but strategically important for future positioning. Here's a look at some of the specific moves that fit this profile:

The TMIC/Adicomp deal specifically brings in the subsidiary Adicomp, which provides engineered-to-order (ETO) solutions tailored for the RNG sector. This is a classic Question Mark play: entering a rapidly expanding, environmentally focused market with specialized technology, but needing to quickly scale market share against established players. The acquisition was made at an attractive low-double-digit multiple, with an expected post-synergy multiple in the mid-to-high single digits, suggesting management believes the growth potential justifies the initial investment.

Similarly, the G & D Chillers acquisition expands Ingersoll Rand Inc.'s manufacturing, engineering, and Engineer to Order (ETO) capabilities for chillers in North America, particularly for sub-freezing applications like biogas facilities. The associated acquisition of AGT adds onsite gas generation systems. These moves bolster the IT&S segment's air treatment portfolio, aiming for growth in sustainable end markets.

The overall inorganic growth strategy is aggressive. As of Q3 2025, Ingersoll Rand Inc. had closed 14 bolt-on acquisitions year-to-date, with 9 additional transactions under Letter of Intent (LOI). This pace of activity consumes cash-like the $249 million spent in Q3 2025-but is intended to quickly build share in these high-potential areas. The company's free cash flow for Q3 2025 was $326 million, which must fund both this M&A and internal investment decisions for these Question Marks.

The strategic imperative for these units is clear: they must rapidly gain market share to justify the cash burn and transition into Stars. If they fail to capture that growth, they risk becoming Dogs. Ingersoll Rand Inc. must decide where to place its bets:

• Invest heavily in the RNG and specialized chiller/gas generation platforms to drive rapid adoption.
• Divest units that fail to show a clear path to significant market penetration within the next few reporting periods.

The company's liquidity position of $3.8 billion as of September 30, 2025, provides the necessary war chest for these high-stakes investment decisions. The recent addition of Dave Barry Plastics in August 2025 further supports the Life Science platform, another area targeted for growth.