AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Customer qualification, OEM integration and customer-specific engineering establish substantive switching friction in identifiable businesses. Material aftermarket sales corroborate installed-base demand; portfolio-wide exclusivity is unproven.
durability · 2/4 · Qualification requirements persist across annual disclosures and long-duration contracts provide visibility. Neither the duration of customer relationships nor sustained protection against competing technologies is quantified.
customer dependency · 3/4 · Integration, qualification and process-critical applications support meaningful operational dependency. Aftermarket sales provide indirect corroboration, although customers are not shown to depend exclusively on Ingersoll Rand.
erosion resilience · 2/4 · Substantial aftermarket demand and renewed quarterly organic growth support resilience, balanced against competitive markets, 2025 organic contraction and 2026 margin compression. These outcomes do not establish realized share loss.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Organic revenue changes combine price and volume. The supplied passages establish neither realized price increases nor cuts, and margin changes cannot identify pricing outcomes.
retention · 3/4 · Assessed indirectly from qualification, OEM integration, replacement demand and aftermarket sales of 35.9% of quarterly revenue. These support repeat demand and switching friction, without establishing a customer retention rate or acceptance of price increases.
margin resilience · 2/4 · First-half 2026 gross margin declined from 44.1% to 42.5% and adjusted EBITDA margin from 26.9% to 25.4%, while adjusted EBITDA dollars increased. Economic protection is mixed; the supplied passages do not isolate pricing, costs and mix.
contractual freedom · 2/4 · Some engineered contracts protect cost plus a reasonable margin upon termination, while others lack that protection. Fixed-price contracts constrain repricing flexibility. These establish mixed contractual protection, without demonstrating broad unilateral pricing or escalation rights; disclosed overrun risks are possibilities.
Predictability100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 5.05
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 2.77
Financial strength57
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 58.26
- netDebtEbitGrade
- 38.22
- interestCoverageGrade
- 31.89
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 3.92
- Net debt / operating income (x)
- 3.09
- Interest coverage (x)
- 4.51
- Current ratio (x)
- 2.06
Capital allocation85
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 9.99
- 3-year average dilution (%)
- -0.59
- 3-year average SBC / revenue (%)
- 0.75
- cashConversionGrade
- 100.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Annual operating cash generation remained around $1.36–1.40 billion over 2023–2025. However, substantial acquisitions, 2024 net borrowing, 2025 repurchases exceeding $1 billion and realized impairments temper the assessment. Acquisition returns and repurchase value creation are unestablished.
incentive alignment · 3/4 · Existing compensation includes substantial performance-vesting equity, multi-year incentives, payout caps and hedging restrictions. Actual 2026 EPS PSU grants provide further evidence of performance linkage. Adjusted EPS incentives and missing beneficial ownership data limit conclusions; grants are not assumed vested.
execution · 2/4 · Assessed indirectly from operating outcomes: second-quarter organic growth and higher adjusted EBITDA dollars balance 2025 organic contraction and lower 2026 margins. First-half operating cash flow was slightly lower despite including a $25 million settlement receipt. Results demonstrate mixed execution rather than exceptional performance.
governance · 2/4 · Compensation safeguards, a committee without current or former employee members and direct internal-audit reporting support oversight. Combined CEO and chair roles concentrate authority; the lead-director provision offers a counterbalance. Disclosures establish structures, without proving exceptional oversight effectiveness.
Evidence
and Elgi Equipments Limited. Precision and Science Technologies Competition in the markets served by our Precision and Science Technologies segment is primarily based on product quality and performance, as most products must be qualified by the customer for a particular use.
Business—Precision and Science Technologies competition and customer qualification · Filed 17/02/2026
The Company sells primarily through a broad global network of specialized and national distributors and original equipment manufacturers who integrate the Company’s products into their devices and systems.
Segment reporting—distribution and OEM integration · Filed 17/02/2026
The Company has certain long duration engineered to order (“ETO”) contracts that require highly engineered solutions designed to customer specific applications.
Revenue from contracts with customers—customer-specific engineered contracts · Filed 31/07/2026
Our products and services are critical to the processes and systems in which they are utilized, which are often complex and for which the cost of failure or downtime is high.
Business—process criticality and downtime costs · Filed 17/02/2026
The process-critical nature of our product applications, coupled with the standard wear and tear replacement cycles associated with the usage of our products, generates opportunities to support customers with our broad portfolio of services, spare parts, and consumables.
Business—replacement cycles and aftermarket opportunities · Filed 17/02/2026
The percentage of consolidated revenues derived from aftermarket parts and services was 35.9% in the three month period ended June 30, 2026 compared to 36.6% in the same three month period in 2025.
MD&A—second-quarter aftermarket revenue share · Filed 31/07/2026
Competition in the markets served by our Precision and Science Technologies segment is primarily based on product quality and performance, as most products must be qualified by the customer for a particular use.
Business—2023 customer qualification requirements · Filed 23/02/2024
Competition Industrial Technologies and Services The industrial end-markets we serve are competitive, with an increasing focus on product quality, performance, energy efficiency, customer service and local presence.
Business—Industrial Technologies and Services competition · Filed 17/02/2026
Although there are several large manufacturers of compression, vacuum and blower products, the marketplace for these products remains highly fragmented due to the wide variety of product technologies, applications and selling channels.
Business—fragmented compression, vacuum and blower markets · Filed 17/02/2026
Our principal competitors in sales of compression, vacuum and blower products include Atlas Copco, Flowserve, IDEX Corporation, Kaeser Compressors, Kaishan Group Co., Ltd.
Business—named industrial competitors · Filed 17/02/2026
Our primary competitors include Dover, Graco, IDEX Corporation, KNF Neuberger, Netzsch, NOV, Sartorius, SPX Flow, Thermo Fisher Scientific, and Watson-Marlow, as well as other regional and local manufacturers.
Business—named Precision and Science Technologies competitors · Filed 17/02/2026
$ 256.8 $ (115.3) $ 448.9 $ 71.2 Percentage of Revenues: Gross profit 42.1 % 43.7 % 42.5 % 44.1 % Selling and administrative expenses 19.6 % 19.7 % 19.8 % 20.0 % Operating income 18.6 % 4.0 % 17.2 % 10.5 % Net income (loss) 12.6 % (6.0 %) 11.6 % 2.1 % Adjusted EBITDA 25.4 % 27.0 % 25.4 % 26.9 % Other Financial Data: Adjusted EBITDA (1) $ 519.9 $ 509.4 $ 989.0 $ 969.1 Adjusted Net Income (1) 339.3 325.2 643.9 618.4 Cash flows - operating activities (2) 295.9 245.7 495.6 502.1 Cash flows - investing activities (135.9) (82.3) (220.3) (279.4) Cash flows - financing activities (260.3) (513.1) (344.1) (523.1) Free Cash Flow (1)(2) 268.9 210.4 432.3 433.1 (1)See the “Non-GAAP Financial Measures” section for a reconciliation to comparable GAAP measure.
MD&A—2026 comparative margins and cash flows · Filed 31/07/2026
The increase in revenues was primarily due to acquisitions of $419.9 million and the favorable impact of foreign currencies of $92.0 million, partially offset by lower organic revenues of $96.0 million.
MD&A—2025 acquisition, currency and organic revenue bridge · Filed 17/02/2026
The increase in revenues was primarily due to higher organic revenues of $77.5 million, acquisitions of $53.4 million, and the favorable impact of foreign currencies of $30.0 40 Table of Contents million.
MD&A—second-quarter 2026 organic revenue growth · Filed 31/07/2026
For contracts where the contractual deliverables have no alternative use and the contract termination clauses provide for the recovery of cost plus a reasonable margin, revenue is recognized over time based on the Company’s progress in satisfying the contractual performance obligations, generally measured as the ratio of actual costs incurred to date to the estimated total costs to complete the contract.
Revenue recognition—termination provisions providing cost and margin recovery · Filed 31/07/2026
For contracts with termination provisions that do not provide for recovery of cost and a reasonable margin, revenue is recognized at a point in time, generally at shipment or delivery to the customer.
Revenue recognition—contracts without cost and margin recovery on termination · Filed 31/07/2026
•Cost overruns, delays, penalties or liquidated damages could negatively impact our results, particularly with respect to fixed-price contracts for custom engineered products.
Risk factors—fixed-price custom engineering exposure · Filed 31/07/2026
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) For the Years Ended December 31, 2025 2024 2023 Cash Flows From Operating Activities Net income $ 588.8 $ 846.3 $ 785.1 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of intangible assets 387.5 373.0 367.5 Depreciation 118.3 109.0 91.6 Impairment of goodwill and other intangible assets 273.4 13.9 — Non-cash restructuring charges — 1.6 2.7 Stock-based compensation expense 53.0 58.8 51.9 Loss on equity method investments 127.1 24.0 6.0 Foreign currency transaction losses, net 18.6 3.2 5.1 Non-cash adjustments to carrying value of LIFO inventories 17.8 6.7 12.0 Loss on extinguishment of debt — 3.0 13.5 Loss on sale of asbestos-related assets and liabilities — 33.7 — Deferred income taxes (79.4) (33.1) (76.9) Other non-cash adjustments 9.9 7.7 8.3 Changes in assets and liabilities: Receivables (59.1) (45.1) (48.6) Inventories (26.1) 39.8 117.3 Accounts payable 78.7 13.3 (23.9) Accrued liabilities (35.3) (34.5) 94.8 Other assets and liabilities, net (117.5) (24.6) (29.0) Net cash provided by operating activities 1,355.7 1,396.7 1,377.4 Cash Flows From Investing Activities Capital expenditures (135.6) (149.1) (105.4) Net cash paid in acquisitions (525.0) (2,958.7) (963.0) Disposals of property, plant and equipment — 6.1 7.6 Other investing — (6.0) 0.3 Net cash used in investing activities (660.6) (3,107.7) (1,060.5) Cash Flows From Financing Activities Principal payments on long-term debt — (1,242.7) (1,518.0) Proceeds from long-term debt — 3,296.9 1,490.4 Purchases of treasury stock (1,018.0) (260.7) (263.0) Cash dividends on common stock (31.8) (32.3) (32.4) Proceeds from stock option exercises 15.3 32.2 30.3 Payments to settle cross-currency swaps — (19.9) — Payments of deferred and contingent acquisition consideration (8.0) (23.4) (17.5) Payments of debt issuance costs — (32.3) (18.5) Other financing (11.3) (10.3) (8.8) Net cash provided by (used in) financing activities (1,053.8) 1,707.5 (337.5) Effect of exchange rate changes on cash and cash equivalents 66.3 (50.8) 3.1 Net decrease in cash and cash equivalents (292.4) (54.3) (17.5) Cash and cash equivalents, beginning of year 1,541.2 1,595.5 1,613.0 Cash and cash equivalents, end of year $ 1,248.8 $ 1,541.2 $ 1,595.5 For the Years Ended December 31, 2025 2024 2023 Supplemental Cash Flow Information Cash paid for income taxes, net of refunds $ 269.3 $ 276.7 $ 302.0 Cash paid for interest, net of interest rate derivative settlements 249.0 209.0 100.5 The accompanying notes are an integral part of these consolidated financial statements.
Consolidated statements of cash flows—2023–2025 spending, financing and impairments · Filed 17/02/2026
As a result, the Company recognized an impairment charge of $120.9 million in the three month period ended June 30, 2025, which is included in “Loss on equity method investments” on our Condensed Consolidated Statement of Operations.
Equity method investments—realized 2025 impairment · Filed 31/07/2026
(2)The three and six month periods ended June 30, 2026 include $25 million collected related to the representations and warranties settlement.
MD&A—settlement receipt included in 2026 cash flows · Filed 31/07/2026
WHAT WE DO WHAT WE DON’T DO Significant Portion of Pay Focused on Long-Term Value Creation No Guaranteed Bonuses 50% of Annual Long-Term Incentive Compensation in Performance-Vesting Equity Awards No Tax Gross-Ups in Connection with Change-in-Control Severance Incentive Plan Goals Aligned with Stockholder Interests No Executive Pensions Minimum one-year vesting on all equity awards No Fixed-Term Employment Agreements Market-Leading Stock Ownership and Retention Guidelines No Stock Option Repricing Capped Incentive Opportunities No Hedging or Pledging of Company Stock Mitigation of Risk Through Compensation Risk Assessments Incentive Compensation Clawback Policy Ingersoll Rand 43 2026 Proxy Statement TABLE OF CONTENTS WHAT WE DO WHAT WE DON’T DO Independent Compensation Consultant 2025 EXECUTIVE COMPENSATION PROGRAM IN DETAIL 2025 Executive Compensation Decisions The following table reflects NEO target compensation in 2025: Name/Title ANNUAL SALARY 2025 MIP TARGET (AS OF 12/31/25) LTI TARGET GRANT VALUE TARGET TDC 12/31/24 12/31/25 % CHANGE AS % OF SALARY VALUE Vicente Reynal, Pres.
Executive compensation—existing incentive structure and compensation safeguards · Filed 24/04/2026
index = 200% payout (capped) To ensure better alignment of payouts with stockholder value creation, even if relative performance would have resulted in a payout above target, the payout under the PSUs is capped at target if the Company’s absolute TSR is negative.
2025 annual equity awards—payout cap when absolute shareholder return is negative · Filed 24/04/2026
During the first quarter of 2026, the Company granted EPS PSUs to certain officers in which the number of shares issued at the end of the performance period is determined by the level of compounded annual growth rate of the Company’s Adjusted EPS during the three year performance period.
Stock-based compensation—actual first-quarter 2026 EPS PSU grants · Filed 31/07/2026
Sincerely, Vicente Reynal Chief Executive Officer, President and Chairman of the Board of Directors TABLE OF CONTENTS Notice of 2026 Annual Meeting of Stockholders Date and Time Thursday, June 11, 2026 10:30 a.m.
Proxy letter—combined CEO, president and board chair roles · Filed 24/04/2026
Furthermore, the Company’s Corporate Governance Guidelines provide for the role of Lead Director of the Board in the event that the Chair of the Board is not an independent director, which reflects the Company’s continued commitment to enhanced corporate governance best practices.
Governance—lead director provision · Filed 24/04/2026
Our head of internal audit, who is also our Chief Risk Officer, reports directly to the Audit Committee.
Risk oversight—internal audit and Chief Risk Officer reporting to Audit Committee · Filed 24/04/2026
None of the current members of our Compensation Committee has at any time been one of our executive officers or employees.
Compensation Committee—absence of current or former executive or employee members · Filed 24/04/2026
These attributes, along with over 165 years of engineering heritage, generate strong brand loyalty for our products and foster long-standing customer relationships, which we believe have resulted in leading market positions within each of our operating segments.
MD&A—issuer claims of brand loyalty and leading market positions · Filed 17/02/2026
As of December 31, 2025, for contracts with an original duration greater than one year, the Company expects to recognize revenue in the future related to unsatisfied (or partially satisfied) performance obligations of $743.2 million in the next twelve months and $807.9 million in periods thereafter.
Revenue recognition—remaining obligations under contracts exceeding one year · Filed 17/02/2026
The performance obligations that are unsatisfied (or partially satisfied) are primarily related to orders for goods or services that were placed prior to the end of the reporting period and have not been delivered to the customer, on-going work on ETO contracts where revenue is recognized over time and service contracts with an original duration greater than one year.
Revenue recognition—composition of remaining contractual obligations · Filed 17/02/2026
