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Conclusions are published after independent cross-review.

IRIngersoll Rand Inc.
HoldConviction 5.6/10PW target $89.50+11.0%Rated Apr 20Full research page

Verdict

Ingersoll Rand is a mission-critical industrial compounder executing a disciplined M&A flywheel (16 deals in 2025, $525M deployed at ~9x pre-synergy multiples) layered on top of a sticky installed-base model where aftermarket revenue (~37% of sales) grows faster than equipment sales. The company's 'region-for-region' manufacturing strategy and diversified end-market exposure provide resilience against tariff and macro headwinds, while the Precision & Science Technologies segment's life sciences exposure (mid-teens organic order growth) offers a secular growth vector.

ScenarioProb.TargetDriver
Bull25%$110.00Organic revenue growth accelerates to 3-5% as industrial cycle recovers in H2 2026
Base50%$91.00Revenue grows 2.5-4.5% as guided, with organic growth flat to low single digits
Bear25%$66.00Industrial recession drives negative organic growth — end-market demand deteriorates beyond tariff impacts

Change history

  • Apr 20View held

    Initial coverage — Phase A deep research

Watching

  • Q1 2026 earnings release and conference callApr 2870d ago
  • Q1 2026 earnings — first quarter under FY2026 guidance; key: organic orders, recurring revenue trajectory, tariff mitigationApr 2870d ago
  • Definitive proxy statement deadline for 2026 Annual MeetingApr 3068d ago
  • Form 10-Q deadline for Q1 2026 (quarter ended 2026-03-31)May 1157d ago
  • M&A pipeline conversion — 9 LOIs pending at Q4 2025; track closings and multiplesJun 307d ago
Scinomix integration — first 2026 acquisition; PST life sciences cross-sell validation
Jun 30
7d ago
  • Q2 2026 earnings release (estimated)Jul 31in 24d
  • Recurring revenue $600M+ annualized run-rate — validates $1B 2027 target and re-rate thesisJul 31in 24d
  • Industrial cycle inflection — watch ISM Manufacturing and organic order trends for H2 2026 recoverySep 30in 85d
  • Q3 2026 earnings release (estimated)Oct 30in 115d
  • Q4 2026 / FY2026 earnings release (estimated)Feb 12, 2027in 220d
  • US ISM Manufacturing Index stays below 48 for 6+ consecutive months — deep industrial recession
  • Atlas Copco announces SMARTLINK/AIRPlan subscription penetration exceeds 50% of new compressor installations in North America
  • Organic order growth turns negative for 2+ consecutive quarters despite M&A tailwinds
  • Recurring revenue quarterly growth decelerates below 20% YoY for 2 consecutive quarters — installed-base monetization stalling
  • US-China tariff escalation raises IR exposure beyond $250M annually (vs ~$150M FY2025)
  • Adj. EBITDA margin falls below 26% for 2 consecutive quarters — IROS integration failing
  • GAAP/adjusted EPS gap exceeds $2.50/share — acquisition charges consuming real economic value
  • Recurring revenue annualized run-rate exceeds $600M at any quarterly report — validates $1B 2027 target
  • Organic order growth inflects to +3%+ for 2 consecutive quarters — industrial cycle recovering
  • M&A closes $1B+ aggregate in H1 2026 at <10x pre-synergy multiples — flywheel accelerating
  • PST life sciences segment sustains mid-teens organic order growth through H1 2026
  • Adj. EBITDA margin expands to 28.5%+ in H2 2026 — tariff mitigation + IROS savings compounding
  • Latest notes

    • Apr 20Deep Research: IR — Industrial Compounder with M&A Flywheel
    • Apr 20Competitive Deep Dive — 2026-04-20

    Options radar

    Concept — illustrative data
    • Jun 30Call$110.00Aug 211,200 ct$540K
    • Jun 30Call$105.00Jul 17800 ct$216K
    • Jun 29Put$95.00Aug 21600 ct$168K
    Unusual volume3.2x 20-day avg call volume
    IV shift30-day IV 41% → 48%

    Positioning skews toward near-term upside