IR — Ingersoll Rand Inc.

Ingersoll Rand Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Organic Order Growth: 2% increase year-over-year.
• Organic Revenue Growth: 4% increase year-over-year, with total revenue reaching approximately $2 billion (up 9% year-over-year).
• Adjusted EPS: $0.86, reflecting a 7% increase year-over-year.
• Adjusted EBITDA: $520 million (up 2% year-over-year), with an adjusted EBITDA margin of 25.4%, down 160 basis points due to inflationary pressures, increased corporate costs, and investments in growth.
• Free Cash Flow: $269 million, up 28% year-over-year.
• Liquidity: Approximately $3.8 billion, including $1.2 billion in cash.
• Leverage Ratio: Maintained at 1.7x.

2. Strategic Updates and Business Highlights:

• Acquisitions: Closed on Lone Star Blowers (adding ~$50 million in annual revenue) and signed an agreement for Fai Filtri (expected to add ~$30 million in annual revenue).
• Sustainability Recognition: Received multiple accolades for sustainability leadership and employee ownership culture, including joining the 2026 Fortune 500.
• M&A Pipeline: Robust with 11 additional transactions under Letter of Intent (LOI), focusing on bolt-on opportunities to enhance core technologies and aftermarket presence.
• Operational Execution: Continued focus on IRX and economic growth engine to drive performance.

3. Forward Guidance and Outlook:

• Revenue Guidance: Updated to a growth range of 4.5% to 6.5% for the full year, up 200 basis points at the midpoint.
• Adjusted EBITDA Guidance: Maintained range of $2.13 billion to $2.19 billion.
• Adjusted EPS Guidance: Expected to be near the high end of the range of $3.45 to $3.57.
• Free Cash Flow Conversion: Anticipated to remain around 95%.
• July Performance: Strong start with double-digit organic order growth, indicating positive momentum.

4. Bad News, Challenges, or Points of Concern:

• Margin Pressures: Adjusted EBITDA margin decreased due to inflationary pressures, particularly in China, and higher corporate costs related to incentive compensation true-ups.
• Delayed Long-Cycle Projects: Some long-cycle project orders were delayed, impacting organic order growth, particularly in the EMEA region.
• Pricing Challenges in China: Significant pricing pressures noted in the Chinese market, which the company views as transient but still a concern for margins.

5. Notable Q&A Insights:

• Regional Dynamics: Americas showed strong performance with high single-digit order growth, while EMEA faced low double-digit declines due to timing issues rather than demand.
• Long-Cycle Projects: There is increasing enthusiasm from customers, with a positive outlook for long-cycle projects moving forward.
• Pricing Environment: Stable pricing dynamics in the Americas, with inflationary pressures primarily affecting China.
• M&A Environment: Healthy acquisition pipeline, with a disciplined approach to valuations and deal selection.
• Life Sciences Growth: Strong momentum in the Life Sciences segment, particularly in biopharma, with expectations for continued stability and growth.

Overall, Ingersoll Rand demonstrated solid financial performance in Q2 2026, with strategic acquisitions and a robust M&A pipeline, despite facing challenges in margins and certain regional markets. The company remains optimistic about its growth trajectory and operational execution for the remainder of the year.