Ingersoll Rand Inc. (IR): Results of Operations and Financial Condition
Ingersoll Rand Inc. (IR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Ingersoll Rand Reports Second Quarter 2026 Results Strong organic growth momentum Second Quarter 2026 Highlights (All comparisons against the second quarter of 2025 unless otherwise noted). Performance driven by its competitive differentiator - Ingersoll Rand Execution Excellence
How this was made
The 30-second read
Why it matters
Traders can update models immediately using the disclosed Q2 datapoints (orders, revenues, adjusted EPS/EBITDA, cash flow, leverage) and the revised full-year guidance, and they can price deal-related timing into 2H 2026 expectations.
Market read
The filing combines a fresh earnings release with a guidance update and signed acquisitions, which can drive estimate revisions and near-term sentiment for IR.
What to watch
Free cash flow conversion target (~95%) and revenue phasing (1H 48%, 2H 52%) may matter more than the full-year averages for near-term estimates and positioning.
Ingersoll Rand reported second-quarter 2026 revenue of $2,049 million, up 9%, and adjusted EBITDA of $520 million, up 2%, while updating full-year 2026 guidance.
Reported revenue grew 9%, reported orders rose 5%, adjusted EPS increased 7%, and operating cash flow and free cash flow increased from the prior-year period. The result was tempered by a 180-basis-point decline in IT&S adjusted EBITDA margin and flat organic order growth in that segment.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Reported ordersGAAP | $2,043 million | – | up 5% |
| Reported revenuesGAAP | $2,049 million | – | up 9% |
| Net income attributable to Ingersoll Rand Inc.GAAP | $257 million | – | – |
| Net income attributable to Ingersoll Rand Inc. per shareGAAP | $0.66 per share | – | – |
| Adjusted net income attributable to Ingersoll Rand Inc.non-GAAP | $339 million | – | – |
| Adjusted net income attributable to Ingersoll Rand Inc. per sharenon-GAAP | $0.86 per share | – | up 7% |
| Adjusted EBITDAnon-GAAP | $520 million | – | up 2% |
| Adjusted EBITDA marginnon-GAAP | 25.4% | – | – |
| Cash flow from operating activitiesGAAP | $296 million | – | – |
| Free cash flownon-GAAP | $269 million | – | – |
| Capital expendituresGAAP | $27 million | – | – |
| Liquidityother | $3.8 billion | – | – |
| Cash on handother | $1.2 billion | – | – |
| Undrawn capacity under available credit facilitiesother | $2.6 billion | – | – |
| Net debt to Adjusted EBITDA leveragenon-GAAP | 1.7x | – | flat as compared to the second quarter of the prior year |
| IT&S reported ordersGAAP | $1,621 million | – | up 4% |
| IT&S reported segment adjusted EBITDAnon-GAAP | $435 million | – | up 2% |
| IT&S reported segment adjusted EBITDA marginnon-GAAP | 26.8% | – | down 180 basis points |
| P&ST reported ordersGAAP | $422 million | – | up 11% |
| P&ST reported segment adjusted EBITDAnon-GAAP | $135 million | – | up 15% |
| P&ST reported segment adjusted EBITDA marginnon-GAAP | 31.5% | – | up 200 basis points |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Industrial Technologies and Services Segment (IT&S)Positive organic revenue growth in all regions, with healthy compressor activity particularly in North America. Organic order growth was flat as the timing of long cycle project orders in the blower and vacuum business in Europe and the ongoing impact from the Middle East offset activity. | $1,622 million | – | up 9%, or up 4% organic |
| Precision and Science Technologies Segment (P&ST)Strong demand included low double-digit growth in Life Sciences and mid single-digit growth in Precision Technologies. Margin expansion was driven by strong operational execution fueled by IRX. | $427 million | – | up 8%, or up 4% organic |
Full Year 2026 outlook
- Revenue4.5% to 6.5%
- Tax rate~22%
- NoteCurrency: ~+1%
- NoteM&A: ~+2.5%
- NoteOrganic growth: +1% to +3%
- NoteRevenue phasing: 1H 48% | 2H 52%
- NoteAdjusted EBITDA: $2,130M - $2,190M
- NoteCorporate costs: ~$170M
- NoteAdjusted EBITDA phasing: 1H 46% | 2H 54%
- NoteAdjusted EPS: $3.45 to $3.57
- NoteExpected to finish near the high end of the range
- NoteNet interest expense: ~$230M
- NoteShare count: ~391.5M
- NoteAdjusted EPS phasing: 1H 46% | 2H 54%
- NoteFree Cash Flow to Adj. Net Income conversion: ~95%
- NoteCAPEX: ~2% of sales
Capital returns
- The Company deployed $110 million to M&A in the second quarter of 2026, including for the previously announced acquisition of Fox s.r.l.
- The Company returned approximately $248 million to shareholders through $240 million in share repurchases and $8 million through its quarterly dividend payment in the second quarter.
- The Company announced the signing of the acquisition of Fai Filtri s.r.l., which is expected to close in Q4 2026.
- The Company expects to close on the acquisition of a U.S.-based blower manufacturer on July 31, 2026.
What drove it
- Performance was driven by Ingersoll Rand Execution Excellence (IRX).
- Order momentum continued to build, according to management.
- IT&S had positive organic revenue growth in all regions and a book to bill of 1.0x.
- Overall compressor orders were up low single digits globally.
- P&ST organic orders were up 7%, including low double-digit growth in Life Sciences and mid single-digit growth in Precision Technologies.
- P&ST margin improvement was driven by strong operational execution fueled by IRX.
Concerns
- IT&S organic order growth was flat.
- The timing of long cycle project orders in the blower and vacuum business in Europe and the ongoing impact from the Middle East offset healthy compressor activity in IT&S.
- IT&S adjusted EBITDA margin was down 180 basis points, driven largely by challenges in offsetting inflationary impacts with price primarily in China and continued commercial investments for growth.
- The guidance assumptions include currency of ~+1% and M&A of ~+2.5%, while organic growth is guided at +1% to +3%.
- Completion of the Fai Filtri s.r.l. transaction is subject to the fulfillment or waiver of certain Conditions Precedents and compliance with any applicable information and consultation procedure with trade unions.
What to watch
- IT&S organic order growth following the second-quarter flat result.
- The pace of long cycle project orders in the European blower and vacuum business and the ongoing impact from the Middle East.
- IT&S ability to offset inflationary impacts with price primarily in China.
- Full-year organic growth performance against the +1% to +3% outlook.
- Progress toward the stated expectation to finish adjusted EPS near the high end of the $3.45 to $3.57 range.
- The expected closing of Fai Filtri s.r.l. in Q4 2026 and the expected July 31, 2026 closing of the U.S.-based blower manufacturer acquisition.
Balance sheet and cash flow
- Liquidity of $3.8 billion as of June 30, 2026, including $1.2 billion of cash on hand and undrawn capacity of $2.6 billion under available credit facilities.
- Reported cash flow from operating activities was $296 million, compared to cash flow from operating activities of $246 million in the prior year period.
- The Company invested $27 million in capital expenditures, resulting in free cash flow of $269 million, compared to free cash flow of $210 million in the prior year period.
- Net debt to Adjusted EBITDA leverage was 1.7x for the second quarter and was flat as compared to the second quarter of the prior year.
- In June 2026, the Company received a one notch upgrade from Moody’s to Baa1.
Analysis
Ingersoll Rand delivered reported revenue of $2,049 million, up 9%, and reported orders of $2,043 million, up 5%, in the second quarter of 2026. Adjusted net income attributable to Ingersoll Rand Inc. was $339 million, while adjusted net income attributable to Ingersoll Rand Inc. per share was $0.86 per share, up 7%. Adjusted EBITDA was $520 million, up 2%, with a margin of 25.4%.
IT&S generated reported revenues of $1,622 million, up 9%, or up 4% organic, with positive organic revenue growth in all regions. Its organic order growth was flat, despite healthy compressor activity particularly in North America, because of the timing of long cycle project orders in the European blower and vacuum business and the ongoing impact from the Middle East. IT&S segment adjusted EBITDA margin was 26.8%, down 180 basis points, reflecting challenges in offsetting inflationary impacts with price primarily in China and continued commercial investments for growth.
P&ST reported revenues of $427 million, up 8%, or up 4% organic, and reported orders of $422 million, up 11%, or up 7% organic. Demand included low double-digit growth in Life Sciences and mid single-digit growth in Precision Technologies. P&ST segment adjusted EBITDA increased 15% to $135 million and its adjusted EBITDA margin expanded 200 basis points to 31.5%, driven by operational execution fueled by IRX.
Cash generation improved from the prior-year period, with cash flow from operating activities of $296 million compared with $246 million and free cash flow of $269 million compared with $210 million. The company deployed $110 million to M&A and returned approximately $248 million to shareholders, including $240 million of share repurchases and $8 million through its quarterly dividend payment. Liquidity was $3.8 billion as of June 30, 2026, and net debt to Adjusted EBITDA leverage was 1.7x, flat year over year.
The company updated full-year 2026 guidance for revenue growth of 4.5% to 6.5%, including organic growth of +1% to +3%, adjusted EBITDA of $2,130M - $2,190M, adjusted EPS of $3.45 to $3.57, and free cash flow to adjusted net income conversion of ~95%. Management expects adjusted EPS to finish near the high end of the range. The outlook assumes currency of ~+1%, M&A of ~+2.5%, net interest expense of ~$230M, an adjusted tax rate of ~22%, and CAPEX of ~2% of sales.
Management, verbatim
Our second quarter results reflect strong organic growth and solid Adjusted EPS 1 performance, driven by the strength of our portfolio and the consistent execution by our teams.
Vicente Reynal, chairman and chief executive officer of Ingersoll Rand
Order momentum continues to build, reinforcing our confidence in delivering on our full-year commitments as we remain focused on staying agile, and driving durable, long-term growth.
Vicente Reynal, chairman and chief executive officer of Ingersoll Rand
Not in the filing
stated, not guessed- Prior outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- GAAP gross profit and gross margin were not provided in the supplied filing text.
- GAAP operating income and operating margin were not provided in the supplied filing text.
- GAAP total net income, if different from net income attributable to Ingersoll Rand Inc., was not provided in the supplied filing text.
- Prior-year and prior-quarter figures for reported revenue, reported orders, GAAP net income attributable to Ingersoll Rand Inc., GAAP EPS, adjusted net income attributable to Ingersoll Rand Inc., adjusted EBITDA, and adjusted EBITDA margin were not provided on their respective line items.
- Prior-quarter comparisons were not provided for the reported metrics.
- GAAP and non-GAAP diluted-share designation was not provided for the reported per-share figures.
- Total debt and net debt amounts were not provided in the supplied filing text.
- A quarterly dividend per-share amount was not provided in the supplied filing text.
- Full-year 2026 GAAP guidance reconciliations were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Q2 2026 results and an updated full-year 2026 guidance range, plus M&A updates.
Ticker impact
Ingersoll Rand reported Q2 2026 orders of $2,043M (+5%) and updated full-year 2026 guidance for revenue, EBITDA, and EPS.
Likely positive bias if investors view organic momentum and margin trajectory as sustainable; watch for any skepticism around IT&S margin compression and deal integration.
The filing discloses concrete Q2 performance (orders, revenues, EPS, cash flow), a full-year guidance range with EPS near the high end, and new M&A signings with defined expected close timing.
Market effects
Signals demand resilience in industrial compressors and life-sciences/precision handling, with margin pressure in IT&S tied to pricing and inflation offset.
Notes compressor activity strength in North America and timing impacts in Europe, plus China pricing dynamics affecting margins.
Provides a read-through for industrial equipment and life-science tooling demand and financing conditions via investment-grade credit upgrade.
Counterpoint
Margin compression in IT&S (down 180 bps) and reliance on pricing in China could indicate less durable profitability than the headline order growth suggests.
Key entities
- companyIngersoll Rand Inc.
Reported Q2 2026 results, updated full-year 2026 guidance, and signed acquisitions expected to close in Q4 2026.
- acquired companyFox s.r.l.
Previously announced acquisition; company states it deployed $110M to M&A in Q2 including this deal.
- acquired companyFai Filtri s.r.l.
Newly signed acquisition; expected to close in Q4 2026.
- credit rating agencyMoody’s
Upgraded Ingersoll Rand one notch to Baa1 in June 2026.
