Third Quarter 2026
Filed Oct 29, 2026IRX-driven execution delivers robust organic orders and revenue growth
Third-quarter orders grew 21%, including 18% organic growth, while revenue rose 6% and both segments reported organic revenue growth. Adjusted EBITDA increased 7% to $584.4 million and reported operating cash flow reached $647.8 million, although IT&S adjusted EBITDA margin excluding IEEPA Tariff Refunds declined 120 basis points amid inflationary pressures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total ordersother | $2.35B | – | 20.7% |
| Q3 2026 total organic orders growthnon-GAAP | 18.2% | – | 18.2% |
| Q3 2026 revenuesGAAP | $2.06B | – | 5.6% |
| Q3 2026 organic revenue growthnon-GAAP | 3.9% | – | 3.9% |
| Q3 2026 cost of salesGAAP | $1.14B | – | – |
| Q3 2026 gross profitGAAP | $924.3M | – | – |
| Q3 2026 selling and administrative expensesGAAP | $389.7M | – | – |
| Q3 2026 amortization of intangible assetsGAAP | $107.4M | – | – |
| Q3 2026 other operating expense (income), netGAAP | −$355.3M | – | – |
| Q3 2026 operating incomeGAAP | $782.5M | – | – |
| Q3 2026 income before income taxesGAAP | $725.2M | – | – |
| Q3 2026 net incomeGAAP | $671.6M | – | – |
| Q3 2026 net income attributable to Ingersoll Rand Inc.GAAP | $669.9M | – | – |
| Q3 2026 diluted earnings per shareGAAP | $1.73 | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $584.4M | – | 7% |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 28.3% | – | – |
| Q3 2026 adjusted EBITDA excluding IEEPA Tariff Refundsnon-GAAP | $552M | – | 1% |
| Q3 2026 adjusted EBITDA margin excluding IEEPA Tariff Refundsnon-GAAP | 26.7% | – | – |
| Q3 2026 adjusted diluted earnings per sharenon-GAAP | $1.07 | – | – |
| Q3 2026 adjusted net income attributable to Ingersoll Rand Inc. excluding IEEPA Tariff Refundsnon-GAAP | $390M | – | 17% |
| Q3 2026 adjusted diluted earnings per share excluding IEEPA Tariff Refundsnon-GAAP | $1.01 | – | 17% |
| Q3 2026 cash flows from operating activitiesGAAP | $647.8M | – | – |
| Q3 2026 capital expendituresGAAP | $24.5M | – | – |
| Q3 2026 free cash flownon-GAAP | $623.3M | – | – |
| Q3 2026 free cash flow marginnon-GAAP | 30.2% | – | – |
| Nine months 2026 revenuesGAAP | $5.96B | – | – |
| Nine months 2026 operating incomeGAAP | $1.45B | – | – |
| Nine months 2026 net income attributable to Ingersoll Rand Inc.GAAP | $1.12B | – | – |
| Nine months 2026 diluted earnings per shareGAAP | $2.86 | – | – |
| Nine months 2026 adjusted EBITDAnon-GAAP | $1.57B | – | – |
| Nine months 2026 adjusted EBITDA marginnon-GAAP | 26.4% | – | – |
| Nine months 2026 adjusted diluted earnings per sharenon-GAAP | $2.70 | – | – |
| Nine months 2026 cash flows from operating activitiesGAAP | $1.14B | – | – |
| Nine months 2026 free cash flownon-GAAP | $1.06B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Industrial Technologies and ServicesOrganic orders growth was driven by a pickup in bookings of long-cycle projects, including a ~$195 million order for an engineered-to-order solution for large-scale, mission-critical infrastructure, as well as continued strong momentum in the short-to-medium cycle business. Book to bill was 1.17x. | $1.62B | – | 5.2% |
| Precision and Science TechnologiesLife Sciences was particularly strong in the quarter, where orders and revenue were up low double digits. Book-to-bill was 1.01x. | $444.9M | – | 7.3% |
Full Year 2026 outlook
- RevenueRevenue Growth: 5.5% to 7.0%
- Tax rateAdjusted tax rate: ~20%
- NoteOrganic growth: +2% to +3.5%
- NoteCurrency: ~+1%
- NoteM&A: ~+2.5%
- NoteAdjusted EBITDA excl. Q3 IEEPA Tariff Refunds: $2,130M - $2,190M
- NoteCorporate costs: ~$170M
- NoteAdjusted EPS excl. Q3 IEEPA Tariff Refunds: $3.58 to $3.70
- NoteNet interest expense: ~$230M
- NoteShare count: ~390.5M
- NoteFree Cash Flow to Adj. Net Income conversion: 100%+
- NoteCAPEX: ~2% of sales
- NoteExpect to deliver 100%+ FCF conversion including the impact of ILC Dover transaction-related recoveries; excluding these recoveries, expected FCF conversion remains unchanged at ~95%
Capital returns
- The Board authorized a $2 billion increase to the Company’s share repurchase program, incremental to the $313 million remaining under the existing authorization.
- The Company returned approximately $358 million to shareholders through $350 million in share repurchases and $8 million through its quarterly dividend payment in the third quarter.
- Nine months 2026 purchases of treasury stock, including excise tax payments: $689.1 million, compared with $703.8 million in 2025.
- Nine months 2026 cash dividends on common shares: $23.3 million, compared with $24.0 million in 2025.
What drove it
- Reported orders increased 20.7%, comprising 18.2% organic growth, a 0.8% foreign-currency impact and a 1.7% acquisition impact.
- Reported revenue increased 5.6%, comprising 3.9% organic growth, a 0.3% foreign-currency impact and a 1.4% acquisition impact.
- IT&S reported 22.1% organic orders growth and 3.5% organic revenue growth.
- P&ST reported 4.2% organic orders growth and 5.5% organic revenue growth.
- Recovery of acquisition related losses, net was $(380.1) million in Q3 2026, supporting reported net income and operating income.
Concerns
- IT&S adjusted EBITDA margin excluding IEEPA Tariff Refunds was 27.8%, down 120 basis points year over year, primarily due to continued inflationary pressures.
- Corporate expenses not allocated to segments were $43.8 million in Q3 2026, compared with $30.5 million in Q3 2025.
- Full-year guidance is non-GAAP for adjusted EBITDA and adjusted EPS, and the Company did not provide reconciliations to the most comparable GAAP measures due to the stated variability, complexity and uncertainty of forecasting adjustments.
- The Company expects to close on the acquisition of a U.S.-based pump manufacturer on October 30, 2026.
What to watch
- Full-year revenue growth delivery against the 5.5% to 7.0% guidance range and organic growth target of +2% to +3.5%.
- Whether IT&S can offset continued inflationary pressures and sustain its 100 basis point sequential improvement in adjusted EBITDA margin excluding IEEPA Tariff Refunds.
- Conversion of orders into revenue, particularly following IT&S book to bill of 1.17x and P&ST book-to-bill of 1.01x.
- Collection of the remaining ILC Dover transaction-related recoveries in the fourth quarter.
- Completion and integration of the U.S.-based pump manufacturer acquisition, and M&A contribution within the ~+2.5% full-year revenue-growth assumption.
Balance sheet and cash flow
- Liquidity was $3.9 billion as of September 30, 2026, including $1.3 billion of cash on hand and undrawn capacity of $2.6 billion under available credit facilities.
- Cash and cash equivalents were $1,342.7 million at September 30, 2026, compared with $1,248.8 million at December 31, 2025.
- Short-term borrowings and current maturities of long-term debt were $700.2 million at September 30, 2026; long-term debt, less current maturities, was $4,036.3 million.
- Net debt to Adjusted EBITDA leverage was 1.6x for the third quarter, a decrease of 0.2x compared with the third quarter of the prior year.
- Nine months 2026 net cash paid in acquisitions was $252.0 million, compared with $459.8 million in 2025.
- The Company deployed $90 million to M&A in the third quarter of 2026, including for the previously announced acquisition of Lone Star Blower, Inc.
- ILC Dover transaction recoveries were approximately $425.1 million gross, inclusive of the $187.5 million recovery announced in July 2026. $25.0 million was collected in Q2 2026 and $162.5 million was collected in Q3 2026; the Company expects to collect the remainder in the fourth quarter.
Analysis
Ingersoll Rand reported broad third-quarter demand strength. Total orders were $2,345.1 million, up 20.7%, with 18.2% organic growth. Revenue was $2,064.9 million, up 5.6%, including 3.9% organic growth. Management attributed the performance to an improved demand environment and IRX-driven execution, citing healthy short-to-medium cycle and long-cycle activity across geographies and end markets.
IT&S remained the larger contributor, with revenue of $1,620.0 million and orders of $1,897.5 million. Its 1.17x book-to-bill reflected strong order intake, including a ~$195 million engineered-to-order infrastructure order. P&ST generated $444.9 million of revenue and $447.6 million of orders, with Life Sciences orders and revenue up low double digits. Both segments delivered positive organic revenue growth.
Profitability and cash generation were strong on reported measures. Operating income was $782.5 million and net income attributable to Ingersoll Rand Inc. was $669.9 million, while adjusted EBITDA was $584.4 million at a 28.3% margin. The reported results include a $(380.1) million recovery of acquisition related losses, net. Excluding IEEPA Tariff Refunds, adjusted EBITDA was $552 million with a 26.7% margin. IT&S adjusted EBITDA margin excluding those refunds was 27.8%, down 120 basis points year over year due primarily to inflationary pressures, although it improved 100 basis points sequentially from Q2 2026.
Cash flow accelerated materially. Operating cash flow was $647.8 million and free cash flow was $623.3 million, versus $354.6 million and $325.5 million, respectively, in the prior-year quarter. Liquidity was $3.9 billion and net debt to Adjusted EBITDA leverage was 1.6x. The company allocated $90 million to M&A and returned approximately $358 million to shareholders, while the board added $2 billion to the repurchase authorization.
The company updated full-year 2026 guidance to revenue growth of 5.5% to 7.0%, adjusted EBITDA excluding Q3 IEEPA Tariff Refunds of $2,130M - $2,190M, and adjusted EPS excluding those refunds of $3.58 to $3.70. The outlook assumes +2% to +3.5% organic growth, ~+1% currency and ~+2.5% M&A. Cash conversion guidance calls for 100%+ free-cash-flow-to-adjusted-net-income conversion including ILC Dover recoveries, while conversion excluding those recoveries remains ~95%.
Management, verbatim
We delivered strong organic orders growth and revenue performance in the third quarter, reflecting an improved demand environment and continued execution by our teams.
Vicente Reynal, chairman and chief executive officer of Ingersoll Rand
We saw healthy short-to-medium cycle and long cycle business activity across our geographies and end markets, and IRX continues to be a key differentiator with our teams remaining focused on controlling what we can control.
Vicente Reynal, chairman and chief executive officer of Ingersoll Rand
Not in the filing
stated, not guessed- Previous-release outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- GAAP gross margin was not reported.
- Q3 2026 GAAP tax rate was not reported.
- Prior-quarter values for the reported financial metrics were not provided.
- A GAAP reconciliation for full-year 2026 non-GAAP guidance was not provided.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.