Ingersoll Rand — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported revenue of $2,065 million, up 6% year-over-year (YoY), or up 4% organically.
• Reported orders of $2,345 million, up 21% YoY, or up 18% organically.
• Reported net income attributable to Ingersoll Rand Inc. of $670 million ($1.73 per share).
• Adjusted net income attributable to Ingersoll Rand Inc. was $415 million ($1.07 per share), up 24% YoY; excluding IEEPA Tariff Refunds, it was $390 million ($1.01 per share), up 17% YoY.
• Adjusted EBITDA was $584 million, up 7% YoY, with a margin of 28.3%; excluding IEEPA Tariff Refunds, Adjusted EBITDA was $552 million, up 1% YoY, with a margin of 26.7%.
• Reported operating cash flow was $648 million; free cash flow was $623 million.
• Net debt to Adjusted EBITDA leverage was 1.6x, a decrease of 0.2x compared to the third quarter of 2025.
• Liquidity totaled $3.9 billion as of September 30, 2026, including $1.3 billion in cash on hand and $2.6 billion in undrawn credit facility capacity.

Guidance and Future Outlook:

• Full-year 2026 revenue growth guidance updated to 5.5% to 7.0%.
• Full-year 2026 Adjusted EBITDA excluding Q3 IEEPA Tariff Refunds guidance updated to $2,130 million to $2,190 million.
• Full-year 2026 Adjusted EPS excluding Q3 IEEPA Tariff Refunds guidance updated to $3.58 to $3.70.
• Full-year 2026 Free Cash Flow to Adjusted Net Income conversion guidance updated to 100%+ (including ILC Dover recoveries; ~95% excluding recoveries).
• Full-year 2026 assumptions include currency impact of ~+1%, M&A impact of ~+2.5%, and organic growth of +2% to +3.5%.
• Corporate costs are assumed at ~$170 million; net interest expense at ~$230 million; adjusted tax rate at ~20%; share count at ~390.5 million.

Business Segments and Product Lines:

• Industrial Technologies and Services (IT&S):
  • Reported orders of $1,898 million, up 25% YoY, or up 22% organically.
  • Reported revenues of $1,620 million, up 5% YoY, or up 4% organically.
  • Segment Adjusted EBITDA of $476 million, up 6% YoY; excluding IEEPA Tariff Refunds, $451 million, up 1% YoY.
  • Segment Adjusted EBITDA margin of 29.4%, up 40 basis points YoY; excluding IEEPA Tariff Refunds, 27.8%, down 120 basis points YoY.
  • Book-to-bill ratio was 1.17x; delivered positive organic revenue growth in all regions.
  • Organic orders growth driven by long-cycle projects, including a ~$195 million order for a large-scale, mission-critical infrastructure solution.
• Precision and Science Technologies (P&ST):
  • Reported orders of $448 million, up 7% YoY, or up 4% organically.
  • Reported revenues of $445 million, up 7% YoY, or up 6% organically.
  • Segment Adjusted EBITDA of $153 million, up 20% YoY; excluding IEEPA Tariff Refunds, $145 million, up 14% YoY.
  • Segment Adjusted EBITDA margin of 34.3%, up 350 basis points YoY; excluding IEEPA Tariff Refunds, 32.6%, up 180 basis points YoY.
  • Book-to-bill ratio was 1.01x; Life Sciences orders and revenue grew in the low double digits.

Market and Competitive Landscape:

• Management noted an improved demand environment with healthy short-to-medium cycle and long-cycle business activity across geographies and end markets.
• Ingersoll Rand Execution Excellence (IRX) is cited as a key competitive differentiator driving execution.
• IT&S segment experienced inflationary pressures impacting margins excluding tariff refunds.

Risks and Challenges:

• Inflationary pressures continue to impact Adjusted EBITDA margins excluding IEEPA Tariff Refunds.
• Forward-looking statements are subject to risks including geopolitical tensions, natural disasters, pandemics, cyber events, and other events outside of control.
• Risks include unexpected costs from business combinations, failure to realize synergies, inability to retain key personnel, and evolving legal/regulatory regimes.
• Full-year 2026 guidance reconciliations were not provided due to the high variability, complexity, and uncertainty in forecasting certain amounts, which could have an unpredictable impact on future GAAP results.

Management Commentary and Tone:

• Vicente Reynal, Chairman and CEO, stated the company delivered strong organic orders growth and revenue performance reflecting an improved demand environment and continued execution.
• Management emphasized teams remain focused on controlling what they can control via IRX.
• The tone regarding the quarter was positive, citing robust organic growth and strong segment performance.

Other Key Points:

• The Board authorized a $2 billion increase to the share repurchase program, incremental to the $313 million remaining under the existing authorization.
• In the third quarter, the Company deployed $90 million to M&A, including the acquisition of Lone Star Blower, Inc.
• The Company expects to close on the acquisition of a U.S.-based pump manufacturer on October 30, 2026.
• The Company returned approximately $358 million to shareholders in Q3 2026, comprising $350 million in share repurchases and $8 million in quarterly dividends.
• Settlement agreements reached with insurance carriers and third parties related to the ILC Dover transaction for gross recoveries of approximately $425.1 million; $162.5 million was collected in Q3 2026, with the remainder expected in Q4 2026.
• Capital expenditures for the quarter were $25 million.