Ingersoll Rand (IR) investor relations material

Executive summary

• Achieved strong organic growth in Q2 2026, with reported orders up 5% and revenues up 9% year-over-year, supported by healthy demand momentum and robust M&A pipeline.

• Adjusted net income rose 7% to $339 million ($0.86 per share), and adjusted EBITDA increased 2% to $520 million, with a margin of 25.4%.

• Net income swung from a prior-year loss to $257 million profit, reflecting the absence of impairments.

• Free cash flow reached $269 million, up 28% year-over-year, and liquidity stood at $3.8 billion as of June 30, 2026.

• Closed the acquisition of Lone Star Blower and signed an agreement to acquire Fai Filtri, expanding core technologies and aftermarket presence.

Financial highlights

• Q2 2026 revenue rose 9% year-over-year to $2,049M; organic revenue up 4%.

• Adjusted EBITDA was $520 million, up 2% year-over-year; adjusted EBITDA margin was 25.4%, down 160 bps due to inflation in China and higher corporate costs.

• Adjusted EPS was $0.86, up 7% year-over-year; reported net income was $257 million ($0.66 per share).

• Free cash flow was $269 million, up from $210 million in the prior year period; free cash flow margin was 13.1%.

• Aftermarket revenue represented 36% of total revenue in Q2.

Outlook and guidance

• Full-year 2026 revenue growth expected at 4.5%-6.5%, with 1%-3% organic, 2.5% M&A, and 1% FX contributions.

• Adjusted EBITDA guidance maintained at $2,130M–$2,190M; margin ramp expected in the second half due to pricing actions and productivity gains.

• Adjusted EPS projected at $3.45-$3.57, expected near the high end; free cash flow conversion expected at ~95%.

• Guidance excludes potential IEEPA tariff refunds and further insurance recoveries, which are considered upside.

• Double-digit order growth seen in early Q3, with strong realization of delayed long-cycle orders.