Ingersoll Rand (IR) Jefferies Global Industrials Conference 2026 summary

Business performance and market trends

• Short to medium cycle orders in ITS rose mid-single digits in Q2, led by North America, with July showing further low double-digit to mid-teens improvement, including a rebound in long cycle orders.

• Long cycle project funnel remains active, with recent order growth spread across geographies and end markets, attributed to timing and customer decision-making rather than cancellations.

• China’s revenue share declined from 15% to 10% due to normalization in EV battery and solar markets, but recent quarters show low double-digit volume growth and successful localization of new technologies.

• EMEA has been stable overall, with India as a standout growth region, while the Middle East and Central Europe face headwinds; Western Europe remains neutral.

• North America benefits from broad demand improvement, with some positive impact from reshoring and onshoring trends, though not the primary growth driver.

Segment and margin outlook

• ITS margins, though pressured by tariffs, volumes, and China pricing, are expected to improve in the second half due to better volumes, normalized price/cost dynamics, and completed restructuring.

• PST segment, especially life sciences, has shown strong order growth and margin expansion, with the business now consistently above 30% EBITDA margin and approaching mid-30% targets.

• Margin improvement in both segments is expected to be driven by volume growth, productivity, and continued bolt-on M&A, with ITS targeting 30%-40% incrementals and PST at the higher end.

Strategic initiatives and growth drivers

• Recurring revenue has grown rapidly, reaching $450 million in 2023, with a $1 billion target, driven by expansion of service contracts and adaptation across product lines and regions.

• M&A pipeline remains robust, focused on bolt-on acquisitions, with over 200 active targets and a goal of 400-500 basis points of growth annually.

• Investments continue in manufacturing, commercial capabilities, and R&D partnerships, including strategic moves in India, Brazil, and oil-free technology.