Ingersoll Rand (IR) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with revenue of $1,847M, up 8% year-over-year, and adjusted EPS up 7%, reflecting portfolio durability and consistent execution despite a complex global environment.

• Adjusted EBITDA was $469M (25.4% margin), up 2% year-over-year, while net income attributable to shareholders rose to $193.8M.

• Orders increased 5% year-over-year to $1,978M, with a book-to-bill ratio of 1.07x, and free cash flow was $163M.

• Acquisition pipeline remains robust, with 10 transactions at LOI stage and over 200 companies in the funnel; Fox S.r.l. acquisition expected to close soon.

• IRX operational model and disciplined M&A drive durable free cash flow and high-return capital deployment.

Financial highlights

• Q1 2026 revenue: $1,847M, up 8% year-over-year; adjusted EBITDA: $469M (25.4% margin); adjusted EPS: $0.77, up 7% year-over-year.

• Net income was $192M, up from $186.5M in the prior year; diluted EPS: $0.49.

• Free cash flow for Q1 was $163M, down from $223M in Q1 2025; total liquidity near $3.9B.

• Gross profit increased 3.5% to $792.4M, but gross margin declined to 42.9% due to cost leverage and product mix.

• Aftermarket revenue comprised 37% of total revenue.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue growth expected at 2.5%-4.5%, with 1% organic growth at midpoint and 2% from M&A.

• Adjusted EBITDA expected between $2.13B-$2.19B; adjusted EPS projected at $3.45-$3.57 (5% growth at midpoint); adjusted tax rate ~23%.

• Free cash flow to adjusted net income conversion expected at ~95%; no net impact from tariffs or Middle East conflict anticipated for full-year guidance.

• Revenue, adjusted EBITDA, and adjusted EPS phasing consistent with prior years (1H: 46-48%, 2H: 52-54%).

• Management notes continued macroeconomic uncertainty, including inflation, interest rates, tariffs, and geopolitical instability.