Ingersoll Rand Inc.

Second-quarter revenue was approximately $2 billion, up 9% year over year, with organic revenue growth of 4%. Adjusted EPS was $0.86, up 7% year over year. Adjusted EBITDA was $520 million, up 2% year over year, with a 25.4% margin, down 160 basis points year over year. Orders were just over $2 billion, up 5% year over year, with organic orders up 2%; book-to-bill was 1.0x. Free cash flow was $269 million, up roughly 28% year over year. Full-year 2026 guidance now calls for revenue growth of 4.5% to 6.5% (about 1% to 3% organic, about 2.5% from M&A, and about 1% from FX), adjusted EBITDA of $2.13 billion to $2.19 billion, adjusted EPS of $3.45 to $3.57, and free cash flow conversion of about 95%. Management said adjusted EPS is expected to finish near the high end of the range, and it expects the adjusted EBITDA and EPS ranges to exclude any benefit from expected IEEPA tariff refunds and insurance recoveries.

Vicente Reynal framed the quarter as evidence of continued strong execution and improving demand momentum, saying growth was broad-based and that every main region posted positive organic revenue growth. He emphasized that the company is raising full-year revenue guidance, expects EPS near the high end of the range, and sees a robust M&A funnel, including bolt-on deals that strengthen aftermarket exposure and core technologies. His tone was upbeat and confident, repeatedly pointing to healthy demand, a strong balance sheet, and long-term value creation through IRX and disciplined capital allocation.

Vikram Kini highlighted a solid quarter with orders just over $2 billion, revenue of approximately $2 billion, adjusted EBITDA of $520 million, and adjusted EPS of $0.86. He said the 25.4% EBITDA margin was pressured by inflation, especially in China, continued investment in growth, and higher corporate costs, including a year-to-date incentive compensation true-up; unallocated corporate costs were $49 million versus $34.6 million a year ago, and full-year corporate costs are still expected to be about $170 million. He also pointed to strong liquidity of about $3.8 billion, cash of about $1.2 billion, revolver capacity of $2.6 billion, leverage of 1.7x, $110 million deployed to acquisitions, and $248 million returned to shareholders. He noted the initial $187.5 million insurance recovery related to the ILC Dover transaction, with $25 million collected in Q2 and the remaining $162.5 million expected during 2026, but said those recoveries are excluded from adjusted results and not included in free cash flow guidance.

Analysts focused on short- and medium-cycle momentum, long-cycle project timing, China pricing, margin ramp assumptions, PST/Life Sciences growth, and M&A valuation discipline. Management said Americas was the strongest region, EMEA weakness was mostly timing-related, China revenue grew strongly but pricing remains the toughest market, and July organic orders were up low double digits to mid-teens, largely from long-cycle projects that are now building backlog for 2027. On margins, management said the Q2 weakness was mainly China pricing and that the second-half ramp should come from pricing realization, normalized corporate costs, and productivity. It also said the M&A funnel is healthy, with 11 transactions under LOI, but the company walked away from one roughly $1 billion deal due to valuation.