Ingersoll Rand (IR) Q2 2026 earnings summary

Executive summary

• Achieved strong execution in Q2 2026 with organic order growth of 2%–5%, organic revenue growth of 4%, and adjusted EPS growth of 7% year-over-year, reflecting broad-based growth across all main regions and end markets.

• Net income swung from a prior-year loss to $257–$258 million profit, with adjusted net income at $339 million ($0.86 per share).

• Closed the acquisition of a US-based blower manufacturer ($50M revenue) and signed an agreement to acquire Fai Filtri ($30M revenue), enhancing aftermarket and core technology capabilities.

• Recognized for sustainability leadership, earning top ESG ratings and joining the 2026 Fortune 500.

• Liquidity stood at $3.8 billion as of June 30, 2026, supporting continued investment and shareholder returns.

Financial highlights

• Q2 2026 revenue rose 9% year-over-year to ~$2.05 billion; organic revenue up 4%.

• Adjusted EBITDA was $520 million, up 2% year-over-year, with a margin of 25.4% (down 160 bps year-over-year due to inflation and higher corporate costs).

• Adjusted EPS was $0.86, up 7% year-over-year.

• Free cash flow was $269 million, up from $210 million in the prior year period.

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

Outlook and guidance

• Full-year 2026 revenue growth expected at 4.5%–6.5%, with adjusted EBITDA of $2,130M–$2,190M and adjusted EPS of $3.45–$3.57, likely finishing near the high end.

• Organic growth forecasted at 1%–3%; M&A to contribute ~2.5% and currency ~1%.

• Free cash flow to adjusted net income conversion targeted at ~95%.

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

• Management expects continued macroeconomic uncertainty due to inflation, interest rates, and geopolitical risks.