Ingersoll Rand (IR) Earnings Date & Reports
Ingersoll Rand was formed through the merger of Gardner Denver and Ingersoll Rand's industrial segment... Show more
IR is expected to report earnings to rise 6.97% to 82 cents per share on August 05
Ingersoll Rand (IR) First Quarter 2026 Earnings Recap: Revenue and EPS Beat Expectations
Key Takeaways
- Revenue reached $1.847 billion, up 8% year-over-year on a reported basis and exceeding consensus estimates of approximately $1.83 billion.
- Adjusted earnings per share (EPS) of $0.77, surpassing Wall Street's $0.74 forecast and rising 7% from Q1 2025.
- Orders grew 5% to $1.978 billion reported, though organic orders fell 1.9%.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 2% to $469 million, with a margin of 25.4%.
- Company maintained full-year 2026 guidance, including adjusted EPS of $3.45 to $3.57.
- Shares declined about 2.5% in after-hours trading amid concerns over organic softness and margins.
Earnings Context and Why It Matters
Ingersoll Rand Inc., a leader in mission-critical flow creation and industrial technologies, kicked off 2026 with results that highlight resilience amid uneven demand. The company's Industrial Technologies and Services (IT&S) segment, which accounts for the bulk of revenue, faced headwinds from Middle East disruptions and softer organic orders. However, acquisitions and currency tailwinds drove top-line growth. For investors, this report matters as it signals the health of industrial end-markets, pricing power against tariffs, and merger and acquisition (M&A) integration success. With a robust backlog and Precision and Science Technologies (P&ST) strength, IR's performance offers clues on broader manufacturing recovery and margin trajectory in a volatile geopolitical environment.
Reported Results
Ingersoll Rand reported first quarter 2026 revenue of $1.847 billion, an 8% increase from $1.717 billion in the prior-year period on a reported basis, beating consensus estimates around $1.83 billion. Organic revenue dipped 0.3%, reflecting challenges in IT&S partially offset by P&ST gains.
Adjusted EPS came in at $0.77, up 7% year-over-year and above the $0.74 consensus, while GAAP EPS was $0.49. Adjusted EBITDA rose 2% to $469 million, though the margin contracted to 25.4% from 26.8% due to volume flow-through, tariff costs, and investments.
By segment, IT&S delivered revenue of $1.445 billion (up 7% reported, down 2% organic) with adjusted EBITDA of $386 million (margin 26.7%). P&ST revenue hit $403 million (up 10% reported, 4% organic), with EBITDA of $122 million (margin 30.3%). Orders totaled $1.978 billion overall, with book-to-bill at 1.07x. The company maintained its full-year guidance, citing a strong M&A pipeline and expected IT&S recovery.
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Market Reaction and Investor Sentiment
Following the April 28 after-market release, Ingersoll Rand shares fell approximately 2.5% in extended trading, reflecting investor focus on the organic revenue decline and EBITDA margin compression despite the earnings beat. Sentiment appears mixed, with positives from acquisition-driven growth and maintained guidance overshadowed by IT&S softness, potential tariff impacts, and flat organic orders. Analysts noted the beat but highlighted risks from end-market weakness and costs.
Forward Outlook and Key Factors to Monitor
Ingersoll Rand reaffirmed its 2026 guidance, projecting revenue growth of 2.5% to 4.5%, adjusted EBITDA of $2.13 billion to $2.19 billion, and adjusted EPS of $3.45 to $3.57—a 5% increase at the midpoint. This assumes flat to 2% organic growth, 2% from M&A, and modest currency benefits, with balanced H1/H2 phasing.
Investors should watch IT&S recovery, as Middle East tensions ease and backlog converts, alongside P&ST momentum from operational efficiencies like the IRX economic growth engine. M&A remains a key driver, with a robust pipeline expected to support targets. Margin pressures from tariffs, input costs, and commercial investments warrant attention, as does free cash flow conversion near 95% with capex at 2% of sales.
Broader industry dynamics, including manufacturing demand and geopolitical risks, will influence execution. Upcoming catalysts include quarterly updates on orders and the Fox deal integration.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
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General Information
an industrial conglomerate which provides diversified quality and security products and services
Industry IndustrialMachinery