We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ingersoll Rand's Q3 adjusted earnings rose 24.4% to $1.07 per share, beating estimates by 20.2%.
Orders jumped 20.7% to $2.35 billion, while free cash flow surged to $623.3 million.
IR raised 2026 revenue growth guidance to 5.5-7% and earnings guidance to $3.58-$3.70 per share.
Ingersoll Rand Inc. (IR - Free Report) reported third-quarter 2026 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate of 89 cents by 20.2%. The bottom line increased 24.4% from the year-ago quarter.
Revenues of $2.06 billion surpassed the consensus estimate of $2.04 billion by 1.1% and rose 5.6% year over year. Organic revenues increased 3.9%, while acquisitions and favorable foreign currency movements contributed 1.4% and 0.3%, respectively.
IR's Orders and Organic Growth
In the third quarter of 2026, its total orders increased 20.7% to $2.35 billion. Organic orders increased 18.2% year over year. Acquisitions added 1.7% to order growth, while foreign currency translation contributed 0.8%.
Management noted an improved demand environment and healthy order momentum across short-to-medium-cycle and long-cycle businesses. The company recorded a book-to-bill ratio of 1.14, supported by an approximately $195 million order for a large-scale, mission-critical infrastructure project.
Segmental Performance
Industrial Technologies and Services generated revenues of $1.62 billion, up 5.2% year over year and accounting for about 78.5% of total revenues. Organic revenues increased 3.5%, with positive growth across all regions. Acquisitions and foreign currency added 1.2% and 0.5%, respectively. The segment recorded a book-to-bill ratio of 1.17, indicating strong order momentum.
The segment's adjusted EBITDA increased 6.3% to $475.7 million, while its margin expanded 40 basis points to 29.4%. Excluding IEEPA tariff refunds, adjusted EBITDA increased 0.7% to $450.8 million, while the margin contracted 120 basis points to 27.8%. Organic orders surged 22.1%, driven by strength in long-cycle projects and continued momentum in short-to-medium-cycle businesses.
Precision and Science Technologies recorded revenues of $444.9 million, up 7.3%. Organic revenues increased 5.5%, while acquisitions contributed 2.2%. Foreign currency had an unfavorable impact of 0.4%. Organic orders rose 4.2%, supported by low-double-digit growth in Life Sciences Technologies.
The segment's adjusted EBITDA increased 19.5% to $152.5 million. Its adjusted EBITDA margin expanded 350 basis points to 34.3%. Excluding IEEPA tariff refunds, adjusted EBITDA increased 13.7% to $145.1 million, while the margin expanded 180 basis points to 32.6%, reflecting strong operational execution.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
The company's total adjusted EBITDA increased 7.3% year over year to $584.4 million. The adjusted EBITDA margin expanded 40 basis points to 28.3%. Excluding IEEPA tariff refunds, adjusted EBITDA increased 1.4% to $552 million, while the margin contracted 120 basis points to 26.7%, primarily due to inflationary pressures.
In the quarter, IR's cost of sales increased 3.7% to $1.14 billion, while selling and administrative expenses rose 8% to $389.7 million. Adjusted net income increased to $416.6 million from $345.6 million, while the adjusted net income margin expanded to 20.2% from 17.7%.
Ingersoll Rand's Cash Flow and Liquidity
Cash provided by operating activities totaled $647.8 million in the third quarter, up from $354.6 million in the year-ago quarter. Capital expenditures declined to $24.5 million from $29.1 million, lifting free cash flow to $623.3 million from $325.5 million. The free cash flow margin improved to 30.2% from 16.6%.
IR ended the quarter with $3.9 billion in available liquidity, including $1.34 billion in cash and $2.6 billion of undrawn revolving credit capacity. The company paid dividends of $8 million and repurchased shares worth $350 million. It also deployed $90 million toward acquisitions.
Long-term debt (less current maturities) was $4.04 billion, lower than $4.78 billion recorded at the end of 2025. Net debt to adjusted EBITDA improved to 1.6 times from 1.8 times in the year-ago quarter.
IR's 2026 Outlook
Ingersoll Rand raised its 2026 revenue growth outlook to 5.5-7% from the previous projection of 4.5-6.5%. The forecast assumes organic growth of 2-3.5%, an approximately 1% currency benefit and a roughly 2.5% contribution from acquisitions.
The company maintained its adjusted EBITDA guidance of $2.13-$2.19 billion, excluding third-quarter IEEPA tariff refunds. Management raised its adjusted earnings forecast to $3.58-$3.70 per share from the previous range of $3.45-$3.57.
Free cash flow conversion is projected to exceed 100% of adjusted net income, including recoveries related to the ILC Dover transaction. Excluding these recoveries, free cash flow conversion is projected at approximately 95%.
IR’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
In the third quarter of 2026, Graco Inc. (GGG - Free Report) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares with earnings of $0.73 per share a year ago.
Graco reported revenues of $586.39 million in the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.58%. This compares with year-ago revenues of $543.36 million.
Dover Corporation (DOV - Free Report) has reported third-quarter 2026 adjusted earnings of $2.88 per share, rising 10% year over year and beating the Zacks Consensus Estimate of $2.83 by 1.77%. The improvement reflected broad-based demand, higher revenues and operational execution.
Revenues increased 7.5% year over year to $2.23 billion, beating the Zacks Consensus Estimate of $2.20 billion by 1.47%. Organic revenues grew 7.1%. Our model expected organic revenues to rise 4%.
Allegion plc (ALLE - Free Report) reported third-quarter 2026 adjusted earnings of $2.60 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate of $2.49 by 4.4%, supported by strong organic growth and margin expansion.
Revenues increased 9.6% year over year to $1.17 billion, beating the Zacks Consensus Estimate of $1.13 billion by 3.4%. Organic revenues grew 7.2%, driven by strength in the Americas non-residential business, volume growth and price realization.
View the Zacks #1 Rank List
Image: Bigstock
Ingersoll Rand Beats Q3 Earnings Estimates, Raises Revenue Guidance
Key Takeaways
Ingersoll Rand Inc. (IR - Free Report) reported third-quarter 2026 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate of 89 cents by 20.2%. The bottom line increased 24.4% from the year-ago quarter.
Revenues of $2.06 billion surpassed the consensus estimate of $2.04 billion by 1.1% and rose 5.6% year over year. Organic revenues increased 3.9%, while acquisitions and favorable foreign currency movements contributed 1.4% and 0.3%, respectively.
IR's Orders and Organic Growth
In the third quarter of 2026, its total orders increased 20.7% to $2.35 billion. Organic orders increased 18.2% year over year. Acquisitions added 1.7% to order growth, while foreign currency translation contributed 0.8%.
Management noted an improved demand environment and healthy order momentum across short-to-medium-cycle and long-cycle businesses. The company recorded a book-to-bill ratio of 1.14, supported by an approximately $195 million order for a large-scale, mission-critical infrastructure project.
Segmental Performance
Industrial Technologies and Services generated revenues of $1.62 billion, up 5.2% year over year and accounting for about 78.5% of total revenues. Organic revenues increased 3.5%, with positive growth across all regions. Acquisitions and foreign currency added 1.2% and 0.5%, respectively. The segment recorded a book-to-bill ratio of 1.17, indicating strong order momentum.
The segment's adjusted EBITDA increased 6.3% to $475.7 million, while its margin expanded 40 basis points to 29.4%. Excluding IEEPA tariff refunds, adjusted EBITDA increased 0.7% to $450.8 million, while the margin contracted 120 basis points to 27.8%. Organic orders surged 22.1%, driven by strength in long-cycle projects and continued momentum in short-to-medium-cycle businesses.
Precision and Science Technologies recorded revenues of $444.9 million, up 7.3%. Organic revenues increased 5.5%, while acquisitions contributed 2.2%. Foreign currency had an unfavorable impact of 0.4%. Organic orders rose 4.2%, supported by low-double-digit growth in Life Sciences Technologies.
The segment's adjusted EBITDA increased 19.5% to $152.5 million. Its adjusted EBITDA margin expanded 350 basis points to 34.3%. Excluding IEEPA tariff refunds, adjusted EBITDA increased 13.7% to $145.1 million, while the margin expanded 180 basis points to 32.6%, reflecting strong operational execution.
Ingersoll Rand Inc. Price, Consensus and EPS Surprise
Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote
Ingersoll Rand's Margin Profile
The company's total adjusted EBITDA increased 7.3% year over year to $584.4 million. The adjusted EBITDA margin expanded 40 basis points to 28.3%. Excluding IEEPA tariff refunds, adjusted EBITDA increased 1.4% to $552 million, while the margin contracted 120 basis points to 26.7%, primarily due to inflationary pressures.
In the quarter, IR's cost of sales increased 3.7% to $1.14 billion, while selling and administrative expenses rose 8% to $389.7 million. Adjusted net income increased to $416.6 million from $345.6 million, while the adjusted net income margin expanded to 20.2% from 17.7%.
Ingersoll Rand's Cash Flow and Liquidity
Cash provided by operating activities totaled $647.8 million in the third quarter, up from $354.6 million in the year-ago quarter. Capital expenditures declined to $24.5 million from $29.1 million, lifting free cash flow to $623.3 million from $325.5 million. The free cash flow margin improved to 30.2% from 16.6%.
IR ended the quarter with $3.9 billion in available liquidity, including $1.34 billion in cash and $2.6 billion of undrawn revolving credit capacity. The company paid dividends of $8 million and repurchased shares worth $350 million. It also deployed $90 million toward acquisitions.
Long-term debt (less current maturities) was $4.04 billion, lower than $4.78 billion recorded at the end of 2025. Net debt to adjusted EBITDA improved to 1.6 times from 1.8 times in the year-ago quarter.
IR's 2026 Outlook
Ingersoll Rand raised its 2026 revenue growth outlook to 5.5-7% from the previous projection of 4.5-6.5%. The forecast assumes organic growth of 2-3.5%, an approximately 1% currency benefit and a roughly 2.5% contribution from acquisitions.
The company maintained its adjusted EBITDA guidance of $2.13-$2.19 billion, excluding third-quarter IEEPA tariff refunds. Management raised its adjusted earnings forecast to $3.58-$3.70 per share from the previous range of $3.45-$3.57.
Free cash flow conversion is projected to exceed 100% of adjusted net income, including recoveries related to the ILC Dover transaction. Excluding these recoveries, free cash flow conversion is projected at approximately 95%.
IR’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
In the third quarter of 2026, Graco Inc. (GGG - Free Report) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares with earnings of $0.73 per share a year ago.
Graco reported revenues of $586.39 million in the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.58%. This compares with year-ago revenues of $543.36 million.
Dover Corporation (DOV - Free Report) has reported third-quarter 2026 adjusted earnings of $2.88 per share, rising 10% year over year and beating the Zacks Consensus Estimate of $2.83 by 1.77%. The improvement reflected broad-based demand, higher revenues and operational execution.
Revenues increased 7.5% year over year to $2.23 billion, beating the Zacks Consensus Estimate of $2.20 billion by 1.47%. Organic revenues grew 7.1%. Our model expected organic revenues to rise 4%.
Allegion plc (ALLE - Free Report) reported third-quarter 2026 adjusted earnings of $2.60 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate of $2.49 by 4.4%, supported by strong organic growth and margin expansion.
Revenues increased 9.6% year over year to $1.17 billion, beating the Zacks Consensus Estimate of $1.13 billion by 3.4%. Organic revenues grew 7.2%, driven by strength in the Americas non-residential business, volume growth and price realization.