Ingersoll Rand Inc.IR 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 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 CorporationDOV 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 plcALLE 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Dover Corporation (DOV) : Free Stock Analysis Report
Graco Inc. (GGG) : Free Stock Analysis Report
Allegion PLC (ALLE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
