Business Context and Reporting Period
Company: Ingersoll Rand Inc.
Filing Type: Form 10-Q (Quarterly Report)
Reporting Period: Three and six months ended June 30, 2026
Business Overview: A global provider of mission-critical flow creation products and industrial/life science solutions, operating through two segments: Industrial Technologies and Services, and Precision and Science Technologies.
Key Financial Metrics
| Metric (in millions) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenues | $2,048.8 | $1,887.9 | $3,896.0 | $3,604.7 |
| Gross Profit | $862.6 | $824.9 | $1,655.0 | $1,590.4 |
| Operating Income | $380.3 | $76.4 | $670.0 | $378.9 |
| Net Income (Attributable to IR) | $256.8 | $(115.3) | $448.9 | $71.2 |
| Diluted EPS | $0.66 | $(0.29) | $1.15 | $0.18 |
| Operating Cash Flow (YTD) | $495.6 (2026) vs $502.1 (2025) | |||
| Free Cash Flow (YTD) | $432.3 (2026) vs $433.1 (2025) | |||
| Total Debt | $4,768.5 (June 30, 2026) | |||
| Cash & Equivalents | $1,173.5 (June 30, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Q2 2026 revenue increased 8.5% year-over-year, driven by organic growth ($77.5M), acquisitions ($53.4M), and favorable foreign currency impacts ($30.0M).
- Profitability Surge: Net income swung from a loss of $115.3M in Q2 2025 to a profit of $256.8M in Q2 2026. This improvement is primarily due to the absence of significant non-cash impairments recorded in Q2 2025 (goodwill, intangibles, and equity method investments totaling ~$266M).
- Segment Performance:
- Industrial Technologies and Services: Revenue up 8.7%; Adjusted EBITDA margin decreased 180 bps to 26.8% due to input cost inflation and product mix.
- Precision and Science Technologies: Revenue up 7.7%; Adjusted EBITDA margin increased 200 bps to 31.5% driven by higher organic gross profit and lower selling/admin costs.
- Debt Reclassification: Short-term borrowings increased to $699.8M from $1.4M due to the reclassification of the 2027 Senior Notes as current liabilities; total debt remained stable.
Guidance, Outlook, and Risks
- Acquisitions: Completed acquisitions of Scinomix ($46.4M) and Fox ($75.0M) in 2026 to expand life-science and metering/dosing capabilities.
- Unusual Items & Contingencies:
- ILC Dover Recovery: Recognized a $25.0M gain in Q2 2026 from the recovery of acquisition-related losses. A subsequent event disclosed a further settlement of $162.5M to be recorded in Q3 2026.
- Tariff Refunds: Received $10.3M in IEEPA tariff refunds in Q2 2026; additional recoveries expected but timing uncertain.
- Risk Factors:
- Global economic instability, inflation, and geopolitical conflicts (Ukraine, Middle East).
- U.S. trade policy shifts and potential reciprocal tariffs.
- Cybersecurity threats and information system disruptions.
- Foreign currency exchange rate volatility (56% of revenue is non-USD).
- Capital Allocation: Continued share repurchases ($338.8M YTD) and dividends ($15.7M YTD). $2.6B unused availability under Revolving Credit Facility and Commercial Paper Program.
Investor Verification Checklist
- Recurring vs. Non-Recurring Income: Verify the sustainability of Q2 2026 earnings by excluding the $25.0M ILC Dover recovery and $10.3M tariff refund.
- Debt Maturity Profile: Confirm the impact of the $700M 2027 Senior Notes reclassified as current debt on liquidity ratios and refinancing plans.
- Subsequent Event Impact: Monitor the Q3 2026 financials for the recognition of the additional $162.5M ILC Dover settlement gain.
- Margin Pressure: Assess the Industrial Technologies segment's ability to offset input cost inflation and unfavorable product mix to stabilize Adjusted EBITDA margins.
- Acquisition Integration: Review the performance contribution of 2026 acquisitions (Scinomix, Fox) against initial projections.