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FY2026 Q1
Improving
Ingersoll Rand Inc. earnings call
Buzzberg read
Full-year 2026 guidance reaffirmed with 5% EPS growth
Ingersoll Rand reported a solid Q1 with revenue and EBITDA in line with expectations, offset by a temporary $40M order delay from the Middle East conflict. Management reaffirmed full-year guidance, citing stabilizing short-cycle demand and a robust M&A pipeline. Q1 adjusted EPS was $0.77, up 7% YoY, with revenue up 8% and adjusted EBITDA margin of 25.4%.
Buzzberg read Full-year 2026 guidance reaffirmed with 5% EPS growth Ingersoll Rand reported a solid Q1 with revenue and EBITDA in line with expectations, offset by a temporary $40M order delay from the Middle East conflict. Management reaffirmed full-year guidance, citing stabilizing short-cycle demand and a robust M&A pipeline. Q1 adjusted EPS was $0.77, up 7% YoY, with revenue up 8% and adjusted EBITDA margin of 25.4%. Read full analysisCollapse analysis
Ingersoll Rand reported a solid Q1 with revenue and EBITDA in line with expectations, offset by a temporary $40M order delay from the Middle East conflict. Management reaffirmed full-year guidance, citing stabilizing short-cycle demand and a robust M&A pipeline. Q1 adjusted EPS was $0.77, up 7% YoY, with revenue up 8% and adjusted EBITDA margin of 25.4%.
- Orders were up 5% with a book-to-bill of 1.07; excluding a ~$40M Middle East project delay, organic orders were flat.
- Short-cycle demand is stabilizing/improving, particularly in US compressors, power tools, and precision technologies, with momentum in April.
- Life sciences saw double-digit order growth, driven partly by ILC Dover, positioning it as a strong growth platform.
Revenue$1.8472B-12% QoQ
EPS$0.77-20% QoQ
Gross margin42.9%Reported
Operating margin15.68%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Tariffs
Expects no net tariff or inflation impact for full year
Demand
Short-cycle demand improving with sequential acceleration
Show 3 more callouts
Orders
Middle East order delays mostly recovered in April
Demand
Life science orders up double digits, momentum strong
M&A
M&A pipeline robust with 10 LOIs and 200 companies
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $1.8472B | -12% QoQ |
| EPS | $0.77 | -20% QoQ |
| Gross margin | 42.9% | Reported |
| Operating margin | 15.68% | Reported |
| Free cash flow | $0.1634B | Reported |
| Capex | $0.0363B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $3.45–$3.57 | $3.51 | Maintained |
| Operating margin | FY2026 | $2.13B–$2.19B | $2.16B | Maintained |
| Revenue | FY2026 | 2.5%–4.5% | 3.5% | Maintained |
AI, capex & demand read
Management read
Measured
Management acknowledged mixed conditions and tariff headwinds but emphasized stabilization, execution, and maintained guidance with a positive outlook.
External signals
Supply-chain alpha · 3returns since call
Management states that ~75% of OEM (non-aftermarket) revenue is short-cycle, and ~40% of total revenue is aftermarket, implying a higher sensitivity to industrial production swings than the long-cycle project narrative suggests.
Evidence
“roughly 40% of our revenue is aftermarket... On the whole goods side or the balance or the original equipment side, it's approximately 75% to 80%. 75% is probably a good proxy. It's more short-recycled in nature.”
The $40 million order delay in Q1 due to the Middle East conflict was concentrated in a few long-cycle projects that have already partially recovered, and the company expects no full-year revenue impact, indicating the conflict's impact on demand is transitory.
Evidence
“This delay was primarily driven by the conflict in the Middle East. We believe that the impact is transitory, and we expect these orders to be recovered in the balance of 2026.”
The company is seeing a strong leading indicator from its European-based vacuum business, which is a short-cycle signal, and is generating 'payback of compressor to be anywhere into the one year' for customers due to high energy prices in Europe.
Evidence
“We have our vacuum business that is based in Europe as a good leading indicator for upswings in manufacturing demand based on short cycle. And we're seeing that... saving upwards of $15,000 per month on a specific location at a customer, c…”
Methodology & coverage
Management-only analysis. All 0 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.