Ingersoll Rand (NYSE:IR) reported third-quarter 2026 results marked by accelerating order growth, higher revenue and adjusted earnings per share, while raising its full-year revenue and adjusted EPS outlook. The company also highlighted a large engineered-to-order data center infrastructure contract, expanded its share repurchase authorization and closed an acquisition in its Precision and Science Technologies segment.
Orders increased 21% year over year to $2.35 billion, including 18% organic growth, Chief Financial Officer Vik Kini said. Revenue rose 6% to $2.1 billion, or 4% organically. The company recorded a book-to-bill ratio of 1.14x, which Kini said was above the level it typically sees in the third quarter.
Adjusted EBITDA totaled $584 million, including $32 million in IEEPA tariff refunds. Excluding those refunds, adjusted EBITDA was $552 million, up 1% from a year earlier, with a 26.7% margin. Adjusted EPS was $1.07, while adjusted EPS excluding the tariff refunds was $1.01, up 17% year over year.
“Demand continues to improve across both short and long cycle activity,” Chairman and CEO Vicente Reynal said, pointing to a growing long-cycle backlog and improving momentum across the company’s markets and regions.
Large Data Center Order Boosts ITS Bookings
Ingersoll Rand’s Industrial Technologies and Services, or ITS, segment recorded a 25% increase in orders, including 22% organic growth. The segment’s book-to-bill ratio was 1.17x. Results included an approximately $195 million engineered-to-order contract for mission-critical data center infrastructure.
The order covers integrated backup-power solutions and a filtration system designed to customer specifications, Reynal said. It is for a single site and is expected to convert to revenue over coming quarters, with the most meaningful contribution expected during 2027. Kini said the order will be accounted for using percentage-of-completion accounting.
Reynal said Ingersoll Rand has combined power-generation, thermal-management, filtration and fluid-handling capabilities to develop modular solutions for data center customers. The company began building its data center presence in Asia-Pacific and has since expanded its focus to the United States and India.
While the initial contract is expected to be accretive to EBITDA dollars and adjusted EPS, its margins will initially fall below the company average as Ingersoll Rand invests in capacity, engineering resources and supplier qualifications. Reynal said margins are expected to approach portfolio levels as production ramps and additional orders are secured. Kini compared the margin progression to acquired businesses that begin at lower margins before improving toward the company average.
Excluding the large data center award, ITS organic orders increased at a high-single-digit rate, according to Reynal. Long-cycle organic orders increased more than 20%, while short-to-medium-cycle orders grew in the mid-single digits. The company cited momentum in food and beverage, biopharma, power generation, wastewater and nuclear-related markets, while electric vehicles and renewable natural gas remained soft or flat.
ITS revenue grew 5%, including 4% organic growth, with positive organic revenue growth in every region for a second consecutive quarter. Segment adjusted EBITDA, excluding tariff refunds, was $451 million and margin was 27.8%, down 120 basis points year over year due primarily to inflation and pricing conditions in China. However, margin improved 100 basis points sequentially from the second quarter.
PST Delivers Growth and Margin Expansion
The Precision and Science Technologies, or PST, segment reported a 7% increase in orders, including 4% organic growth, and a 7% increase in revenue, including 6% organic growth. Its book-to-bill ratio was 1.01x.
Life Science Technologies posted low-double-digit organic growth in both orders and revenue. PST adjusted EBITDA, excluding tariff refunds, was $145 million, with a 32.6% margin. The margin increased 180 basis points from a year earlier and 110 basis points sequentially.
Kini said PST has produced incremental margins above 40% for five consecutive quarters and that its mid-30% EBITDA margin target is “well within sight.” He said performance has reflected pricing momentum, volume growth in biopharma and integration of the Precision Technologies and Life Sciences platforms.
During the call, Reynal also discussed Ingersoll Rand’s exposure to lab automation through businesses including Scinomix and Zinsser Analytic. He said the company supplies robotic automation used in drug discovery and expects increased use of artificial intelligence in personalized medicine and immunotherapies to support demand for equipment that handles and mixes compounds.
Guidance Raised as Tax Outlook Improves
For full-year 2026, Ingersoll Rand raised its revenue growth outlook to a range of 5.5% to 7%. The company now expects organic revenue growth of 2% to 3.5%, while continuing to forecast approximately 2.5% growth from acquisitions and roughly 1% from foreign exchange.
Adjusted EBITDA guidance, excluding third-quarter tariff refunds, was maintained at $2.13 billion to $2.19 billion. Kini said the company expects to finish in the lower half of that range amid continued inflationary pressure and pricing challenges in China.
- Adjusted EPS guidance, excluding third-quarter tariff refunds, was raised to $3.58 to $3.70.
- The company now expects an adjusted tax rate of approximately 20%, reflecting global legal-entity simplification and the ability to use foreign tax credits that were previously unavailable.
- Free cash flow is expected to exceed 100% of adjusted net income, including recoveries related to the ILC Dover transaction. Underlying operational conversion is expected to remain about 95%.
- Capital expenditures are expected to remain approximately 2% of sales.
For the fourth quarter, Kini said Ingersoll Rand expects organic growth of more than 2% across the company, with both segments expected to contribute at comparable levels. He also said ITS margins are expected to improve by approximately 100 basis points sequentially, supported by volume, pricing actions, productivity and procurement savings.
Capital Allocation, Acquisition Activity and ILC Dover Recoveries
Ingersoll Rand ended the quarter with about $3.9 billion of available liquidity, including $1.3 billion in cash and $2.6 billion of revolving-credit capacity. Leverage declined to 1.6x from 1.7x in the second quarter and 1.8x a year earlier.
The company spent $90 million on acquisitions during the quarter and returned $358 million to shareholders, including $350 million of share repurchases and its quarterly dividend. Its board authorized an additional $2 billion for share repurchases, on top of $313 million remaining under its prior authorization. Reynal said acquisitions remain the company’s top capital-allocation priority.
On the acquisition front, Ingersoll Rand closed its purchase of IVEK Corporation, a provider of small-volume precision liquid-metering and dispensing systems. The business has approximately $40 million in annual revenue and will join PST’s Life Science business. Reynal said the deal was completed at a low-double-digit multiple.
The company has closed or signed eight transactions year to date and has another seven at the letter-of-intent stage. It now expects annualized inorganic revenue contribution of roughly 200 to 300 basis points in 2026, below its 400- to 500-basis-point through-cycle target because of transaction timing.
Ingersoll Rand also said total gross recoveries tied to the ILC Dover transaction have reached approximately $425.1 million. The company collected $25 million in the second quarter and $162.5 million in the third quarter, and expects to collect the remaining amount in the fourth quarter. The recoveries are excluded from adjusted earnings.
About Ingersoll Rand (NYSE:IR)
Ingersoll Rand Inc (NYSE:IR) is a global provider of mission-critical industrial technologies and solutions. The company designs and manufactures equipment used to manage air, gas, fluids, and other industrial processes, serving customers in manufacturing, energy, food and beverage, life sciences, transportation, and other markets.
Its portfolio includes air compressors, vacuum and blower systems, fluid-handling equipment, pumps, dosing and dispensing systems, and related aftermarket parts and services.
