Ingersoll Rand Inc. Q1 FY2026 earnings call

• First quarter was a solid start in 2026 with adjusted EPS growing high single digits, revenue and adjusted EBITDA in line with expectations. • Disciplined M&A approach is key, acquisition pipeline robust with 200+ companies in funnel, 10 at LOI stage, expecting 400 - 500 basis points of annualized inorganic revenue in 2026. • Signed Fox SRL expected to close end of month, enhancing pump technology. • Orders finished up 5% YOY with book to bill 1.07, delay in orders due to Middle East conflict but expected to be recovered. • Free cash flow $163 million in Q1, balance sheet strong with nearly $4 billion in liquidity. • Intergranic growth strategy core, value creation flywheel generating durable free cash flow. • IPS had stabilized compressor activity in US, China outperformed market, large win in carbon capture. • PST life science business had great win integrating technologies into ILC Dover's bulk powder system solution

IPS: Q1 orders up 5%, book to bill 1.08 times, organic orders down 3% (excluding delay, organic orders flat), revenue grew 7% YOY, adjusted EBITDA margin 26.7% (down Y/Y due to volume, tariffs, and investments); PST: Q1 orders up 6% YOY, book-to-bill 1.04 times, organic orders up 1%, life science business had double-digit order growth, precision technology short cycle book and ship business saw organic order growth, organic revenue up 4% YOY, adjusted EBITDA $122 million up 15% YOY with margin improvement 120 basis points

• Reaffirm full-year 2026 guidance: total company revenue growth 2.5 - 4.5% (1% organic midpoint, ~2% from M&A, ~0.5% FX tailwind), adjusted EBITDA $2.13 - $2.19 billion, adjusted EPS $3.45 - $3.57 (5% midpoint growth), adjusted tax rate ~23%, net interest expense ~$230 million, share count ~394 million, free cash flow to adjusted net income conversion ~95%. • Anticipate order recovery from Middle East delay with no impact on full year revenue or adjusted EBITDA currently

• Impact of Middle East conflict on long cycle projects causing order delays, but expected to be transitory. • Tariff and inflation dynamics affecting margins, though mitigation actions in place. • Competitive landscape in various markets, including China

Q: Mike Halloran on short cycle vs long cycle business, sequential acceleration, and long cycle delays outside Middle East.

A: Short cycle showing stabilization/improvement, long cycle longer cycle funnel activity stable, Middle East delays transitory with orders starting to recover.

Q: Julian Mitchell on Q2 expectations, ITS margin trends.

A: Q2 expected sequential margin improvement but still slightly down Y/Y, ITS margin expected flat Y/Y with back half margin expansion driven by organic volume improvement, price cost, and productivity initiatives.

Q: Jeff Sprague on tariff impact neutrality, life sciences pipeline.

A: Tariff impact net neutral, life sciences pipeline improving with double-digit growth momentum.

Q: Joe O'Day on ITS EBITDA margin trajectory, demand ripple effect from Middle East.

A: ITS margin expected to expand in back half, order delays from Middle East mainly contained to region.

Q: Amit Mehrotra on organic growth triangulation.

A: Short cycle showing improvement, longer cycle projects timing related but expected to finish.

Q: Nathan Jones on energy prices in Europe as catalyst, RFQ to booking time.

A: Energy prices in Europe potential long-term tailwind, RFQ to booking time improved but not back to pre-elongation levels.

Q: Joseph Gablaze on PST organic growth sustainability, short cycle percentage.

A: PST organic growth sustainable, short cycle ~75 - 80% of original equipment revenue.

Q: Chris Snyder on Middle East order impact on sales, short cycle vs long cycle percentage.

A: Middle East order impact not material on Q1 sales, short cycle ~75 - 80%, long cycle ~25% of revenue.

Q: Steven Volkmann on ILC Dover performance, M&A funnel size.

A: ILC Dover performing well, M&A funnel has LOIs for bolt-on acquisitions.

Q: Andy Kapowitz on aftermarket business, backlog growth.

A: Aftermarket business continues to grow, focus on achieving billion-dollar recurring revenue target.

Q: Nigel Coe on energy-related revenue percentage, life sciences growth sustainability.

A: Energy-related revenue percentage fluctuates, life sciences growth sustainable with margin comparable to segment.

Q: Joe Ritchie on ITS margin drivers, M&A pipeline focus.

A: ITS margin drivers include tariffs, organic volume, price cost, M&A pipeline has blend of ITS and PST focus.

Q: David Rasso on ITS second half margin growth sources, China market outlook.

A: ITS second half margin growth from all underlying technologies, China market outperforming and taking share