Ingersoll Rand Inc.

Hello and welcome to the Ingersoll Rand fourth quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. I would now like to turn the conference over to Matthew Fort, Vice President, Investor Relations. You may begin.

Thank you. And welcome to the Ingersoll Rand 2025 Fourth Quarter Earnings Call. I'm Matthew Fort, Vice President of Investor Relations. And joining me this morning are Vicente Renal, Chairman and CEO, and Vic Kinney, Chief Financial Officer. We issued our earnings release and presentation yesterday afternoon, and we will reference these during the call. Both are available on the Investor Relations section of our website. In addition, a replay of this conference call will be available later today. Before we start, I want to remind everyone that certain statements on this call are forward-looking in nature and are subject to the risks and uncertainties discussed in our previous SEC filings, which you should read in conjunction with the information provided on this call. Please review the forward-looking statements on slide two for more details. In addition, in today's remarks, we will refer to certain non-GAAP financial measures. You can find a reconciliation of these measures to the most comparable measure calculated and presented in accordance with GAAP in our slide presentation and in our earnings release, both of which are available on the investor relations section of our website. On today's call, we will review our company and segment financial highlights and provide our full year 2026 guidance. For today's Q&A session, we ask that each caller keep to one question and one follow up to allow time for other participants. At this time, I will turn the call over to Vicente.

Thanks, Matthew, and good morning to all. Beginning on slide three, We ended the year on a strong note, delivering low single-digit organic order growth for both the fourth quarter and the full year. Additionally, our return to organic revenue growth reflects positive momentum heading into 2026. We're also very pleased with the momentum we continue to see on our recurring revenue initiative, which exceeded $450 million in 2025. with a backlog of recurring revenue of approximately $1.1 billion in future revenue from existing contracts. This is a clear demonstration of how we continue to make great progress towards achieving our recurring revenue target. Turning to inorganic growth, our disciplined approach to M&A continues to be a key driver of our success. Our acquisition pipeline remains robust with a strategic focus on enhancing our existing portfolio. Finally, our teams remain nimble through the use of IRX and continue to leverage our economic growth engine to outperform in the markets in which we serve. On slide four, our inorganic growth flywheel remains robust, underpinned by strong pipeline and discipline deal execution. The value creation flywheel remains a core engine of performance, delivering durable free cash flow and enabling consistent high return capital deployment. In 2025, we demonstrated both efficiency and precision in our execution, investing $525 million across 16 transactions, which collectively generated approximately $275 million in annualized inorganic revenue. These high return acquisitions averaged a nine times pre-synergy multiple and expanded our technological capabilities. demonstrating that our M&A engine continues to help us drive above market growth. And we're off to a great start heading into 2026 with nine additional transactions currently on their LOI. In January, we completed our first acquisition of 2026 with Cynomics, a leading manufacturer specializing in technologies that optimize workflow solutions to improve throughput accuracy and traceability across multiple life science and markets. The economic acquisition advances our life science strategy by combining complementary technologies to deliver high-value end-to-end laboratory solutions. Now, I will hand it over to Vic, who will share an update on our financial performance for Q4 and the full year.