4/29/2026

speaker
Operator
Conference Operator

Hello and welcome to the Ingersoll Rand first quarter 2026 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.

speaker
Matthew Fort
Vice President, Investor Relations

Thank you and welcome to the Ingersoll Rand 2026 first quarter earnings call. I'm Matthew Fort, Vice President of Investor Relations. And joining me this morning are Vicente Rinal, 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 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 an update to 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.

speaker
Vicente Rinal
Chairman and CEO

Thanks, Matthew. Good morning, everyone, and thank you for joining us today. Beginning on slide three, The first quarter represented a solid start to 2026, especially given the continued complexity of the global operating landscape in the markets where we play. Adjusted EPS grew high single digits, with revenue and adjusted EBITDA finishing in line with expectations. This performance reflects the durability of our portfolio and the consistency of our execution. Conditions remain mixed, but we're seeing continued improvement across several end markets and in short cycle activity. Our disciplined approach to M&A continues to be a key driver of our success. Our acquisition pipeline remains robust, focused on differentiated technologies and services that strengthen our portfolio and enhances our organic growth profile. Finally, IRX remains a key differentiator, allowing us to remain agile and stay focused on what we can control, including operational execution, discipline pricing, and capital allocation. On slide four, our intergranic growth strategy remains a core element of our overall strategy, and the pipeline remains robust. This is supported by our value creation flywheel, which is a core engine of our performance. generating durable free cash flow, which further enables consistent high return capital deployment. We're pleased to announce the signing of Fox SRL, which is expected to close at the end of this month. As a leading manufacturer of hydropneumatic accumulators and pulsation dampeners, Fox enhances our pump technology by utilizing dampeners to absorb pressure pulses. This protects downstream pipes and equipment, helping customers reduce downtime and maintenance costs, and thereby increasing the return on investment offered by our solutions. Today, we have over 200 companies in our funnel, with 10 transactions currently at the LOI stage. More than 90% of these opportunities remain internally sourced, which reflects the strength of our operating model and deep industry relationships. We continue to expect 400 to 500 basis points of annualized inorganic revenue to be acquired in 2026, and we have a few additional deals expected to close in the coming months. Our approach to M&A remains unchanged, which is disciplined valuation, strategic fit, and a focus on Bolton acquisitions that strengthen our core technologies or expand into attractive adjacencies. Now, I will hand it over to Vic who will share an update on our financial performance for the first quarter.

Disclaimer

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Q1IR 2026

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Investor presentation