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Ingersoll Rand Inc.
7/31/2026
Hello and welcome to the Ingersoll Rand second 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 1 on your telephone keypad. I would now like to turn the conference over to Max Forsheimer, Director of Investor Relations. You may begin.
Thank you for joining Ingersoll Rand's second quarter 2026 earnings call. I'm Max Borsheimer, Director of Investor Relations, and joining me this morning are Vicente Reynal, our Chairman and CEO, and Vik Kini, our Chief Financial Officer. Our earnings release and presentation were issued yesterday afternoon and are available on the Investor Relations section of our website, where a replay of this call will also be posted. Before we begin, please note that today's discussion will include forward-looking statements subject to the risks and uncertainties described in our SEC filings and on slide two of this presentation, which you should read in conjunction with the information provided on this call. We will also reference certain non-GAAP financial measures. Reconciliations to the most comparable GAAP measures are included in our earnings release and this presentation, both of which are available on the investor relations section of our website. Today, we will review our second quarter results, discuss segment performance and provide an update to our full year 2026 guidance. During Q&A, Please limit yourself to one question and one follow-up to allow time for other participants. With that, I'll turn the call over to Vicente.
Morning, everyone, and thank you for joining. Before we get started, I wanted to take the opportunity to formally introduce Max Worsheimer, who has added investor relations responsibility to his current role on our M&A team. You will be seeing and hearing from him going forward, and I know he looks forward to engaging with many of you. Beginning on slide three, the second quarter and first half overall reflected continuous strong execution and improved demand momentum in our business. In the second quarter, we saw organic order growth of 2%, organic revenue growth of 4%, and adjusted EPS growth of 7%, demonstrating the strength and resiliency of our business. Our growth this quarter was broad-based across our diversified and market base. Every main region this quarter delivered positive organic revenue growth, and we continue to focus investments towards durable, structurally growing end markets. Importantly, our first half performance and the healthy demand trends we continue to see across much of the business reinforce our confidence in our outlook for the remainder of the year. As we will walk you through this morning, we are raising our four-year revenue guidance and expect adjusted EPS to land towards the higher end of our previously communicated range. We also remain disciplined in our approach to capital allocation. Our acquisition pipeline continues to be robust, including two new announcements today, and remains focused on targeted Bolton opportunities that strengthen our core technologies, expand our aftermarket presence, and enhance our long-term growth profile. Our teams around the world remain focused on controlling what we can control. Through the use of IRX and our economic growth engine, we continue to drive operational execution, support our customers, and outperform in the markets we serve. Turning to slide four, before moving to our operational and financial results, I would like to briefly acknowledge the continued recognition we have received for our sustainability leadership and employee ownership culture. During the last year, we were recognized across multiple leading ESG, workplace, and corporate citizenship rankings, including joining the 2026 Fortune 500, a milestone that reflects the scale, discipline, and momentum we have built as the Inc. of Rand we are today. These recognitions further outline in our recently published sustainability report, reflect the strength of our ownership mindset culture. and our commitment to making life better for our employees, our customers, our shareholders and our planet. Turning to slide five, I am excited today to announce the closing of one acquisition and signing of another. Just this morning, we closed on the acquisition of Lone Star Blowers, the company referenced as a US-based blower manufacturer in the presentation. Lone Star Blowers expands our expertise in key blower technologies and solutions and expands our aftermarket presence through an established service business and rental fleet. This acquisition will add approximately $50 million in annual revenue. We're also excited to announce the signing of the acquisition of Phi Filtri, a manufacturer of industrial filters based in Italy. This acquisition will expand our filtration capabilities and also strengthen our aftermarket offerings. We expect this acquisition to close in Q4 and add approximately $30 million in annual revenue. Both of these transactions are highly consistent with our strategy of acquiring market-leading technologies that strengthen our core while maintaining disciplined valuation standards. Notably, both acquisitions strengthen our aftermarket capabilities, a key focus area as we continue to increase the resiliency and recurring revenue characteristics of our portfolio. We have 11 additional transactions under LOI, and our funnel remains strong, focused on proprietary and internally sourced deals. Our disciplined M&A strategy remains a key differentiator and continues to be an important driver for long-term value creation. Now, I'll hand it over to Vic, who will review our financial performance.
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