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Donaldson Company, Inc. DCI is scheduled to release fourth-quarter fiscal 2026 (ended July 2026) results on Aug. 26, before market open.The Zacks Consensus Estimate for this Bloomington, MN-based tool maker’s fiscal fourth-quarter revenues is pegged at $1.04 billion, indicating 6.4% growth from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.12 per share. The figure indicates an increase of 8.7% from the year-ago quarter’s number.The consensus estimate for earnings has been stable over the past 60 days. The company has outperformed the consensus estimate thrice and missed once in the preceding four quarters.Let’s see how things have shaped up for Donaldson before the announcement. The Mobile Solutions segment’s results are likely to benefit from strong demand for products in the aftermarket business, supported by growth across all regions and both original equipment (OE) and independent channels.Strong momentum in the off-road business, along with higher truck production in the Europe, the Middle East and Africa region, is likely to have driven its on-road business in the quarter. The consensus mark for the Mobile Solutions segment’s revenues is pegged at $620 million, indicating a 5.4% increase from the year-ago figure.Strength in the Industrial Filtration Solutions business, driven by strong demand in the power generation market, is likely to have been favorable for the Industrial Solutions segment. Recovery in demand for new equipment in the aerospace & defense market also augurs well. The consensus mark for the Industrial Solutions segment’s revenues is pegged at $336 million, indicating an 8.4% growth from the year-ago figure.Growth in demand for disk drives and food & beverage products is expected to boost the Life Sciences segment’s results. The consensus mark for the segment’s revenues is pegged at $84 million, indicating a 2.4% increase from the year-ago figure.In May 2026, Donaldson acquired Filtration Group’s Facet Filtration business. The buyout, which enhanced the company’s product portfolio of fuel and fluid filtration used in critical applications, is expected to have boosted its top line during the quarter.However, rising costs and operating expenses have been concerns for DCI for some time now. The impacts of high operating costs are likely to have affected its margins and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance. Our proven model does not conclusively predict an earnings beat for DCI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.Earnings ESP: DCI has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.12 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: DCI presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Graco Inc. GGG posted quarterly earnings of 91 cents per share in the second quarter of 2026, beating the Zacks Consensus Estimate of 81 cents per share. This compares with earnings of 75 cents per share a year ago.Graco posted revenues of $591 million for the quarter, missing the Zacks Consensus Estimate by 3%. This compares with year-ago revenues of $572 million.Stanley Black & Decker, Inc. SWK reported second-quarter 2026 adjusted earnings of $1.57 per share, which beat the Zacks Consensus Estimate of $1.20. The bottom line increased 45.4% year over year.Stanley Black’s net sales of $3.96 billion beat the consensus estimate of $3.93 billion. The top line increased 0.4% from the year-ago quarter.Ingersoll Rand Inc. IR reported second-quarter 2026 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line increased 7.5% year over year.Total revenues of $2.05 billion beat the consensus estimate of $1.96 billion. The top line increased 8.5% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Donaldson Company, Inc. (DCI) : Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Nordson Corporation NDSN is scheduled to release third-quarter fiscal 2026 (ended July 31) results on Aug. 19, after market close.The Zacks Consensus Estimate for fiscal third-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters. The average surprise was 2.3%.The consensus estimate for fiscal third-quarter revenues is pegged at $779 million, suggesting growth of 5.1% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $3.09 per share, indicating a 13.2% increase from the year-ago quarter’s number.Let’s see how things have shaped up for Nordson this earnings season. The Industrial Precision Solutions segment’s results are likely to benefit from growing demand for industrial coating and polymer processing systems. Continued investments in packaging, product assembly and precision agriculture end markets are expected to have boosted revenues. The consensus mark for the segment’s revenues is pegged at $364 million, indicating a 3.7% increase from the year-ago figure.The Advanced Technology Solutions segment is expected to have benefited on the back of healthy demand for electronics dispense systems. The consensus mark for the segment’s revenues is pegged at $191 million, indicating a 11.7% increase from the year-ago figure.Increased demand for engineered fluid solutions and medical product lines is likely to have aided the Medical and Fluid Solutions segment in the to-be-reported quarter. The consensus mark for the segment’s revenues is pegged at $224 million, indicating a 2.3% increase from the year-ago figure.In March 2026, Nordson acquired CapstanAG to strengthen its precision agriculture portfolio and expand its presence in North America. The buyout, which enhanced the company’s portfolio of advanced solutions for fluid management and precision spraying, is expected to have boosted its top line during the quarter.However, rising costs and operating expenses have been concerns for Nordson for some time now. The impacts of high labor and raw material costs are likely to have affected its margins and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance.Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability. Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote Our proven model does not conclusively predict an earnings beat for NDSN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.Earnings ESP: NDSN has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.09 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: NDSN presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Graco Inc. GGG posted quarterly earnings of 91 cents per share in the second quarter of 2026, beating the Zacks Consensus Estimate of 81 cents per share. This compares with earnings of 75 cents per share a year ago.Graco posted revenues of $591 million for the quarter, missing the Zacks Consensus Estimate by 3%. This compares with year-ago revenues of $572 million.Stanley Black & Decker, Inc. SWK reported second-quarter 2026 adjusted earnings of $1.57 per share, which beat the Zacks Consensus Estimate of $1.20. The bottom line increased 45.4% year over year.Stanley Black’s net sales of $3.96 billion beat the consensus estimate of $3.93 billion. The top line increased 0.4% from the year-ago quarter.Ingersoll Rand Inc. IR reported second-quarter 2026 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line increased 7.5% year over year.Total revenues of $2.05 billion beat the consensus estimate of $1.96 billion. The top line increased 8.5% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordson Corporation (NDSN) : Free Stock Analysis Report Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, July 31, 2026 at 8:00 a.m. ET Director of Investor Relations - Max Vorcheimer Chairman and Chief Executive Officer - Vicente Reynal Chief Financial Officer - Vikram Kini Operator: Hello, and welcome to the Ingersoll Rand Second Quarter 2026 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Max Vorcheimer, Director of Investor Relations. You may begin. Max Vorcheimer: Thank you for joining Ingersoll Rand's Second Quarter 2026 Earnings Call. I'm Max Vorcheimer, 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 2 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. Vicente Reynal: Good morning, everyone, and thank you for joining. Before we get started, I wanted to take the opportunity to formally introduce Max Vorcheimer, 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 3, the second quarter and first half overall, reflected continued 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 end 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 full 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 2 new announcements today and remains focused on targeted, bolt-on 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 4. 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 Ingersoll 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 5. I am excited today to announce the closing of one acquisition and the signing of another. Just this morning, we closed on the acquisition of Lone Star Blowers, the company referenced as a U.S.-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 Fai 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 strengthened 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 Vik, who will review our financial performance. Vikram Kini: Thanks, Vicente. Starting on Slide 6. The second quarter represented another solid quarter of execution. Orders finished just over $2 billion, up 5% year-over-year with organic orders up 2%. Book-to-bill finished at 1.0 turns, slightly lower than we typically see in the second quarter, primarily reflecting the delayed timing of several large project orders. Important to note that we continue to see solid momentum in our short- to medium-cycle business, where orders were up mid-single digits. In addition, we expect these longer cycle projects to recover in the back half of the year, and Vicente will provide some color on what we have seen thus far through July. Revenue grew 9% year-over-year to approximately $2 billion with organic revenue growth of 4%. Aftermarket revenue represented 36% of total revenue during the quarter and continues to be an important contributor of the resiliency of our portfolio. Adjusted EBITDA was $520 million, an increase of 2% year-over-year with an adjusted EBITDA margin of 25.4%. Adjusted EBITDA margin was down 160 basis points year-over-year, with the decline driven primarily by 3 factors: first, inflationary pressures, particularly in China, where it is more challenging to offset inflation with price. Second, continued investment to support growth around new technology and commercial applications; and third, higher corporate costs. The higher corporate costs were largely driven by year-to-date true-up of management incentive costs, reflecting incentive compensation adjustments aligned with performance, which we do not expect to recur at this level in the back half of the year. Unallocated corporate costs were $49 million in the quarter versus $34.6 million a year ago, driven largely by the incentive true-up, and we continue to expect approximately $170 million in corporate costs for the full year. Despite this quarter's year-over-year margin rate pressures, we remain confident in our ability to deliver within our previously communicated adjusted EBITDA range through continued operational execution and productivity actions. In terms of the sequential margin expansion we expect to see in the second half of the year, the margin ramp in the back half of the year is normal course for us as first half pricing actions and benefits from first half productivity projects are realized. We also had the incentive comp true-up here in second quarter that we do not expect to repeat to the same magnitude in the back half of the year. Adjusted EPS was $0.86 for the quarter, up 7% year-over-year. Turning to Slide 7. Free cash flow for the quarter was $269 million, up roughly 28% year-over-year. We ended the quarter with approximately $3.8 billion of total available liquidity, including approximately $1.2 billion of cash and $2.6 billion of available revolving credit facility capacity. Leverage remained at 1.7x, providing significant balance sheet flexibility. During the quarter, we deployed $110 million towards acquisitions and returned approximately $248 million to shareholders through share repurchases and dividends. We were also pleased to receive a one-notch upgrade from Moody's to Baa1 during the quarter, further reinforcing the strength of our balance sheet and capital allocation strategy. Overall, our balance sheet remains a strategic asset and positions us well to continue investing in attractive growth opportunities. One other update I wanted to provide here as you will see disclosed in our 10-Q for the second quarter, we reached an agreement on an initial $187.5 million recovery, with certain insurers on the RWI claim that we filed last year related to the ILC Dover transaction. We collected the first $25 million in the second quarter, and this is reflected in free cash flow for the quarter, with the remaining $162.5 million to be received during 2026. This is a significant and favorable initial recovery, and we continue to actively pursue additional meaningful recoveries related to the ILC Dover transaction beyond the $187.5 million. Consistent with our focus on earnings quality, these recoveries are excluded from adjusted earnings and the incremental cash that we expect to collect in the second half of 2026 is not reflected in our free cash flow guidance. We, therefore, view it as pure upside that directly strengthens our capital allocation firepower. I'll now turn the call back to Vicente to discuss our segment performance. Vicente Reynal: Thanks, Vik. Turning to Slide 8. ITS delivered another solid quarter. Revenue increased nearly 9% year-over-year, including organic revenue growth of 4%. Organic revenue growth was positive across all regions. Orders were approximately flat organically, resulting in a book-to-bill ratio of 1x. Within our compressor business, we continue to see healthy activity particularly in North America, where organic orders were up high single digits. Overall, compressor orders increased by low single digits globally. Organic order growth was impacted by the timing of several long cycle blower and vacuum projects in Europe as well as the continued impact on the Middle East, where specific project activity remains delayed rather than canceled. ITS generated adjusted EBITDA of $435 million with margins of 26.8%. Margin performance was impacted primarily by challenges offsetting inflationary impacts with price, primarily in China and continued commercial investments to support future growth. For our innovation in action highlight, we're showcasing a plug-and-play on-site nitrogen generation solution that integrates multiple products from our portfolio into a single factory tested system. The solution enables faster deployment, simplify commissioning and full life-cycle support, demonstrating our ability to leverage the breadth of our technology portfolio to solve critical customer needs. This solution also demonstrates the commercial synergies we continue to realize through M&A. The system combines technologies from our OxyWise, Gardner Denver and York brands into a single integrated solution for customers. Turning to Slide 9. P&ST delivered an excellent quarter and continue to demonstrate the strength of the platform we have built. Orders increased 11% year-over-year, including 7% organic growth. Life Sciences delivered low double-digit organic order growth, while Precision Technologies grew mid-single digits organically. Revenue increased by 8% year-over-year, including 4% organic growth. Importantly, both Life Sciences and Precision Technologies delivered positive organic revenue growth in the quarter. Adjusted EBITDA increased 15% year-over-year to $135 million. Adjusted EBITDA margin expanded 200 basis points year-over-year to 31.5%, reflecting strong execution across the portfolio and the continued benefits of IRX. We're encouraged by the breadth of growth we're seeing across the segment and remain excited about the long-term opportunities within both Life Science and Precision Technologies. For our innovation in action, we're showcasing Dosatron's installation-ready dosing systems. These standardized solutions simplify deployment, improve reliability and reduce installation complexity for customers while supporting strong commercial momentum across the business. I'm also proud to share that following the significant earthquake that recently struck the Philippines, Ingersoll Rand partnered with Planet Water Foundation to deploy safe drinking water stations across the hardest hit areas. Planet Water Foundation is not only a partner but also a valued Dosatron customer as our pumps are a key component of the AquaBlock kiosks that deliver safe drinking water in these situations without the need for electricity. It serves a good reminder of the mission-critical nature of our portfolio and an example of our purpose of making life better in action. Turning to Slide 10. Given our momentum through the first half of the year, today, we are updating our full year guidance. Starting with revenue, we now expect revenue growth of 4.5% to 6.5%, 200 basis points higher at the midpoint, driven primarily by organic volume, reflecting a strong first half and healthy demand, particularly in the short to medium-cycle side of the business. This outlook assumes approximately 1% to 3% organic growth, approximately 2.5% growth from M&A, and approximately 1% growth from FX. We're maintaining our adjusted EBITDA guidance range of $2.13 billion to $2.19 billion. As Vik mentioned, the margin ramp we see in the second half is largely driven by first half pricing actions taking effect, the nonrecurrence of the incentive compensation true-up in Q2 and benefit from stronger productivity in the back half of the year on projects executed in the first half, all of which is normal course and consistent with prior years. Adjusted EPS remains projected at $3.45 to $3.57. And based on our current expectations, we expect results to finish near the high end of the range. Free cash flow conversion is currently expected to remain approximately 95%. The phasing of revenue, adjusted EBITDA and adjusted EPS remains consistent with prior years. One additional clarification on our guidance is that our adjusted EBITDA and adjusted EPS ranges exclude any benefit from IEEPA tariff refunds we expect in the second half of the year, which we will view as upside. We will update guidance once those amounts are materially received. And to give a bit of color on our start to Q3, while we don't guide on orders, I am happy to share that we have had a great start to July, where we have seen double-digit order growth through the first 4 weeks of the month. We have seen strong realization of several long-cycle orders, which were delayed in the first half across all of our main regions, along with continuation of the short to medium cycle strength that Vik mentioned earlier. We're encouraged in what we're seeing, and we're confident in achieving our updated guidance for the remainder of the year. Finally, on Slide 11. As we conclude this portion of the call, I am encouraged by the momentum we continue to see across the business. Demand remains healthy across the portfolio. Our teams continue to execute at a high level and our M&A pipeline remains robust. We remain well positioned with a strong balance sheet, ample liquidity and significant flexibility to continue investing in growth. IRX remains the backbone of our organization and continues to enable execution and outperformance across the company. As we look ahead in the second half of the year, we believe we're well positioned to continue to deliver durable growth, strong cash flow generation and long-term value creation for our shareholders. Finally, and more important, I want to thank our employees around the world for their continued commitment, dedication and ownership mindset. Your efforts continue to drive our success and help us deliver strong results for all stakeholders. With that, I'll turn the call back to the operator and open the line for questions. Operator: [Operator Instructions] Your first question comes from Michael Halloran with Baird. Michael Halloran: Welcome, Max. So can we talk a little bit about the momentum you're seeing on the short and medium side of things now? Maybe just drill in a little bit more on regional dynamics and then any end markets in particular that you're seeing that momentum. And it seems like you're pretty comfortable that, that momentum can sustain as we're exiting the second quarter through July and onward. But any thoughts on how that momentum phases out? Vicente Reynal: Yes, Mike, let me first give you by region. So Americas is roughly 50% of our revenue, and it's been the strongest region so far. ITS orders were up high single digits, healthy compressor activity. And we're seeing the short-cycle indicators that are the best in the portfolio. EMEA is about 1/3 of the revenue. Orders were down low double digits organically. And I want to be precise about why. It is 2 things, both timing rather than demand. It is the phasing of some long-cycle projects orders in our blower and vacuum side of the business in Europe, and it's also the Middle East. Underneath that, core compressor orders in the region were up low single digits organically, which is better read on the underlying market. And then Asia Pacific, which is about 15% with China around 10% of total. China organic revenue was up low double digits in the quarter. The volume story there is very good. But as we indicated in the prepared remarks, this continues to be the most challenged market from a pricing perspective, but we're encouraged by how our original equipment is getting into the market, again, in China for China in some very kind of unique applications that we expect will generate some very good aftermarket in future years. From an end market perspective, PST, we mentioned Life Sciences, obviously, up mid-teens, driven mainly in this case here, biopharma. Biopharma, we continue to see that low double-digit growth there and very encouraged about the timing of bringing the full Ingersoll Rand portfolio into biopharma. So not just what we got in PST, but now the team is driving pull-through of other technology into biopharma. And then in the ITS, it's broad-based. I mean, Americas, we saw momentum in power gen, electricity infrastructure, some air separation for semiconductor. Europe, its resiliency continues in general industrial, food, beverage, kind of the more normal industrial side. We still expect maybe defense picking up here soon, hopefully. And Asia Pacific is growing in kind of electronics, shipbuilding, among others. So you can see kind of multiple -- fairly broad-based in many cases. Michael Halloran: That makes sense. And then maybe just on the larger projects, I mean you referenced some of it there, the longer cycle projects. Are you at the point where project pushouts are starting to roll through and people are willing to move forward with projects? Are we still seeing delays on a global basis? And how do you think that long-cycle activity plays out as we look forward? Vicente Reynal: Yes. I think, Mike, that's where we are getting more and more encouraged. For a while, we were talking about this elongation and kind of what we're seeing now is basically customers getting more enthusiastic and projects getting kind of moved in a better direction. So we're seeing better momentum on the long-cycle project, yes. Operator: Your next question comes from Jeff Sprague with Vertical Research. Jeffrey Sprague: Just a quick follow-up on the long cycle. First, is there any sort of common thread in what is now being released and previously held up and released perhaps more energy or some other vertical market? Any real common thread you'd point to there? Vicente Reynal: Yes, Jeff, good point. I mean this is actually one of the more encouraging conversations we're having in terms of that energy efficiency. I mean, as we -- you know, the compressor is typically 30% of the industrial electricity consumption in a manufacturing facility, and it could be higher based on applications. So we're seeing more -- as power prices have moved up, the payback on replacing an older, less efficient machine is getting shorter. So definitely, that is definitely one of the key indicators here that we're seeing that is driving some better momentum among other things. I think historically, past few earnings calls, we were talking about kind of delays in projects just due to engineering capacity or it could be EPC and a lot of that is also kind of freeing up to -- as well. Jeffrey Sprague: Great. And maybe then just a quick one for Vik also. Just on the organic revenue guide, is this primarily a reflection of going after additional price? Or is there actually some improved volume sort of underpinning that bump? And what would the volume improvement be if there is some? Vikram Kini: Yes. So Jeff, I think it's more of the latter. So it's the volumes, the organic volumes. So I think as we indicated in the prepared comments here, encouraged by what we saw in Q2, where you saw 4% overall organic growth. I think volume was obviously relatively healthy there, particularly on the short and medium cycle side of the business. So I think that's where you're really seeing the uptick. So the incremental 1% organic for the full year is really volume driven. And I think as Vicente said here, encouraged by what we're seeing both on the Americas front China continues to show good momentum there. And so that's really where we're seeing it. Price, we have taken certain pricing actions in the first half of the year, which was consistent with our expectations. And those are starting to kind of more materialize into the back half of the year. But I would say that's fairly consistent with what we had expected in previous guidance. Operator: Your next question comes from Nigel Coe with Wolfe Research. Nigel Coe: Max, I look forward to meeting you in due course. But just on the orders in July, obviously, really encouraging to see that those longer cycle orders starting to kick in. Can I just clarify, when you say double digits, so if we strip out acquisitions, et cetera, we're still seeing double-digit organic orders. Just want to clarify that one, first of all. And then are we seeing the backlog building for '27 given that these are longer cycle projects? Or could these hit in the back half of the year? It doesn't feel like you're baking these orders into the back half of the year. Vicente Reynal: Yes, Nigel, let me take the first one and let Vik comment about the second one. Yes, I mean, organic is low double digit to mid-teens, basically is what we're seeing here in the month of July. Vikram Kini: Yes. And then, Nigel, just to follow up on that. As far as the long-cycle projects, definitely building the backlog out for 2027. As you would expect, most of these are long-cycle projects are the typical 6- to 18-month type duration in terms of projects typical to what you've seen. So they're largely building out the backlog for 2027. That's not to say that some won't have some revenue recognition here in the back half of the year. But yes, solid backlog build more as we move into 2027 with regards to some of those longer cycle projects. Nigel Coe: Okay. That's great. And then just maybe just a bit more details on the ITS margin momentum through the back half of the year. And can you just maybe just clarify, was the sort of the margin weakness in the quarter, was that confined to China and the price pressure in China? Or was it a bit more than that? Vicente Reynal: No, it's really confined to China, basically. And in addition to some of the investments that we're making. I mean you saw we made an announcement about -- earlier in the quarter about a partnership that we made for some new technology to as well. So it continues to be some good investments that we're doing, I mean, despite what kind of market conditions might be. And on top of that has been the pricing challenge in China. Operator: Your next question comes from Rob Wertheimer with Melius Research. Robert Wertheimer: I wanted to check in on trends in Life Sciences and PST. It seems like you had pretty good orders. The comp was a little bit easy, and there were some kind of cross-currents around the industry that don't seem to have affected you in the quarter. So I wonder if you could just sort of characterize the market. Is it steadily growing? Is it accelerating? How do you see it right now? Vicente Reynal: Yes. Rob, so I -- we see good momentum on the Life Science business, as we kind of alluded here. We see that it is largely driven by the biopharma. In our case, the exposure that we continue to have to GLP-1 is very strong. So that -- as that market continues to grow and seeing some investments, we're pleased to see that. In addition, we're -- we have made some investments to play in the larger biopharma side and are working on what you also kind of hear in the news on the biopharma expansion. Now a lot of that hasn't come to fruition yet, but we're excited about what the potential of that could be as we move into the second half or even 2027 based on the new facilities that are kind of getting invested now. So again, we see continued stability in that market and good growth based on, again, the investments that we're making and the focus that we're putting in to really accelerate our penetration in the biopharma side. Operator: Your next question comes from Nathan Jones with Stifel. Nathan Jones: I guess I'll ask the same question I asked on most of these calls, Vicente about quote to order times. Obviously, you had a few of these longer cycle projects get delayed in the quarter. But if you kind of exclude those, are you seeing any changes in that quote to order time? Maybe in the U.S., you are, maybe in Europe, you're not. But any details you could give us on, I guess, the customers' willingness to accelerate these orders? Vicente Reynal: I would say, Nathan, nothing dramatically significant. I mean, obviously, you're seeing the short-cycle business, and Vik mentioned that, I mean, mid-single-digit organic order growth on our short-cycle business. So we continue to see momentum. And when we see that sequentially continue to improve and obviously now here in July as well. But in terms of that quote to order, I don't think anything that customers are trying, at least not on our products or the end markets where we play that we have seen that customer quote to order cycle get shortened dramatically. Nathan Jones: Okay. Fair enough. Maybe just a question on China and the pricing power over there. Ingersoll Rand has always tended to try and play in areas and products where it has significant differentiation and can command price. Are there opportunities here for you to consider what you want to sell in China, how you want to sell it and look at the portfolio overall through that kind of lens where maybe some of these products you're selling in China don't have pricing power and you don't need to be in that business or anything from that perspective? Vicente Reynal: Sure, Nathan. No, I would say, I mean, we're always going to play mission-critical products where total cost is low based on the total process in the equation. So I mean, right now, what you see in China is just basically a timing issue in our view. More broadly, we're spending quite a bit of time localizing newly acquired technologies into China and typically under an existing brand that we have in China. So I would say that we're cutting back on our product portfolio, but rather investing in new technologies in the market where we have seen success from acquired businesses elsewhere and kind of have unique technology that we can have. The second big piece is that a lot of the growth that we see in China is related to original equipment, whole goods, which come in -- comes at a lower margin typically than the aftermarket. And in some cases, what we have done here in China as there have been some very unique applications with specific customers that we never had before, but that we see that can have a great potential in the future for us, we're making some commercial investments to really penetrate those new applications and again, in China for China. So I'd say we feel good about the product portfolio we have in China, and we continue to invest in China for China. Nathan Jones: Okay. So the pricing is a bit more transient than issue? Vicente Reynal: It is definitely more transient, yes. Operator: Your next question comes from Andy Kaplowitz with Citigroup. Andrew Kaplowitz: It looks like you've continued to have a nice acceleration in your Precision Technologies business. Could you talk about the durability of that growth? Like what are the biggest drivers? And I think Precision is mostly comprised of shorter cycle markets. So is it fair to expect continued acceleration from that mid-single-digit growth from here? Vicente Reynal: Yes, Andy, I mean, I think we're very pleased with what we're seeing on the PST side. I mean, as you remember, even going back to our last Investor Day, we said that this segment should be in kind of that mid-30 EBITDA, so not just a mid-single-digit grower organically. And we're getting back to that. So again, great progress that we're seeing here on the growth, but also on the margin expansion. Vikram Kini: Yes. And then, Andy, on the -- specific to the Precision Technology side, we would agree. You're seeing solid momentum. That business has a comparable look and feel in some respects to ITS. So yes, you have seen good continued momentum on what I'll call some of the shorter cycle kind of core pump businesses. There is longer cycle project activity there as well. And I think we're working through that just like you see on the ITS side. So I'd say a fairly comparable trends, specifically on the Precision Technology side as to kind of what you've seen on the ITS side. Andrew Kaplowitz: Great. And then on M&A, Vicente, you raised your contribution to 2.5% for '26 from closed deals, which I think puts you right on target for your usual algorithm. And there's a couple of nice announcements today. But if I look back at the last few years, you've tended to be a little further along at this point in the year. So how would you characterize the M&A environment in general this year versus past years? Vicente Reynal: I would say pretty very healthy. I mean our funnel is very healthy, over 200 companies that we have in the funnel. And so no difference. I mean, right now, so far, including the transactions that we announced today on a year -- I mean, we're kind of halfway point to the commitment of the annualized acquired. So I think we're making some good progress. And I think it's difficult to compare the cadence of deal activity each year against another. But I mean, we're excited where we are. We've got great prospects, 11 transactions under LOI and healthy activity and with a very good disciplined pre-synergy multiple. Operator: Your next question comes from Joe Ritchie of Goldman Sachs. Joseph Ritchie: So ITS, I'm curious, would your margins have expanded this quarter absent like the China headwind that you guys described? And then also, as you kind of think about the year, is your expectation that you can kind of still hold margins kind of like flattish with where ITS margins were a year ago? Vikram Kini: Yes, Joe, I'll take that in 2 pieces here. So on the first part here, China was without question the biggest piece, obviously. So I would say it would have been much more comparable is probably the best way to say it. That's not obviously the only moving factor, but that is without question, the single biggest driver for the factors that Vicente indicated with regards to much more the pricing side, comparatively speaking to some of the inflationary headwinds. As far as on the full year and kind of what the guide kind of implies into the back half, I think as we exit the year, particularly in the fourth quarter, I think you're much more in line with prior year and actually probably even slightly above the exit rates we had for prior year. But I would say on a full year basis, it's still probably trending a little bit below on a full year basis, comparatively speaking, to where we were in full year '25. But again, I think we view that, as Vicente said, a lot more timing oriented here. I think with the momentum we continue to see, particularly on the organic volume front as we exit the year as well as kind of some of the China items that we view as a bit more transient for lack of a better way to say it, we don't see any reason why the ITS business can't continue to have that earnings power of approaching that 30% EBITDA margin profile consistent with what we've talked about in our prior Investor Day. Joseph Ritchie: Got it. That's clear, Vik. And then Vicente, just touching on those longer cycle orders from July. I'm curious, and maybe I didn't hear it, but like from an end market standpoint, does a particular end market stand out to you on what's converting into orders? And then as you kind of think about your pipeline for the rest of the year, how does that large project pipeline look? Vicente Reynal: Yes, Joe, I'd say nothing that I would say one specific end market focus. I mean it was -- it's kind of becoming a very nicely broad-based, food, beverage, pharma, power gen, air separation for semiconductors. So it's actually a very good blend on multiple end markets. And as we -- which we like. And as we think about kind of the rest of the year in terms of the pipeline, very consistent with that, consistent with having a good blend of multiple end markets in the long cycle. Operator: Your next question comes from Chris Snyder with Morgan Stanley. Christopher Snyder: At least on my math, it seems like this back-half margin ramp off of that Q2 base is a bit stronger, at least on the higher end of what you guys typically deliver. It seems like a lot of that is driven by this price cost catch-up. So I guess, can you just maybe kind of talk about the drivers of that sequential margin expansion off Q2? And then since it seems like it's mostly driven on price, any color on just like how much incremental price is coming into the back half following some of the actions you guys took, I guess, in Q2? Vikram Kini: Yes, Chris, I'll kind of bucketize it to keep it simple here maybe into kind of 3 major kind of drivers here. First and foremost, to kind of in line with what you said, there is, I would say, better price realization just in the context of some of the actions that we took through the first half of the year and executed in the second quarter. So again, I would say that was -- that's kind of 1/3 of -- 1/3 of it. 1/3 to kind of repeat on an enterprise-wide basis, obviously, corporate, we expect to be a bit more normalized into the back half of the year. Clearly, we had the incentive compensation true-up that we took in Q2 that we don't expect to repeat at the same level in the back half. And then the balance is what I would say is somewhat generally normal course here is the expectation on the productivity and to some degree, some of the mix you would expect to see coming into the back half of the year. As a reminder, we typically see a lot more of our productivity benefits from actions taken, whether it be on the classical direct material or I2V side as well as to repeat some of the restructuring actions we took towards the end of last year into the beginning of this year, materialize more into the back half of the year. And remember that direct material productivity generally follows our cost of goods sold, in particular, as you typically have your strongest finish towards the fourth quarter, that's where you tend to see a lot of that come through. So I'd say those are probably the 3 biggest drivers. Christopher Snyder: I really appreciate that. And then maybe tying that to the July order comment, which was obviously, I mean, a really strong inflection for you guys on the long-cycle side. I just want to confirm, it seems like this order inflection came after you guys put price in, which is more constructive than seeing the order inflection, of course, before the price action. So just if you could confirm that. Vikram Kini: Yes. I think, Chris, that's a fair point here. So the way I would probably think about it is, remember, a lot of these longer cycle projects that are booking through here in July, they've been in the funnel for some time. These have been active dialogue negotiations, things of that nature. So yes, I mean, it's great to see them kind of now get to the finish line for lack of a better way to say this. But I wouldn't also lose track of the fact that in the midst of July, we're also seeing, I'd say, continued solid short-cycle momentum. So I think your comment is quite fair. Yes, the long cycle is probably the biggest driver of that number you're seeing in July, but that's not coming without some good contribution also from the short-cycle side as well. Operator: Your next question comes from Amit Mehrotra with UBS. Amit Mehrotra: I guess just following up on the July commentary because I want to make sure that my -- the market's expectations are correct. And it really comes down to the attribution of these long-cycle projects, maybe there are a few of them. But is the positive implication of that disclosure that, hey, this is kind of the trend that we can build on or sustain? Or is it really a data point that's idiosyncratic to maybe a couple of projects that hit in July because I don't want to be here in August, September saying we're back to low single digits because of that dynamic. So maybe you can give us a little bit of color on that. Vikram Kini: Yes. Maybe I'll start here. So one -- a couple of comments here. One, I think if you go back over the course of several quarters, we've spoken to the health of the long-cycle funnel, right? And as Vicente has mentioned, we had acknowledged that there have been some elongation and that had been some of the drivers of why you've seen some of the timing on some of the long-cycle comps and things like that, including even in the second quarter. But I think, first and foremost, encouraged by seeing some of those projects get to the finish line. I do think that's obviously what you're seeing in July. Now that being said, I think I would couple that to say that, obviously, we're continuing to be encouraged by the long-cycle funnel, right? Obviously, I don't think we're necessarily implying that at these levels is the level to indicate on a consistent go-forward basis. But I think it speaks to the fact that, that long-cycle funnel continues to remain healthy. As we've indicated, there really weren't cancellations. It was more timing. So I think that's now proven itself out. And that, obviously, the short-cycle side continues to be pretty short to medium cycle side continues to be relatively strong and constructive. So I take that all in totality. But I think the July comment is just inflecting and the fact that we're happy with what we're seeing there, getting to the finish line on those projects. Amit Mehrotra: Okay. Great. That's helpful. And a lot of our conversation talks about sort of the large compressor blower vacuum market, but there's obviously -- you sell stuff through distribution, smaller compressors, power tools, et cetera. Can you just maybe talk about how distributor behavior is, whether it's sell-through or their willingness to hold more inventories as maybe sort of another leading indicator sign of how things are trending? Vicente Reynal: Yes, Amit. I'll say that difficult for -- and we said this historically, our distributors, they don't typically hold inventory. I mean a compressor gets customized for specific applications. And even on the smaller side, I mean, we're not on the do-it-yourself kind of compressor type of product that is a very standard product. I mean we tend to configure to order, in many cases, engineered to order. So those are more difficult to kind of keep in inventory. So our distribution is mostly kind of buy and sell pretty quickly. Operator: [Operator Instructions] Your next question comes from Nicole DeBlase with Deutsche Bank. Nicole DeBlase: Maybe just digging into the pricing environment a little bit more. I understand what's going on in China. There's been plenty of discourse around that. But I guess, what are you guys seeing with respect to pricing in Americas for compressors? Any shifts at all in the dynamics or market share dynamics as well? Vicente Reynal: No. I mean nothing, I'll say, dramatic, I mean, that we're seeing. I mean, typically, we're back to this kind of 1% to 2% price that we see consistent and stable. And even having said that, you saw that we talked about order momentum to be high single digit in the Americas. So again, very encouraged that a lot of that kind of tends to be more volume related than pricing. So nothing that I will dramatically say that we're seeing changes in the pricing environment besides what the difficulty that happens in China. And again, China, I'll categorize that as transitory due to some overcapacity that has happened over the past prior years of investing, but we're definitely seeing inflecting better momentum in China as well. But again, from a pricing dynamic outside of China, fairly stable. Nicole DeBlase: Okay. Understood. And then I just wanted to ask a question on PST margins, definitely a bright spot this quarter once again. Vik, is it possible to get your view on how second half margins look within PST? Vikram Kini: Sure. Yes. I think the simplest way to say it here is we would expect to continue to see sequential momentum as the year plays itself out. Really encouraged that we were right around 31.5% EBITDA margin here in Q2. I think our expectations would be that number is slightly better as we move into the back half of the year. So in the 32% type range, if not slightly better, and definitely approaching that kind of mid-30s EBITDA margin target that we've kind of historically laid out is definitely in sight and definitely the goal. Operator: Your next question comes from Andrew Buscaglia with BNP Paribas. Andrew Buscaglia: You guys indicated you're doing some M&A here and some LOIs for usual kind of like under -- in the background. What is the nature of the size of the deals that you're looking at? Is -- are valuations attractive for larger-sized deals? Can you just give us a little more color there? Vicente Reynal: Yes. The 11 that we talked about LOI-wise tend to be in the same nature as kind of what you saw announced today, bolt-on in nature, low double-digit pre-synergy multiple. Prior quarter, we spoke about having a couple of about $1 billion purchase price in the funnel. We actually decided to walk away from one of them due to valuation. So again, we remain pretty disciplined on the transactions that we're going after. So again, the 11, very similar to what you saw getting announced today. Andrew Buscaglia: Got it. And my second question is a little more high level. I think the back half guide is pretty picked over at this point. So I want to ask your take on sort of AI and infrastructure investment and how it pertains to Ingersoll Rand. Just given we obviously have the build-out of the hyperscale data centers that's ongoing. But as like sort of this infrastructure investment leads into areas like semis and power equipment, we're reading a lot about and just broader industrial capacity needed. Can you talk about the role of compressors and vacuums, the other precision fluid handling equipment you guys use and how you see that helping Ingersoll Rand. And then where -- whether it's Industrial Tech or your Precision Tech segment, I go back and forth where we would see this materialize more, but can you talk a little bit more about that, too? Vicente Reynal: Yes, absolutely, Andrew. I appreciate the question. I mentioned at the beginning of the call that, yes, on some of the Q&A as power gen as being one of the end markets or infrastructure will play. I mean, compressors are definitely -- air compressors are definitely needed in the power generation and electricity infrastructure. So as those investments kind of take on and pick up, definitely, our compressor systems will definitely have a play. Clearly, a lot of conversations around the utilization of water and how to continue to create closed-loop systems in data centers. And again, we have pumps that can move water. We have blowers that can actually help with the aeration in some of these systems. So it's kind of a pretty wide range, but it's very, very broad-based in many multiple different markets, even including as new natural gas power is needed, we're the market leader of odorizing that natural gas. So that is on our Precision Technology kind of PST segment side of things. So as those projects kind of start coming up live, I mean, obviously, those take a long time to get implemented, but we're pleased to see that we can play in that kind of broad-based end market application that is driven by a lot of the data center infrastructure investments. Operator: This concludes the question-and-answer session. I'll turn the call to Vicente Reynal for closing remarks. Vicente Reynal: Thank you, Sarah. I just want to say one more time, thank you all for your time and continued interest in Ingersoll Rand. And another special call out and thank you to our employees around the world whose ownership mindset and commitment while executing through IRX helps compound durable long-term value for all of our shareholders, which, by the way, our employees are also share owners of the company. So again, thanks again, and we'll talk soon. Appreciate it. Operator: This concludes today's conference call. Thank you for joining. You may now disconnect. Before you buy stock in Ingersoll Rand, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ingersoll Rand wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ingersoll Rand (IR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Ingersoll Rand (IR) has just reported its second quarter 2026 results, giving investors fresh data on sales, earnings and cash returns through buybacks and dividends to weigh against the stock’s recent performance. See our latest analysis for Ingersoll Rand. The latest results and new guidance sit alongside a 1-month share price return of 8.92% and a 1-year total shareholder return of 13.16%, so recent earnings momentum, buybacks and acquisitions are feeding into a steadily positive trend. If Ingersoll Rand’s updates have you thinking about where else capital goods and infrastructure could create opportunities, this is a good moment to scan 36 power grid technology and infrastructure stocks For Ingersoll Rand, the recent rise sits against stronger reported earnings, ongoing buybacks and fresh guidance. How much of this move looks grounded in the business, and how much is changing sentiment that now feeds into valuation? Ingersoll Rand closed at $87.78, compared with a widely followed fair value narrative of $93.20 based on detailed revenue, margin and cash flow assumptions. Read the complete narrative. Want to see what kind of revenue mix and margin profile sits behind that fair value? The narrative leans heavily on recurring earnings, rising profitability and a premium future P/E. The full set of assumptions shows how those pieces fit together into today’s $93.20 estimate. Result: Fair Value of $93.20 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, investors still need to weigh risks such as acquisition missteps that lead to impairments, as well as the impact of slower industrial spending on Ingersoll Rand’s order book. Find out about the key risks to this Ingersoll Rand narrative. The earlier fair value narrative for Ingersoll Rand leans on detailed cash flow and margin assumptions and concludes the stock is 5.8% undervalued at $87.78. The market is also applying a rich 35.5x P/E, compared with 26.8x for the US Machinery industry and a peer average of 22.6x. The estimated fair ratio sits at 32x, which is below where Ingersoll Rand trades today. That gap suggests investors are already paying a premium multiple on current earnings, even before any future growth plays out. The key question is whether you think that premium is still comfortable at this stage. See what the numbers say about this price — find out in our valuation breakdown. With sentiment around Ingersoll Rand leaning positive, this is a good moment to move quickly and test the numbers yourself. To see what investors are optimistic about, review the 3 key rewards Do not stop with Ingersoll Rand. Use this momentum to widen your watchlist and compare it with other stocks that match what you want from your portfolio. Chase overlooked potential by scanning the screener containing 18 high quality undiscovered gems that might not yet be crowded with attention. Strengthen portfolio resilience by reviewing the 82 resilient stocks with low risk scores that score well on financial and risk metrics. Focus on quality and staying power by checking the solid balance sheet and fundamentals stocks screener (46 results) that can support growth plans without stretching their finances. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: Grew 9% year-over-year to approximately $2 billion, with organic revenue growth of 4%. Orders: Finished just over $2 billion, up 5% year-over-year, with organic orders up 2%. Adjusted EBITDA: $520 million, an increase of 2% year-over-year, with an adjusted EBITDA margin of 25.4%. Adjusted EPS: $0.86 for the quarter, up 7% year-over-year. Free Cash Flow: $269 million for the quarter, up roughly 28% year-over-year. Segment - IT Revenue: Increased nearly 9% year-over-year, including organic revenue growth of 4%. Segment - IT Adjusted EBITDA: $435 million, with margins of 26.8%. Segment - PST Orders: Increased 11% year-over-year, including 7% organic growth. Segment - PST Revenue: Increased by 8% year-over-year, including 4% organic growth. Segment - PST Adjusted EBITDA: Increased 15% year-over-year to $135 million, with margins expanding 200 basis points to 31.5%. Full Year Revenue Guidance: Raised to 4.5% to 6.5% growth. Full Year Adjusted EBITDA Guidance: Maintained at $2.13 billion to $2.19 billion. Full Year Adjusted EPS Guidance: Maintained at $3.45 to $3.55, expected to finish near the high end. Warning! GuruFocus has detected 9 Warning Signs with TROW. Is IR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ingersoll Rand Inc (NYSE:IR) reported strong second-quarter results with organic order growth of 2%, organic revenue growth of 4%, and adjusted EPS growth of 7%, demonstrating solid execution and demand momentum. The company raised its full-year revenue guidance by 200 basis points at the midpoint, driven by healthy demand and strong first-half performance, particularly in short to medium cycle businesses. Ingersoll Rand Inc (NYSE:IR) announced two strategic acquisitions (Lone Star Blowers and Filtri) that strengthen core technologies and aftermarket capabilities, with a robust M&A pipeline including 11 additional transactions under LOI. The Precision Technologies & Services (PST) segment delivered excellent results with 7% organic order growth, 4% organic revenue growth, and 200 basis points of adjusted EBITDA margin expansion to 31.5%. Ingersoll Rand Inc (NYSE:IR) reported a strong start to July with double-digit organic order growth, driven by the realization of delayed long-cycle projects and continued short-cycle strength, boosting confidence in the second half. The company received a one-notch credit rating upgrade from Moody's to Baa1, reflecting a strong balance sheet with leverage at 1.7x and significant liquidity of $3.8 billion. Free cash flow increased 28% year-over-year to $269 million, and the company secured an initial $187.5 million insurance recovery related to the ILC Dover transaction, providing additional capital allocation firepower. Adjusted EBITDA margin declined 160 basis points year-over-year to 25.4%, impacted by inflationary pressures in China, continued growth investments, and higher corporate costs. Organic orders in the EMEA region were down low double digits, primarily due to timing delays in long-cycle blower and vacuum projects in Europe and continued project delays in the Middle East. China remains a challenging market from a pricing perspective, where inflationary pressures are difficult to offset with price, impacting margin performance in the ITS segment. The company experienced a year-to-date true-up of management incentive costs in Q2, which increased corporate costs and pressured margins, though not expected to recur at the same level in the back half. Book-to-bill ratio was 1.0x, slightly lower than typical for Q2, reflecting delayed timing of several large project orders, which could impact near-term revenue visibility. Adjusted EBITDA guidance was maintained at $2.13 billion to $2.19 billion, implying a significant margin ramp in the second half that relies on price realization, productivity, and non-recurrence of one-time costs. The company walked away from a potential $1 billion acquisition due to valuation, indicating disciplined capital allocation but also highlighting challenges in finding attractively priced larger deals. Q: Can you provide more color on the momentum you're seeing in the short and medium cycle business, including regional dynamics and end-market trends?A: Vicente Reynal (Chairman and CEO) noted that the Americas, representing roughly 50% of revenue, is the strongest region with high single-digit order growth and healthy compressor activity. EMEA orders were down low double digits organically due to timing of long-cycle projects and Middle East delays, but core compressor orders were up low single digits. Asia Pacific, with China around 10% of total revenue, saw organic revenue up low double digits, though pricing remains challenged. End-market strength was broad-based, including power gen, electricity infrastructure, air separation for semiconductors, and biopharma, which continues to see low double-digit growth. Q: Are the longer-cycle project pushouts starting to roll through, and how do you see that activity playing out?A: Vicente Reynal (Chairman and CEO) indicated growing encouragement as customers become more enthusiastic and projects move in a better direction. He highlighted energy efficiency as a key driver, noting that as power prices rise, the payback on replacing older, less efficient compressors shortens. He also mentioned that engineering capacity and EPC constraints that previously caused delays are freeing up. Q: Can you clarify the July order commentary? Is the double-digit growth organic, and are these long-cycle orders building backlog for 2027?A: Vicente Reynal (Chairman and CEO) confirmed that July organic order growth was low double-digit to mid-teens. Vikram Kini (CFO) added that long-cycle projects, typically with 6- to 18-month durations, are largely building backlog for 2027, though some revenue recognition could occur in the back half of the year. The strong July performance reflects both long-cycle projects reaching the finish line and continued solid short-cycle momentum. Q: What is driving the stronger-than-typical back-half margin ramp, and how much is price versus other factors?A: Vikram Kini (CFO) broke down the sequential margin expansion into three key drivers: better price realization from actions taken in the first half, normalization of corporate costs (excluding the Q2 incentive compensation true-up), and productivity benefits from direct material and I2V actions that typically materialize more in the back half. He noted that direct material productivity generally follows cost of goods sold, with the strongest finish typically in Q4. Q: Can you elaborate on the trends in Life Sciences and Precision Technologies, and is the growth durable?A: Vicente Reynal (Chairman and CEO) cited strong momentum in Life Sciences, driven largely by biopharma and continued exposure to GLP-1. He noted investments to play in the larger biopharma side, with potential benefits from new facility investments moving into 2027. Vikram Kini (CFO) added that Precision Technologies has a comparable look and feel to ITS, with solid momentum in shorter-cycle core pump businesses and longer-cycle project activity being worked through similarly. Q: Would ITS margins have expanded this quarter absent the China headwind, and what is the expectation for full-year margins?A: Vikram Kini (CFO) stated that China was the single biggest driver of margin pressure, and without it, margins would have been much more comparable. For the full year, he expects Q4 exit rates to be in line with or slightly above prior year, though full-year margins may trend slightly below 2025 levels. He reiterated confidence in the ITS business approaching the 30% EBITDA margin profile discussed at Investor Day, viewing China pricing issues as transient. Q: How would you characterize the M&A environment, and are valuations attractive for larger deals?A: Vicente Reynal (Chairman and CEO) described the M&A environment as very healthy, with a funnel of over 200 companies and 11 transactions under LOI. He noted the company walked away from a potential $1 billion deal due to valuation, demonstrating continued discipline. The announced acquisitions of Lone Star Blowers and Filtri are consistent with the strategy of acquiring market-leading technologies that strengthen the core and expand aftermarket capabilities. Q: What are you seeing in the pricing environment outside of China, and are there any shifts in market share dynamics?A: Vicente Reynal (Chairman and CEO) stated that pricing outside of China remains stable at the typical 1% to 2% range, with no dramatic changes. He emphasized that the strong order momentum in the Americas is more volume-related than price-driven. The China pricing challenge is categorized as transitory, driven by capacity investments made in prior years, with improving momentum in the region. Q: How do you see AI and infrastructure investment pertaining to Ingersoll Rand, and where would this materialize?A: Vicente Reynal (Chairman and CEO) highlighted that compressors are needed in power generation and electricity infrastructure, and the company's pumps and blowers play a role in closed-loop water systems for data centers. He noted the company is the market leader in authorizing natural gas for power generation, which falls under the PST segment. These investments are broad-based across multiple end markets, though implementation takes time. Q: Can you provide your view on PST margins for the second half of the year?A: Vikram Kini (CFO) expects continued sequential momentum in PST margins, with Q2 coming in around 31.5% EBITDA margin. He anticipates the number to be slightly better in the back half, in the 32% range or slightly better, with the mid-30s EBITDA margin target definitely in sight. This reflects strong execution across the portfolio and continued benefits from IRX. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ingersoll Rand Inc.? Here are five stocks we like better. Ingersoll Rand reported solid Q2 growth: Organic revenue rose 4%, organic orders increased 2%, and adjusted EPS grew 7% to $0.86. Revenue reached approximately $2 billion, while adjusted EBITDA rose 2% to $520 million despite margin pressure from China, investments and higher corporate costs. Demand accelerated in July, with organic orders up low-double-digit to mid-teens as delayed long-cycle projects began converting to orders. Management raised full-year revenue growth guidance to 4.5%–6.5% and expects results near the high end of its adjusted EPS outlook. Growth investments and acquisitions remain active: The company closed its Lone Star Blower acquisition and agreed to acquire Fai Filtri, while maintaining strong liquidity of approximately $3.8 billion, 1.7x leverage and 95% expected free-cash-flow conversion. A Weaker Dollar Could Put These 3 Industrial Stocks Back in Focus Ingersoll Rand (NYSE:IR) reported second-quarter results marked by organic revenue growth, improved demand trends and a higher full-year revenue outlook, while management said delayed long-cycle projects began converting to orders in July. Chairman and Chief Executive Officer Vicente Reynal said the company recorded 2% organic order growth, 4% organic revenue growth and 7% growth in adjusted earnings per share during the quarter. Growth was broad-based, with each main geographic region delivering positive organic revenue growth, he said. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 REITs to Watch as AI Data Center Spending Surpasses Office Construction Second-quarter orders totaled just over $2 billion, up 5% from a year earlier, including 2% organic growth. Revenue increased 9% to approximately $2 billion, including 4% organic growth. Adjusted EPS rose to $0.86 from the prior-year period. Adjusted EBITDA increased 2% to $520 million, while adjusted EBITDA margin declined 160 basis points year over year to 25.4%. Chief Financial Officer Vik Kini attributed the margin decline primarily to inflation that has been difficult to offset through pricing in China, growth-related investments in technology and commercial applications, and higher corporate costs. → Microsoft Just Flipped the AI Spending Narrative Overnight 4 High-Yield Real Estate Stocks to Buy as Investors Get Defensive Corporate costs included a year-to-date true-up of management incentive compensation. Kini said the company does not expect that expense to recur at the same level during the second half, while first-half pricing actions and productivity projects are expected to support sequential margin expansion. The Industrial Technologies and Services, or ITS, segment posted nearly 9% revenue growth, including 4% organic growth, with positive organic revenue growth in all regions. Organic orders were approximately flat, producing a book-to-bill ratio of 1.0. → Carrier Earnings Could Send the Stock to a New All-Time High North American compressor activity remained healthy, with organic compressor orders up high single digits in the region, Reynal said. Globally, compressor orders rose by low single digits. Results were affected by the timing of long-cycle blower and vacuum projects in Europe and delayed project activity in the Middle East, though management emphasized those projects had been delayed rather than canceled. ITS generated adjusted EBITDA of $435 million and a 26.8% margin. Reynal said margin pressure was largely confined to China, in addition to investments in new technologies and commercial initiatives. He described pricing pressure in China as transitory, citing industry overcapacity, while noting that the company continues to invest in localized technologies and applications there. The Precision and Science Technologies, or PST, segment reported 11% order growth and 7% organic order growth. Life sciences orders grew at a low-double-digit organic rate, while precision technologies orders increased at a mid-single-digit rate organically. Revenue rose 8%, including 4% organic growth. PST adjusted EBITDA climbed 15% to $135 million, and its adjusted EBITDA margin expanded 200 basis points to 31.5%. Management said it expects PST margins to improve sequentially in the second half, toward the 32% range or slightly better. Reynal cited biopharma, including the company’s exposure to GLP-1-related activity, as a driver of life sciences momentum. Management said order activity accelerated in July. Reynal said the company saw low-double-digit to mid-teens organic order growth through the first four weeks of the month, supported by realization of previously delayed long-cycle orders across its main regions as well as continued short- and medium-cycle strength. Kini said many of the long-cycle projects have typical durations of six to 18 months and will primarily build backlog for 2027, though some could contribute revenue in the second half of 2026. Management said the long-cycle order recovery was broad-based across end markets including food and beverage, pharmaceuticals, power generation and air separation for semiconductors. For the full year, Ingersoll Rand raised its revenue growth outlook to 4.5% to 6.5%, an increase of 200 basis points at the midpoint. The guidance assumes 1% to 3% organic growth, roughly 2.5% growth from acquisitions and approximately 1% growth from foreign exchange. Adjusted EBITDA guidance was maintained at $2.13 billion to $2.19 billion. Adjusted EPS guidance remained $3.45 to $3.57, with management expecting results near the high end of the range. Free-cash-flow conversion is expected to be approximately 95%. The company said its adjusted EBITDA and EPS outlook excludes any benefit from potential IEEPA tariff refunds expected in the second half. Management said it would update guidance if those amounts are materially received. Ingersoll Rand announced the closing of its acquisition of Lone Star Blower, a U.S.-based blower manufacturer expected to add approximately $50 million in annual revenue. The company also signed an agreement to acquire Italy-based industrial filter manufacturer Fai Filtri, which is expected to close in the fourth quarter and add about $30 million in annual revenue. Reynal said both transactions expand the company’s blower or filtration technologies and strengthen its aftermarket presence. The company has 11 additional transactions under letters of intent and a funnel of more than 200 companies, according to management. Reynal said the pending LOI transactions are bolt-on deals generally resembling the size and valuation profile of the acquisitions announced during the call. Second-quarter free cash flow was $269 million, up about 28% year over year. The company ended the quarter with approximately $3.8 billion of available liquidity, including $1.2 billion in cash and $2.6 billion of revolving-credit-facility capacity. Leverage was 1.7 times. During the quarter, Ingersoll Rand spent $110 million on acquisitions and returned approximately $248 million to shareholders through share repurchases and dividends. Moody’s upgraded the company by one notch to Baa1 during the quarter. Kini also said the company reached an agreement for an initial $187.5 million insurance recovery related to its ILC Dover transaction. It collected $25 million in the second quarter and expects to receive the remaining $162.5 million during 2026. The recoveries are excluded from adjusted earnings and are not included in the company’s free-cash-flow guidance, he said. Ingersoll Rand is a diversified industrial company that designs, manufactures and services a wide range of equipment and technologies for commercial, industrial and OEM customers. Its product portfolio includes air compressors and compressed air systems, pneumatic and cordless power tools, material handling and lifting equipment, fluid transfer and pumping solutions, and associated aftermarket parts and service offerings. The company's products support applications across manufacturing, construction, transportation, oil and gas, mining and general industrial markets. Ingersoll Rand sells through a combination of direct sales, distributor networks and service channels, delivering both capital equipment and recurring aftermarket revenue from parts, maintenance and service contracts. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ingersoll Rand Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Ingersoll Rand Inc. IR reported second-quarter 2026 adjusted earnings of 86 cents per share, beating the Zacks Consensus Estimate of 83 cents by 3.6%. The bottom line increased 7.5% from the year-ago quarter.Revenues of $2.05 billion surpassed the consensus estimate of $1.96 billion by 4.5% and rose 8.5% year over year. Organic revenues increased 4.1%, while acquisitions and favorable foreign currency movements contributed 2.8% and 1.6%, respectively. In the second quarter of 2026, its total orders increased 5.3% to $2.04 billion. Organic orders increased 1.6% year over year. Acquisitions added 2.4% to order growth, while foreign currency translation contributed 1.3%. Management noted healthy underlying demand and strengthening order momentum. Ingersoll Rand also reported double-digit order growth through the first four weeks of July, supported by the realization of longer-cycle orders that had been delayed during the first half and continued strength in short-to-medium-cycle demand. Industrial Technologies and Services generated revenues of $1.62 billion, up 8.7% year over year and accounting for about 79% of total revenues. Organic revenues increased 4.2%, with positive growth across all regions. Acquisitions and foreign currency added 2.8% and 1.7%, respectively. The segment recorded a book-to-bill ratio of 1.0, indicating that quarterly orders were broadly aligned with revenues.The segment's adjusted EBITDA increased 1.7% to $434.5 million, while its margin contracted 180 basis points to 26.8%. Organic orders were approximately flat as strong compressor activity, particularly in North America, was offset by the timing of longer-cycle blower and vacuum orders in Europe and continued pressure in the Middle East.Precision and Science Technologies recorded revenues of $426.7 million, up 7.7%. Organic revenues increased 3.9%, while acquisitions and currency contributed 2.9% and 0.9%, respectively. Organic orders rose 7.4%, led by low-double-digit growth in Life Sciences Technologies and mid-single-digit growth in Precision Technologies.The segment's adjusted EBITDA increased 15.2% to $134.5 million. Its adjusted EBITDA margin expanded 200 basis points to 31.5%, reflecting strong operational execution supported by the Ingersoll Rand Execution Excellence system. Ingersoll Rand Inc. price-consensus-eps-surprise-chart | Ingersoll Rand Inc. Quote The company’s total adjusted EBITDA increased 2.1% year over year to $519.9 million. However, the adjusted EBITDA margin contracted 160 basis points to 25.4%. The decline reflected challenges in offsetting inflation with pricing, primarily in China, continued commercial investments to support growth and higher corporate costs.In the quarter, IR’s cost of sales increased 11.6% to $1.19 billion, while selling and administrative expenses rose 8% to $400.8 million. Adjusted net income increased to $339.3 million from $325.2 million, though the adjusted net income margin declined to 16.6% from 17.2%. Cash provided by operating activities totaled $295.9 million in the second quarter, up from $245.7 million in the year-ago quarter. Capital expenditures declined to $27 million from $35.3 million, lifting free cash flow to $268.9 million from $210.4 million. The free cash flow margin improved 200 basis points to 13.1%.IR ended the quarter with $3.8 billion in available liquidity, including $1.17 billion in cash and $2.6 billion of undrawn revolving credit capacity. The company paid out dividends of $8 million and repurchased shares worth $240 million. It also deployed $110 million toward acquisitions.Long-term debt (less of current maturities) was $4.07 billion, lower than $4.78 billion recorded at the end of 2025. Net debt to adjusted EBITDA remained at 1.7 times. Ingersoll Rand raised its 2026 revenue growth outlook to 4.5-6.5%. The forecast assumes organic growth of 1-3%, an approximately 1% currency benefit and a roughly 2.5% contribution from acquisitions.The company maintained its adjusted EBITDA guidance of $2.13-$2.19 billion and adjusted earnings forecast of $3.45-$3.57 per share. Management projects adjusted earnings to be near the high end of this range. Free cash flow conversion is projected at approximately 95% of adjusted net income. The company completed the acquisition of a U.S.-based blower manufacturer with approximately $50 million in annual revenues. The transaction expands Ingersoll Rand's blower technologies and aftermarket capabilities.IR also entered into a deal to acquire Fai Filtri, an Italian industrial filtration company with about $30 million in annual revenues, with closing expected in the fourth quarter. The acquisition pipeline includes more than 200 companies, with 11 additional transactions at the letter-of-intent phase. The company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are discussed below:Applied Industrial Technologies AIT carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%.  In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.2%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2027 earnings has increased 0.8%.Generac Holdings GNRC currently carries a Zacks Rank of 2. Generac Holdings’ earnings topped the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 7.4%. In the past 60 days, the Zacks Consensus Estimate for GNRC’s 2026 earnings has increased 0.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report RBC Bearings Incorporated (RBC) : Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ingersoll Rand (IR) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.8 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.61%. A quarter ago, it was expected that this maker of flow control and compression equipment would post earnings of $0.74 per share when it actually produced earnings of $0.77, delivering a surprise of +4.05%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Ingersoll, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $2.05 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.52%. This compares to year-ago revenues of $1.89 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ingersoll shares have added about 6.8% since the beginning of the year versus the S&P 500's gain of 6.9%. While Ingersoll has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ingersoll was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.90 on $2.01 billion in revenues for the coming quarter and $3.49 on $7.94 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Broadwind Energy, Inc. (BWEN), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +75%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Broadwind Energy, Inc.'s revenues are expected to be $34 million, down 13.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ingersoll Rand Inc. (IR) : Free Stock Analysis Report Broadwind Energy, Inc. (BWEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research