01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
Ingersoll Rand Inc. reported second-quarter 2026 revenues of $2,048.8 milliona, up from $1,887.9 million in the prior-year quarter, with the filing attributing the increase primarily to higher organic revenues of $77.5 million, acquisitions of $53.4 million, and favorable foreign currency of $30.0 million.
Operating income rose to $380.3 millionb from $76.4 million, and net income attributable to Ingersoll Rand was $256.8 million, compared with a net loss of $115.3 million a year earlier. The prior-year period included goodwill and intangible impairments and a $120.9 million equity method investment loss that did not recur, so the year-over-year comparison is distorted. Adjusted EBITDA was $519.9 million, and the company reported Free Cash Flow of $268.9 million for the quarter.
For the six months ended June 30, 2026, revenues were $3,896.0 millionc and net income attributable to Ingersoll Rand was $448.9 million. Cash from operations was $495.6 million and Free Cash Flow was $432.3 million, both roughly flat with the prior year. The company repurchased $338.8 million of treasury stock during the six-month period, and cash and cash equivalents ended the period at $1,173.5 million.
Total debt was $4,768.5 milliond, with $699.8 million classified as current because the 5.197% Senior Notes due June 2027 move into the current portion. Subsequent to quarter-end, the company settled with insurers for an additional $162.5 million related to the ILC Dover transaction, which will be recorded in the third quarter.
The company also recorded a $25.0 million recovery from the same matter in the second quarter, and $10.3 million of IEEPA tariff refunds in cost of sales. Management notes that tariff developments have not had a material impact to date but could be material in the future.
02—Key points
Key Highlights
- Revenue of $2,048.8 million in Q2 2026, up from $1,887.9 million, with organic growth of $77.5 million plus acquisitions of $53.4 million and favorable FX of $30.0 million.
- Operating income of $380.3 million versus $76.4 million a year earlier, which included goodwill and intangible impairments in 2025.
- Net income attributable to Ingersoll Rand of $256.8 million in Q2 2026 versus a net loss of $115.3 million in Q2 2025, driven largely by the absence of prior-year impairments and an equity method investment loss.
- Adjusted EBITDA of $519.9 million in Q2 2026 (25.4% of revenues) versus $509.4 million (27.0%), with management citing input cost inflation and product mix for the margin decline.
- Free Cash Flow of $432.3 million for the six months, essentially flat versus $433.1 million, while $338.8 million was used for share repurchases.
- A $162.5 million additional ILC Dover insurance settlement agreed in early Q3 2026, to be recorded in the third quarter, and a $25.0 million recovery booked in Q2 2026.
- Total debt of $4,768.5 million, with $699.8 million reclassified to current due to the 2027 Notes; $2,600.0 million of revolver and commercial paper capacity remained unused.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Ingersoll Rand kept $0.13.
- Revenue$2.05B100.0%
- Cost of revenue−$1.19B57.9%
- Gross profit$862.6M42.1%
- Operating costs−$482.3M23.5%
- Operating income$380.3M18.6%
- Interest, other & tax−$123.5M6.0%
- Net income$256.8M12.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.05B$1.89B | +8.5% |
| Cost of Revenue | $1.19B$1.06B | +11.6% |
| Gross Profit | $862.60M$824.90M | +4.6% |
| SG&A Expenses | $400.80M$371.20M | +8.0% |
| Operating Income | $380.30M$76.40M | +397.8% |
| Net Income | $256.80M-$115.30M | +322.7% |
| EPS (Basic) | $0.66$-0.29 | +327.6% |
| EPS (Diluted) | $0.66$-0.29 | +327.6% |
| Shares Outstanding (Basic) | 389.90M400.50M | −2.6% |
| Shares Outstanding (Diluted) | 391.90M400.50M | −2.1% |
05—Questions
Frequently Asked Questions
Why did operating income rise so sharply compared with the prior-year quarter?
The prior-year second quarter included goodwill impairment of $229.7 million and other intangible asset impairment of $36.1 million, which did not recur in 2026. Gross profit also increased to $862.6 million from $824.9 million, and other operating expense was a net income of $21.1 million, helped by a $25.0 million recovery of acquisition-related losses.
What is the status of the ILC Dover recoveries?
The company collected $25.0 million in the second quarter of 2026 under its representations and warranties insurance policy. In early Q3 2026 it settled with insurers for an additional $162.5 million, which will be recorded in the third quarter when the binding agreement was executed. The company applies a gain contingency model, so recoveries are recognized only when realized or realizable.
How is the company managing its debt maturities?
The 5.197% Senior Notes due June 2027 ($700.0 million) were reclassified to current liabilities, lifting short-term borrowings and current maturities to $699.8 million. Management said it expects to maintain or have access to sufficient liquidity to retire or refinance debt at maturity through operating cash flows, its Commercial Paper Program and its $2,600.0 million Revolving Credit Facility, which had no outstanding borrowings at June 30, 2026.
What are the main risks to the outlook mentioned in the filing?
Management highlighted continued global uncertainty, including inflation, elevated interest rates, trade policy changes and new tariffs, and geopolitical instability tied to conflicts in Ukraine and the Middle East. While tariff developments have not had a material impact to date, management said the impacts could be material. The filing also states that more than half of sales and operations are outside the U.S. and that about 56% of six-month revenues were denominated in non-U.S. dollar currencies.
How much capital did the company return to shareholders in the first half of 2026?
The company purchased $338.8 million of treasury stock, including excise tax payments, in the six months ended June 30, 2026, and paid $15.7 million in cash dividends on common shares. In the second quarter, it repurchased 3,374,528 shares at an average price of $71.13, and $662.6 million remained available under its repurchase program at June 30, 2026.
06—Continue