01—Abstract
Summary
Summary of the 10-Q filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Ingersoll Rand Inc. reported third-quarter 2026 revenues of $2,064.9 milliona, up from $1,955.0 million a year earlier, and net income attributable to Ingersoll Rand Inc. of $669.9 million, compared with $244.1 million in the prior-year quarter.
The results were lifted by a $380.1 millionb recovery of acquisition-related losses, net, recorded in other operating expense (income), net, which relates to representations and warranties settlements tied to the ILC Dover transaction. Diluted EPS was $1.73 versus $0.61. Operating income rose to $782.5 million from $375.5 million, and the effective tax rate fell to 7.4% from 23.0%, partly reflecting a valuation allowance release and a nontaxable settlement.
For the nine months, revenues were $5,960.9 millionc, up from $5,559.7 million, and net income attributable to the company was $1,118.8 million. Adjusted EBITDA was $584.4 million for the quarter, up from $544.6 million, and $1,573.4 million for the nine months, up from $1,513.7 million. Net cash provided by operating activities for the nine months was $1,143.4 million, and free cash flow was $1,055.6 million.
Both figures include $187.5 milliond of representations and warranties settlement collections and $42.6 million of IEEPA tariff refunds. Management stated that these developments have not had a material impact on results to date. The balance sheet shows cash of $1,342.7 million and total debt of $4,736.5 million, with $700.2 million classified as current because the 5.197% notes due June 2027 were reclassified.
The company had $2,600.0 million of unused revolver availability and reported compliance with its covenants. Treasury stock purchases were $689.1 million in the nine months. In a subsequent event on October 29, 2026, the Board authorized a $2.0 billion increase to the share repurchase program, on top of $312.6 million remaining under the existing authorization.
02—Key points
Key Highlights
- Third-quarter revenues rose to $2,064.9 million from $1,955.0 million, and Segment Orders for Industrial Technologies and Services increased 24.7% to $1,897.5 million, driven in part by an approximately $195 million ETO data center infrastructure order.
- Operating income of $782.5 million in the quarter was boosted by a $380.1 million recovery of acquisition-related losses tied to the ILC Dover transaction; diluted EPS was $1.73 versus $0.61.
- Effective tax rate fell to 7.4% in the quarter from 23.0%, primarily due to a valuation allowance release on U.S. foreign tax credit carryforwards and a nontaxable settlement.
- Adjusted EBITDA increased to $584.4 million in the quarter from $544.6 million, with Adjusted EBITDA margin at 28.3% versus 27.9%, including $32.3 million of IEEPA tariff refunds.
- Free cash flow for the nine months was $1,055.6 million, up from $758.6 million, supported by $187.5 million of settlement collections and $42.6 million of IEEPA tariff refunds.
- Board authorized a $2.0 billion increase to the share repurchase program on October 29, 2026, in addition to $312.6 million remaining under the existing authorization.
- Short-term debt rose to $700.2 million because the 2027 Notes were reclassified to current; the company held $1,342.7 million in cash and $2,600.0 million of unused revolving credit availability.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Ingersoll Rand kept $0.32.
- Revenue$2.06B100.0%
- Cost of revenue−$1.14B55.2%
- Gross profit$924.3M44.8%
- Operating costs−$141.8M6.9%
- Operating income$782.5M37.9%
- Interest, other & tax−$112.6M5.5%
- Net income$669.9M32.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $2.06B$1.96B | +5.6% |
| Cost of Revenue | $1.14B$1.10B | +3.7% |
| Gross Profit | $924.30M$855.20M | +8.1% |
| SG&A Expenses | $389.70M$361.00M | +8.0% |
| Operating Income | $782.50M$375.50M | +108.4% |
| Net Income | $669.90M$244.10M | +174.4% |
| EPS (Basic) | $1.74$0.62 | +180.6% |
| EPS (Diluted) | $1.73$0.61 | +183.6% |
| Shares Outstanding (Basic) | 385.90M396.00M | −2.6% |
| Shares Outstanding (Diluted) | 388.10M399.00M | −2.7% |
05—Questions
Frequently Asked Questions
What drove the large increase in third-quarter operating income?
Other operating expense (income), net was a net income of $355.3 million in the quarter, compared with an expense of $23.8 million a year earlier. The main driver was a $380.1 million recovery of acquisition-related losses, net, which represents gains from recoveries of representations and warranties breaches associated with the ILC Dover transaction, net of employee compensation.
Are the ILC Dover settlement gains and IEEPA tariff refunds recurring?
The filing describes the ILC Dover settlements as gross recoveries of approximately $425.1 million for the nine months, with $400.1 million recognized in the third quarter, and says remaining collections are expected in the fourth quarter of 2026. It states that additional IEEPA tariff refunds are expected but are relatively nominal, with uncertainty about their amount and timing.
How is the company's debt position and liquidity?
Total debt was $4,736.5 million at September 30, 2026, versus $4,784.7 million at December 31, 2025. Cash and cash equivalents were $1,342.7 million, and the company had $2,600.0 million of unused availability under its Revolving Credit Facility and Commercial Paper Program. The 5.197% Senior Notes due June 2027 were reclassified to current, and the company stated it expects to maintain or have access to sufficient liquidity to retire or refinance debt at maturity.
What is the company doing with shares and capital returns?
During the nine months, the company spent $689.1 million on treasury stock purchases, including excise tax, and paid $23.3 million in dividends. In the third quarter, it repurchased 4,055,758 shares in total, including shares surrendered for tax withholding. On October 29, 2026, the Board authorized a $2.0 billion increase to the repurchase program, incremental to $312.6 million remaining under the existing authorization.
What did management highlight about the operating environment?
Management said 2026 has been marked by continued uncertainty in global markets, including inflation, elevated interest rates, trade policy changes, and geopolitical instability in Ukraine and the Middle East. It noted that tariff developments have not had a material impact on financial condition or results to date, but that their ultimate impacts could be material given their evolving nature.
06—Continue