Ingersoll Rand Q3 orders rise 21% as ILC Dover recoveries boost profit

Ingersoll Rand Inc. (IR) said on Oct. 29 that third-quarter orders rose 21% to $2,345.1 million and revenue rose 6% to $2,064.9 million, according to a press release furnished with its 8-K.

Organic orders grew 18%, and organic revenue grew 4%, the company said. Reported net income attributable to Ingersoll Rand was $669.9 million, or $1.73 per diluted share.

Here's how the company did:

• Revenue: $2,064.9 million vs. $1,955.0 million a year earlier
• Reported diluted EPS: $1.73 vs. $0.61 a year earlier
• Adjusted diluted EPS: $1.07 vs. $0.86 a year earlier

Chairman and CEO Vicente Reynal said: “We delivered strong organic orders growth and revenue performance in the third quarter, reflecting an improved demand environment and continued execution by our teams.”

Segment results

Industrial Technologies and Services, the company's larger segment, reported orders of $1,898 million, up 25%, and revenue of $1,620 million, up 5%. Its segment adjusted EBITDA was $476 million, up 6%.

The segment's orders included a bookings pickup in long-cycle projects, among them a roughly $195 million order for an engineered-to-order solution for large-scale, mission-critical infrastructure.

Precision and Science Technologies reported orders of $448 million, up 7%, and revenue of $445 million, up 7%. Its segment adjusted EBITDA was $153 million, up 20%.

Life Sciences orders and revenue were each up low double digits, the company said.

ILC Dover recoveries

The company reached settlement agreements with insurance carriers and other third parties tied to the ILC Dover transaction for gross recoveries of about $425.1 million, including the $187.5 million recovery announced in July 2026.

It collected $25.0 million in the second quarter and $162.5 million in the third quarter, and expects to collect the rest in the fourth quarter. Its adjusted figures exclude a $380.1 million recovery of acquisition related losses, net.

2026 guidance

The company is updating its full-year 2026 guidance. It expects free cash flow conversion of 100% or more of adjusted net income, including the ILC Dover recoveries. Excluding those recoveries, it said conversion remains at about 95%.

Capital expenditures are expected at about 2% of sales.

Cash and capital returns

The Board authorized a $2 billion increase to the share repurchase program. That is incremental to the $313 million remaining under the existing authorization, and the authorizations have no expiration date.

In the third quarter the company deployed $90 million to acquisitions, including the previously announced Lone Star Blower, Inc. deal. It returned about $358 million to shareholders, through $350 million in share repurchases and $8 million in dividends.

It expects to close its acquisition of a U.S.-based pump manufacturer on Oct. 30, 2026.

Balance sheet and costs

Operating cash flow was $648 million, and free cash flow was $623 million, compared with $326 million a year earlier. Liquidity was $3.9 billion as of Sept. 30, including $1.3 billion of cash on hand.

Net debt to adjusted EBITDA was 1.6 times, down 0.2 times from a year earlier. Restructuring and related business transformation costs were $6.7 million, down from $19.9 million.

The company will host an earnings conference call on Oct. 30, 2026, at 8:00 a.m. Eastern Time.