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Call sheet · Q1'26

Ingersoll Rand (IR)

Q1'26 earnings call · held April 29, 2026 · compared with the Q4'25 call · management-credibility review
9/12
Disclosure score
1 high, 3 medium, 3 low flags
Financial quality
Bottom line
The sleeper story everyone is missing: PST is quietly becoming the growth engine with 4% organic growth and Life Science hitting double digits, while all focus remains on ITS margin recovery. The obvious headline is ITS margins down for the 5th straight quarter, but the real binding constraint is decision-making elongation in long-cycle projects - customers aren't canceling, they're just taking longer to commit. Management's most revealing quote: 'We don't need the Middle East conflict to end' to recover those orders - suggesting the delay excuse might be overplayed. My view changes if Q2 fails to show the promised sequential margin improvement or if PST growth momentum stalls, as that would signal the mix shift story is wrong and underlying demand is weaker than management admits.

The 30-second version

  • The sleeper story: PST business quietly becoming the growth engine while everyone focuses on ITS margins
  • ITS margins down for 5th straight quarter, but management promises back-half recovery
  • Middle East orders delay creates convenient excuse, but underlying demand story is mixed

What changed this quarter

MetricQ4'25Q1'26Change
Total Revenue$2.09B (+10% YoY)$1.85B (+8% YoY)Normal Q4-Q1 seasonality but growth decelerated 200 bps
Organic Revenue+3% YoY-2% YoY500 bps deceleration, first negative since recovery began
Adjusted EPS$0.96 (+14% YoY)$0.77 (+7% YoY)Growth rate halved, missing street momentum
Adjusted EBITDA Margin27.7%25.4%230 bps compression, driven by ITS deterioration
ITS Revenue+11% YoY+7% YoY400 bps deceleration in growth
ITS EBITDA Margin28.9%26.7%220 bps compression, 5th consecutive quarter of decline
PST Revenue+8% YoY+7% YoY (organic +4%)Stable growth with strong organic component
PST EBITDA Margin30.4%29.2%120 bps decline but still outperforming ITS
Free Cash Flow$462M$163MNormal Q1 working capital seasonality but concerning magnitude
Book-to-Bill0.93x1.07xStrong improvement suggests backlog building

Accountability tracked

8 new promises made4 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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