IR · 10-Q · 2026Q3 · Full report

Margin Drivers

Ingersoll Rand Inc. · 2026-10-30 · Importance 41 · Surprise 32 · No source text

For the segment reported first, nine-month Segment Adjusted EBITDA increased 2.5% to $1,295.7 million, while its margin fell 120 basis points to 27.6%. Lower organic gross profit of $13.4 million, inclusive of $33.7 million in IEEPA tariff refunds, and $1.3 million of higher selling and administrative costs partly offset acquisition and foreign-currency contributions. In the three-month period, Segment Adjusted EBITDA rose 6.3% to $475.7 million and margin expanded 40 basis points to 29.4%, primarily on $28.4 million of higher organic gross profit, including $24.9 million of tariff refunds. Precision and Science Technologies' nine-month Segment Adjusted EBITDA rose 16.6% to $408.9 million, with margin increasing 230 basis points to 32.1%, driven by $38.9 million of higher organic gross profit, including $8.9 million of tariff refunds, and lower selling and administrative costs of $4.5 million.

Key facts

• For the nine months ended September 30, 2026, Precision and Science Technologies Segment Adjusted EBITDA was $408.9 million, up $58.3 million or 16.6%, and margin increased 230 basis points to 32.1% from 29.8%. source
• In the three months ended September 30, 2026, Ingersoll Rand gross profit was $924.3 million, up 8.1% from $855.2 million, and gross margin was 44.8% versus 43.7%; higher organic gross profit, acquisitions, and favorable foreign currencies drove the increase. source
• In the nine months ended September 30, 2026, Ingersoll Rand gross profit was $2,579.3 million, up 5.5% from $2,445.6 million, and gross margin was 43.3% versus 44.0%; higher organic gross profit, acquisitions, and favorable foreign currencies drove the increase. source
• In the three months ended September 30, 2026, Ingersoll Rand Adjusted EBITDA increased $39.8 million to $584.4 million from $544.6 million, and Adjusted EBITDA margin increased 40 basis points to 28.3% from 27.9%. source
• In the nine months ended September 30, 2026, Ingersoll Rand Adjusted EBITDA increased $59.7 million to $1,573.4 million from $1,513.7 million, while Adjusted EBITDA margin decreased 80 basis points to 26.4% from 27.2%. source
• For the three months ended September 30, 2026, Segment Adjusted EBITDA was $475.7 million, up $28.2 million or 6.3%, and margin increased 40 basis points to 29.4% from 29.0%. source
• For the nine months ended September 30, 2026, Segment Adjusted EBITDA was $1,295.7 million, up $31.9 million or 2.5%, while margin decreased 120 basis points to 27.6% from 28.8%. source
• For the three months ended September 30, 2026, Precision and Science Technologies Segment Adjusted EBITDA was $152.5 million, up $24.9 million or 19.5%, and margin increased 350 basis points to 34.3% from 30.8%. source

Impact estimates