Ingersoll Rand Inc. Common Stock Jefferies Global Industrials Conference 2026

Yeah, sure. First of all, thanks for having us, and great to be here, as always. I think simply stated here, obviously, nothing we're providing necessarily incremental around initially August or September or anything like that, further than what we spoke about on our earnings call. I'll reiterate some of the statements we made in Q2 at our earnings call because we did provide a little bit more color, particularly around July. I think the piece that we'd kind of lean on here is that in Q2, encouraged to see some of that short to medium cycle side of the business starting to kind of come back a little bit more.

Within ITS, you saw about mid-single digit orders increase on the short to medium cycle side, which is kind of the core bread-and-butter side of the equation with, not surprisingly, North America probably being the strongest contributor there on the orders front. In Q2, we did mention that some of the timing of some of the longer cycle was kind of a headwind that kind of sat on top of that, which is what brought ITS orders more flattish from an organic perspective. We provided the color in our earnings call with the benefit of sitting towards the end of July. We had four weeks of July behind us. As you know, it's not our norm to initially give intra-quarter orders updates and things like that.

We thought it was important to provide a little bit of color that we had seen in the first number of weeks of July, low double digit to mid-teens orders improvement on the ITS front. The best way I'd probably describe that here is comparable trajectory on the short to medium cycle that you saw in Q2. But the piece obviously that was encouraging on incremental to that was the long cycle piece. We've been talking for the better part of 18 to 24 months that long cycle, the funnel continues to remain active and relatively healthy, but you had seen kind of the elongation of decision making from customers for a number of reasons. As such, that had led to some, I'd say, lower orders front on the long cycle than you would historically seen over that timeframe.

July, you did see a number of those projects finally come to fruition. I think the good news here is, one, July is just one data point, but we are very encouraged to now starting to see better momentum, not just on the short to medium cycle side, but also on the long cycle side. Obviously, all of this lends itself to kind of the volume side of the equation, which is the piece that you have seen kind of the bigger headwinds on over the last two years. Again, encouraged by what we are seeing here. We will continue to track and monitor this as we obviously move forward and give you guys obviously appropriate color here as we get through earnings.

But encouraged, I think, for the first time in a couple of years to really start seeing kind of both sides of the equation starting to move in the positive direction, which is definitely encouraging from us, from our front.

For sure. Yeah. I will talk through the lens of ITS, which is our largest segment, about 80% of the revenue of the company. Let me start by saying business composition is, I will use rough numbers, 35%-40% aftermarket. Aftermarket obviously is much more, I would say, utilization based on our equipment and things of that nature. When you park that, you have the other, let us call it, 60%, 65% that is original equipment, and that is broken down approximately 75% is kind of short to medium cycle. So I would call it core compressor, blower, vacuum type technology, kind of the bread and butter, if you will. Typically somewhere between 30 and 90 day type lead times, pretty tight book ship type business, but kind of the core. And then the balance, which would be the remaining 25%, is longer cycle in nature.

The way to kind of think about longer cycle, you might hear us refer to it as ETO or systems or projects. They typically are larger scale projects in nature, predicated around technology and then typically larger systems or skids or things like that built out, customized for our respective customer base. And they are typically anywhere from half a million, but typically seven figure type price tags, 6 to 18 months in terms of duration, meaning from when the order is taken to final shipment. And obviously the larger the sticker price, typically the longer the duration. So that is probably the best way to think about the composition, particularly with an ITS.

Also worth noting that on the PST side, the precision technologies business, so the core pumping business, which is about the larger piece of that equation, that also has a fairly similar exposure to long cycle projects as well and some of our pumping and dosing type technologies.

Yeah, I think it's like you've seen kind of in the broader industrial, obviously with PMIs continuing to improve. I think you're seeing now our portfolio, which core industrial compression, blower technology, vacuum technology, pump technology, it's kind of mission critical from a process perspective. You're seeing it kind of broad base. I wouldn't point to one specific end market. I think what you've seen over the last few years is, talk by region, you've obviously seen a couple of years of headwinds from a North America perspective, particularly from areas like some of the tariff related impact you saw last year and then some of the items that from administration changes prior to that, things like renewable natural gas that kind of had a peak back in the 2024 timeframe and obviously kind of came back down back in 2025. China similar. China used to be about 15% of the revenue base of the company.

Today it's closer to 10%. Europe has actually been the most stable business in between over the last few years. I think with some of the just inherent macro recovery you're seeing, you're seeing obviously, not surprisingly, North America and Asia, and particularly China, starting to see better traction. That's exactly like we said we saw in Q2, with the short to medium cycle being up mid-single digits, with North America being the leader of the pack there at up high single digits on the orders front. Again, encouraged to see that I'd say regular kind of, I'd say, industrial activity starting to come back.