Ingersoll Rand Inc
For the period ended Mar 31, 2025. Filed May 2, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
IR$82.99+1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0001628280-24-044749
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001628280-25-021883
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 124 previous paragraphs and 109 current paragraphs.
68 unchanged; 30 reworded; 11 added; 22 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
To date, 2025 has been marked by continued uncertainty in global markets, driven by investor concerns over inflation, elevated interest rates, ongoing political and regulatory uncertainty, including potential shifts in U.S. trade policy and the imposition of new tariffs, as well as geopolitical instability stemming from the conflicts in Ukraine and the Middle East.
Current report
Further contributing to economic uncertainty, the current U.S. presidential administration has signaled its intention to implement significant changes to U.S. trade policy, the size of the federal government and the enforcement of various regulations. These policy shifts could introduce additional market instability and reduce investor confidence. For example, the U.S. government recently announced tariffs on goods imported from various countries to the United States. Countries subject to such tariffs have imposed, or may in the future, impose reciprocal or retaliatory tariffs and other trade measures. We are actively monitoring the tariff developments and analyzing the potential impacts on our business, cost structure, supply chain and broader economic environment. We are identifying actions necessary to maintain competitiveness while we adapt to these new economic challenges. While these developments have not had a material impact on our financial condition or results of operations to date, due to their evolving nature, and the expected persistence of macroeconomic conditions and volatility in the near term, we cannot predict with certainty the ultimate impacts they may have on our business and results in the future, but those impacts could be material.
Current report
Adjusted EBITDA increased $1.2 million to $459.7 million for the three month period ended March 31, 2025 compared to $458.5 million in the same three month period in 2024. Adjusted EBITDA as a percentage of revenues decreased 70 basis points to 26.8% for the three month period ended March 31, 2025 from 27.5% for the same three month period in 2024. The increase in Adjusted EBITDA was primarily due to acquisitions of $30.3 million, higher pricing of $23.8 million, lower selling and administrative costs of $5.3 million, partially offset by lower organic sales volume of $40.1 million, unfavorable cost productivity and product mix of $11.4 million, and unfavorable impact of foreign currencies of $6.5 million. The decrease in Adjusted EBITDA as a percentage of revenues is primarily attributable to lower organic volumes and the decretive impact of acquisitions.
Current report
Adjusted Net Income decreased $26.7 million to $293.2 million for the three month period ended March 31, 2025 compared to $319.9 million in the same three month period in 2024. The decrease was primarily due to higher interest expense.
Current report
Segment Orders for the three month period ended March 31, 2025 were $1,487.0 million, an increase of $88.6 million, or 6.3%, compared to $1,398.4 million in the same three month period in 2024. The increase in Segment Orders was due to acquisitions of
Current report
$66.4 million or 4.7%, and organic growth of $48.3 million or 3.5%, partially offset by the unfavorable impact of foreign currencies of $26.1 million or 1.9%.
Current report
Segment Revenues for the three month period ended March 31, 2025 were $1,352.1 million, a decrease of $21.3 million, or 1.6%, compared to $1,373.4 million in the same three month period in 2024. The decrease in Segment Revenues was due to lower organic volumes of $74.9 million or 5.5% and unfavorable impact of foreign currencies of $23.6 million or 1.7%, partially offset by acquisitions of $59.5 million or 4.3% and higher pricing of $17.7 million or 1.3%. The percentage of Segment Revenues derived from aftermarket parts and service was 42.5% in the three month period ended March 31, 2025 compared to 39.8% in the same three month period in 2024.
Current report
Segment Adjusted EBITDA for the three month period ended March 31, 2025 was $389.1 million, a decrease of $22.0 million, or 5.4%, from $411.1 million in the same three month period in 2024. Segment Adjusted EBITDA Margin decreased 110 basis points to 28.8% from 29.9% in 2024. The decrease in Segment Adjusted EBITDA was primarily due to lower organic sales volume of $33.3 million or 8.1%, unfavorable cost productivity and product mix of $7.1 million or 1.7%, unfavorable impact of foreign currencies of $5.6 million or 1.4%, and higher selling and administrative costs of $5.0 million or 1.2%, partially offset by higher pricing of $17.7 million or 4.3% and acquisitions of $11.4 million or 2.8%.
Current report
Segment Orders for the three month period ended March 31, 2025 were $395.3 million, an increase of $86.3 million, or 27.9%, compared to $309.0 million in the same three month period in 2024. The increase in Segment Orders was due to acquisitions of $81.6 million or 26.4% and organic growth of $8.9 million or 2.9%, partially offset by the unfavorable impact of foreign currencies of $4.2 million or 1.4%.
Current report
Segment Revenues for the three month period ended March 31, 2025 were $364.7 million, an increase of $68.0 million, or 22.9%, compared to $296.7 million in the same three month period in 2024. The increase in Segment Revenues was primarily due to acquisitions of $80.0 million or 27.0% and higher pricing of $6.1 million or 2.1%, partially offset by lower organic volumes of $14.0 million or 4.7% and unfavorable impact of foreign currencies of $4.1 million or 1.4%. The percentage of Segment Revenues derived from aftermarket parts and service was 21.5% in the three month period ended March 31, 2025 compared to 24.2% in the same three month period in 2024.
Current report
Segment Adjusted EBITDA for the three month period ended March 31, 2025 was $106.2 million, an increase of $14.8 million, or 16.2%, from $91.4 million in the same three month period in 2024. Segment Adjusted EBITDA Margin decreased 170 basis points to 29.1% from 30.8% in 2024. The increase in Segment Adjusted EBITDA was primarily due to acquisitions of $18.9 million or 20.7%, higher pricing of $6.1 million or 6.7%, and lower selling and administrative costs of $1.4 million or 1.5%, partially offset by lower organic sales volume of $6.8 million or 7.4% and unfavorable impact of foreign currencies of $1.3 million or 1.4%.
Removed paragraphs (22)
Previous report
Revenues for the nine month period ended September 30, 2024 were $5,336.4 million, an increase of $281.7 million, or 5.6%, compared to $5,054.7 million for the same nine month period in 2023. The increase in revenues was primarily due to acquisitions of $327.8 million and higher pricing of $122.9 million, partially offset by lower organic volumes of $160.2 million and the unfavorable impact of foreign currencies of $8.8 million. The percentage of consolidated revenues derived from aftermarket parts and services was 36.4% in the nine month period ended September 30, 2024 compared to 36.1% in the same nine month period in 2023.
Previous report
Gross profit for the nine month period ended September 30, 2024 was $2,354.6 million, an increase of $253.6 million, or 12.1%, compared to $2,101.0 million for the same nine month period in 2023, and as a percentage of revenues was 44.1% for the nine month period ended September 30, 2024 and 41.6% for the same nine month period in 2023. The increase in gross profit is primarily due to higher pricing and acquisitions discussed above. The increase in gross profit as a percentage of revenues is primarily due to increased price and input cost productivity improvements.
Previous report
Selling and administrative expenses were $1,012.7 million for the nine month period ended September 30, 2024, an increase of $70.8 million, or 7.5%, compared to $941.9 million for the same nine month period in 2023. The increase in selling and administrative expenses was mainly from businesses acquired in the second half of 2023 and first nine months of 2024. Selling and administrative expenses as a percentage of revenues increased to 19.0% for the nine month period ended September 30, 2024 from 18.6% in the same nine month period in 2023.
Previous report
Amortization of intangible assets was $277.8 million for the nine month period ended September 30, 2024, an increase of $3.5 million, compared to $274.3 million in the same nine month period in 2023. The increase was primarily due to businesses acquired in the second half of 2023 and first nine months of 2024 discussed in Note 2 “Acquisitions” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q, partially offset by certain intangible assets becoming fully amortized during the period.
Previous report
Other operating expense, net was $142.8 million for the nine month period ended September 30, 2024, an increase of $89.1 million, compared to $53.7 million in the same nine month period in 2023. The increase was primarily due to the loss on asbestos sale of $58.8 million, higher restructuring charges of $13.3 million, higher acquisition and other transaction related expenses and non-cash charges of $12.1 million and higher foreign currency transaction losses, net of $8.2 million. See Note 18 “Contingencies” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further discussion of the loss on asbestos sale.
Previous report
Net income was $614.4 million for the nine month period ended September 30, 2024 compared to net income of $553.6 million in the same nine month period in 2023. The increase in net income was primarily due to higher gross profit on increased revenues and lower loss on extinguishment of debt, partially offset by higher other operating expense, net, higher selling and administrative expenses, higher interest expense, higher loss on equity method investments, and higher provision for income taxes.
Previous report
Adjusted EBITDA increased $71.2 million to $532.7 million for the three month period ended September 30, 2024 compared to $461.5 million in the same three month period in 2023. Adjusted EBITDA as a percentage of revenues increased 210 basis points to 28.6% for the three month period ended September 30, 2024 from 26.5% for the same three month period in 2023. The increase in Adjusted EBITDA was primarily due to acquisitions of $36.6 million, higher pricing of $32.3 million, and favorable cost productivity and product mix of $17.1 million, lower selling and administrative costs of $13.1 million, and favorable impact of foreign currencies of $3.4 million, partially offset by lower organic sales volume of $31.6 million. The increase in Adjusted EBITDA as a percentage of revenues is primarily attributable to higher pricing, input cost productivity improvements, and product mix.
Previous report
Adjusted EBITDA increased $199.5 million to $1,485.8 million for the nine month period ended September 30, 2024 compared to $1,286.3 million in the same nine month period in 2023. Adjusted EBITDA as a percentage of revenues increased 240 basis points to 27.8% for the nine month period ended September 30, 2024 from 25.4% for the same nine month period in 2023. The increase in Adjusted EBITDA was primarily due to higher pricing of $122.9 million, acquisitions of $76.5 million, and favorable cost productivity and product mix of $72.3 million, partially offset by lower organic sales volume of $69.0 million, higher selling and administrative costs of $4.9 million, and the unfavorable impact of foreign currencies of $1.6 million. The increase in Adjusted EBITDA as a percentage of revenues is primarily attributable to higher pricing, input cost productivity improvements, and product mix.
Previous report
Adjusted Net Income increased $28.7 million to $344.7 million for the three month period ended September 30, 2024 compared to $316.0 million in the same three month period in 2023. The increase was primarily due to higher Adjusted EBITDA, partially offset by higher interest expense and higher income tax provision, as adjusted.
Previous report
Adjusted Net Income increased $144.5 million to $1,005.7 million for the nine month period ended September 30, 2024 compared to $861.2 million in the same nine month period in 2023. The increase was primarily due to increased Adjusted EBITDA and higher interest income on cash and cash equivalents, partially offset by a higher interest expense, and higher income tax provision, as adjusted.
Previous report
Segment Orders for the three month period ended September 30, 2024 were $1,420.6 million, an increase of $73.7 million, or 5.5%, compared to $1,346.9 million in the same three month period in 2023. The increase in Segment Orders was due to acquisitions of $65.2 million or 4.8%, organic growth of $5.2 million or 0.4% and the favorable impact of foreign currencies of $3.3 million or 0.2%.
Previous report
Segment Revenues for the three month period ended September 30, 2024 were $1,467.2 million, an increase of $38.8 million, or 2.7%, compared to $1,428.4 million in the same three month period in 2023. The increase in Segment Revenues was due to acquisitions of $64.7 million or 4.5%, higher pricing of $26.2 million or 1.8% and favorable impact of foreign currencies of $5.2 million or 0.4%, partially offset by lower organic volumes of $57.3 million or 4.0%. The percentage of Segment Revenues derived from aftermarket parts and service was 41.0% in the three month period ended September 30, 2024 compared to 39.6% in the same three month period in 2023.
Previous report
Segment Adjusted EBITDA for the three month period ended September 30, 2024 was $449.9 million, an increase of $39.0 million, or 9.5%, from $410.9 million in the same three month period in 2023. Segment Adjusted EBITDA Margin increased 190 basis points to 30.7% from 28.8% in 2023. The increase in Segment Adjusted EBITDA was primarily due to higher pricing of $26.2 million or 6.4%, favorable cost productivity and product mix of $18.8 million or 4.6%, acquisitions of $13.9 million or 3.4%, favorable impact of foreign currencies of $2.3 million or 0.6%, and lower selling and administrative costs of $2.2 million or 0.5%, partially offset by lower organic sales volume of $24.2 million or 5.9%.
Previous report
Segment Orders for the nine month period ended September 30, 2024 were $4,284.4 million, an increase of $42.9 million, or 1.0%, compared to $4,241.5 million in the same nine month period in 2023. The increase in Segment Orders was due to acquisitions of $194.0 million or 4.6%, partially offset by lower organic orders of $137.8 million or 3.2% and the unfavorable impact of foreign currencies of $13.3 million or 0.3%.
Previous report
Segment Revenues for the nine month period ended September 30, 2024 were $4,307.1 million, an increase of $183.1 million, or 4.4%, compared to $4,124.0 million in the same nine month period in 2023. The increase in Segment Revenues was due to acquisitions of $201.5 million or 4.9% and higher pricing of $100.7 million or 2.4%, partially offset by lower organic volumes of $109.3 million or 2.7% and unfavorable impact of foreign currencies of $9.8 million or 0.2%. The percentage of Segment Revenues derived from aftermarket parts and service was 39.8% in the nine month period ended September 30, 2024 compared to 39.5% in the same nine month period in 2023.
Previous report
Segment Adjusted EBITDA for the nine month period ended September 30, 2024 was $1,297.2 million, an increase of $163.2 million, or 14.4%, from $1,134.0 million in the same nine month period in 2023. Segment Adjusted EBITDA Margin increased 260 basis points to 30.1% from 27.5% in 2023. The increase in Segment Adjusted EBITDA was primarily due to higher pricing of $100.7 million or 8.9%, favorable cost productivity and product mix of $78.4 million or 6.9%, and acquisitions of $44.3 million or 3.9%, partially offset by lower organic sales volume of $45.2 million or 4.0%, higher selling and administrative costs of $13.6 million or 1.2%, and unfavorable impact of foreign currencies of $2.1 million or 0.2%.
Previous report
Segment Orders for the three month period ended September 30, 2024 were $378.1 million, an increase of $87.2 million, or 30.0%, compared to $290.9 million in the same three month period in 2023. The increase in Segment Orders was due to acquisitions of $76.8 million or 26.4%, organic growth of $7.6 million or 2.6%, and the favorable foreign currencies of $2.8 million or 1.0%.
Previous report
Segment Revenues for the three month period ended September 30, 2024 were $393.8 million, an increase of $83.3 million, or 26.8%, compared to $310.5 million in the same three month period in 2023. The increase in Segment Revenues was primarily due to acquisitions of $90.4 million or 29.1%, higher pricing of $6.1 million or 2.0%, and favorable impact of foreign currencies of $2.7 million or 0.9%, partially offset by lower organic volumes of $15.9 million or 5.1%. The percentage of Segment Revenues derived from aftermarket parts and service was 21.1% in the three month period ended September 30, 2024 compared to 20.6% in the same three month period in 2023.
Previous report
Segment Adjusted EBITDA for the three month period ended September 30, 2024 was $118.1 million, an increase of $23.9 million, or 25.4%, from $94.2 million in the same three month period in 2023. Segment Adjusted EBITDA Margin decreased 30 basis points to 30.0% from 30.3% in 2023. The increase in Segment Adjusted EBITDA was primarily due to acquisitions of $22.7 million or 24.1%, higher pricing of $6.1 million or 6.5%, lower selling and administrative costs of $1.4 million or 1.5%, and favorable impact of foreign currencies of $1.1 million or 1.2%, partially offset by lower organic sales volume of $7.4 million or 7.9%.
Previous report
Segment Orders for the nine month period ended September 30, 2024 were $1,021.1 million, an increase of $110.6 million, or 12.1%, compared to $910.5 million in the same nine month period in 2023. The increase in Segment Orders was due to acquisitions of $102.8 million or 11.3%, organic growth of $7.0 million or 0.8%, and the favorable impact of foreign currencies of $0.8 million or 0.1%.
Previous report
Segment Revenues for the nine month period ended September 30, 2024 were $1,029.3 million, an increase of $98.6 million, or 10.6%, compared to $930.7 million in the same nine month period in 2023. The increase in Segment Revenues was due to acquisitions of $126.3 million or 13.6%, higher pricing of $22.2 million or 2.4%, and favorable impact of foreign currencies of $1.0 million or 0.1%, partially offset by lower organic volumes of $50.9 million or 5.5%. The percentage of Segment Revenues derived from aftermarket parts and service was 22.2% in the nine month period ended September 30, 2024 compared to 20.9% in the same nine month period in 2023.
Previous report
Segment Adjusted EBITDA for the nine month period ended September 30, 2024 was $312.0 million, an increase of $33.3 million, or 11.9%, from $278.7 million in the same nine month period in 2023. Segment Adjusted EBITDA Margin increased 40 basis points to 30.3% from 29.9% in 2023. The increase in Segment Adjusted EBITDA was primarily due to acquisitions of $32.2 million or 11.6%, higher pricing of $22.2 million or 8.0%, lower selling and administrative costs of $2.2 million or 0.8%, favorable impact of foreign currencies of $0.3 million or 0.1%, and favorable cost productivity and product mix of $0.2 million or 0.1%, partially offset by lower organic sales volume of $23.8 million or 8.5%.
Reworded paragraphs (30)
Previous wording
Ingersoll Rand is a global market leader with a broad range of innovative and mission-critical air, fluid, energy and medical technologies, providing services and solutions to increase industrial productivity and efficiency. We manufacture one of the broadest and most complete ranges of compressor, pump, vacuum and blower products in our markets, which, when combined with our global geographic footprint and application expertise, allows us to provide differentiated product and service offerings to our customers. Our products are sold under a collection of premier, market-leading brands, including Ingersoll Rand, Gardner Denver, Nash, CompAir, ILC Dover, Thomas, Milton Roy, Seepex, Elmo Rietschle, ARO, Robuschi, Emco Wheaton and Runtech Systems, which we believe are globally recognized in their respective end-markets and known for product quality, reliability, efficiency and superior customer service.
Current wording
Ingersoll Rand is a global market leader with a broad flow creation and industrial product portfolio across air, gas, powder, and liquid handling applications, providing services and solutions to increase industrial and life science productivity, efficiency, and sustainability. We manufacture one of the broadest and most complete ranges of compressor, pump, vacuum and blower products in our markets, which, when combined with our global geographic footprint and application expertise, allows us to provide differentiated product and service offerings to our customers. Our products are sold under a collection of premier, market-leading brands, including Ingersoll Rand, Gardner Denver, Nash, CompAir, ILC Dover, Thomas, Milton Roy, Seepex, Elmo Rietschle, ARO, Robuschi, Emco Wheaton and Runtech Systems, which we believe are globally recognized in their respective end-markets and known for product quality, reliability, efficiency and superior customer service.
Previous wording
We operate with two reportable segments: Industrial Technologies and Services and Precision and Science Technologies. See Note 19 “Segment Results” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for a description of our reportable segments.
Current wording
We operate with two reportable segments: Industrial Technologies and Services and Precision and Science Technologies. See Note 19 “Segment Reporting” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for a description of our reportable segments.
Previous wording
A significant portion of our revenues, approximately 53% for the nine month period ended September 30, 2024, was denominated in currencies other than the U.S. dollar. Because much of our manufacturing facilities and labor force costs are outside of the United States, a significant portion of our costs are also denominated in currencies other than the U.S. dollar. Changes in foreign exchange rates can therefore impact our results of operations and are quantified when significant to our discussion.
Current wording
A significant portion of our revenues, approximately 53% for the three month period ended March 31, 2025, was denominated in currencies other than the U.S. dollar. Because much of our manufacturing facilities and labor force costs are outside of the United States, a significant portion of our costs are also denominated in currencies other than the U.S. dollar. Changes in foreign exchange rates can therefore impact our results of operations and are quantified when significant to our discussion.
Previous wording
Consolidated results should be read in conjunction with the segment results section herein and Note 19 “Segment Results” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q, which provides more detailed discussions concerning certain components of our Condensed Consolidated Statements of Operations. All intercompany accounts and transactions have been eliminated within the consolidated results. The following table presents selected Condensed Consolidated Results of Operations of our business for the three and nine month periods ended September 30, 2024 and 2023.
Current wording
Consolidated results should be read in conjunction with the segment results section herein and Note 19 “Segment Reporting” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q, which provides more detailed discussions concerning certain components of our Condensed Consolidated Statements of Operations. All intercompany accounts and transactions have been eliminated within the consolidated results. The following table presents selected Condensed Consolidated Results of Operations of our business for the three month periods ended March 31, 2025 and 2024.
Previous wording
Revenues for the three month period ended September 30, 2024 were $1,861.0 million, an increase of $122.1 million, or 7.0%, compared to $1,738.9 million for the same three month period in 2023. The increase in revenues was primarily due to acquisitions of $155.1 million, higher pricing of $32.3 million and favorable impact of foreign currencies of $7.9 million, partially offset by lower organic volumes of $73.2 million. The percentage of consolidated revenues derived from aftermarket parts and services was 36.8% in the three month period ended September 30, 2024 compared to 36.2% in the same three month period in 2023.
Current wording
Revenues for the three month period ended March 31, 2025 were $1,716.8 million, an increase of $46.7 million, or 2.8%, compared to $1,670.1 million for the same three month period in 2024. The increase in revenues was primarily due to acquisitions of $139.5 million and higher pricing of $23.8 million, partially offset by unfavorable impact of foreign currencies of $27.7 million and lower organic volumes of $88.9 million. The percentage of consolidated revenues derived from aftermarket parts and services was 38.1% in the three month period ended March 31, 2025 compared to 37.0% in the same three month period in 2024.
Previous wording
Gross profit for the three month period ended September 30, 2024 was $815.0 million, an increase of $75.7 million, or 10.2%, compared to $739.3 million for the same three month period in 2023, and as a percentage of revenues was 43.8% for the three month period ended September 30, 2024 and 42.5% for the same three month period in 2023. The increase in gross profit is primarily due to higher pricing and acquisitions discussed above. The increase in gross profit as a percentage of revenues is primarily due to increased price and input cost productivity improvements.
Current wording
Gross profit for the three month period ended March 31, 2025 was $765.5 million, an increase of $19.2 million, or 2.6%, compared to $746.3 million for the same three month period in 2024, and as a percentage of revenues was 44.6% for the three month period ended March 31, 2025 and 44.7% for the same three month period in 2024. The increase in gross profit is primarily due to acquisitions discussed above.
Previous wording
Selling and administrative expenses were $334.3 million for the three month period ended September 30, 2024, an increase of $19.1 million, or 6.1%, compared to $315.2 million for the same three month period in 2023. The increase in selling and administrative expenses was primarily attributable to businesses acquired in the second half of 2023 and first nine months of 2024. Selling and administrative expenses as a percentage of revenues decreased to 18.0% for the three month period ended September 30, 2024 from 18.1% in the same three month period in 2023.
Current wording
Selling and administrative expenses were $350.0 million for the three month period ended March 31, 2025, an increase of $13.7 million, or 4.1%, compared to $336.3 million for the same three month period in 2024. The increase in selling and administrative expenses was primarily attributable to businesses acquired in 2024 and first three months of 2025, partially offset by a decrease in incentive compensation. Selling and administrative expenses as a percentage of revenues increased to 20.4% for the three month period ended March 31, 2025 from 20.1% in the same three month period in 2024.
Previous wording
Amortization of intangible assets was $95.0 million for the three month period ended September 30, 2024, an increase of $2.8 million, compared to $92.2 million in the same three month period in 2023. The increase was primarily due to businesses acquired in the second half of 2023 and first nine months of 2024 discussed in Note 2 “Acquisitions” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q, partially offset by certain intangible assets becoming fully amortized during the period.
Current wording
Amortization of intangible assets was $91.3 million for the three month period ended March 31, 2025, a decrease of $0.3 million, compared to $91.6 million in the same three month period in 2024. The decrease was primarily due to certain intangible assets becoming fully amortized, partially offset by businesses acquired in 2024 and first three months of 2025 discussed in Note 2 “Acquisitions” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q.
Previous wording
Other operating expense, net was $29.4 million for the three month period ended September 30, 2024, an increase of $15.9 million, compared to $13.5 million in the same three month period in 2023. The increase in expense was primarily due to higher foreign currency transaction losses, net of $8.8 million and higher restructuring charges of $7.8 million, partially offset by lower acquisition and other transaction related expenses and non-cash charges of $1.1 million.
Current wording
Other operating expense, net was $21.7 million for the three month period ended March 31, 2025, a decrease of $3.5 million, compared to $25.2 million in the same three month period in 2024. The decrease in expense was primarily due to lower acquisition and other transaction related expenses of $5.5 million and lower restructuring charges of $4.4 million, partially offset by higher foreign currency transaction losses, net of $7.5 million.
Previous wording
Interest expense was $63.8 million for the three month period ended September 30, 2024, an increase of $24.2 million, compared to $39.6 million in the same three month period in 2023. The increase was primarily due to an increase in long term debt, partially offset by the interest rate derivative contracts discussed in Note 13 “Hedging Activities and Derivative Instruments” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q. The weighted average interest rate, including the impact of the interest rate derivative contracts, was approximately 5.3% for the three month period ended September 30, 2024 and 5.4% in the same three month period in 2023.
Current wording
Interest expense was $61.2 million for the three month period ended March 31, 2025, an increase of $24.4 million, compared to $36.8 million in the same three month period in 2024. The increase was primarily due to an increase in long term debt primarily used to fund the ILC Dover acquisition, partially offset by the interest rate derivative contracts discussed in Note 13 “Hedging Activities and Derivative Instruments” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q. The weighted average interest rate, including the impact of the interest rate derivative contracts, was approximately 5.0% for the three month period ended March 31, 2025 and 5.3% in the same three month period in 2024.
Previous wording
Other income, net was $9.5 million and $7.6 million in the three month periods ended September 30, 2024 and 2023, respectively. The increase was primarily due to an increase in interest income from holdings of cash and cash equivalents.
Current wording
Other income, net was $11.8 million and $13.2 million in the three month periods ended March 31, 2025 and 2024, respectively. The decrease was primarily due to a decrease in interest income from holdings of cash and cash equivalents.
Previous wording
The provision for income taxes was $73.8 million, resulting in a 24.4% effective income tax provision rate for the three month period ended September 30, 2024, compared to a provision for income taxes of $60.3 million, resulting in a 22.0% effective income tax provision rate in the same three month period in 2023. The increase in the tax provision and the effective tax provision rate for the three month period ended September 30, 2024 when compared to the same three month period of 2023 is primarily due to an increase in the pretax book income in jurisdictions with higher effective tax rates combined with a decrease in earnings in jurisdictions with lower tax rates and a lower benefit from a windfall tax deduction in the 2024 period compared to the 2023 period.
Current wording
The provision for income taxes was $58.5 million, resulting in a 23.1% effective income tax provision rate for the three month period ended March 31, 2025, compared to a provision for income taxes of $54.4 million, resulting in a 20.2% effective income tax provision rate in the same three month period in 2024. The increase in the tax provision and the effective tax provision rate for the three month period ended March 31, 2025 when compared to the same three month period of 2024 is primarily due to a lower benefit from a windfall tax deduction in the 2025 period compared to the 2024 period.
Previous wording
Net income was $223.4 million for the three month period ended September 30, 2024 compared to net income of $209.6 million in the same three month period in 2023. The increase in net income was primarily due to higher gross profit on increased revenues and lower loss on extinguishment of debt, partially offset by higher interest expense, higher selling and administrative expenses, higher other operating expense, net, and higher provision for income taxes.
Current wording
Net income was $188.4 million for the three month period ended March 31, 2025 compared to net income of $204.5 million in the same three month period in 2024. The decrease in net income was primarily due to higher interest expense, higher selling and administrative expenses, and higher provision for income taxes, partially offset by higher gross profit on increased revenues.
Previous wording
(a)Depreciation expense excludes $1.1 million and $1.1 million of depreciation of rental equipment for the three month periods ended September 30, 2024 and 2023, respectively, and excludes $3.1 million and $2.8 million for the nine month periods ended September 30, 2024 and 2023, respectively.
Current wording
(a)Depreciation expense excludes $1.1 million and $0.9 million of depreciation of rental equipment for the three month periods ended March 31, 2025 and 2024, respectively.
Previous wording
(b)Represents $92.7 million and $89.8 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $2.3 million and $2.4 million of amortization of non-acquisition related intangible assets, in each case, for the three month periods ended September 30, 2024 and 2023, respectively.
Current wording
(b)Represents $89.0 million and $89.5 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $2.3 million and $2.1 million of amortization of non-acquisition related intangible assets, in each case, for the three month periods ended March 31, 2025 and 2024, respectively.
Previous wording
The segment measurements provided to and evaluated by the chief operating decision maker are described in Note 19 “Segment Results” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q.
Current wording
The segment measurements provided to and evaluated by the chief operating decision maker are described in Note 19 “Segment Reporting” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q.
Previous wording
Segment Results for the Three and Nine Month Periods Ended September 30, 2024 and 2023
Current wording
Segment Results for the Three Month Periods Ended March 31, 2025 and 2024
Previous wording
Our investment resources include cash on hand, cash generated from operations and borrowings under our New Revolving Credit Facility and Commercial Paper Program. We also have the ability to seek additional secured and unsecured borrowings, subject to credit agreement restrictions.
Current wording
Our investment resources include cash on hand, cash generated from operations and borrowings under our Revolving Credit Facility and Commercial Paper Program. We also have the ability to seek additional secured and unsecured borrowings, subject to credit agreement restrictions.
Previous wording
As of September 30, 2024, we had $2,600.0 million of unused availability under both the New Revolving Credit Facility and Commercial Paper Program.
Current wording
As of March 31, 2025, we had $2,600.0 million of unused availability under both the Revolving Credit Facility and Commercial Paper Program.
Previous wording
We can increase the borrowing availability under the New Revolving Credit Facility by up to $1,000.0 million in the form of additional commitments so long as we do not exceed a specified leverage ratio. Our liquidity requirements are significant primarily due to debt service requirements. See Note 11 “Debt” to the consolidated financial statements in our 2023 Annual Report and Note 10 “Debt” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further details.
Current wording
We can increase the borrowing availability under the Revolving Credit Facility by up to $1,000.0 million in the form of additional commitments so long as we do not exceed a specified leverage ratio. Our liquidity requirements are significant primarily due to debt service requirements. See Note 11 “Debt” to the consolidated financial statements in our 2024 Annual Report and Note 10 “Debt” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further details.
Previous wording
Our principal sources of liquidity have been existing cash and cash equivalents, cash generated from operations and borrowings under the Senior Notes and Former Senior Secured Credit Facilities. Our principal uses of cash will be to provide working capital, meet debt service requirements, fund capital expenditures, dividend payments, and finance strategic plans, including possible acquisitions. We may also seek to finance capital expenditures under capital leases or other debt arrangements that provide liquidity or favorable borrowing terms. We continue to consider acquisition opportunities, but the size and timing of any future acquisitions and the related potential capital requirements cannot be predicted. In the event that suitable businesses are available for acquisition upon acceptable terms, we may obtain all or a portion of the necessary financing through the incurrence of additional long-term borrowings. As market conditions warrant, we may from time to time, seek to repay loans that we have borrowed, including the borrowings under the Senior Notes. Based on our current level of operations and available cash, we believe our cash flow from operations, together with availability under the New Revolving Credit Facility and Commercial Paper Program, will provide sufficient liquidity to fund our current obligations, projected working capital requirements, debt service requirements and capital spending requirements for the foreseeable future. Our business may not generate sufficient cash flows from operations or future borrowings may not be available to us under our New Revolving Credit Facility or Commercial Paper Program in an amount sufficient to enable us to pay our indebtedness, or to fund our other liquidity needs. Our ability to do so depends on, among other factors, prevailing economic conditions, many of which are beyond our control. In addition, upon the occurrence of certain events, such as a change in control, we could be required to repay or refinance our indebtedness. We may not be able to refinance any of our indebtedness, including the Senior Notes, on commercially reasonable terms or at all. Any future acquisitions, joint ventures, or other similar transactions may require additional capital and there can be no assurance that any such capital will be available to us on acceptable terms or at all.
Current wording
Our principal sources of liquidity have been existing cash and cash equivalents, cash generated from operations and borrowings under the Senior Notes. Our principal uses of cash will be to provide working capital, meet debt service requirements, fund capital expenditures, dividend payments, and finance strategic plans, including possible acquisitions. We may also seek to finance capital expenditures under capital leases or other debt arrangements that provide liquidity or favorable borrowing terms. We continue to consider acquisition opportunities, but the size and timing of any future acquisitions and the related potential capital requirements cannot be predicted. In the event that suitable businesses are available for acquisition upon acceptable terms, we may obtain all or a portion of the necessary financing through the incurrence of additional long-term borrowings. As market conditions warrant, we may from time to time, seek to repay loans that we have borrowed, including the borrowings under the Senior Notes. Based on our current level of operations and available cash, we believe our cash flow from operations, together with availability under the Revolving Credit Facility and Commercial Paper Program, will provide sufficient liquidity to fund our current obligations, projected working capital requirements, debt service requirements and capital spending requirements for the foreseeable future. Our business may not generate sufficient cash flows from operations or future borrowings may not be available to us under our Revolving Credit Facility or Commercial Paper Program in an amount sufficient to enable us to pay our indebtedness, or to fund our other liquidity needs. Our ability to do so depends on, among other factors, prevailing economic conditions, many of which are beyond our control. In addition, upon the occurrence of certain events, such as a change in control, we could be required to repay or refinance our indebtedness. We may not be able to refinance any of our indebtedness, including the Senior Notes, on commercially reasonable terms or at all. Any future acquisitions, joint ventures, or other similar transactions may require additional capital and there can be no assurance that any such capital will be available to us on acceptable terms or at all.
Previous wording
A substantial portion of our cash is in jurisdictions outside of the United States. We do not assert ASC 740-30 (formerly APB 23) indefinite reinvestment of our historical non-U.S. earnings or future non-U.S. earnings. The Company records a deferred foreign tax liability to cover all estimated withholding, state income tax and foreign income tax associated with repatriating all non-U.S. earnings back to the United States. Our deferred income tax liability as of September 30, 2024 was $51.6 million which primarily consisted of withholding taxes.
Current wording
A substantial portion of our cash is in jurisdictions outside of the United States. We do not assert ASC 740-30 (formerly APB 23) indefinite reinvestment of our historical non-U.S. earnings or future non-U.S. earnings. The Company records a deferred foreign tax liability to cover all estimated withholding, state income tax and foreign income tax associated with repatriating all non-U.S. earnings back to the United States. Our deferred income tax liability as of March 31, 2025 was $62.9 million which primarily consisted of withholding taxes.
Previous wording
Net working capital increased $192.5 million to $2,415.6 million as of September 30, 2024 from $2,223.1 million as of December 31, 2023. Operating working capital increased $379.4 million to $1,640.4 million as of September 30, 2024 from $1,261.0 million as of December 31, 2023. The increase in operating working capital is due to higher inventories, higher accounts receivable, lower accounts payable, and higher contract assets, partially offset by higher contract liabilities.
Current wording
Net working capital increased $180.3 million to $2,524.9 million as of March 31, 2025 from $2,344.6 million as of December 31, 2024. Operating working capital increased $151.9 million to $1,570.5 million as of March 31, 2025 from $1,418.6 million as of December 31, 2024. The increase in operating working capital is due to higher inventories, higher accounts receivable, higher contract assets and lower accounts payable, partially offset by higher contract liabilities.
Previous wording
The increase in accounts receivable was primarily due to the timing of revenues in the quarter and seasonal changes in collection timing. The increase in inventories was primarily due to acquisitions. The increase in contract assets was primarily due to acquisitions and the timing of revenue recognition and billing on our overtime contracts. The decrease in accounts payable was primarily due to the timing of vendor cash disbursements. The increase in contract liabilities was primarily due to the timing of customer milestone payments for in-process engineered to order contracts.
Current wording
The increase in accounts receivable was primarily due to the timing of revenues in the quarter and seasonal changes in collection timing. The increase in inventories was primarily due to additions to inventory due to increased demand for certain products. The increase in contract assets was primarily due to the timing of revenue recognition and billing on our overtime contracts. The decrease in accounts payable was primarily due to the timing of vendor cash disbursements. The increase in contract liabilities was primarily due to the timing of customer milestone payments for in-process engineered to order contracts.
Previous wording
The following table reflects the major categories of cash flows for the nine month periods ended September 30, 2024 and 2023, respectively.
Current wording
The following table reflects the major categories of cash flows for the three month periods ended March 31, 2025 and 2024, respectively.
Previous wording
Cash provided by operating activities increased $74.5 million to $870.5 million for the nine month period ended September 30, 2024 from $796.0 million in the same nine month period in 2023. This increase is primarily attributable to higher net income, the timing of interest payments for our Senior Notes, and a smaller increase in operating working capital, partially offset by an increase in tax payments in 2024, compared to 2023.
Current wording
Cash provided by operating activities increased $94.8 million to $256.4 million for the three month period ended March 31, 2025 from $161.6 million in the same three month period in 2024. This increase is primarily attributable to a decrease in cash used in operating working capital in 2025, compared to 2024, the timing of the incentive compensation and interest payments for our Senior Notes, and a decrease in tax payments in 2025, compared to 2024. Partially offsetting these favorable impacts was an increase in cash used for other working capital items and lower net income in 2025, as compared to 2024.
Previous wording
Cash used in investing activities included capital expenditures of $113.8 million and $75.8 million for the nine month periods ended September 30, 2024 and 2023, respectively. Net cash paid in acquisitions was $2,759.1 million and $923.8 million in the nine month periods ended September 30, 2024 and 2023, respectively.
Current wording
Cash used in investing activities included capital expenditures of $33.7 million and $62.3 million for the three month periods ended March 31, 2025 and 2024, respectively. Net cash paid in acquisitions was $163.4 million and $143.3 million in the three month periods ended March 31, 2025 and 2024, respectively.
Previous wording
Cash provided by financing activities of $1,782.7 million for the nine month period ended September 30, 2024 primarily reflected proceeds from long-term debt of $3,296.9 million and proceeds from stock option exercises of $28.3 million, partially offset by repayments of long-term debt of $1,241.8 million, purchases of treasury stock of $198.2 million, payments of debt issuance costs of $32.3 million, cash dividends on common stock of $24.2 million, payments of deferred and contingent acquisition consideration of $22.6 million and payments of $19.9 million to settle certain cross-currency swaps.
Current wording
Cash used in financing activities of $10.0 million for the three month period ended March 31, 2025 primarily reflected purchases of treasury stock of $10.0 million, cash dividends on common stock of $8.1 million, and payments of deferred and contingent acquisition consideration of $1.4 million, partially offset by proceeds from stock option exercises of $5.2 million and other financing inflows of $4.3 million.
Previous wording
Cash used in financing activities of $193.8 million for the nine month period ended September 30, 2023 primarily reflected purchases of treasury stock of $132.9 million, cash dividends on common stock of $24.3 million and net repayments of long-term debt of $20.4 million, partially offset by proceeds from stock option exercises of $21.9 million.
Current wording
Cash used in financing activities of $79.6 million for the three month period ended March 31, 2024 primarily reflected purchases of treasury stock of $72.9 million, cash dividends on common stock of $8.1 million, repayments of long-term debt of $7.1 million, and payments of deferred and contingent acquisition consideration of $2.2 million, partially offset by proceeds from stock option exercises of $11.2 million.
Previous wording
Free cash flow increased $36.5 million to $756.7 million in the nine month period ended September 30, 2024 from $720.2 million in the same nine month period in 2023 due to higher cash provided by operating activities, partially offset by higher capital expenditures.
Current wording
Free cash flow increased $123.4 million to $222.7 million in the three month period ended March 31, 2025 from $99.3 million in the same three month period in 2024 due to higher cash provided by operating activities and lower capital expenditures.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Interest expense was $151.4 million for the nine month period ended September 30, 2024, an increase of $32.1 million, compared to $119.3 million in the same nine month period in 2023. The increase was primarily due to an increase in long term debt, partially offset by the interest rate derivative contracts discussed in Note 13 “Hedging Activities and Derivative Instruments” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q. The weighted average interest rate, including the impact of the interest rate derivative contracts, was approximately 5.2% for the nine month period ended September 30, 2024 and 5.3% in the same period in 2023.
Previous report — wording carried elsewhere
Other income, net was $40.8 million and $25.4 million in the nine month periods ended September 30, 2024 and 2023, respectively. The increase was primarily due to an increase in interest income from holdings of cash and cash equivalents.
Previous report — wording carried elsewhere
The provision for income taxes was $174.3 million, resulting in a 21.6% effective income tax provision rate for the nine month period ended September 30, 2024, compared to a provision for income taxes of $168.9 million, resulting in a 23.3% effective income tax provision rate in the same nine month period in 2023. The increase in the tax provision for the nine month period ended September 30, 2024 when compared to the same nine month period of 2023 is primarily due to an increase in pretax book income. The decrease in the effective income tax provision rate for the nine month period ended September 30, 2024 when compared to the same nine month period of 2023 is primarily due to a decrease in the pretax book income in jurisdictions with higher effective tax rates combined with increased earnings in jurisdictions with lower tax rates and a benefit from a windfall tax deduction.
Previous report — wording carried elsewhere
Represents $271.3 million and $266.7 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $6.5 million and $7.6 million of amortization of non-acquisition related intangible assets, in each case, for the nine month periods ended September 30, 2024 and 2023, respectively.