Ingersoll Rand Inc.
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
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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.
Jun 30, 2026 · Filed Jul 31, 2026
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 2026-03-31; filed 2026-04-29.
0001628280-26-028401
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001628280-26-051415
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 109 previous paragraphs and 134 current paragraphs.
72 unchanged; 28 reworded; 25 added; 9 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 9 previous and 11 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 (25)
Current report
(2)The three and six month periods ended June 30, 2026 include $25 million collected related to the representations and warranties settlement.
Current report
Revenues for the six month period ended June 30, 2026 were $3,896.0 million, an increase of $291.3 million, or 8.1%, compared to $3,604.7 million for the same six month period in 2025. The increase in revenues was primarily due to acquisitions of $117.3 million, the favorable impact of foreign currencies of $102.4 million, and higher organic revenues of $71.6 million. The percentage of consolidated revenues derived from aftermarket parts and services was 36.6% in the six month period ended June 30, 2026 compared to 37.3% in the same six month period in 2025.
Current report
Selling and administrative expenses were $771.5 million for the six month period ended June 30, 2026, an increase of $50.3 million, or 7.0%, compared to $721.2 million for the same six month period in 2025. The increase in selling and administrative expenses was primarily due to acquisitions and an increase in incentive compensation. Selling and administrative expenses as a percentage of revenues decreased to 19.8% for the six month period ended June 30, 2026 from 20.0% in the same six month period in 2025. The increase in selling and administrative expenses as a percentage of revenues is primarily due to cost measures.
Current report
Other Operating Expense (Income), Net
Current report
Other operating expense (income), net was $(21.1) million for the three month period ended June 30, 2026, a decrease of $41.0 million, compared to $19.9 million in the same three month period in 2025. The decrease was primarily due to the recovery of acquisition related losses, net of $25.0 million in the 2026 period, lower acquisition and other transaction related expenses, net of $14.5 million and lower foreign currency transaction losses, net of $3.3 million.
Current report
See Note 17 “Other Operating Expense (Income), Net” and Note 18 “Contingencies” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further discussion of the recovery of acquisition related losses, net.
Current report
Net Income (Loss)
Current report
Net income was $451.8 million for the six month period ended June 30, 2026 compared to net income of $74.6 million in the same six month period in 2025. The increase in net income was primarily due to impairments of goodwill and other intangible assets and the impairment of an equity method investment in the 2025 period that did not recur in the 2026 period, higher gross profit, and lower other operating expense (income), net, partially offset by higher selling and administrative expenses and higher amortization expense discussed above.
Current report
Adjusted EBITDA increased $19.9 million to $989.0 million for the six month period ended June 30, 2026 compared to $969.1 million in the same six month period in 2025. Adjusted EBITDA as a percentage of revenues decreased 150 basis points to 25.4% for the six month period ended June 30, 2026 from 26.9% for the same six month period in 2025. The increase in Adjusted EBITDA was primarily due to acquisitions of $27.8 million and the favorable impact of foreign currencies of $24.1 million, partially offset by lower organic gross profit of $24.5 million and higher selling and administrative costs of $6.1 million. The decrease in Adjusted EBITDA as a percentage of revenues is primarily attributable to input cost inflation and product mix.
Current report
(f)Represents gains from recoveries resulting from breaches of representations and warranties associated with the ILC Dover transaction. See Note 18 “Contingencies” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further details
Current report
(i)The three and six month periods ended June 30, 2026 include $25 million collected related to the representations and warranties settlement.
Current report
Segment Orders for the three month period ended June 30, 2026 were $1,620.7 million, an increase of $59.8 million, or 3.8%, compared to $1,560.9 million in the same three month period in 2025. The increase in Segment Orders was due to acquisitions of $35.6 million or 2.3%, the favorable impact of foreign currencies of $22.1 million or 1.4%, and higher organic orders of $2.1 million or 0.1%.
Current report
Segment Revenues for the three month period ended June 30, 2026 were $1,622.1 million, an increase of $130.5 million, or 8.7%, compared to $1,491.6 million in the same three month period in 2025. The increase in Segment Revenues was due to acquisitions of $41.9 million or 2.8%, higher organic revenues of $62.3 million or 4.2%, and the favorable impact of foreign currencies of $26.3 million or 1.8%. The percentage of Segment Revenues derived from aftermarket parts and service was 39.9% in the three month period ended June 30, 2026 compared to 40.7% in the same three month period in 2025.
Current report
Segment Adjusted EBITDA for the three month period ended June 30, 2026 was $434.5 million, an increase of $7.3 million, or 1.7%, from $427.2 million in the same three month period in 2025. Segment Adjusted EBITDA Margin decreased 180 basis points to 26.8% from 28.6% in 2025. The increase in Segment Adjusted EBITDA was primarily due to acquisitions of $9.7 million or 2.3% and the favorable impact of foreign currencies of $5.8 million or 1.4%, partially offset by lower organic gross profit of $4.4 million or 1.0% and higher selling and administrative costs of $3.0 million or 0.7%.
Current report
Segment Orders for the six month period ended June 30, 2026 were $3,178.6 million, an increase of $130.7 million, or 4.3%, compared to $3,047.9 million in the same six month period in 2025. The increase in Segment Orders was due to acquisitions of $84.0 million or 2.8% and the favorable impact of foreign currencies of $82.7 million or 2.7%, partially offset by lower organic orders of $36.0 million or 1.2%.
Current report
Segment Revenues for the six month period ended June 30, 2026 were $3,066.6 million, an increase of $222.9 million, or 7.8%, compared to $2,843.7 million in the same six month period in 2025. The increase in Segment Revenues was due to acquisitions of $98.3 million or 3.5%, and favorable impact of foreign currencies of $84.1 million or 3.0%, and higher organic revenues of $40.5 million or 1.4%. The percentage of Segment Revenues derived from aftermarket parts and service was 40.7% in the six month period ended June 30, 2026 compared to 41.6% in the same six month period in 2025.
Current report
Segment Adjusted EBITDA for the six month period ended June 30, 2026 was $820.0 million, an increase of $3.7 million, or 0.5%, from $816.3 million in the same six month period in 2025. Segment Adjusted EBITDA Margin decreased 200 basis points to 26.7% from 28.7% in 2025. The increase in Segment Adjusted EBITDA was primarily due to acquisitions of $21.8 million or 2.7%, the favorable impact of foreign currencies of $19.4 million or 2.4%, and lower selling and administrative costs of $5.2 million or 0.6%, partially offset by lower organic gross profit of $41.8 million or 5.1%.
Current report
Segment Orders for the three month period ended June 30, 2026 were $422.2 million, an increase of $43.5 million, or 11.5%, compared to $378.7 million in the same three month period in 2025. The increase in Segment Orders was due to higher organic orders of $28.0 million or 7.4%, acquisitions of $11.9 million or 3.1%, and the favorable impact of foreign currencies of $3.6 million or 1.0%.
Current report
Segment Revenues for the three month period ended June 30, 2026 were $426.7 million, an increase of $30.4 million, or 7.7%, compared to $396.3 million in the same three month period in 2025. The increase in Segment Revenues was primarily due to higher organic revenues of $15.2 million or 3.8%, acquisitions of $11.5 million or 2.9%, and the favorable impact of foreign currencies of $3.7 million or 0.9%. The percentage of Segment Revenues derived from aftermarket parts and service was 20.6% in the three month period ended June 30, 2026 compared to 21.2% in the same three month period in 2025.
Current report
Segment Adjusted EBITDA for the three month period ended June 30, 2026 was $134.5 million, an increase of $17.7 million, or 15.2%, from $116.8 million in the same three month period in 2025. Segment Adjusted EBITDA Margin increased 200 basis points to 31.5% from 29.5% in 2025. The increase in Segment Adjusted EBITDA was primarily due to higher organic gross profit of $7.8 million or 6.7%, lower selling and administrative costs of $4.4 million or 3.8%, acquisitions of $4.0 million or 3.4%, and the favorable impact of foreign currencies of $1.5 million or 1.3%.
Current report
Segment Orders for the six month period ended June 30, 2026 were $842.3 million, an increase of $68.3 million, or 8.8%, compared to $774.0 million in the same six month period in 2025. The increase in Segment Orders was due to higher organic orders of $30.4 million or 3.9%, acquisitions of $19.0 million or 2.5%, and the favorable impact of foreign currencies of $18.9 million or 2.4%.
Current report
Segment Revenues for the six month period ended June 30, 2026 were $829.4 million, an increase of $68.4 million, or 9.0%, compared to $761.0 million in the same six month period in 2025. The increase in Segment Revenues was due to higher organic revenues of $31.1 million or 4.1%, acquisitions of $19.0 million or 2.5%, and favorable impact of foreign currencies of $18.3 million or 2.4%. The percentage of Segment Revenues derived from aftermarket parts and service was 21.4% in the six month period ended June 30, 2026 compared to 21.4% in the same six month period in 2025.
Current report
Segment Adjusted EBITDA for the six month period ended June 30, 2026 was $256.4 million, an increase of $33.4 million, or 15.0%, from $223.0 million in the same six month period in 2025. Segment Adjusted EBITDA Margin increased 160 basis points to 30.9% from 29.3% in 2025. The increase in Segment Adjusted EBITDA was primarily due to higher organic gross profit of $17.0 million or 7.6%, the favorable impact of foreign currencies of $6.4 million or 2.9%, acquisitions of $6.0 million or 2.7%, and lower selling and administrative costs of $4.0 million or 1.8%.
Current report
Short-term borrowings and current maturities of long-term debt increased to $699.8 million at June 30, 2026 from $1.4 million at December 31, 2025 primarily due to the reclassification of the Company's 2027 Notes, which will mature in the second quarter of 2027. The reclassification had no impact on total debt outstanding. We expect to maintain or have access to sufficient liquidity to retire or refinance long-term debt at maturity or otherwise, from our operating cash flows, our Commercial Paper Program, and our Revolving Credit Facility.
Current report
(2)The six month period ended June 30, 2026 includes $25 million collected related to the representations and warranties settlement.
Removed paragraphs (9)
Previous report
Other Operating Expense, Net
Previous report
Net Income
Previous report
Segment Orders for the three month period ended March 31, 2026 were $1,557.9 million, an increase of $70.9 million, or 4.8%, compared to $1,487.0 million in the same three month period in 2025. The increase in Segment Orders was due to acquisitions of
Previous report
$48.4 million or 3.3% and the favorable impact of foreign currencies of $60.6 million or 4.1%, partially offset by lower organic orders of $38.1 million or 2.6%.
Previous report
Segment Revenues for the three month period ended March 31, 2026 were $1,444.5 million, an increase of $92.4 million, or 6.8%, compared to $1,352.1 million in the same three month period in 2025. The increase in Segment Revenues was due to acquisitions of $56.4 million or 4.2%, and the favorable impact of foreign currencies of $57.8 million or 4.3%, partially offset by lower organic revenues of $21.8 million or 1.6%. The percentage of Segment Revenues derived from aftermarket parts and service was 41.7% in the three month period ended March 31, 2026 compared to 42.5% in the same three month period in 2025.
Previous report
Segment Adjusted EBITDA for the three month period ended March 31, 2026 was $385.5 million, a decrease of $3.6 million, or 0.9%, from $389.1 million in the same three month period in 2025. Segment Adjusted EBITDA Margin decreased 210 basis points to 26.7% from 28.8% in 2025. The decrease in Segment Adjusted EBITDA was primarily due to lower organic gross profit of $37.4 million or 9.6%, partially offset by favorable impact of foreign currencies of $13.6 million or 3.5%, acquisitions of $12.1 million or 3.1%, and lower selling and administrative costs of $8.2 million or 2.1%.
Previous report
Segment Orders for the three month period ended March 31, 2026 were $420.1 million, an increase of $24.8 million, or 6.3%, compared to $395.3 million in the same three month period in 2025. The increase in Segment Orders was due to the favorable impact of foreign currencies of $15.3 million or 3.9%, acquisitions of $7.1 million or 1.8%, and higher organic orders of $2.4 million or 0.6%.
Previous report
Segment Revenues for the three month period ended March 31, 2026 were $402.7 million, an increase of $38.0 million, or 10.4%, compared to $364.7 million in the same three month period in 2025. The increase in Segment Revenues was primarily due to higher organic revenues of $15.9 million or 4.4%, favorable impact of foreign currencies of $14.6 million or 4.0%, and acquisitions of $7.5 million or 2.1%. The percentage of Segment Revenues derived from aftermarket parts and service was 22.2% in the three month period ended March 31, 2026 compared to 21.5% in the same three month period in 2025.
Previous report
Segment Adjusted EBITDA for the three month period ended March 31, 2026 was $121.9 million, an increase of $15.7 million, or 14.8%, from $106.2 million in the same three month period in 2025. Segment Adjusted EBITDA Margin increased 120 basis points to 30.3% from 29.1% in 2025. The increase in Segment Adjusted EBITDA was primarily due to higher organic gross profit of $9.2 million or 8.7%, favorable impact of foreign currencies of $4.9 million or 4.6%, and acquisitions of $2.0 million or 1.9%, partially offset by higher selling and administrative costs of $0.4 million or 0.4%.
Reworded paragraphs (28)
Previous wording
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. In 2025, the U.S. government 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 wording
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. In 2025, the U.S. government 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. In February 2026, the United States Supreme Court ruled that tariffs imposed under IEEPA on goods imported into the United States were unauthorized. Following this ruling, and effective on April 20, 2026, the United States Customs and Border Protection launched a platform for importers of record to submit IEEPA tariff refund requests. See Note 18 “Contingencies” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further discussion of these tariffs. 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.
Previous wording
A significant portion of our revenues, approximately 57% for the three month period ended March 31, 2026, 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
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 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, 2026 and 2025.
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 and six month periods ended June 30, 2026 and 2025.
Previous wording
Revenues for the three month period ended March 31, 2026 were $1,847.2 million, an increase of $130.4 million, or 7.6%, compared to $1,716.8 million for the same three month period in 2025. The increase in revenues was primarily due to favorable impact of foreign currencies of $72.4 million and acquisitions of $63.9 million, partially offset by lower organic revenues of $5.9 million. The percentage of consolidated revenues derived from aftermarket parts and services was 37.4% in the three month period ended March 31, 2026 compared to 38.1% in the same three month period in 2025.
Current wording
Revenues for the three month period ended June 30, 2026 were $2,048.8 million, an increase of $160.9 million, or 8.5%, compared to $1,887.9 million for the same three month period in 2025. The increase in revenues was primarily due to higher organic revenues of $77.5 million, acquisitions of $53.4 million, and the favorable impact of foreign currencies of $30.0 million. The percentage of consolidated revenues derived from aftermarket parts and services was 35.9% in the three month period ended June 30, 2026 compared to 36.6% in the same three month period in 2025.
Previous wording
Gross profit for the three month period ended March 31, 2026 was $792.4 million, an increase of $26.9 million, or 3.5%, compared to $765.5 million for the same three month period in 2025, and as a percentage of revenues was 42.9% for the three month period ended March 31, 2026 and 44.6% for the same three month period in 2025. The increase in gross profit is primarily due to the favorable impact of foreign currencies and acquisitions. The decrease in gross profit as a percentage of revenues is primarily due to unfavorable cost leverage on lower organic revenues, unfavorable product mix, and tariff related pricing targeted to offset tariff cost increases one for one, partially offset by cost measures.
Current wording
Gross profit for the six month period ended June 30, 2026 was $1,655.0 million, an increase of $64.6 million, or 4.1%, compared to $1,590.4 million for the same six month period in 2025, and as a percentage of revenues was 42.5% for the six month period ended June 30, 2026 and 44.1% for the same six month period in 2025. The increase in gross profit is primarily due to acquisitions and the favorable impact of foreign currencies. The decrease in gross profit as a percentage of revenues is primarily due to unfavorable cost leverage on lower organic revenues and unfavorable product mix, partially offset by cost measures.
Previous wording
Selling and administrative expenses were $370.7 million for the three month period ended March 31, 2026, an increase of $20.7 million, or 5.9%, compared to $350.0 million for the same three month period in 2025. The increase in selling and administrative expenses was primarily due to acquisitions. Selling and administrative expenses as a percentage of revenues decreased to 20.1% for the three month period ended March 31, 2026 from 20.4% in the same three month period in 2025. The decrease in selling and administrative expenses as a percentage of revenues is primarily due to cost measures, partially offset by lower organic revenues.
Current wording
Selling and administrative expenses were $400.8 million for the three month period ended June 30, 2026, an increase of $29.6 million, or 8.0%, compared to $371.2 million for the same three month period in 2025. The increase in selling and administrative expenses was primarily due to acquisitions and an increase in incentive compensation. Selling and administrative expenses as a percentage of revenues decreased to 19.6% for the three month period ended June 30, 2026 from 19.7% in the same three month period in 2025. The decrease in selling and administrative expenses as a percentage of revenues is primarily due to cost measures.
Previous wording
Amortization of intangible assets was $107.5 million for the three month period ended March 31, 2026, an increase of $16.2 million, compared to $91.3 million in the same three month period in 2025. The increase was primarily due to businesses acquired in 2025 and amortization related to certain tradenames that were determined to no longer have indefinite lives during the fourth quarter of 2025. Refer to Note 2 “Acquisitions” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further information regarding businesses acquired.
Current wording
Amortization of intangible assets was $102.6 million for the three month period ended June 30, 2026, an increase of $11.0 million, compared to $91.6 million in the same three month period in 2025. The increase was primarily due to businesses acquired in 2025 and amortization related to certain tradenames that were determined to no longer have indefinite lives during the fourth quarter of 2025. Refer to Note 2 “Acquisitions” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further information regarding businesses acquired.
Previous wording
Other operating expense, net was $24.5 million for the three month period ended March 31, 2026, an increase of $2.8 million, compared to $21.7 million in the same three month period in 2025. The increase in expense was primarily due to higher acquisition and other transaction related expenses of $3.8 million and higher restructuring charges of $3.4 million, partially offset by lower foreign currency transaction losses, net of $4.6 million.
Current wording
Other operating expense, net was $3.4 million for the six month period ended June 30, 2026, a decrease of $38.2 million, compared to $41.6 million in the same six month period in 2025. The decrease was primarily due to the recovery of acquisition related losses, net of $25.0 million in the 2026 period, lower acquisition and other transaction related expenses, net of $10.7 million, lower foreign currency transaction losses, net of $7.9 million, partially offset by higher restructuring charges of $3.4 million.
Previous wording
Interest expense was $63.8 million for the three month period ended March 31, 2026, an increase of $2.6 million, compared to $61.2 million in the same three month period in 2025. The increase was primarily due to gains from terminated cash flow hedges that were reclassified into earnings during the 2025 period. The weighted average interest rate, including the impact of the active interest rate derivative contracts, was approximately 4.9% for the three month period ended March 31, 2026 and 5.0% in the same three month period in 2025.
Current wording
Interest expense was $63.3 million for the three month period ended June 30, 2026, an increase of $0.6 million, compared to $62.7 million in the same three month period in 2025. The increase was primarily due to gains from terminated cash flow hedges that were reclassified into earnings during the 2025 period. The weighted average interest rate, including the impact of the active interest rate derivative contracts, was approximately 4.9% for the three month period ended June 30, 2026 and 5.0% in the same three month period in 2025.
Previous wording
Other income, net was $4.0 million and $11.8 million in the three month periods ended March 31, 2026 and 2025, respectively. The decrease was primarily due to a decrease in interest income from holdings of cash and cash equivalents.
Current wording
Other income, net was $10.1 million and $14.4 million in the three month periods ended June 30, 2026 and 2025, 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 $36.1 million, resulting in a 15.7% effective income tax provision rate for the three month period ended March 31, 2026, compared to a provision for income taxes of $58.5 million, resulting in a 23.1% effective income tax provision rate in the same three month period in 2025. The decrease in the tax provision and the effective income tax provision rate for the three month period ended March 31, 2026 when compared to the same three month period of 2025 is primarily due to a benefit of a windfall tax deduction.
Current wording
The provision for income taxes was $69.1 million, resulting in a 21.1% effective income tax provision rate for the three month period ended June 30, 2026, compared to a provision for income taxes of $21.0 million, resulting in a 74.7% effective income tax provision rate in the same three month period in 2025. The increase in the tax provision and decrease in the effective income tax provision rate for the three month period ended June 30, 2026 when compared to the same three month period of 2025 is primarily due to nondeductible impairments of goodwill, tradenames, and equity investment in the 2025 period.
Previous wording
Net income was $193.8 million for the three month period ended March 31, 2026 compared to net income of $188.4 million in the same three month period in 2025. The increase in net income was primarily due to higher gross profit, partially offset by higher selling and administrative expenses and higher amortization expense discussed above.
Current wording
Net income was $258.0 million for the three month period ended June 30, 2026 compared to net loss of $113.8 million in the same three month period in 2025. The increase in net income was primarily due to impairments of goodwill and other intangible assets and the impairment of an equity method investment in the 2025 period that did not recur in the 2026 period, higher gross profit, and lower other operating expense (income), net, partially offset by higher selling and administrative expenses and higher amortization expense discussed above.
Previous wording
Adjusted EBITDA increased $9.4 million to $469.1 million for the three month period ended March 31, 2026 compared to $459.7 million in the same three month period in 2025. Adjusted EBITDA as a percentage of revenues decreased 140 basis points to 25.4% for the three month period ended March 31, 2026 from 26.8% for the same three month period in 2025. The increase in Adjusted EBITDA was primarily due to the favorable impact of foreign currencies of $17.2 million, acquisitions of $14.1 million and lower selling and administrative costs of $6.2 million, partially offset by lower organic gross profit of $27.8 million. The decrease in Adjusted EBITDA as a percentage of revenues is primarily attributable to input cost inflation and product mix.
Current wording
Adjusted EBITDA increased $10.5 million to $519.9 million for the three month period ended June 30, 2026 compared to $509.4 million in the same three month period in 2025. Adjusted EBITDA as a percentage of revenues decreased 160 basis points to 25.4% for the three month period ended June 30, 2026 from 27.0% for the same three month period in 2025. The increase in Adjusted EBITDA was primarily due to acquisitions of $13.7 million, the favorable impact of foreign currencies of $6.9 million and higher organic gross profit of $3.3 million, partially offset by higher selling and administrative costs of $12.3 million. The decrease in Adjusted EBITDA as a percentage of revenues is primarily attributable to input cost inflation and product mix.
Previous wording
Adjusted Net Income increased $11.4 million to $304.6 million for the three month period ended March 31, 2026 compared to $293.2 million in the same three month period in 2025. The increase was primarily due to higher Adjusted EBITDA and lower income tax provision, as adjusted, partially offset by lower interest income on cash and cash equivalents and higher interest expense.
Current wording
Adjusted Net Income increased $14.1 million to $339.3 million for the three month period ended June 30, 2026 compared to $325.2 million in the same three month period in 2025. The increase was primarily due to higher Adjusted EBITDA and lower income tax provision, as adjusted, partially offset by lower interest income on cash and cash equivalents, higher depreciation expense, and higher interest expense.
Previous wording
Set forth below are the reconciliations of Net Income to Adjusted EBITDA and Adjusted Net Income and Cash Flows from Operating Activities to Free Cash Flow.
Current wording
Set forth below are the reconciliations of Net Income (Loss) to Adjusted EBITDA and Adjusted Net Income and Cash Flows from Operating Activities to Free Cash Flow.
Previous wording
(a)Depreciation expense excludes $1.1 million and $1.1 million of depreciation of rental equipment for the three month periods ended March 31, 2026 and 2025, respectively.
Current wording
(a)Depreciation expense excludes $0.9 million and $1.3 million of depreciation of rental equipment for the three month periods ended June 30, 2026 and 2025, respectively, and excludes $2.0 million and $2.4 million for the six month periods ended June 30, 2026 and 2025.
Previous wording
(b)Represents $105.2 million and $89.0 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $2.3 million and $2.3 million of amortization of non-acquisition related intangible assets, in each case for the three month periods ended March 31, 2026 and 2025, respectively.
Current wording
(b)Represents $100.4 million and $89.1 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $2.2 million and $2.5 million of amortization of non-acquisition related intangible assets, in each case for the three month periods ended June 30, 2026 and 2025, respectively.
Previous wording
(f)Includes (i) pension and other postemployment plan costs other than service costs and (ii) other miscellaneous adjustments.
Current wording
(g)Includes (i) pension and other postemployment plan costs other than service costs, (ii) legal fees related to intellectual property litigation, and (iii) other miscellaneous adjustments.
Previous wording
(g)Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted Net Income and the removal of the applicable discrete tax items. The tax effect of pre-tax items excluded from Adjusted Income is computed using the statutory tax rate related to the jurisdiction that was impacted by the adjustment after taking into account the impact of permanent differences and valuation allowances. Discrete tax items include changes in tax laws or rates, changes in uncertain tax positions relating to prior years and changes in valuation allowances. The adjusted amounts are then used to calculate an adjusted provision for the quarter.
Current wording
(h)Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted Net Income and the removal of the applicable discrete tax items. The tax effect of pre-tax items excluded from Adjusted Income is computed using the statutory tax rate related to the jurisdiction that was impacted by the adjustment after taking into account the impact of permanent differences and valuation allowances. Discrete tax items include changes in tax laws or rates, changes in uncertain tax positions relating to prior years and changes in valuation allowances. The adjusted amounts are then used to calculate an adjusted provision for the quarter.
Previous wording
Segment Results for the Three Month Periods Ended March 31, 2026 and 2025
Current wording
Segment Results for the Three and Six Month Periods Ended June 30, 2026 and 2025
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 March 31, 2026 was $69.2 million which consists mainly 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.
Previous wording
Net working capital increased $181.9 million to $2,363.6 million as of March 31, 2026 from $2,181.7 million as of December 31, 2025. Operating working capital increased $154.4 million to $1,762.9 million as of March 31, 2026 from $1,608.5 million as of December 31, 2025. The increase in operating working capital is due to lower accounts payable, higher inventories, and lower contract liabilities, partially offset by lower accounts receivable and lower contract assets.
Current wording
Net working capital decreased $547.0 million to $1,634.7 million as of June 30, 2026 from $2,181.7 million as of December 31, 2025. The decrease in net working capital is primarily due to the reclassification of the Company's 2027 Notes, which will mature in the second quarter of 2027. Operating working capital increased $166.2 million to $1,774.7 million as of June 30, 2026 from $1,608.5 million as of December 31, 2025. The increase in operating working capital is due to lower accounts payable, higher inventories, and lower contract liabilities, partially offset by lower accounts receivable and lower contract assets.
Previous wording
The following table reflects the major categories of cash flows for the three month periods ended March 31, 2026 and 2025, respectively.
Current wording
The following table reflects the major categories of cash flows for the six month periods ended June 30, 2026 and 2025, respectively.
Previous wording
Cash provided by operating activities decreased $56.7 million to $199.7 million for the three month period ended March 31, 2026 from $256.4 million in the same three month period in 2025. This decrease is primarily attributable to an increase in cash used in operating working capital in 2026, compared to 2025 and higher tax payments in 2026, compared to 2025, partially offset by an increase in net income excluding non-cash adjustments in 2026, compared to 2025.
Current wording
Cash provided by operating activities decreased $6.5 million to $495.6 million for the six month period ended June 30, 2026 from $502.1 million in the same six month period in 2025. This decrease is primarily attributable to an increase in cash used in operating working capital in 2026, compared to 2025 and higher tax payments in 2026, compared to 2025, partially offset by lower incentive compensation payments in 2026, compared to 2025 and an increase in net income excluding non-cash adjustments in 2026, compared to 2025.
Previous wording
Cash used in investing activities included capital expenditures of $36.3 million and $33.7 million for the three month periods ended March 31, 2026 and 2025, respectively. Net cash paid in acquisitions was $52.0 million and $163.4 million in the three month periods ended March 31, 2026 and 2025, respectively.
Current wording
Cash used in investing activities included capital expenditures of $63.3 million and $69.0 million for the six month periods ended June 30, 2026 and 2025, respectively. Net cash paid in acquisitions was $162.0 million and $210.4 million in the six month periods ended June 30, 2026 and 2025, respectively.
Previous wording
Cash used in financing activities of $83.8 million for the three month period ended March 31, 2026 primarily reflected purchases of treasury stock of $89.5 million, cash dividends on common stock of $7.8 million, payments of deferred and contingent acquisition consideration of $1.4 million, and other financing outflows of $1.0 million, partially offset by proceeds from stock option exercises of $15.9 million.
Current wording
Cash used in financing activities of $344.1 million for the six month period ended June 30, 2026 primarily reflected purchases of treasury stock, including excise tax payments, of $338.8 million, cash dividends on common stock of $15.7 million, payments of deferred and contingent acquisition consideration of $5.8 million, and other financing outflows of $1.5 million, partially offset by proceeds from stock option exercises of $17.7 million.
Previous 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 outflows of $4.3 million.
Current wording
Cash used in financing activities of $523.1 million for the six month period ended June 30, 2025 primarily reflected purchases of treasury stock, including excise tax payments, of $510.7 million, cash dividends on common stock of $16.1 million, and payments of deferred and contingent acquisition consideration of $2.8 million, partially offset by proceeds from stock option exercises of $9.1 million.
Previous wording
Free cash flow decreased $59.3 million to $163.4 million in the three month period ended March 31, 2026 from $222.7 million in the same three month period in 2025 due to lower cash provided by operating activities as discussed above.
Current wording
Free cash flow decreased $0.8 million to $432.3 million in the six month period ended June 30, 2026 from $433.1 million in the same six month period in 2025 due to lower cash provided by operating activities as discussed above, partially offset by lower capital expenditures.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
A significant portion of our revenues, approximately 56% for the six month period ended June 30, 2026, 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
Current report — wording carried from elsewhere
Gross profit for the three month period ended June 30, 2026 was $862.6 million, an increase of $37.7 million, or 4.6%, compared to $824.9 million for the same three month period in 2025, and as a percentage of revenues was 42.1% for the three month period ended June 30, 2026 and 43.7% for the same three month period in 2025. The increase in gross profit is primarily due to acquisitions, the favorable impact of foreign currencies, and higher organic gross profit. The decrease in gross profit as a percentage of revenues is primarily due to unfavorable product mix, partially offset by cost measures.
Current report — wording carried from elsewhere
Amortization of intangible assets was $210.1 million for the six month period ended June 30, 2026, an increase of $27.2 million, compared to $182.9 million in the same six month period in 2025. The increase was primarily due to businesses acquired in 2025 and amortization related to certain tradenames that were determined to no longer have indefinite lives during the fourth quarter of 2025. Refer to Note 2 “Acquisitions” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further information regarding businesses acquired.
Current report — wording carried from elsewhere
Interest expense was $127.1 million for the six month period ended June 30, 2026, an increase of $3.2 million, compared to $123.9 million in the same six month period in 2025. The increase was primarily due to gains from terminated cash flow hedges that were reclassified into earnings during the 2025 period. The weighted average interest rate, including the impact of the active interest rate derivative contracts, was approximately 4.9% for the six month period ended June 30, 2026 and 5.0% in the same period in 2025.
Current report — wording carried from elsewhere
Other income, net was $14.1 million and $26.2 million in the six month periods ended June 30, 2026 and 2025, respectively. The decrease was primarily due to a decrease in interest income from holdings of cash and cash equivalents.
Current report — wording carried from elsewhere
The provision for income taxes was $105.2 million, resulting in a 18.9% effective income tax provision rate for the six month period ended June 30, 2026, compared to a provision for income taxes of $79.5 million, resulting in a 28.3% effective income tax provision rate in the same six month period in 2025. The increase in the provision for income taxes and decrease in the effective income tax provision rate for the six month period ended June 30, 2026 when compared to the same six month period of 2025 is primarily due to a higher benefit of a windfall tax deduction in the 2026 period compared to the 2025 period and nondeductible impairments of goodwill, tradenames, and equity investment in the 2025 period.
Current report — wording carried from elsewhere
Adjusted Net Income increased $25.5 million to $643.9 million for the six month period ended June 30, 2026 compared to $618.4 million in the same six month period in 2025. The increase was primarily due to higher Adjusted EBITDA and lower income tax provision, as adjusted, partially offset by lower interest income on cash and cash equivalents, higher interest expense, and higher depreciation expense.
Current report — wording carried from elsewhere
Represents $205.6 million and $178.1 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $4.5 million and $4.8 million of amortization of non-acquisition related intangible assets, in each case for the six month periods ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
earnings back to the United States. Our deferred income tax liability as of June 30, 2026 was $67.3 million which consists mainly of withholding taxes.