Ingersoll Rand Inc.
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
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.
Sep 30, 2026 · Filed Oct 30, 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 2026-06-30; filed 2026-07-31.
0001628280-26-051415
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0001628280-26-068577
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 134 previous paragraphs and 132 current paragraphs.
73 unchanged; 44 reworded; 15 added; 15 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 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 (15)
Current report
Net Income
Current report
Adjusted EBITDA increased $39.8 million to $584.4 million for the three month period ended September 30, 2026 compared to $544.6 million in the same three month period in 2025. Adjusted EBITDA as a percentage of revenues increased 40 basis points to 28.3% for the three month period ended September 30, 2026 from 27.9% for the same three month period in 2025. The increase in Adjusted EBITDA was primarily due to higher organic gross profit of $50.6 million (inclusive of IEEPA tariff refunds of $32.3 million), acquisitions of $7.3 million, and the favorable impact of foreign currencies of $1.1 million, partially offset by higher selling and administrative costs of $19.7 million. The increase in Adjusted EBITDA as a percentage of revenues is primarily attributable to IEEPA tariff refunds, partially offset by product mix.
Current report
Segment Orders for the three month period ended September 30, 2026 were $1,897.5 million, an increase of $375.3 million, or 24.7%, compared to $1,522.2 million in the same three month period in 2025. The increase in Segment Orders was due to higher organic orders of $336.6 million or 22.1% (driven by several large long-cycle ETO orders), acquisitions of $21.6 million or 1.4%, and the favorable impact of foreign currencies of $17.1 million or 1.1%. Segment Orders includes an approximately $195 million order for an ETO data center infrastructure solution. To strategically enter this end market, the quoted margin for this order is below the segment profile margin.
Current report
Segment Revenues for the three month period ended September 30, 2026 were $1,620.0 million, an increase of $79.5 million, or 5.2%, compared to $1,540.5 million in the same three month period in 2025. The increase in Segment Revenues was due to higher organic revenues of $53.2 million or 3.5%, acquisitions of $19.2 million or 1.2%, and the favorable impact of foreign currencies of $7.1 million or 0.5%. The percentage of Segment Revenues derived from aftermarket parts and service was 40.4% in the three month period ended September 30, 2026 compared to 40.5% in the same three month period in 2025.
Current report
Segment Adjusted EBITDA for the three month period ended September 30, 2026 was $475.7 million, an increase of $28.2 million, or 6.3%, from $447.5 million in the same three month period in 2025. Segment Adjusted EBITDA Margin increased 40 basis points to 29.4% from 29.0% in 2025. The increase in Segment Adjusted EBITDA was primarily due to higher organic gross profit of $28.4 million or 6.3% (inclusive of IEEPA tariff refunds of $24.9 million), acquisitions of $4.6 million or 1.0%, and the favorable impact of foreign currencies of $1.5 million or 0.3%, partially offset by higher selling and administrative costs of $6.5 million or 1.5%.
Current report
Segment Orders for the nine month period ended September 30, 2026 were $5,076.1 million, an increase of $506.0 million, or 11.1%, compared to $4,570.1 million in the same nine month period in 2025. The increase in Segment Orders was due to higher organic orders of $300.6 million or 6.6% (driven by several large long-cycle ETO orders), acquisitions of $105.6 million or 2.3%, and the favorable impact of foreign currencies of $99.8 million or 2.2%. Segment Orders includes an approximately $195 million order for an ETO data center infrastructure solution. To strategically enter this end market, the quoted margin for this order is below the segment profile margin.
Current report
Segment Revenues for the nine month period ended September 30, 2026 were $4,686.6 million, an increase of $302.4 million, or 6.9%, compared to $4,384.2 million in the same nine month period in 2025. The increase in Segment Revenues was due to acquisitions of $117.5 million or 2.7%, higher organic revenues of $93.7 million or 2.1%, and favorable impact of foreign currencies of $91.2 million or 2.1%. The percentage of Segment Revenues derived from aftermarket parts and service was 40.6% in the nine month period ended September 30, 2026 compared to 41.2% in the same nine month period in 2025.
Current report
Segment Adjusted EBITDA for the nine month period ended September 30, 2026 was $1,295.7 million, an increase of $31.9 million, or 2.5%, from $1,263.8 million in the same nine month period in 2025. Segment Adjusted EBITDA Margin decreased 120 basis points to 27.6% from 28.8% in 2025. The increase in Segment Adjusted EBITDA was primarily due to acquisitions of $26.4 million or 2.1% and the favorable impact of foreign currencies of $20.9 million or 1.7%, partially offset by lower organic gross profit of $13.4 million or 1.1% (inclusive of IEEPA tariff refunds of $33.7 million) and higher selling and administrative costs of $1.3 million or 0.1%.
Current report
Segment Orders for the three month period ended September 30, 2026 were $447.6 million, an increase of $27.5 million, or 6.5%, compared to $420.1 million in the same three month period in 2025. The increase in Segment Orders was due to higher organic orders of $17.8 million or 4.2% and acquisitions of $10.7 million or 2.5%, partially offset by the unfavorable impact of foreign currencies of $1.0 million or 0.2%.
Current report
Segment Revenues for the three month period ended September 30, 2026 were $444.9 million, an increase of $30.4 million, or 7.3%, compared to $414.5 million in the same three month period in 2025. The increase in Segment Revenues was primarily due to higher organic revenues of $22.8 million or 5.5% and acquisitions of $9.0 million or 2.2%, partially offset by the unfavorable impact of foreign currencies of $1.4 million or 0.3%. The percentage of Segment Revenues derived from aftermarket parts and service was 19.7% in the three month period ended September 30, 2026 compared to 20.7% in the same three month period in 2025.
Current report
Segment Adjusted EBITDA for the three month period ended September 30, 2026 was $152.5 million, an increase of $24.9 million, or 19.5%, from $127.6 million in the same three month period in 2025. Segment Adjusted EBITDA Margin increased 350 basis points to 34.3% from 30.8% in 2025. The increase in Segment Adjusted EBITDA was primarily due to higher organic gross profit of $21.9 million or 17.2% (inclusive of IEEPA tariff refunds of $7.4 million), acquisitions of $2.7 million or 2.1%, and lower selling and administrative costs of $0.5 million or 0.4%, partially offset by the unfavorable impact of foreign currencies of $0.5 million or 0.4%.
Current report
Segment Orders for the nine month period ended September 30, 2026 were $1,289.9 million, an increase of $95.8 million, or 8.0%, compared to $1,194.1 million in the same nine month period in 2025. The increase in Segment Orders was due to higher organic orders of $48.2 million or 4.0%, acquisitions of $29.7 million or 2.5%, and the favorable impact of foreign currencies of $17.9 million or 1.5%.
Current report
Segment Revenues for the nine month period ended September 30, 2026 were $1,274.3 million, an increase of $98.8 million, or 8.4%, compared to $1,175.5 million in the same nine month period in 2025. The increase in Segment Revenues was due to higher organic revenues of $53.9 million or 4.6%, acquisitions of $28.0 million or 2.4%, and favorable impact of foreign currencies of $16.9 million or 1.4%. The percentage of Segment Revenues derived from aftermarket parts and service was 20.8% in the nine month period ended September 30, 2026 compared to 21.1% in the same nine month period in 2025.
Current report
Segment Adjusted EBITDA for the nine month period ended September 30, 2026 was $408.9 million, an increase of $58.3 million, or 16.6%, from $350.6 million in the same nine month period in 2025. Segment Adjusted EBITDA Margin increased 230 basis points to 32.1% from 29.8% in 2025. The increase in Segment Adjusted EBITDA was primarily due to higher organic gross profit of $38.9 million or 11.1% (inclusive of IEEPA tariff refunds of $8.9 million), acquisitions of $8.7 million or 2.5%, the favorable impact of foreign currencies of $5.9 million or 1.7%, and lower selling and administrative costs of $4.5 million or 1.3%.
Current report
(1)The nine month period ended September 30, 2026 includes $187.5 million collected related to the representations and warranties settlement and $42.6 million from IEEPA tariff refunds.
Removed paragraphs (15)
Previous report
Net Income (Loss)
Previous 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.
Previous 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%.
Previous 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.
Previous 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%.
Previous 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%.
Previous 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.
Previous 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%.
Previous 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%.
Previous 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.
Previous 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%.
Previous 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%.
Previous 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.
Previous 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%.
Previous report
(2)The six month period ended June 30, 2026 includes $25 million collected related to the representations and warranties settlement.
Reworded paragraphs (44)
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. 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.
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 the International Emergency Economic Powers Act (“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
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 55% for the nine month period ended September 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 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 and six month periods ended June 30, 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 nine month periods ended September 30, 2026 and 2025.
Previous wording
(2)The three and six month periods ended June 30, 2026 include $25 million collected related to the representations and warranties settlement.
Current wording
(2)The three and nine month periods ended September 30, 2026 include $162.5 million and $187.5 million, respectively, collected related to the representations and warranties settlement and $32.3 million and $42.6 million, respectively, of IEEPA tariff refunds.
Previous 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.
Current wording
Revenues for the three month period ended September 30, 2026 were $2,064.9 million, an increase of $109.9 million, or 5.6%, compared to $1,955.0 million for the same three month period in 2025. The increase in revenues was primarily due to higher organic revenues of $76.0 million, acquisitions of $28.2 million, and the favorable impact of foreign currencies of $5.7 million. The percentage of consolidated revenues derived from aftermarket parts and services was 35.9% in the three month period ended September 30, 2026 compared to 36.3% in the same three month period in 2025.
Previous wording
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 wording
Revenues for the nine month period ended September 30, 2026 were $5,960.9 million, an increase of $401.2 million, or 7.2%, compared to $5,559.7 million for the same nine month period in 2025. The increase in revenues was primarily due to higher organic revenues of $147.6 million, acquisitions of $145.5 million, and the favorable impact of foreign currencies of $108.1 million. The percentage of consolidated revenues derived from aftermarket parts and services was 36.4% in the nine month period ended September 30, 2026 compared to 36.9% in the same nine month period in 2025.
Previous wording
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 wording
Gross profit for the three month period ended September 30, 2026 was $924.3 million, an increase of $69.1 million, or 8.1%, compared to $855.2 million for the same three month period in 2025, and as a percentage of revenues was 44.8% for the three month period ended September 30, 2026 and 43.7% for the same three month period in 2025. The increase in gross profit is primarily due to higher organic gross profit, acquisitions, and the favorable impact of foreign currencies. The increase in gross profit as a percentage of revenues is primarily due to IEEPA tariff refunds and cost measures, partially offset by unfavorable product mix.
Previous 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.
Current wording
Gross profit for the nine month period ended September 30, 2026 was $2,579.3 million, an increase of $133.7 million, or 5.5%, compared to $2,445.6 million for the same nine month period in 2025, and as a percentage of revenues was 43.3% for the nine month period ended September 30, 2026 and 44.0% for the same nine month period in 2025. The increase in gross profit is primarily due to higher organic gross profit, acquisitions, and the favorable impact of foreign currencies. The decrease in gross profit as a percentage of revenues is primarily due to unfavorable product mix, partially offset by IEEPA tariff refunds and cost measures.
Previous 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.
Current wording
Selling and administrative expenses were $389.7 million for the three month period ended September 30, 2026, an increase of $28.7 million, or 8.0%, compared to $361.0 million for the same three month period in 2025. The increase in selling and administrative expenses was primarily due to an increase in incentive compensation and acquisitions. Selling and administrative expenses as a percentage of revenues increased to 18.9% for the three month period ended September 30, 2026 from 18.5% in the same three month period in 2025. The increase in selling and administrative expenses as a percentage of revenues is primarily due to an increase in incentive compensation.
Previous wording
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 wording
Selling and administrative expenses were $1,161.2 million for the nine month period ended September 30, 2026, an increase of $79.0 million, or 7.3%, compared to $1,082.2 million for the same nine 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 was 19.5% for the nine month periods ended September 30, 2026 and 2025.
Previous 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.
Current wording
Amortization of intangible assets was $107.4 million for the three month period ended September 30, 2026, an increase of $12.5 million, compared to $94.9 million in the same three month period in 2025. The increase was primarily due to amortization related to certain tradenames that were determined to no longer have indefinite lives during the fourth quarter of 2025 and, to a lesser extent, businesses acquired in 2025 and first nine months of 2026. 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
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 wording
Amortization of intangible assets was $317.5 million for the nine month period ended September 30, 2026, an increase of $39.7 million, compared to $277.8 million in the same nine month period in 2025. The increase was primarily due to amortization related to certain tradenames that were determined to no longer have indefinite lives during the fourth quarter of 2025 and, to a lesser extent, businesses acquired in 2025 and first nine months of 2026. 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 (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 wording
Other operating expense (income), net was $(355.3) million for the three month period ended September 30, 2026, a decrease of $379.1 million, compared to $23.8 million in the same three month period in 2025. The decrease was primarily due to the recovery of acquisition related losses, net of $380.1 million in the 2026 period and lower restructuring charges of $13.2 million, partially offset by higher acquisition and other transaction related expenses, net of $12.8 million and higher foreign currency transaction losses, net of $0.5 million.
Previous 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.
Current wording
Other operating expense (income), net was $(351.9) million for the nine month period ended September 30, 2026, a decrease of $417.3 million, compared to $65.4 million in the same nine month period in 2025. The decrease was primarily due to the recovery of acquisition related losses, net of $405.1 million in the 2026 period, lower restructuring charges of $9.8 million, and lower foreign currency transaction losses, net of $7.4 million, partially offset by higher acquisition and other transaction related expenses, net of $2.1 million.
Previous 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.
Current wording
Interest expense was $62.7 million for the three month period ended September 30, 2026, a decrease of $2.4 million, compared to $65.1 million in the same three month period in 2025. The decrease was primarily due to the decrease in the weighted average interest rate. The weighted average interest rate, including the impact of the active interest rate derivative contracts, was approximately 4.8% for the three month period ended September 30, 2026 and 5.0% in the same three month period in 2025.
Previous wording
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 wording
Interest expense was $189.8 million for the nine month period ended September 30, 2026, an increase of $0.8 million, compared to $189.0 million in the same nine 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, partially offset by the weighted average interest rate. The weighted average interest rate, including the impact of the active interest rate derivative contracts, was approximately 4.9% for the nine month period ended September 30, 2026 and 5.0% in the same period in 2025.
Previous wording
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 wording
Other income, net was $5.4 million and $9.0 million in the three month periods ended September 30, 2026 and 2025, respectively. The decrease was primarily due to the recognition of unrecognized prior service cost related to our other post retirement benefits in the 2025 period that did not recur in the 2026 period, partially offset by an increase in interest income from holdings of cash and cash equivalents.
Previous 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.
Current wording
Other income, net was $19.5 million and $35.2 million in the nine month periods ended September 30, 2026 and 2025, respectively. The decrease was primarily due to a decrease in interest income from holdings of cash and cash equivalents and the recognition of unrecognized prior service cost related to our other post retirement benefits in the 2025 period that did not recur in the 2026 period.
Previous 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.
Current wording
The provision for income taxes was $53.6 million, resulting in a 7.4% effective income tax provision rate for the three month period ended September 30, 2026, compared to a provision for income taxes of $73.6 million, resulting in a 23.0% effective income tax provision rate in the same three month period in 2025. The decrease in the tax provision and decrease in the effective income tax provision rate for the three month period ended September 30, 2026 when compared to the same three month period of 2025 is primarily attributable to the release of a valuation allowance related to U.S. foreign tax credit carryforwards and a nontaxable settlement related to representations and warranties matters in the 2026 period.
Previous wording
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 wording
The provision for income taxes was $158.8 million, resulting in a 12.4% effective income tax provision rate for the nine month period ended September 30, 2026, compared to a provision for income taxes of $153.1 million, resulting in a 25.5% effective income tax provision rate in the same nine month period in 2025. The increase in the provision for income taxes for the nine month period ended September 30, 2026 when compared to the same nine month period of 2025 is primarily attributable to higher income before income taxes, partially offset by the release of a valuation allowance related to U.S. foreign tax credit carryforwards in the 2026 period and a higher benefit from windfall tax deductions in the 2026 period compared to the 2025 period. The decrease in the effective income tax provision rate for the nine month period ended September 30, 2026 when compared to the same nine month period of 2025 is primarily attributable to the release of a valuation allowance related to U.S. foreign tax credit carryforwards in the 2026 period, a nontaxable settlement related to representations and warranties matters in the 2026 period, a higher benefit from windfall tax deductions in the 2026 period compared to the 2025 period, and nondeductible impairments of goodwill, tradenames, and equity investment in the 2025 period.
Previous 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.
Current wording
Net income was $671.6 million for the three month period ended September 30, 2026 compared to net income of $245.8 million in the same three month period in 2025. The increase in net income was primarily due to lower other operating expense (income), net and higher gross profit, partially offset by higher selling and administrative expenses and higher amortization expense discussed above.
Previous wording
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 wording
Net income was $1,123.4 million for the nine month period ended September 30, 2026 compared to net income of $320.4 million in the same nine month period in 2025. The increase in net income was primarily due to lower other operating expense (income), net, 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, and higher gross profit, partially offset by higher selling and administrative expenses and higher amortization expense discussed above.
Previous 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.
Current wording
Adjusted EBITDA increased $59.7 million to $1,573.4 million for the nine month period ended September 30, 2026 compared to $1,513.7 million in the same nine month period in 2025. Adjusted EBITDA as a percentage of revenues decreased 80 basis points to 26.4% for the nine month period ended September 30, 2026 from 27.2% for the same nine month period in 2025. The increase in Adjusted EBITDA was primarily due to acquisitions of $35.1 million, higher organic gross profit of $26.1 million (inclusive of IEEPA tariff refunds of $42.6 million) and the favorable impact of foreign currencies of $25.2 million, partially offset by higher selling and administrative costs of $25.8 million. The decrease in Adjusted EBITDA as a percentage of revenues is primarily attributable to input cost inflation and product mix, partially offset by IEEPA tariff refunds.
Previous wording
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 wording
Adjusted Net Income increased $71.0 million to $416.6 million for the three month period ended September 30, 2026 compared to $345.6 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, and lower interest expense.
Previous 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.
Current wording
Adjusted Net Income increased $96.5 million to $1,060.5 million for the nine month period ended September 30, 2026 compared to $964.0 million in the same nine 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 depreciation expense.
Previous 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.
Current 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.
Previous 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.
Current wording
(a)Depreciation expense excludes $1.4 million and $1.4 million of depreciation of rental equipment for the three month periods ended September 30, 2026 and 2025, respectively, and excludes $3.4 million and $3.8 million for the nine month periods ended September 30, 2026 and 2025.
Previous 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.
Current wording
(b)Represents $105.2 million and $92.3 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $2.2 million and $2.6 million of amortization of non-acquisition related intangible assets, in each case, for the three month periods ended September 30, 2026 and 2025, respectively.
Previous wording
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 wording
Represents $310.8 million and $270.4 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $6.7 million and $7.4 million of amortization of non-acquisition related intangible assets, in each case, for the nine month periods ended September 30, 2026 and 2025, respectively.
Previous wording
(d)Represents costs associated with successful and/or abandoned acquisitions and divestitures, including third-party expenses, post-closure integration costs, and non-cash charges and credits arising from fair value purchase accounting adjustments.
Current wording
(d)Represents costs associated with successful and/or abandoned acquisitions and divestitures, including third-party expenses, post-closure integration costs, legal settlements related primarily to pre-acquisition periods, and non-cash charges and credits arising from fair value purchase accounting adjustments.
Previous wording
(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 wording
(f)Represents gains from recoveries resulting from breaches of representations and warranties associated with the ILC Dover transaction, net of compensation to employees impacted by the breaches. See Note 18 “Contingencies” to our unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q for further details.
Previous wording
(i)The three and six month periods ended June 30, 2026 include $25 million collected related to the representations and warranties settlement.
Current wording
(i)The three and nine month periods ended September 30, 2026 include $162.5 million and $187.5 million, respectively, collected related to the representations and warranties settlement and $32.3 million and $42.6 million, respectively, of IEEPA tariff refunds.
Previous wording
Segment Results for the Three and Six Month Periods Ended June 30, 2026 and 2025
Current wording
Segment Results for the Three and Nine Month Periods Ended September 30, 2026 and 2025
Previous wording
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 wording
Short-term borrowings and current maturities of long-term debt increased to $700.2 million at September 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.
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.
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 September 30, 2026 was $64.7 million which consists mainly of withholding taxes.
Previous 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.
Current wording
Net working capital decreased $260.4 million to $1,921.3 million as of September 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, partially offset by settlement receivables related to the ILC Dover transaction and changes in operating working capital. Operating working capital increased $196.4 million to $1,804.9 million as of September 30, 2026 from $1,608.5 million as of December 31, 2025. The increase in operating working capital is due to higher inventories, lower accounts payable, higher accounts receivable, and lower contract liabilities, partially offset by lower contract assets.
Previous wording
The decrease 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 support channel access, foreign currency translation, and acquisitions. The decrease 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 decrease 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 support channel access, foreign currency translation, and acquisitions. The decrease 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 decrease 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 six month periods ended June 30, 2026 and 2025, respectively.
Current wording
The following table reflects the major categories of cash flows for the nine month periods ended September 30, 2026 and 2025, respectively.
Previous wording
(1)See the “Non-GAAP Financial Measures” section included in this Quarterly Report for a reconciliation to the nearest GAAP measure.
Current wording
(2)See the “Non-GAAP Financial Measures” section included in this Quarterly Report for a reconciliation to the nearest GAAP measure.
Previous 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.
Current wording
Cash provided by operating activities increased $286.7 million to $1,143.4 million for the nine month period ended September 30, 2026 from $856.7 million in the same nine month period in 2025. This increase is primarily attributable to collections related to the representations and warranties settlement, IEEPA tariff refunds, lower incentive compensation payments in 2026, compared to 2025 and a decrease in cash used in operating working capital in 2026, compared to 2025. Partially offsetting these favorable impacts were higher tax payments in 2026, compared to 2025.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (2)
Previous report — wording carried 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
Previous report — wording carried 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.