Core Insights - Oshkosh (OSK) currently presents a stronger investment opportunity compared to Ingersoll Rand (IR) based on Zacks Rank and valuation metrics [3][7] Valuation Metrics - OSK has a forward P/E ratio of 13.09, significantly lower than IR's forward P/E of 23.80 [5] - The PEG ratio for OSK is 1.80, while IR's PEG ratio is considerably higher at 4.39, indicating OSK's better valuation relative to its expected earnings growth [5] - OSK's P/B ratio stands at 2.06, compared to IR's P/B ratio of 3.14, further supporting OSK's valuation advantage [6] Analyst Outlook - OSK holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision activity compared to IR, which has a Zacks Rank of 3 (Hold) [3][7] - The Value grade for OSK is B, while IR has a Value grade of D, highlighting OSK's superior valuation metrics [6]

Core Viewpoint - The comparison between Luxfer (LXFR) and Ingersoll Rand (IR) indicates that LXFR currently offers better value for investors based on various financial metrics and rankings [1][3]. Valuation Metrics - Luxfer has a forward P/E ratio of 11.05, significantly lower than Ingersoll Rand's forward P/E of 23.59 [5]. - The PEG ratio for Luxfer is 1.38, while Ingersoll Rand's PEG ratio is 3.21, suggesting that Luxfer is more reasonably priced relative to its expected earnings growth [5]. - Luxfer's P/B ratio stands at 1.28, compared to Ingersoll Rand's P/B of 3.08, indicating that Luxfer is trading at a lower valuation relative to its book value [6]. Zacks Rank and Style Scores - Luxfer holds a Zacks Rank of 2 (Buy), while Ingersoll Rand has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for Luxfer [3]. - The Style Score Value grade for Luxfer is A, whereas Ingersoll Rand has a Value grade of D, further emphasizing Luxfer's superior valuation metrics [6]. Estimate Revisions - Luxfer has experienced stronger estimate revision activity compared to Ingersoll Rand, making it a more attractive option for value investors [7].

Core Viewpoint - Ingersoll Rand Inc. has acquired Dave Barry Plastics to enhance its life sciences portfolio, reflecting the company's commitment to innovative and high-performance solutions in the industry [1][3]. Company Overview - Ingersoll Rand Inc. is a global provider of mission-critical flow creation and life science and industrial solutions, supported by over 80 respected brands [4]. - The company aims to improve performance and durability in complex and harsh conditions, focusing on customer satisfaction and long-term relationships [4]. Acquisition Details - Dave Barry Plastics, based in Ireland, specializes in designing and manufacturing plastic product solutions for the life science and healthcare technology industries, particularly for clean rooms [2]. - The acquisition will integrate Dave Barry Plastics into Ingersoll Rand's Life Sciences platform within the Precision and Science Technologies (P&ST) segment [2]. Strategic Implications - The acquisition supports Ingersoll Rand's growth strategy by providing opportunities for innovation, market expansion, and long-term value creation within the life sciences sector [7]. - The investment was made at an attractive purchase multiple of approximately 9 times the 2024 Adjusted EBITDA, indicating a strategic financial decision [7].

Core Insights - Ingersoll Rand reported record GAAP revenue of $1,887.9 million for Q2 2025, exceeding analyst expectations by $40.6 million, while adjusted EPS (Non-GAAP) was $0.80, matching estimates [1][2] - Despite revenue growth, the company faced margin pressures, a significant drop in free cash flow, and a net loss due to non-cash impairments [1][6] Financial Performance - GAAP revenue increased by 4.6% year-over-year from $1,805.3 million in Q2 2024 to $1,887.9 million in Q2 2025 [2] - Adjusted EBITDA was $509.4 million, up 3.0% from $494.6 million in Q2 2024 [2] - Free cash flow decreased by 25.7% year-over-year, from $283.1 million in Q2 2024 to $210.4 million in Q2 2025 [2] - Adjusted EBITDA margin fell to 27.0%, down 0.4 percentage points from the previous year [2] Business Overview - Ingersoll Rand offers a wide range of flow creation products, including compressors, pumps, and vacuum equipment, across various sectors such as life sciences and clean energy [3] - The company operates under more than 80 brands, focusing on both new equipment and recurring aftermarket services [3] Strategic Focus - The company is concentrating on expanding its product portfolio, enhancing aftermarket services for recurring revenue, and pursuing strategic acquisitions [4] - Aftermarket revenues accounted for 36.4% of total revenue in 2024, providing stability [4][9] Quarterly Highlights - Order volume reached a new high of $1,940 million, up 8% year-over-year, driven by acquisitions and pricing actions [5] - Organic revenue declined by 3.4%, indicating weaker demand in legacy businesses [5] Profitability Metrics - The Industrial Technologies & Services unit reported GAAP revenue of $1,492 million, up 2% overall but down 3.8% organically [7] - The Precision & Science Technologies segment saw a 17% revenue increase, but underlying organic revenue fell by 1.6% [7] Pricing Actions and Cost Management - Pricing actions were implemented in response to new tariffs, matching cost increases without improving margins [8][9] - Cost-saving efforts are expected to take longer to materialize [9] Notable Events - The quarter included significant non-cash impairments, including $229.7 million in goodwill and $36.1 million in other intangible assets [10] Capital Allocation and Future Outlook - Ingersoll Rand allocated $47 million towards acquisitions and completed two deals, while also engaging in share buybacks totaling $500 million [11] - Management raised its revenue and adjusted earnings outlook for FY2025, projecting a revenue increase of 4% to 6% [12] - The organic revenue guidance remains cautious, reflecting potential demand growth challenges [12] Investor Considerations - Key areas for investor focus include managing margin pressure, free cash flow performance, and the impact of future non-cash impairments [13]

Core Insights - Ingersoll Rand Inc. reported second-quarter 2025 adjusted earnings of $0.80 per share, matching the Zacks Consensus Estimate, but reflecting a 3.6% year-over-year decrease [1] - Total revenues reached $1.89 billion, exceeding the consensus estimate of $1.84 billion, with a year-over-year increase of 4.6% driven by acquisitions and foreign currency movements, while organic revenues decreased by 3.9% [1][11] Revenue and Orders - Orders totaled $1.94 billion, marking a 7.8% year-over-year increase, although organic orders saw a slight decline of 0.1% [2] - The Industrial Technologies & Services segment generated revenues of $1.49 billion, accounting for 79% of total revenues, with a year-over-year sales increase of 1.7% [3] - The Precision & Science Technologies segment reported revenues of $396.3 million, representing 21% of total revenues, with a significant year-over-year increase of 17% [5] Segment Performance - Adjusted EBITDA for the Industrial Technologies & Services segment decreased by 2.1% year over year to $427.2 million, while the Precision & Science Technologies segment's adjusted EBITDA increased by 14% to $116.8 million [4][6] - The overall adjusted EBITDA for the company increased by 3% year over year to $509.4 million, with a margin decrease to 27% from 27.4% in the previous year [7] Financial Position - As of the end of the second quarter, Ingersoll Rand had cash and cash equivalents of $1.31 billion, down from $1.54 billion at the end of December 2024, while long-term debt increased slightly to $4.78 billion [8] - The company generated net cash of $502.1 million from operating activities, reflecting a 7.6% year-over-year increase, and free cash flow rose by 13.3% to $433.1 million [9] 2025 Outlook - Ingersoll Rand raised its 2025 EPS guidance to a range of $3.34-$3.46, indicating a 2-5% growth from the previous year [11][13] - The company expects total revenues to increase by 4-6% year over year, with organic revenues anticipated to decrease by 2% to remain flat [12]

Financial Data and Key Metrics Changes - The company raised its full year guidance on revenue, adjusted EBITDA, and adjusted EPS due to a strong start in the first half of the year [6][28] - Adjusted EBITDA for the second quarter was $509 million, with an adjusted EBITDA margin of 27%, reflecting a year-over-year decline primarily due to organic volume declines and the impact of recently acquired businesses [15][21] - Adjusted earnings per share for the quarter was $0.80, which is up 18% on a two-year stack [17] Business Line Data and Key Metrics Changes - In the ITS segment, second quarter orders were up 7% year over year, with organic order growth in the low single digits [22] - The PSC segment saw orders increase by 13% year over year, with revenue up 17% largely driven by M&A [25][26] - Aftermarket revenue accounted for 37% of total revenue, up 100 basis points year over year [15] Market Data and Key Metrics Changes - Orders in the Americas were up high teens, EMEA up high single digits, and Asia Pacific up low double digits [23] - Organic order growth in China was noted, reflecting the effectiveness of demand generation initiatives [23] Company Strategy and Development Direction - The company continues to focus on sustainability and innovation, having been ranked number one in North America and globally in its industry on the Dow Jones sustainability indices [8] - The capital allocation strategy prioritizes M&A, with 11 transactions closed this year, totaling over $200 million in annualized revenue [10][20] - The company aims to leverage its strong balance sheet to strategically deploy capital and drive value for shareholders [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full year outlook, supported by a book-to-bill ratio of 1.06 and a total backlog increase of 16% since 2024 [6] - The macro environment remains dynamic, but business conditions are stable, with positive signs in internal indicators [30] - Management remains cautious about the volume side, continuing to adopt a precautionary approach in guidance [94] Other Important Information - The company recorded non-cash goodwill and asset impairments related to the High Pressure Solutions business and ILC Dover, but these adjustments did not affect adjusted earnings [17][19] - Total company liquidity is currently $3.9 billion, underscoring the strength of the balance sheet [20] Q&A Session Summary Question: Demand cadence in the back half of the year - Management noted a stable continuation of demand through the second quarter, with a good backlog setting up for the second half [38] Question: Margins in the back half of the year - Management indicated that margin improvement is expected due to seasonality and productivity initiatives [40][42] Question: Phasing of sales and EBITDA in the second half - Management confirmed that the phasing of revenue and EBITDA is consistent with prior guidance, expecting a better second half compared to the first [46][47] Question: Legacy Gardner Denver Medical business performance - Management reported good momentum in the fluid handling side of the business, particularly in cancer research [79] Question: Long-term growth algorithm for compressors - Management reassured that the long-term growth outlook remains unchanged, with expectations for stable growth despite fluctuations in large projects [106]

Financial Data and Key Metrics Changes - The company raised its full year guidance on revenue, adjusted EBITDA, and adjusted EPS due to a strong start in the first half of the year, with organic order growth of low single digits and a book-to-bill ratio of 1.06 times [5][19] - Adjusted EBITDA for Q2 was $509 million, with an adjusted EBITDA margin of 27%, reflecting a year-over-year decline primarily due to organic volume declines and the dilutive impact from recently acquired businesses [14][20] - Adjusted earnings per share for Q2 was $0.80, which is up 18% on a two-year stack [15] Business Line Data and Key Metrics Changes - In the ITS segment, Q2 orders were up 7% year-over-year, with organic order growth in the low single digits and revenue finishing up low single digits [21] - The PSC segment saw Q2 orders increase by 13% year-over-year, with revenue up 17% driven largely by M&A [24] - The aftermarket revenue accounted for 37% of total revenue, up 100 basis points year-over-year [14] Market Data and Key Metrics Changes - Orders in the Americas were up high teens, EMEA up high single digits, and Asia Pacific up low double digits [22] - Organic order growth in China was noted, reflecting the resilience of the team and effective demand generation initiatives [22] Company Strategy and Development Direction - The company continues to focus on sustainability and innovation, achieving strong financial performance while supporting environmental and community initiatives [6] - A capital allocation strategy prioritizing M&A has been emphasized, with 11 transactions completed this year, adding over $200 million in annualized revenue [9][10] - The company is committed to leveraging its robust balance sheet to strategically deploy capital and drive shareholder value [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full year outlook, citing a stable macro environment and positive order growth in the first half of the year [28] - The company remains cautious about the impact of tariffs and macroeconomic factors on future demand, maintaining a precautionary view on volume growth [89][108] Other Important Information - The company recorded non-cash goodwill and asset impairments related to the High Pressure Solutions business and ILC Dover, but these adjustments did not affect adjusted earnings [15][18] - Total company liquidity is currently $3.9 billion, underscoring the strength of the balance sheet [20] Q&A Session Summary Question: Demand cadence and order cadence in the back half of the year - Management noted a stable continuation of orders through the quarter and into July, with a book-to-bill of 1.06 setting up well for the second half [32][34] Question: Margins in the back half of the year - Management indicated that margin improvement is expected due to seasonality and productivity initiatives, with Q4 anticipated to be the high watermark for the year [36][38] Question: Phasing within the second half of sales and EBITDA - Management confirmed that the phasing of revenue and EBITDA is consistent with prior guidance, expecting the second half to be better than the first half [42][43] Question: Legacy Gardner Denver Medical business performance - Management reported good momentum in the fluid handling side of the business, with organic revenue growth in life sciences [76] Question: Impact of tariffs on decision-making - Management indicated that tariff resolution is a significant factor affecting project timelines, with ongoing engagement from customers [67][70] Question: Long-term growth algorithm for compressors - Management reassured that the long-term growth outlook remains unchanged, with expectations for stable growth despite recent fluctuations [100][102]

Financial Performance - Q2 2025 - Orders increased by 8% and revenue increased by 5% compared to Q2 2024[19] - Adjusted EBITDA increased by 3%, but the margin decreased by 40 bps year-over-year[19] - Adjusted EPS decreased by 4% year-over-year, following a 22% increase in Q2 2024[19, 21] - Free cash flow is down year-over-year, but up 13% year-to-date[24] - The company has total available liquidity of $3.9 billion, including $1.3 billion in cash and cash equivalents[24] Segment Performance - Q2 2025 - Industrial Technologies and Services revenue was $1.4916 billion, up 1.7% year-over-year, with an adjusted EBITDA of $427.2 million and a margin of 28.6%[25] - Precision and Science Technologies revenue was $396.3 million, up 17% year-over-year, with an adjusted EBITDA of $116.8 million and a margin of 29.5%[33] M&A and Strategy - The company closed 11 transactions and acquired over $200 million in annualized inorganic revenue[17] - The company granted approximately $30 million in equity to approximately 6,400 new employees through the Ownership Works program in the last 18 months[13] Full Year 2025 Guidance - The company is raising its full-year guidance on revenue, adjusted EBITDA, and adjusted EPS[8] - Full year revenue is expected to grow by 4-6%, with M&A contributing approximately $375 million or approximately 5%[39] - Adjusted EBITDA is projected to be between $2.1 billion and $2.16 billion, representing a 4-7% year-over-year increase[39] - Adjusted EPS is expected to be between $3.34 and $3.46, representing a 2-5% year-over-year increase[39]

Company Performance - Ingersoll Rand reported quarterly earnings of $0.8 per share, matching the Zacks Consensus Estimate, but down from $0.83 per share a year ago [1] - The company posted revenues of $1.89 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.47% and up from $1.81 billion year-over-year [2] - Over the last four quarters, Ingersoll has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Outlook - Ingersoll shares have declined approximately 5.2% year-to-date, contrasting with the S&P 500's gain of 8.2% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $1.94 billion, and for the current fiscal year, it is $3.33 on revenues of $7.5 billion [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Manufacturing - General Industrial industry, to which Ingersoll belongs, is currently ranked in the top 10% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Ingersoll Rand reported Q2 2025 revenues of **$1.89 billion** (up **4.6%**) but a **net loss of $113.8 million** due to non-cash impairments [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | YTD 2025 ($M) | YTD 2024 ($M) | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | 1,887.9 | 1,805.3 | 3,604.7 | 3,475.4 | | **Gross Profit** | 824.9 | 793.3 | 1,590.4 | 1,539.6 | | **Operating Income** | 76.4 | 271.8 | 378.9 | 565.0 | | **Net Income (Loss)** | (113.8) | 186.5 | 74.6 | 391.0 | | **Diluted EPS (Loss)** | (0.29) | 0.45 | 0.18 | 0.95 | - The company recorded significant impairment charges in Q2 2025, including **$229.7 million** for goodwill and **$36.1 million** for other intangible assets, which were not present in the prior year period[16](index=16&type=chunk) - A loss on equity method investments of **$120.9 million** was recognized in Q2 2025, compared to a much smaller loss of **$3.5 million** in Q2 2024, significantly impacting the bottom line[16](index=16&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 ($M) | Dec 31, 2024 ($M) | | :--- | :--- | :--- | | **Total Current Assets** | 4,188.4 | 4,163.5 | | **Total Assets** | 18,059.1 | 18,009.8 | | **Total Current Liabilities** | 1,832.4 | 1,818.9 | | **Total Liabilities** | 7,901.7 | 7,764.5 | | **Total Stockholders' Equity** | 10,157.4 | 10,245.3 | - Goodwill decreased to **$8.28 billion** from **$8.15 billion** at year-end 2024, reflecting acquisitions offset by a significant impairment charge of **$229.7 million**[22](index=22&type=chunk)[70](index=70&type=chunk) - Long-term debt, less current maturities, remained relatively stable at **$4.78 billion** as of June 30, 2025[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | YTD 2025 ($M) | YTD 2024 ($M) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 502.1 | 466.5 | | **Net cash used in investing activities** | (279.4) | (2,834.1) | | **Net cash provided by (used in) financing activities** | (523.1) | 1,862.0 | - Cash from operations increased to **$502.1 million** for the first six months of 2025, up from **$466.5 million** in the prior year period[29](index=29&type=chunk) - Investing activities used significantly less cash (**$279.4 million**) compared to the prior year (**$2.83 billion**), primarily due to lower acquisition spending in 2025[29](index=29&type=chunk) - Financing activities used **$523.1 million**, driven mainly by **$510.2 million** in treasury stock purchases, a significant increase from **$135.5 million** in the prior year period[29](index=29&type=chunk)[30](index=30&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - In 2025, the company completed several acquisitions for a total consideration of **$236.7 million**, including SSI Aeration, Excelsior Blower Systems, and Cullum & Brown, all within the Industrial Technologies and Services segment[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[44](index=44&type=chunk) - During Q2 2025, the company recognized non-cash impairment charges of **$229.7 million** for goodwill and **$36.1 million** for an indefinite-lived tradename within the Precision and Science Technologies segment, primarily related to the Biopharma and Aerospace & Defense reporting units acquired with ILC Dover[75](index=75&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk) - The company recognized an impairment charge of **$120.9 million** on its **45%** equity method investment in the legacy High Pressure Solutions (HPS) business, reducing its carrying value to zero[206](index=206&type=chunk)[207](index=207&type=chunk) - On July 1, 2025, the company completed the acquisition of Termomeccanica Industrial Compressors (TMIC) and its subsidiary Adicomp for approximately **€160 million**[208](index=208&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2025 revenue growth to acquisitions and pricing, with net income significantly impacted by non-cash impairments [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Consolidated Results Summary | Metric | Q2 2025 ($M) | Q2 2024 ($M) | % Change | YTD 2025 ($M) | YTD 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | 1,887.9 | 1,805.3 | 4.6% | 3,604.7 | 3,475.4 | 3.7% | | **Gross Profit** | 824.9 | 793.3 | 4.0% | 1,590.4 | 1,539.6 | 3.3% | | **Operating Income** | 76.4 | 271.8 | -71.9% | 378.9 | 565.0 | -32.9% | | **Net Income (Loss)** | (113.8) | 186.5 | N/A | 74.6 | 391.0 | -80.9% | | **Adjusted EBITDA** | 509.4 | 494.6 | 3.0% | 969.1 | 953.1 | 1.7% | - Q2 2025 revenue growth of **4.6%** was driven by acquisitions (**+$116.4 million**) and pricing (**+$33.1 million**), offset by lower organic volumes (**-$94.7 million**)[228](index=228&type=chunk) - Gross profit margin decreased slightly to **43.7%** in Q2 2025 from **43.9%** in Q2 2024, primarily due to unfavorable cost leverage on lower organic volumes[231](index=231&type=chunk) - Other operating expense decreased significantly to **$19.9 million** in Q2 2025 from **$88.2 million** in Q2 2024, mainly because a **$58.8 million** loss on an asbestos sale in 2024 did not recur[237](index=237&type=chunk) - The effective tax rate for Q2 2025 was **74.7%**, a substantial increase from **19.5%** in Q2 2024, primarily due to nondeductible impairments of goodwill, tradenames, and an equity investment[242](index=242&type=chunk) [Segment Results](index=60&type=section&id=Segment%20Results) Industrial Technologies and Services Segment - Q2 Performance | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Segment Revenues** | $1,491.6 M | $1,466.5 M | 1.7% | | **Segment Adjusted EBITDA** | $427.2 M | $436.2 M | -2.1% | | **Segment Margin** | 28.6% | 29.7% | -110 bps | - The Industrial Technologies and Services segment's Q2 revenue increase of **1.7%** was driven by acquisitions (**4.2%**) and pricing (**1.6%**), but offset by a **5.4%** decline in organic volume[267](index=267&type=chunk) Precision and Science Technologies Segment - Q2 Performance | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Segment Revenues** | $396.3 M | $338.8 M | 17.0% | | **Segment Adjusted EBITDA** | $116.8 M | $102.5 M | 14.0% | | **Segment Margin** | 29.5% | 30.3% | -80 bps | - The Precision and Science Technologies segment's strong Q2 revenue growth of **17.0%** was primarily due to acquisitions (**16.3%**), with organic volumes declining by **4.4%**[274](index=274&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **$1.31 billion** in cash and cash equivalents and **$2.6 billion** of unused availability under its Revolving Credit Facility and Commercial Paper Program[280](index=280&type=chunk)[283](index=283&type=chunk) - Total debt stood at **$4.78 billion** as of June 30, 2025, a slight increase from **$4.76 billion** at the end of 2024[283](index=283&type=chunk) - Operating working capital increased by **$224.8 million** since year-end 2024, primarily due to higher inventories and accounts receivable[287](index=287&type=chunk) - Free cash flow for the first six months of 2025 was **$433.1 million**, an increase of **$50.7 million** from the same period in 2024, driven by higher operating cash flow and lower capital expenditures[295](index=295&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rate and foreign currency fluctuations using derivative instruments, with no material changes reported - The company's primary market risks are interest rate fluctuations and foreign currency exchange rate changes[299](index=299&type=chunk)[300](index=300&type=chunk) - Risk mitigation strategies include using derivative instruments like interest rate swaps, cross-currency swaps, and foreign currency forward contracts[299](index=299&type=chunk)[301](index=301&type=chunk) - There have been no material changes to the company's market risk profile since the 2024 Annual Report[302](index=302&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[303](index=303&type=chunk) - No material changes to the internal control over financial reporting occurred during the second quarter of 2025[304](index=304&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various ordinary legal proceedings not expected to materially affect its operations or financial condition - The company is involved in various legal proceedings of an ordinary or routine nature, which are not expected to be materially adverse[185](index=185&type=chunk)[305](index=305&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report - No material changes to the company's risk factors have occurred since the filing of the 2024 Annual Report[306](index=306&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **6.15 million** shares in Q2 2025 at **$81.35** per share, with **$1.49 billion** remaining under expanded repurchase programs Q2 2025 Share Repurchases | Month | Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | — | $ — | | May 2025 | 6,147,812 | $81.35 | | June 2025 | — | $ — | | **Total** | **6,147,812** | **$81.35** | - The Board of Directors authorized a **$1.0 billion** increase to the share repurchase program on May 1, 2025. As of June 30, 2025, approximately **$1.49 billion** was available for future repurchases[308](index=308&type=chunk)[309](index=309&type=chunk)[310](index=310&type=chunk) [Other Information](index=52&type=section&id=Item%205.%20Other%20Information) CEO Vicente Reynal adopted a Rule 10b5-1 trading plan, and the company approved a new Executive Change in Control & Severance Plan - CEO Vicente Reynal adopted a Rule 10b5-1 trading plan on May 22, 2025, for the potential sale of up to **496,746** shares[313](index=313&type=chunk) - On July 30, 2025, the company approved a new Executive Change in Control & Severance Plan for certain executives (excluding the CEO)[316](index=316&type=chunk)