Ingersoll Rand(US:IR)2025-10-31 20:27Financial Performance - Revenues for the three-month period ended September 30, 2025, were $1,955.0 million, an increase of 5.0% compared to $1,861.0 million for the same period in 2024[16] - Gross profit for the nine-month period ended September 30, 2025, was $2,445.6 million, up from $2,354.6 million in 2024, reflecting a growth of 3.9%[16] - Net income attributable to Ingersoll Rand Inc. for the three-month period ended September 30, 2025, was $244.1 million, compared to $221.6 million in 2024, representing an increase of 10.0%[16] - Basic earnings per share for the three-month period ended September 30, 2025, were $0.62, up from $0.55 in the same period of 2024, indicating a growth of 12.7%[16] - For the nine-month period ended September 30, 2025, net income was $320.4 million, a decrease of 47.9% compared to $614.4 million for the same period in 2024[29] - The company reported net income of $245.8 million for the three-month period ended September 30, 2025, compared to $223.4 million in 2024, an increase of 10.0%[202] Expenses and Liabilities - Operating income for the nine-month period ended September 30, 2025, was $754.4 million, down from $921.3 million in 2024, a decrease of 18.1%[16] - Selling and administrative expenses for the three-month period ended September 30, 2025, were $361.0 million, an increase from $334.3 million in 2024, reflecting an increase of 8.0%[16] - Total liabilities increased to $8,000.5 million from $7,764.5 million, an increase of 3.0%[22] - Interest expense for the nine-month period ended September 30, 2025, was $189.0 million, compared to $151.4 million in 2024, an increase of 24.9%[202] Cash Flow and Investments - Cash and cash equivalents decreased to $1,176.6 million from $1,541.2 million, a decline of 23.7%[22] - Total cash provided by operating activities for the nine-month period was $856.7 million, slightly down from $870.5 million in 2024[29] - Net cash used in investing activities was $557.9 million in 2025, significantly lower than $2,872.8 million in 2024, primarily due to reduced acquisition spending[29] - The company purchased treasury stock amounting to $703.3 million in 2025, compared to $198.2 million in 2024[29] Acquisitions - The company completed the acquisition of SSI Aeration, Inc. for cash consideration of $96.9 million on February 3, 2025, enhancing its wastewater treatment capabilities[39] - The Company completed the acquisition of Excelsior Blower Systems, Inc. for cash consideration of $17.5 million, reported within the Industrial Technologies and Services segment[40] - The acquisition of Cullum & Brown of Kansas City, Inc. was finalized for an initial cash consideration of $50.7 million and contingent consideration of up to $10.0 million, also within the Industrial Technologies and Services segment[41] - G & D Chillers, Inc. was acquired for cash consideration of $20.9 million, enhancing the Company's capabilities in glycol chillers[42] - The acquisition of Lead Fluid (Baoding) Intelligent Equipment Manufacturing Co., Ltd. was completed for $18.1 million, with contingent consideration of approximately $4.2 million, focusing on fluid-handling products for life sciences[43] - The Company acquired TMIC and its subsidiary Adicomp for $193.7 million, with goodwill primarily attributed to revenue and cost synergies, totaling $299.4 million across all acquisitions in 2025[44][49] Stockholder Equity and Dividends - The company declared dividends of $7.9 million during the three-month period ended September 30, 2025[23] - The company declared dividends of $24.0 million in 2025, consistent with the $24.2 million declared in 2024[29] - The total stockholders' equity decreased to $10,189.7 million as of September 30, 2025, from $10,245.3 million at December 31, 2024, a decline of 0.5%[22] Comprehensive Income - Comprehensive income attributable to Ingersoll Rand Inc. for the three-month period ended September 30, 2025, was $219.5 million, compared to $359.6 million in 2024, a decline of 38.9%[19] - Other comprehensive income (loss) for the three-month period ended September 30, 2025 was $(24.6) million, compared to $138.0 million for the same period in 2024[126] - The balance of accumulated other comprehensive loss as of September 30, 2025 was $(165.4) million[128] Assets and Inventory - Total assets increased to $18,190.2 million as of September 30, 2025, compared to $18,009.8 million at December 31, 2024, reflecting a growth of 1.0%[22] - Total inventories as of September 30, 2025, amounted to $1,257.1 million, a 19.2% increase from $1,055.0 million as of December 31, 2024[75] Risk Factors and Future Outlook - The company faces risks related to global economic instability, with more than half of its sales and operations occurring in non-U.S. jurisdictions[14] - Future product development and technology advancements are critical for maintaining competitive positioning, as failure to innovate could adversely affect sales and market share[14] Restructuring and Charges - Restructuring charges for the three-month period ended September 30, 2025, amounted to $19.8 million, with $13.9 million from Industrial Technologies and Services[69] - The company undertook restructuring actions in 2025 and 2024 to optimize its cost structure, incurring charges related to workforce restructuring and facility consolidation[67] Financial Instruments and Hedging - The company entered into cross-currency interest rate swap contracts with a total notional amount of $1,332.7 million, which had a fair value of $14.7 million as of September 30, 2025[134] - The company recognized a foreign currency translation adjustment of $316.7 million for the nine-month period ended September 30, 2025[126] - The company recognized changes in fair value of contingent consideration of $(9.8) million for the three-month period ended September 30, 2025[168]