Company: IR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001628280-25-047838
Chunk: 88

Company: Ingersoll Rand Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 88
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5 from 27.8% for the same nine month period in 2024. The increase in Adjusted EBITDA was primarily due to higher pricing of $106.3 million, acquisitions of $76.5 million, lower selling and administrative costs of $2.5 million, and the favorable impact of foreign currencies of $8.7 million, partially offset by lower organic sales volume of $114.6 million and unfavorable cost productivity and product mix of $51.1 million. The decrease in Adjusted EBITDA as a percentage of revenues is primarily attributable to unfavorable cost leverage on lower organic volumes, tariff related pricing targeted to offset tariff cost increases one for one, and the decretive impact of acquisitions.

Adjusted Net Income

Adjusted Net Income increased $0.9 million to $345.6 million for the three month period ended September 30, 2025 compared to $344.7 million in the same three month period in 2024. The increase was primarily due to higher net income.

Adjusted Net Income decreased $41.7 million to $964.0 million for the nine month period ended September 30, 2025 compared to $1,005.7 million in the same nine month period in 2024. The decrease was primarily due to higher interest expense, higher income tax provision, as adjusted, and lower interest income on cash and cash equivalents.

44

Non-GAAP Financial Measures

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.

For the Three Month Period Ended September 30,For the Nine Month Period Ended September 30,2025202420252024Net Income$245.8 $223.4 $320.4 $614.4 Plus:Interest expense65.1 63.8 189.0 151.4 Provision for income taxes73.6 73.8 153.1 174.3 Depreciation expense (a)28.2 28.2 83.4 77.5 Amortization expense (b)94.9 95.0 277.8 277.8 Impairment of goodwill and other intangible assets— — 265.8 — Restructuring and related business transformation costs (c)19.9 9.7 28.7 24.3 Acquisition