Company: IR
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001628280-25-047838
Chunk: 73

Company: Ingersoll Rand Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 associated with repatriating all non-U.S. earnings back to the United States. Our deferred income tax liability as of September 30, 2025 was $55.4 million which primarily consisted of withholding taxes.

49

Working Capital

September 30, 2025December 31, 2024Net Working Capital:Current assets$4,163.3 $4,163.5 Less: Current liabilities1,925.6 1,818.9 Net working capital$2,237.7 $2,344.6 Operating Working Capital:Accounts receivable$1,429.3 $1,335.4 Plus: Inventories (excluding LIFO reserve)1,351.8 1,134.2 Plus: Contract assets128.8 111.2 Less: Accounts payable831.6 843.6 Less: Contract liabilities (current)341.9 318.6 Operating working capital$1,736.4 $1,418.6 

Net working capital decreased $106.9 million to $2,237.7 million as of September 30, 2025 from $2,344.6 million as of December 31, 2024. Operating working capital increased $317.8 million to $1,736.4 million as of September 30, 2025 from $1,418.6 million as of December 31, 2024. The increase in operating working capital is due to higher inventories, higher accounts receivable, lower accounts payable and higher contract assets, partially offset by higher contract liabilities.

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 increase 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 increase in contract liabilities was primarily due to the timing of customer milestone payments for in-process engineered to order contracts.

Cash Flows

The following table reflects the major categories of cash flows for the nine month periods ended September 30, 2025 and 2024, respectively.

For the Nine Month Period Ended September 30,20252024Cash flows provided by operating activities$856.7 $870.5 Cash flows used