IR · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Ingersoll Rand Inc. · 2026-10-30 · Importance 51 · Surprise 64 · From source text

The effective income tax rate for the nine months ended September 30, 2026 fell to 12.4% from 25.5% in 2025, while income tax provision increased to $158.8 million from $153.1 million as pretax income rose to $1,282.2 million from $600.6 million. For the third quarter, the effective rate declined to 7.4% from 23.0%, and tax provision fell to $53.6 million from $73.6 million. The lower rates primarily reflected release of a valuation allowance on U.S. foreign tax credit carryforwards, a nontaxable settlement related to representations and warranties matters, and higher windfall tax deductions; the 2025 comparison also included nondeductible impairments of goodwill, tradenames, and an equity investment.

Key facts

• In the nine months ended September 30, 2026, cash paid for income taxes, net of refunds, was $206.6 million, compared with $184.8 million in 2025. source
• Ingersoll Rand’s effective income tax provision rate was 7.4% on a $53.6 million provision for the three months ended September 30, 2026, compared with a 23.0% rate on a $73.6 million provision in the 2025 period; the 2026 decrease primarily reflected release of a U.S. foreign tax credit valuation allowance and a nontaxable representations-and-warranties settlement. source
• The effective income tax rate was 7.4% for the three months ended September 30, 2026, versus 23.0% in 2025, and 12.4% for the nine months ended September 30, 2026, versus 25.5% in 2025. source
• Ingersoll Rand’s effective income tax provision rate was 12.4% on a $158.8 million provision for the nine months ended September 30, 2026, compared with a 25.5% rate on a $153.1 million provision in the 2025 period. source
• Ingersoll Rand's deferred income tax liability as of September 30, 2026 was $64.7 million, mainly consisting of withholding taxes associated with repatriating non-U.S. earnings. source
• Ingersoll Rand states that changes in tax laws or regulations, or adverse determinations by tax or other governmental authorities, could increase its effective tax rate and cash taxes paid or otherwise affect its financial condition or operating results. source
• The three-month 2026 income tax provision and effective rate decreased year over year primarily because of a valuation-allowance release for U.S. foreign tax credit carryforwards and a nontaxable settlement related to representations and warranties matters. source
• The nine-month 2026 income tax provision increased year over year primarily due to higher pretax income, partly offset by a U.S. foreign tax credit valuation-allowance release and higher windfall tax-deduction benefit. source

Impact estimates