IR · 10-Q · 2026Q3 · Full report

Interest Rate Exposure

Ingersoll Rand Inc. · 2026-10-30 · Importance 25 · Surprise 6

The company manages interest-rate exposure with derivatives used as cash-flow hedges of variable-rate debt or fair-value hedges of fixed-rate debt, adjusting its relative fixed- and variable-rate proportions. As of September 30, 2026, it had interest-rate swaps converting $1.0 billion of fixed-rate borrowings to variable-rate borrowings, including $400 million of 2029 Notes, $250 million of 2031 Notes, $250 million of 2033 Notes and $100 million of 2034 Notes. The swaps expire between May 2029 and March 2034; the company also expected $0.3 million of previously deferred hedge losses to increase interest expense over the next 12 months.

Key facts

• In the nine months ended September 30, 2026, cash paid for interest, net of interest rate derivative settlements, was $156.1 million, compared with $158.5 million in 2025. source
• An unrecognized $3.7 million loss in accumulated other comprehensive income on terminated cash-flow hedges remained as of September 30, 2026; $0.3 million is expected to be reclassified to interest expense over the next 12 months. source
• As of September 30, 2026, four interest-rate swaps converted $400.0 million of fixed-rate borrowings to variable-rate borrowings; the contracts expire in May 2029 and hedge $400.0 million of the 2029 Notes. source
• As of September 30, 2026, two interest-rate swaps converted $250.0 million of fixed-rate borrowings to variable-rate borrowings; they expire in April 2031 and hedge $250.0 million of the 2031 Notes. source
• As of September 30, 2026, two interest-rate swaps converted $250.0 million of fixed-rate borrowings to variable-rate borrowings; they expire in May 2033 and hedge $250.0 million of the 2033 Notes. source
• As of September 30, 2026, one interest-rate swap converted $100.0 million of fixed-rate borrowings to variable-rate borrowings; it expires in March 2034 and hedges $100.0 million of the 2034 Notes. source
• Ingersoll Rand states that its fixed-rate-to-floating-rate swap contracts expose it to interest-rate risk, counterparty creditworthiness risk, and non-performance risk. source
• Ingersoll Rand manages interest-rate exposure with derivatives to adjust the fixed/variable mix of its debt, using cash-flow hedges for variable-rate debt and fair-value hedges for fixed-rate debt. source