v3.26.1
Segment reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment reporting
Note 3. Segment reporting
Effective December 2025, the Company realigned its internal reporting structure to reflect changes in how the Chief Operating Decision Maker (“CODM”) reviews budgets and forecasts, operating results, evaluates performance and allocates resources. As a result, the Company now manages its business in two reportable segments: (i) Equipment and (ii) Services.
 
  •  
The Equipment Segment designs, manufactures, and sells new Jenbacher and Waukesha engines, project-related equipment, and related solutions. Equipment segment revenues are further disaggregated by end market into Data Center, Power Solutions, and Compression, consistent with how the CODM evaluates performance across key markets.
 
  •  
The Services Segment provides aftermarket services through an engine’s lifecycle, including long-term service agreements, spare parts, overhauls, remanufacturing of engines and components, digital solutions, and other service-related activities.
Prior to December 2025, the Company’s internal management reporting was prepared in accordance with International Financial Reporting Standards (“IFRS”). For purposes of these consolidated financial statements, segment information for the three months and six months ended June 30, 2025 has been converted to U.S. GAAP and revised to be consistent with the aforementioned modified segment organization and reporting structure, as well as the Company’s presentation currency.
 
The Company’s CODM is the senior management team, consisting of the
Chief Executive Officer
and Chief Financial Officer.
The CODM uses Adjusted Segment EBITDA as the primary measure of segment profit or loss to assess segment performance and allocate resources. The CODM reviews Adjusted Segment EBITDA by segment in the annual budgeting process and in quarterly business reviews, including comparisons to budget, prior year and the latest forecast. These reviews are used by the CODM to make decisions regarding prioritization of resources (such as staffing and discretionary spending), sequencing of operational initiatives, and capital investment priorities across the Equipment and Services Segments.
Adjusted Segment EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, adjusted for items that management believes are not indicative of core operating performance, including restructuring costs, transaction related costs associated with acquisitions and other strategic activities, transformation costs related to significant organizational change initiatives, costs incurred for IPO and public-market readiness costs and share-based compensation.
Certain corporate functions, including Group Management, Compliance, Executive Consultancy, Communication, Group Treasury, Transformation and Legal are not allocated to operating segments and are reported as unallocated corporate costs. Other shared costs may be allocated to segments based on usage, when applicable, in a manner consistent with the CODM reporting package.
Revenues are reported for the Equipment and Service groupings described above;
sub-unit
information is presented where it is regularly provided to the CODM.
 
    
Three Months Ended June 30,
     
Six Months Ended June 30,
  
(in millions of $)
   
2026
     
2025
     
2026
     
2025
  
Equipment revenue
            
Data Center
      232.4        118.0        339.4        170.3  
Power Solutions
      273.6        181.5        441.7        295.8  
Compression
      63.3        54.6        110.7        98.2  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total equipment revenue
   
 
569.3
 
   
 
354.1
 
   
 
891.8
 
   
 
564.3
 
Service revenue
            
Transactional
      236.1        192.8        442.3        364.8  
Contractual
      132.3        112.6        272.4        224.4  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total service revenue
   
 
368.4
 
   
 
305.4
 
   
 
714.7
 
   
 
589.2
 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total revenue
   
 
937.7
 
   
 
659.5
 
   
 
1,606.5
 
   
 
1,153.5
 
Contractual Service Agreements (“CSAs”), which cover parts and labor, and Material Stream Agreements (“MSAs”), which cover parts only, together comprise our long-term service agreements (“LSAs”). LSAs and digital solutions including myPlant together form Contractual Services. Transactional services cover transactional parts and labor, overhaul and repair, engine conversions, modifications and upgrades (“CM&U”) and commissioning.
There are no intersegment revenues in the periods presented.
The following expense categories are regularly reviewed by the CODM and are included in the determination of Adjusted Segment EBITDA:
 
  •  
Cost of goods and services sold, including materials and components, direct manufacturing labor, warranty provisions, cost of quality, logistics and freight, other variable costs, manufacturing variances from standard costs, and variable factory overhead.
 
  •  
Selling, general & administrative expenses, including selling, marketing, and segment-level administrative costs.
 
  •  
Research and development expenses, and
 
  •  
Other segment items, primarily consisting of other operating income or expense,
non-significant
cost categories, and limited management adjustments reviewed by the CODM.
Selected financial information for each segment is as follows:
 
 
  
Three Months Ended June 30, 2026
 
(in millions of $)
  
Equipment
 
  
Service
 
  
Total from
Reportable Segments
 
Total revenue
      569.3        368.4        937.7  
Less: Significant segment expenses regularly provided to the CODM (a)
         
Cost of goods and services sold
      (421.6 )      (208.2 )      (629.8 )
Research and development
      (20.6 )      (11.3 )      (31.9 )
Selling, general and administrative expenses
      (65.0 )
 
      (53.6 )
 
      (118.6 )
 
Depreciation and amortization
      14.4        12.7        27.1  
Other
non-cash
items (b)
      1.2        0.8        2.0  
Management adjustments (c)
      0.4        0.9        1.3  
Other segment items (d)
      0.5        0.1        0.6  
  
 
 
     
 
 
     
 
 
  
Adjusted Segment EBITDA (e)
   
 
78.6
 
   
 
109.8
 
   
 
188.4
 

 
  
Three Months Ended June 30, 2025
 
(in millions of $)
  
Equipment
 
  
Service
 
  
Total from
Reportable Segments
 
Total revenue
      354.1        305.4        659.5  
Less: Significant segment expenses regularly provided to the CODM (a)
         
Cost of goods and services sold
      (251.0 )      (180.1 )      (431.1 )
Research and development
      (13.9 )      (13.3 )      (27.2 )
Selling, general and administrative expenses
      (35.9 )
 
      (40.6 )
 
      (76.5 )
 
Depreciation and amortization
      11.3        13.3        24.6  
Other
non-cash
items (b)
      1.2        0.9        2.1  
Management adjustments (c)
      0.1        0.5        0.6  
Other segment items (d)
      0.2        (0.2 )      —   
  
 
 
     
 
 
     
 
 
  
Adjusted Segment EBITDA (e)
   
 
66.1
 
   
 
85.9
 
   
 
152.0
 
 
 
  
Six Months Ended June 30, 2026
 
(in millions of $)
  
Equipment
 
  
Service
 
  
Total from
Reportable Segments
 
Total revenue
      891.8        714.7        1,606.5  
Less: Significant segment expenses regularly provided to the
CODM (a)
         
Cost of goods and services sold
      (662.5 )      (402.3 )      (1,064.8 )
Research and development
      (39.3 )      (21.5 )      (60.8 )
Selling, general and administrative expenses
      (120.5 )
 
      (100.3 )
 
      (220.8 )
 
Depreciation and amortization
      27.1        25.2        52.3  
Other
non-cash
items (b)
      3.3        2.2        5.5  
Management adjustments (c)
      0.6        1.5        2.1  
Other segment items (d)
      1.0        0.3        1.3  
  
 
 
     
 
 
     
 
 
  
Adjusted Segment EBITDA (e)
   
 
101.5
 
   
 
219.8
 
   
 
321.3
 
 
 
  
Six Months Ended June 30, 2025
 
(in millions of $)
  
Equipment
 
  
Service
 
  
Total from
Reportable Segments
 
Total revenue
      564.3        589.2        1,153.5  
Less: Significant segment expenses regularly provided to the
CODM (a)
         
Cost of goods and services sold
      (397.5 )      (338.2 )      (735.7 )
 
Research and development
      (23.8 )      (22.6 )      (46.4 )
Selling, general and administrative expenses
      (73.3 )
 
      (80.9 )
 
      (154.2 )
Depreciation and amortization
      21.9        26.1        48.0  
Other
non-cash
items (b)
      2.1        1.6        3.7  
Management adjustments (c)
      0.1        0.9        1.0  
Other segment items (d)
      0.5        0.1        0.6  
  
 
 
     
 
 
     
 
 
  
Adjusted Segment EBITDA (e)
   
 
94.3
 
   
 
176.2
 
   
 
270.5
 
Note
s:
 
(a)
Significant segment expenses represent categories that are regularly provided to and used by the CODM to assess performance and allocate resources. These include Cost of equipment and products sold, Cost of services sold, Selling, general and administrative expenses, Research and development expenses, and Other segment items that are not individually significant.
(b)
Other
non-cash
items include amortization expenses of capitalized costs to obtain contracts.
(c)
Management adjustments are described below in the reconciliation of Adjusted Segment EBITDA to Net income.
 
(d)
Other segment items represent the residual components of the CODM measure of segment profit that are not otherwise separately disclosed as revenue or significant expense categories. It primarily includes Other operating (income) expense—net and other
non-significant
cost categories (including certain shared or allocated costs included in segment results) that are reviewed by the CODM in aggregate (e.g., foreign currency transaction gains and losses, gains and losses on asset disposals, and miscellaneous operating items).
(e)
Adjusted Segment EBITDA is the CODM’s segment profit measure. Corporate/unallocated costs (“HQ”) are not included in Adjusted Segment EBITDA and are presented in the reconciliation to consolidated Net income.
The above expense categories are derived from internal management reports and may not correspond directly to the line items in the consolidated statements of operations. The reconciliation below represents how segment results reconcile to the consolidated financial statements.
Reconciliation of Adjusted Segment EBITDA to Net income
Adjusted Segment EBITDA is reconciled to Net income by presenting unallocated corporate costs not included in segment results, management adjustments, other
non-cash
items, depreciation and amortization, Interest and other financial charges—net,
non-operating
income (expense) and Income tax expense.
 
 
  
Three Months Ended June 30,
 
  
Six Months Ended June 30,
 
(in millions of $)
  
2026
 
  
2025
 
  
2026
 
  
2025
 
Total Adjusted Segment EBITDA
      188.4        152.0        321.3     270.5  
Unallocated corporate costs (HQ & other not included in Adjusted Segment EBITDA)
    (16.1 )     (7.9 )       (26.5 )      (12.4 )
Acquisition and Divestment related gains (losses) - net
    (0.5 )     (0.7 )       (0.7 )      (0.4 )
Transaction costs
    (0.5 )     —         (4.6 )      — 
Transformation costs
    (1.8 )     (3.1 )       (5.3 )      (5.7 )
IPO and Public market readiness costs
    (81.2 )     (0.1 )       (91.1 )      (0.1 )
Share-based compensation
    (1.1 )     —       (1.1 )      —   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Management adjustments
      (85.1 )      (3.9 )      (102.8 )      (6.2 )
Other
non-cash
items
    (2.0 )    (2.1 )       (5.5 )      (3.7 )
Depreciation and amortization
    (40.1 )     (37.0 )       (78.3 )      (72.1 )
Other income (expense) - net
      3.7        0.9        6.9        1.5  
Interest expense and related financing costs - net
      (52.9 )      (21.5 )      (123.7 )      (50.1 )
Income tax expense
      (12.8 )
 
 
      (18.1 )
 
      (17.3 )
 
      (30.1 )
 
  
 
 
     
 
 
     
 
 
     
 
 
  
Net income (loss)
   
 
(16.9
)
   
 
62.4
 
   
 
(25.9
)
   
 
97.4
 
Management adjustments include the following breakdowns, and are reviewed by the CODM:
 
 
•
 
Acquisition and divestment related gains and losses incurred in connection with planned and completed acquisitions, including legal and professional fees. Contingent consideration arrangements (earn-outs) relate to specific acquisitions.
 
 
•
 
Transaction costs include legal and professional fees related to legal reorganization, as well as adapting INNIO’s financing structure.
 
 
•
 
Transformation costs include costs in a given year incurred in relation to significant organizational change initiatives, including capacity expansion initiatives. This includes the ramp up of our business transformation efforts to support our capacity expansion initiatives to strengthen internal manufacturing and supply chain foundations, supported by dedicated third-party expertise to accelerate the capacity uplift. Costs also include those associated with streamlining management structures, processes and operational performance.
 
  •  
IPO and Public market readiness costs that the Company incurs to implement financial statements in US GAAP, including: implementing SOX-compliant internal controls, improving processes and organization required for public US markets, bonuses linked to successful public offering including long-term incentive plans, and legal and advisory fees related to INNIO’s IPO. During the six months ended June 30, 2026, the Company incurred the following costs:
 
•
Long-term incentive program 2023
  
$61.5 million
•
Costs related to financial statements in US GAAP
  
$20.8 million
•
Advisory fees
  
$4.1 million
•
Others
  
$3.7 million
•
Legal fees
  
$1.0 million
 
 
•
 
Share-based compensation represents RSUs awarded under the 2026 Incentive Award Plan.
Assets by segment are not disclosed because such information is not regularly reviewed by the CODM in allocating resources or assessing segment performance.