News Details

NORTHBROOK, Ill.--(BUSINESS WIRE)-- IDEX Corporation (NYSE: IEX) today announced its financial results for the three-month period ended June 30, 2026.

“We are very pleased to see continued results momentum as our IDEX teams drove another quarter of strong sales and earnings growth. Orders of over $1 billion in the quarter were a record as we continue to see elevated demand across the advantaged markets where we’ve focused our investments and capabilities,” said Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President.

“Our teams executed exceptionally well, as flow-through on strong volume drove earnings above our expectations, demonstrating the benefits of the work already completed to strengthen the quality of our businesses. We continue to advance 8020 initiatives to both fuel higher growth and unlock further margin expansion opportunities across IDEX.”

“We are increasing our full-year financial guidance expectations due to our strong performance year-to-date and improved visibility in the second half of our fiscal year.”

Outlook⁽¹⁾

• Full year organic sales projected to increase 5% to 6% over the prior year, up from previous guidance of 3% to 4%
• Full year adjusted diluted EPS of $8.70 to $8.85, up approximately 10% year-over-year at midpoint, up from previous guidance of $8.35 to $8.55
• Third quarter 2026 organic sales projected to increase 5% to 7% from the prior year period
• Third quarter 2026 adjusted diluted EPS of $2.20 to $2.25

Consolidated Financial Results

• Net sales increased primarily as a result of increased organic sales, as well as contributions from acquisitions. The increase in organic sales was primarily driven by higher volumes in our Health & Science Technologies (“HST”) segment and positive price. Net sales included a $14.7 million reduction resulting from expected customer rebates associated with refunds for tariffs under the International Emergency Economic Powers Act (“IEEPA”) that were subsequently invalidated.
• Gross margin and Adjusted gross margin both increased due to net productivity improvements, volume leverage and positive price/cost. Positive price/cost was driven by the net benefit of IEEPA tariff refunds, which contributed 150 basis points to both measures, and more than offset a challenging prior year price/cost comparison. These increases were partially offset by unfavorable mix. Adjusted gross margin excludes restructuring-related charges consisting of accelerated depreciation related to the anticipated closure of a facility in the HST segment.
• Both Diluted EPS and Adjusted diluted EPS increased, primarily due to improved operational results discussed above, including the net impact from IEEPA tariff refunds, which benefited both measures by $0.08.
• Cash flows from operating activities and free cash flow both increased compared to the prior year period, primarily due to cash received for IEEPA tariff refunds of $21.1 million and higher earnings, partially offset by increased working capital, driven by higher sales volumes. The current year period also benefited from lower cash restructuring, income tax and interest payments. These improvements in cash flows from operating activities also benefited free cash flow but were partly offset by higher capital expenditures during the current year period.

   

Segment Financial Results

Health & Science Technologies Segment

• Net sales for the second quarter 2026 increased 14%. Organic sales increased 12% driven by higher volumes primarily due to AI-driven demand for data center power and semiconductor markets, as well as strength in space and defense and positive price. Net sales included a $9.3 million reduction resulting from expected customer rebates associated with IEEPA tariff refunds, which unfavorably impacted organic sales growth by 2%.
• Adjusted EBITDA margin for the second quarter 2026 increased primarily due to volume leverage and positive price/cost. Positive price/cost was driven by the net benefit of 90 basis points from IEEPA tariff refunds.

Fluid & Metering Technologies Segment

• Net sales for the second quarter 2026 increased 2%. Organic sales increased 1% primarily driven by positive price. Net sales included a $3.2 million reduction resulting from expected customer rebates associated with IEEPA tariff refunds, which unfavorably impacted organic sales growth by 2%. Higher volumes in our businesses serving municipal water, semiconductor and mining markets were largely offset by lower volumes in our businesses serving energy, agriculture and chemical markets.
• Adjusted EBITDA margin for the second quarter 2026 decreased primarily due to unfavorable mix, the impacts of which were mostly mitigated by net productivity improvements and positive price/cost. Positive price/cost was driven by the net benefit of 180 basis points from IEEPA tariff refunds, which more than offset a challenging prior year price/cost comparison.

Fire & Safety/Diversified Products Segment

• Both Net sales and organic sales for the second quarter 2026 decreased 1%. Lower volumes within our Fire & Safety businesses driven by lower European rescue demand as well as in our Dispensing businesses more than offset higher volumes in our BAND-IT business and positive price across the segment. Net sales included a $2.2 million reduction resulting from expected customer rebates associated with IEEPA tariff refunds, which unfavorably impacted organic sales growth by 1%.
• Adjusted EBITDA margin for the second quarter 2026 decreased primarily due to unfavorable mix and volume deleverage, partially offset by other net productivity improvements and positive price/cost. Positive price/cost was driven by the net benefit of 120 basis points from IEEPA tariff refunds, which more than offset a challenging prior year price/cost comparison.

Corporate Costs
Corporate costs included in consolidated Adjusted EBITDA were $26.2 million during the second quarter 2026, up from $22.9 million during the same prior year period primarily driven by higher employee-related costs, including variable compensation.

Other Items
Below is a summary of the impacts of the IEEPA tariff refunds and the related expected customer rebates discussed above:

Conference Call
IDEX will host its second quarter earnings conference call on Wednesday, July 29, 2026 at 8:00 a.m. CT. The call will be an audio webcast and accessible on the Company's Investor Relations site at https://investors.idexcorp.com. Associated earnings presentation materials will be available on the Company's website prior to the call.

Interested parties can access the conference by dialing 833.461.5787 and using confirmation code 212572551. Please connect five minutes prior to the start of the conference call.

A replay of the earnings call and associated earnings presentation materials will be available on the Company’s website after the call.

Forward-Looking Statements
This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company’s third quarter 2026 and full year 2026 outlook including expected organic sales and expected adjusted earnings per share and the assumptions underlying these expectations, capital return strategy, anticipated future acquisition behavior and the anticipated benefits and performance of the Company’s recent or future acquisitions, resource and capital deployment and focus and organic and inorganic growth, the Company’s ability to adapt to macroeconomic challenges, anticipated impacts of tariffs and global trade policies and changes in law, anticipated trends in end markets, including expectations regarding future order volumes and order patterns, anticipated growth initiatives and expansions and execution of those growth initiatives and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “guidance,” “expects,” “projects,” “forecasts,” “should,” “could,” “will,” “likely to be,” “management believes,” “the Company believes,” “the Company intends” and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this news release.

The risks and uncertainties include, but are not limited to, the following: levels of industrial activity and economic conditions in the U.S. and other countries around the world, including uncertainties in the financial markets; pricing pressures, including inflation and rising interest rates, and other competitive factors and levels of capital spending in certain industries; the impact of severe weather events, natural disasters and public health threats; economic and political consequences resulting from terrorist attacks, wars and global conflicts; the Company’s ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; cybersecurity incidents; the continued growth of artificial intelligence (“AI”) and any related changes to demand in AI-driven markets served by the Company’s customers; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in countries in which the Company operates; developments with respect to trade policy and existing, new or increased tariffs or other similar measures; changes to applicable laws and regulations, including tax laws; interest rates; capacity utilization and the effect this has on costs; labor markets; supply chain conditions; market conditions and material costs; risks related to environmental, social and corporate governance issues, including those related to climate change and sustainability; and developments with respect to contingencies, such as litigation and environmental matters.

Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included in the Company’s most recent annual report on Form 10-K and the Company’s subsequent quarterly reports filed with the United States Securities and Exchange Commission (“SEC”) and the other risks discussed in the Company’s filings with the SEC. The forward-looking statements included here are only made as of the date of this news release, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.

About IDEX
IDEX Corporation (NYSE: IEX), a global engineered products company, is comprised of three primary business segments – Health & Science Technologies, Fluid & Metering Technologies, and Fire & Safety/Diversified Products. Thousands of IDEX employees around the world design and manufacture highly engineered components and applied solutions that are vital to the advances of modern life and help IDEX live its purpose – Trusted Solutions, Improving Lives™. From satellite communications to water systems, from medical diagnostic components to emergency rescue tools and more, we collaborate with customers in the most critical industries to develop solutions that make the world better today and into the future. Founded in 1988, IDEX now includes more than 50 dynamic businesses around the world and manufacturing operations in more than 20 countries.

For further information on IDEX Corporation and its business units, visit the Company’s website at www.idexcorp.com.

(Financial reports follow)

Non-GAAP Measures of Financial Performance
The Company prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). To supplement its U.S. GAAP financial results, the Company presents certain non-GAAP financial measures. Management uses these non-GAAP measures to evaluate operating performance, assess trends, allocate resources and support financial and operational decision-making. Management believes these measures provide investors with additional insight into the Company’s ongoing business performance and enhance comparability across reporting periods by excluding the impact of items that management does not consider reflective of ongoing operations.

Management uses Adjusted EBITDA as its measure of segment performance. Management believes it is a useful indicator of the strength and performance of the Company and its segments’ ongoing business operations as well as a way for investors to evaluate and compare operating performance and value companies within the Company’s industry. Management believes that Adjusted EBITDA margin is useful for the same reason as Adjusted EBITDA. The definition of Adjusted EBITDA used here may differ from that used by other companies.

The Company defines its non-GAAP measures below and presents reconciliations of these non-GAAP measures to their most directly comparable U.S. GAAP measures in the tables that follow. There were no adjustments to U.S. GAAP financial performance metrics other than the items noted below.

• Organic orders and organic sales are calculated as orders and Net sales excluding amounts from acquired or divested businesses during the first twelve months of ownership or prior to divestiture and excluding the impact of foreign currency translation.
• Adjusted gross profit is calculated as Gross profit, adjusted to exclude the impact of fair value inventory step-up charges and restructuring-related charges.
• Adjusted gross margin is calculated as Adjusted gross profit divided by Net sales.
• Adjusted net income attributable to IDEX is calculated as Net income attributable to IDEX, adjusted to exclude the impact of Restructuring expenses and asset impairments and other restructuring-related charges, acquisition-related intangible asset amortization and legal settlements and contingencies, all net of the statutory tax expense or benefit.
• Adjusted diluted EPS attributable to IDEX is calculated as Adjusted net income attributable to IDEX divided by the diluted weighted average shares outstanding.
• Consolidated Adjusted EBITDA is calculated as consolidated earnings before interest expense - net, income taxes, depreciation and amortization, or consolidated EBITDA, adjusted to exclude the impact of Restructuring expenses and asset impairments and other restructuring-related charges and legal settlements and contingencies.
• Consolidated Adjusted EBITDA margin is calculated as Consolidated Adjusted EBITDA divided by Net sales.
• Free cash flow is calculated as cash flows from operating activities less capital expenditures. Free cash flow conversion is calculated as free cash flow divided by Adjusted net income attributable to IDEX.

These non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures prepared in accordance with U.S. GAAP. The financial results prepared in accordance with U.S. GAAP and the reconciliations from those results should be carefully evaluated. Due to rounding, numbers presented throughout this and other documents may not add up or recalculate precisely.

Table 1: Reconciliations of the Change in Net Sales to Change in Organic Sales

Table 2: Reconciliations of Reported-to-Adjusted Gross Profit and Gross Margin (dollars in millions)

Table 3: Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, except per share amounts)

Table 4: Reconciliations of Net Income to Adjusted EBITDA (dollars in millions)

Table 5: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (dollars in millions)