Idex CorporationNYSE: IEX

Q4 2025 IDEX Earnings Conference Call Presentation

· Issued by Idex Corporation
Watch Idex explain itIDEX Corporation (IEX) Q2 2026 Earnings Call · Replay · Jul 29

Fourth Quarter 2025 Earnings

February 4, 2026







The Purposeful Evolution of IDEX

$3.5B

2 0 2 5

R E V E N U E S

Staging sustainable value creation in Phase III

PHASE III

PATH TO H I GH E R

G R O W T H W I T H 8020

PHASE I

H O L D I N G C O M P A N Y , E S T 1 9 8 7

Portfolio of resilient industrial products

with strong brands operating independently

PHASE II

O P T I M I Z E D W I T H 8 0 2 0

Introduced 8020, accelerated talent development, applied shared operating approach and enhanced margins across the portfolio

  1. Targeting higher-growth, advantaged markets

  2. Accelerating commercial and operational business integration

  3. Balanced, returns-focused capital deployment

2011 2012 2020 2021

3

Building Momentum Across Health & Science Technologies

Performance Pneumatics

Materials Science Solutions

Mott

Life Sciences

Diversified Industrials







Differentiated air and gas-moving products

80s Markets

Data Center and Power Generation

Portfolio of applied materials forming capabilities

80s Markets

Space & Defense, Semiconductor, Data Center

Engineered porous metal filtration solutions

80s Markets

Space & Defense and Semiconductor

Broad toolkit for pharma and life science customers

High performance sealing solutions

80s Markets

Semiconductor consumables

80s Markets

Life Science Instruments and Pharmaceutical

Complimentary components increasingly coming together in go-to-market strategies and technology development to drive growth and efficiencies

Reallocating Resources

Leveraging Adjacent Technologies

Maximizing Go-to-market Synergies

Delivering Operational Efficiencies

Implementing 8020



4

IDEX 4Q25 Highlights

Delivered better than expected results despite macro uncertainty; leveraging 8020, Phase III growth strategies gaining traction

HST logged record orders fueled by advantaged markets and increased demand in data center applications

Industrial businesses remain sluggish; leading indicators not showing signs of positive inflection

Balanced, returns-focused capital deployment

Airtech Valves

FY26 outlook balances strong momentum in HST markets with challenged general industrial

5



5



4Q & FY 2025 Financial Performance

($ in millions excl. EPS)

Sales

+1% Organic* +1% Organic*

$ 3,458

Adjusted Earnings per Share*

+3% y/y +1% y/y

$7.95

$ 863

$ 899

$ 3,269

$2.04 $2.10

$7.89

4Q24 4Q25

2024 2025

4Q24 4Q25

2024 2025

Adjusted EBITDA Margin

+40 bps y/y +10 bps y/y

Free Cash Flow Conversion

26.4%

26.8%

26.7% 26.8%

101%

121%

101% 103%



4Q24 4Q25

2024 2025

4Q24 4Q25

2024 2025

6

*This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and in our SEC filings.

4Q & FY 2025: Health & Science Technologies

($ in millions)

Orders

+34% Organic* +12% Organic*

Sales

+5% Organic* +4% Organic*

Adj. EBITDA Margin

+60 bps y/y (10) bps y/y

Performance Highlights

  • 4Q Y/Y organic orders and sales growth driven by advantaged markets, led by AI-driven demands for power and semiconductor, and

    $ 493

    $ 353

    $ 1,295

    $ 1,617

    $ 1,496

    27.0%

    26.4%

    26.7% 26.6%

    space & defense

    • Accelerating 8020 application across newly acquired businesses for faster commercial and operational integration

    • 4Q Adj EBITDA% expanded given positive price-cost and productivity gains, partially offset by unfavorable mix and higher variable comp

Key Markets Health

Sales Growth

Organic*

FX

M&A

Y/Y Δ

4Q25

5%

2%

2%

9%

FY25

4%

1%

10%

15%

4Q24 4Q25

2024 2025

$ 408

$ 373

$ 1,298

4Q24 4Q25

2024 2025

4Q24 4Q25

2024 2025

Life Sciences

(~33% of segment sales)

Diversified, Other

(~26% of segment sales)

Industrial, Auto

(~20% of segment sales)

Semiconductor

(~13% of segment sales)

Pharma growing MSD IDEX exposures in instruments, NIH weighing

Strong power gen Stable food & beverage

Multiple touchpoints including MSS & Mott



HST growth accelerating, with particular strength in Data Center driven areas (e.g., power, semiconductor)

Space & Defense

(~8% of segment sales)



*This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and our SEC filings. 7

4Q & FY 2025: Fluid & Metering Technologies

($ in millions)

Orders

+4% Organic* +4% Organic*

$ 1,213

Sales

+1% Organic* Flat Organic*

$ 299

$ 306

$ 1,233 $ 1,224

Adj. EBITDA Margin

(20) bps y/y +30 bps y/y

Performance Highlights

  • 4Q Y/Y organic orders driven by municipal water, positive price, and timing

  • 4Q Y/Y organic sales benefited from

    $ 299

    $ 1,173

    31.6%

    31.4%

    32.9% 33.2%

    positive price and strong muni water

    markets, partially offset by softer volumes in semiconductor, chemical, energy, and industrial businesses

    • 4Q Adj EBITDA% trends driven by volume decrementals partially offset by positive price-cost

      $ 282

      Key Markets Health

      Gen Industrial not yet

      Sales Growth

      Organic*

      FX

      M&A

      Y/Y Δ

      4Q25

      1%

      1%

      -

      2%

      FY25

      0%

      1%

      (2%)

      (1%)

      4Q24 4Q25

      2024 2025

      4Q24 4Q25

      2024 2025

      4Q24 4Q25

      2024 2025

      Diversified Industrial

      (~79% of segment sales)

      Municipal & Industrial Water

      (~21% of segment sales)

      accelerating

      Energy, Chemical & Ag markets pressured

      Sustainable MSD growth in Muni





      Municipal Water a bright spot; strong execution and price-cost offsetting volume pressures across Diversified Industrials

      *This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and our SEC filings. 8

      4Q & FY 2025: Fire & Safety / Diversified Products

      ($ in millions)

      Orders

      Flat Organic* Flat Organic*

      Sales

      (5%) Organic* (1%) Organic*

      Adj. EBITDA Margin

      +50 bps y/y (10) bps y/y

      Performance Highlights

  • Flat 4Q Y/Y organic orders reflect netting customer spend hesitancy in Dispensing, stable BAND-IT, and growth in NA F&S

$ 184 $ 188

$ 730 $ 738

$ 193 $ 188

$ 744 $ 745

28.6%

28.8% 28.7%

  • 4Q Y/Y organic sales reflect pressures in OUS F&S and Dispensing, partially offset by positive price and higher volumes at BAND-IT

  • 4Q Adj EBITDA% increased Y/Y on net productivity improvements and favorable mix, partially offset by volume deleverage

    Sales Growth

    Organic*

    FX

    M&A

    Y/Y Δ

    4Q25

    (5%)

    2%

    -

    (3%)

    FY25

    (1%)

    1%

    -

    0%

    4Q24 4Q25

    2024 2025

    4Q24 4Q25

    2024 2025

    28.1%

    4Q24 4Q25

    2024 2025

    Key Markets Health

    Fire & Safety

    (~57% of segment sales)

    Dispensing

    (~20% of segment sales)

    NA healthy Europe/Asia funding headwinds persist

    Subdued refresh investment



    Pressures in Dispensing and non-US Fire & Safety offsetting strength in NA F&S and Aerospace & Defense

    Diversified Industrial



    (~23% of segment sales)

    A&D strong, Auto stable, Energy soft

    9

    *This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and our SEC filings.

    Capital Deployment

    Maintaining a balance and returns-oriented approach

    Gross Leverage*

    Capital Deployment (Last 2 Years) IDEX Capital Deployment Framework

    ($ in millions)

    2.2x

    2.0x

    4Q24 4Q25

    $1,255

    $601

    $64

    $65

    $76

$213

$248

$985

$205

FY24 FY25

Capex M&A

Dividends Share Repurchases

  • Maintain investment grade credit rating

    Maintain strong balance sheet

  • Gross leverage target < 2.0x

    Organic growth investment

  • 80s focus areas

  • Highest ROI opportunities

    M&A

    • Near-term focus on bolt-ons

    • Portfolio management part of long-term growth strategy

      Return capital to shareholders

    • Maintain current dividend policy

    • Consistent share repurchase activity; augmented depending on leverage and M&A activity



*Gross Leverage defined as Total Debt / TTM Adj. EBITDA 10

2026 Guidance Summary

FY26

1Q26

Organic* Revenue Growth y/y

1% - 2%

~1%

Adjusted EBITDA Margin*

26.5% - 27.0%

~24.5%

Adjusted EPS*

$8.15 - $8.35

$1.73 - $1.78

Acquisition/Divestiture Impact on Sales

~0.5%

~1%

$30-32M

$98-102M

Other Modeling Items:

FX Impact on Sales (a)

~1%

~2.5%

Corporate/Unallocated Costs

Depreciation

Net Interest Expense

~$84M

$65-68M

~$21M

$16-17M

Tax Rate

~24%

~24%

Capital Expenditures

~$90M

FCF Conversion*

~100%

(a) - Current guidance based on 12/31/2025 FX Rate;



Current earnings per share estimates exclude all future acquisitions

*Guidance provided on an adjusted basis. Reconciliations of forward-looking non-GAAP measures to the most directly comparable GAAP financial measures cannot be provided

without unreasonable efforts and are not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such reconciliations.

11



IDEX Value Drivers

Differentiated 8020 operating model drives full business potential through simplification, focused resourcing and streamlined execution

Focused on continuously evolving our portfolio toward high-growth, advantaged markets with secular tailwinds

Balanced allocator of capital with strong deployable cash flow that supports M&A, dividends and share repurchases

Focused on delivering above-market organic growth and margins, amplified by strategic M&A to drive sustainable value creation

Advancing IDEX through strong execution and disciplined capital deployment



12



Non-GAAP Reconciliations

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

HST FMT FSDP IDEX

For the Quarter Ended December 31, 2025

Change in net sales

9%

2%

(3%)

4%

Less:

Net impact from acquisitions/divestitures(1)

2%

-%

-%

1%

Impact from foreign currency(2)

2%

1%

2%

2%

Change in organic sales 5% 1% (5%) 1%

For the Year Ended

December 31, 2025

Change in net sales

15%

(1%)

-%

6%

Less:

Net impact from acquisitions/divestitures(1)

10%

(2%)

-%

4%

Impact from foreign currency(2)

1%

1%

1%

1%

Change in organic sales 4% -% (1%) 1%

  1. Represents the sales from acquired or divested businesses during the first 12 months of ownership or prior to divestiture.

  2. The portion of sales attributable to foreign currency translation is calculated as the difference between (a) the period-to-period change in organic sales, and (b) the period-to-period change in organic sales after applying prior period foreign exchange rates to the current year period.



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

    Gross profit $ 387.1 $ 367.1 $ 1,538.8 $ 1,445.2

For the Quarter Ended December 31, For the Year Ended December 31, 2025 2024 2025 2024

Fair value inventory step-up charges - 5.0 0.6 9.6

Adjusted gross profit $ 387.1 $ 372.1 $ 1,539.4 $ 1,454.8

Net sales $ 899.1 $ 862.9 $ 3,457.5 $ 3,268.8

Gross margin

43.1%

42.5%

44.5%

44.2%

Adjusted gross margin

43.1%

43.1%

44.5%

44.5%



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

For the Quarter Ended December 31, For the Year Ended December 31,

2025

2024

2025

2024

Reported net income attributable to IDEX

$

128.3

$

123.2

$

483.2

$ 505.0

Fair value inventory step-up charges

-

5.0

0.6

9.6

Tax impact on fair value inventory step-up charges

-

(1.0)

(0.1)

(2.0)

Restructuring expenses and asset impairments(1)

2.4

3.9

20.4

9.3

Tax impact on restructuring expenses and asset impairments

(0.7)

(0.9)

(5.1)

(2.2)

Gain on sale of business

- - -

(4.0)

Tax impact on gain of sale of business

- - -

-

Loss on sale of assets

1.1

-

1.1

-

Tax impact of sale of assets(2)

0.5

-

0.5

-

Acquisition-related intangible asset amortization

34.2

32.1

130.7

107.1

Tax impact on acquisition-related intangible asset amortization

(8.6)

(7.2)

(31.8) (24.3)

Adjusted net income attributable to IDEX $ 157.2 $ 155.1 $ 599.5 $ 598.5

Reported diluted EPS attributable to IDEX

$

1.71

$

1.62

$

6.41

$

6.64

Fair value inventory step-up charges

-

0.07

0.01

0.13

Tax impact on fair value inventory step-up charges

-

(0.01)

-

(0.02)

Restructuring expenses and asset impairments(1)

0.03

0.05

0.27

0.12

Tax impact on restructuring expenses and asset impairments

(0.01)

(0.01)

(0.07)

(0.03)

Diluted weighted average shares outstanding 74.8 75.9 75.3 75.9



Gain on sale of business

- - -

(0.05)

Tax impact on gain of sale of business

- - -

-

Loss on sale of assets

0.02

-

0.02

-

Tax impact on sale of assets(2)

0.01

-

0.01

-

Acquisition-related intangible asset amortization

0.46

0.42

1.72

1.41

Tax impact on acquisition-related intangible asset amortization

(0.12)

(0.10)

(0.42) (0.31)

Adjusted diluted EPS attributable to IDEX $

2.10 $

2.04 $

7.95 $ 7.89

  1. This adjustment represents the amount of Restructuring expenses and asset impairments attributable to IDEX. Restructuring expenses and asset impairments of $20.7 million on the Condensed Consolidated Statements of Income during the year ended December 31, 2025 included charges of $0.6 million recognized by the Company's joint venture, $0.3 million of which was attributable to noncontrolling interest.

  2. The loss on sale of assets generated tax expense due to the characterization of the underlying assets sold for tax purposes.

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

For the Quarter Ended December 31, For the Year Ended December 31,

2025

2024

2025

2024

Reported net income

$ 128.3

$ 123.2

$ 482.5

$ 504.6

Provision for income taxes

39.4

28.0

150.1

134.7

Interest expense - net

16.2

16.7

64.4

44.5

Gain on sale of business

-

-

-

(4.0)

Depreciation

19.3

18.6

75.8

68.5

Amortization

34.2

32.1

130.7

107.1

Fair value inventory step-up charges

-

5.0

0.6

9.6

Restructuring expenses and asset impairments

2.4

3.9

20.7

9.3

Loss on sale of assets

1.1

-

1.1

-

Adjusted EBITDA $ 240.9 $ 227.5 $ 925.9 $ 874.3

Adjusted EBITDA Components:

HST

110.0

98.6

397.8

346.8

FMT

96.0

94.7

406.8

406.3

FSDP

53.6

54.3

213.5

214.2

Corporate and other

(18.7)

(20.1)

(92.2)

(93.0)

Total Adjusted EBITDA

$ 240.9 $

227.5

925.9

$ 874.3

Net sales 899.1 862.9 3,457.5 3,268.8

Net income margin

14.3%

14.3%

14.0%

15.4%

Adjusted EBITDA margin

26.8%

26.4%

26.8%

26.7%



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

Cash flows from operating activities $ 209.5 $ 172.6 $ 680.4 $ 668.1

For the Quarter Ended December 31, For the Year Ended December 31, 2025 2024 2025 2024

Less: Capital expenditures 19.7 15.5 63.6 65.1

Free cash flow $ 189.8 $ 157.1 $ 616.8 $ 603.0

Reported net income attributable to IDEX

$

128.3

$

123.2

$

483.2

$

505.0

Adjusted net income attributable to IDEX

157.2

155.1

599.5

598.5

Operating cash flow as a percent of net income

163%

140%

141%

132%

Free cash flow conversion

121%

101%

103%

101%



Attention: This is an excerpt of the original content. To continue reading it, access the original document here.

Earlier from Idex

All Idex news releases