IDEX Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net sales reached a record $951.7 million, an 8% increase year-over-year (YoY), with organic sales also up 8%.
• Reported diluted EPS was $1.95, a 15% YoY increase from $1.70; adjusted diluted EPS was a record $2.33, also up 15% YoY from $2.03.
• Orders totaled $991.2 million, a 13% increase YoY, with organic orders also up 13%.
• Gross profit was $429.5 million with a gross margin of 45.1%, up 60 basis points (bps) from 44.5% in the prior year.
• Adjusted gross profit was $430.3 million with an adjusted gross margin of 45.2%, up 70 bps YoY.
• Net income attributable to IDEX was $144.1 million, up 16.3% YoY; adjusted net income was $172.8 million, up 20.0% YoY.
• Adjusted EBITDA was $264.8 million, up 25.0 million YoY, with an adjusted EBITDA margin of 27.8%, up 50 bps YoY.
• Operating cash flow was $239.5 million, up 36.0 million YoY, representing 166% of net income.
• Free cash flow was $214.3 million, up 25.6 million YoY, with a free cash flow conversion rate of 124%.
• Capital expenditures were $25.2 million for the quarter.

Guidance and Future Outlook:

• Full-year organic sales growth guidance was increased to 6.5% to 6.8%, up from the previous range of 5% to 6%.
• Full-year adjusted diluted EPS guidance was increased to $8.91 to $8.96, representing approximately 12% YoY growth at the midpoint, up from the previous range of $8.70 to $8.85.
• Management cited improved visibility, momentum, and strong year-to-date performance as drivers for the guidance increase.

Business Segments and Product Lines:

• Health & Science Technologies (HST): Net sales increased 14% to $433.5 million, with organic sales up 13%. Growth was driven by higher volumes in AI-driven data center power and semiconductor markets, strength in space and defense, and positive pricing. Adjusted EBITDA margin expanded 110 bps to 28.8%.
• Fluid & Metering Technologies (FMT): Net sales increased 3% to $327.9 million, with organic sales up 4%. Growth was driven by positive pricing and higher volumes in municipal water, semiconductor, and industrial markets, partially offset by lower volumes in chemical, agriculture, and energy markets. Adjusted EBITDA margin increased 20 bps to 33.9%.
• Fire & Safety/Diversified Products (FSDP): Net sales increased 5% to $191.5 million, with organic sales up 6%. Growth was driven by higher volumes in BAND-IT and Fire & Safety businesses and positive pricing. Adjusted EBITDA margin expanded 140 bps to 28.5%.
• The HST segment results included the acquisition of Micro-LAM, Inc. in July 2025.
• Corporate costs were $25.5 million, up from $21.7 million in the prior year, primarily due to higher employee-related costs and variable compensation.

Market and Competitive Landscape:

• Strategic acquisitions are gaining momentum through higher-value applications in advantaged markets.
• The company noted continued inflation and price/cost headwinds, which were partially offset by volume leverage, productivity improvements, and favorable mix.
• The company operates in critical industries including satellite communications, water systems, medical diagnostics, and emergency rescue tools.

Risks and Challenges:

• Potential risks include inflation, rising interest rates, pricing pressures, and competitive factors.
• Macroeconomic uncertainties, severe weather, natural disasters, and public health threats could impact industrial activity.
• Risks related to global conflicts, trade policy, tariffs, and currency fluctuations are noted.
• Challenges include the ability to integrate acquired businesses profitably and potential cybersecurity incidents.
• The company faces headwinds from price/cost pressures and unfavorable mix in certain segments.

Management Commentary and Tone:

• CEO Eric D. Ashleman stated the company is "pleased to report another strong quarter, with results ahead of our expectations."
• Management highlighted the strength of the "8020" framework in driving margin expansion and allocating resources toward attractive opportunities.
• The tone was confident, citing the team's ability to drive margin expansion during inflation and meet increasing customer demand.
• Management noted that momentum is broadening across the rest of the portfolio beyond advantaged markets.

Other Key Points:

• The company returned $129 million to shareholders through dividends and share repurchases during the quarter.
• The company amended and restated its $800 million revolving credit facility, extending the maturity date to September 2031.
• Restructuring-related charges included accelerated depreciation of $0.7 million related to the anticipated closure of a facility in the HST segment.
• Legal settlements and contingencies included funds received net of associated legal costs, resulting in a net benefit of $0.2 million for the quarter.
• The company reported $54.0 million in cash dividends paid and $74.6 million in repurchases of common stock for the quarter.