IDEX Approves Additional Share Buyback Program, Affirms Dividend Payment

IDEX Corporation IEX recently announced a significant expansion of its share repurchase program. The latest buyback authorization, along with the $440 million left under the company’s existing program (as of June-end 2025), brings the total share repurchase authority to a substantial $1 billion.

Share repurchases are often viewed as a strategic approach to demonstrate a company's belief in its value and commitment to enhancing shareholder returns. For instance, IDEX bought back shares worth $100 million in the first six months of 2025. Also, it distributed dividends of $105.9 million (up 5.2% year over year).

For 2025, IEX expects a free cash flow of more than 100% of adjusted net income. For the year, the company also aims to utilize a minimum of 70% of its free cash flow for paying dividends and share buybacks.

Concurrently, IDEX’s board of directors approved a quarterly cash dividend of 71 cents per share, payable on Oct. 24, 2025, to shareholders of record as of Oct. 10, 2025.

Zacks Rank & Price Performance

IDEX, with a $12.2 billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company is plagued by weaknesses in the Fluid & Metering Technologies (FMT) unit, primarily due to softness in the agriculture, energy, water and semiconductor businesses. It has been dealing with rising operating costs, which might hurt its margins and profitability.

The company’s shares have declined 11.8% against the industry’s growth of 9% in the past six months.

The Zacks Consensus Estimate for IEX’s 2025 earnings has decreased 3.9% over the past 60 days. It has a trailing four-quarter average earnings surprise of 2.8%.

3 Promising Stocks

Some better-ranked stocks from the same space are discussed below.

Flowserve Corporation FLS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FLS delivered a trailing four-quarter average earnings surprise of 5.5%. In the past 60 days, the Zacks Consensus Estimate for FLS’ 2025 earnings has increased 5%.

Graham Corporation GHM currently carries a Zacks Rank of 2. GHM delivered a trailing four-quarter average earnings surprise of 64%.

In the past 60 days, the consensus estimate for Graham’s fiscal 2026 (ending March 2026) earnings has increased 15.4%.

RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. It delivered a trailing four-quarter average earnings surprise of 3.8%.

In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2026 (ending March 2026) earnings has risen 1.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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