IDEX Q3 Earnings Surpass Estimates, Sales Increase Year Over Year

IDEX Corporation’s IEX third-quarter 2025 adjusted earnings of $2.03 per share surpassed the Zacks Consensus Estimate of $1.93. The bottom line increased 7% on a year-over-year basis. Management projected adjusted earnings to be in the band of $1.90-$1.95 per share in the quarter.

IEX’s Revenue Details

IDEX’s net sales of $879 million beat the Zacks Consensus Estimate of $858.3 million. The top line increased 10% year over year. Organic sales increased 5% year over year. While acquisitions/divestitures had a positive impact on sales of 4%, foreign currency translation had a positive impact of 1% on sales.

IEX reports net sales under three business segments, the results of which are discussed below:

Net sales from the Fluid & Metering Technologies segment totaled $317.1 million, up 5% year over year. Our estimate for segmental net sales was $297.3 million. Organic sales increased 4% year over year. Foreign currency translation had a positive impact of 1% on sales.

Net sales from the Health & Science Technologies segment totaled $381.0 million, up 22% year over year. Our estimate for segmental net sales was $363.9 million. Organic sales increased 10% year over year. Acquisitions/divestitures and foreign currency translation had a positive impact of 11% and 1%, respectively, on sales.

Net sales from the Fire & Safety/Diversified Products segment totaled $181.9 million, which decreased 3% year over year. Our estimate for segmental net sales was $195.1 million. Organic sales decreased 5% on a year-over-year basis, while foreign currency translation had a favorable impact of 2% on sales.

IDEX’s Margin Profile

IDEX’s cost of sales increased 9.9% year over year to $488.1 million. The adjusted gross profit was $391.2 million, up 9.9% year over year. The adjusted gross margin was 44.5% compared with 44.6% in the year-ago quarter.

Selling, general and administrative expenses increased 11.9% year over year to $204.7 million. Adjusted EBITDA was $239.8 million, up 11.9% from the year-ago quarter figure. The adjusted EBITDA margin increased 40 bps year over year to 27.3%.

The operating income was $185.8 million, up 10.6% year over year. The operating margin was 21.1%, up 10 bps year over year. Interest expenses (net) increased 60.2% year over year to $16.5 million.

Balance Sheet and Cash Flow of IDEX

While exiting the third quarter, IDEX’s cash and cash equivalents were $593.8 million compared with $620.8 million at the end of fourth-quarter 2024. Long-term borrowings (net) were $1.90 billion compared with $1.86 billion at the end of fourth-quarter 2024.

In the first nine months of 2025, IDEX generated net cash of $470.9 million from operating activities, down 5% from the year-ago period. Capital expenditures were $43.9 million compared with $49.6 million in the first nine months of 2024. In the same period, free cash flow was $427.0 million, down 4.2% year over year.

IDEX paid out dividends totaling $159.4 million in the first nine months of 2025, up 4.2% year over year.

IDEX’s Outlook

For 2025, the company anticipates adjusted earnings to be in the range of $7.86 - $7.91 per share compared with $7.85 - $7.95 expected earlier. IEX reported adjusted earnings of $7.89 per share in 2024. On a GAAP basis, earnings are predicted to be in the band of $6.35-$6.40 per share.

Organic sales are predicted to increase approximately 1%.

IEX’s Zacks Rank

The company currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Dover Corporation DOV reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.

Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.

Ardagh Metal Packaging S.A. AMBP came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.

Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion. 

Packaging Corporation of America PKG reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.

Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.

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