IDEX Gears Up to Post Q4 Earnings: What's in the Offing?

IDEX Corporation IEX is scheduled to release fourth-quarter 2025 results on Feb. 4, before market open.

The Zacks Consensus Estimate for fourth-quarter earnings has remained steady in the past 30 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 4%.

The consensus estimate for revenues is pegged at $881.6 million, indicating an increase of 2.2% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at $2.04 per share, remaining steady from the year-ago quarter’s number.

Let's see how things have shaped up for IDEX this earnings season.

Factors to Note Ahead of IDEX’s Results

The Health & Science Technologies (HST) segment is expected to have benefited from strong momentum in the pharma, life science, semiconductor consumables and data center businesses. Also, the targeted growth initiatives in the space business and strength in defense markets are expected to have aided the segment’s performance in the fourth quarter. We expect the HST segment’s revenues to be $396.2 million, indicating an increase of 6.2% year over year.

An increase in demand for products across the municipal water business is expected to have benefited the Fluid & Metering Technologies (FMT) segment. Higher volume in the industrial businesses is likely to have been a tailwind as well. We expect the segment’s revenues to be $306.9 million, up 2.6% year over year.

In July 2025, the company acquired Micro-LAM, Inc. (Micro-LAM), which expanded IDEX’s optics technologies offerings. The acquisition of Mott Corp. and its subsidiaries (Mott) in September 2024 expanded the company’s expertise in applied materials science technology capabilities across high-value end markets. In December 2023, IEX acquired advanced material science solutions provider STC Material Solutions, which expanded its expertise in material sciences. These acquisitions are likely to have augmented the company’s performance.

However, the Fire & Safety/Diversified Products (FSDP) segment is expected to have put up a weak show due to softness in the dispensing business arising from unfavorable timing of dispensing projects in emerging markets and slower equipment replenishment. Also, weakness in the fire OEM business and decrease in demand for rescue tools have also been acting as a headwind for the segment’s performance. Our estimate for the segment’s revenues stands at $187.1 million, indicating a 3% decline year over year.

The escalating costs and operating expenses, due to increasing employee-related costs and professional services spending, are likely to have weighed on IEX’s bottom line in the to-be-reported quarter.

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for IEX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: IEX has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.04 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: IEX presently carries a Zacks Rank #4 (Sell). 

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

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Xylem Inc. XYL has an Earnings ESP of +0.88% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2025 results on Feb. 10.

Xylem’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.7%.

Kennametal Inc. KMT has an Earnings ESP of +8.57% and a Zacks Rank of 1 at present. The company is scheduled to release second-quarter fiscal 2026 results on Feb. 4.

KMT’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 26.9%.

Watts Water Technologies, Inc. WTS has an Earnings ESP of +0.59% and a Zacks Rank of 2 at present. The company is slated to release fourth-quarter 2025 results on Feb. 11.

Watts Water’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.9%.

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

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