IDEX Q4 Earnings Surpass Estimates, Sales Increase Year Over Year

IDEX Corporation’s IEX fourth-quarter 2025 adjusted earnings of $2.10 per share surpassed the Zacks Consensus Estimate of $2.04. The bottom line increased 3% on a year-over-year basis.

In 2025, the company’s adjusted earnings were $7.95 per share, up 1% year over year.

IEX’s Revenue Details

IDEX’s net sales of $899 million beat the Zacks Consensus Estimate of $881.6 million. The top line increased 4% year over year. Organic sales increased 1% year over year. While acquisitions/divestitures had a positive impact on sales of 1%, foreign currency translation had a positive impact of 2% on sales.

In 2025, IEX reported net revenues of $3.5 billion, which increased 6% year over year.

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

Net sales from the Fluid & Metering Technologies segment totaled $305.5 million, up 2% year over year. Our estimate for segmental net sales was $306.9 million. Organic sales increased 1% year over year. Foreign currency translation had a positive impact of 1% on sales.

Net sales from the Health & Science Technologies segment totaled $407.7 million, up 9% year over year. Our estimate for segmental net sales was $396.2 million. Organic sales increased 5% year over year. Acquisitions/divestitures and foreign currency translation had a positive impact of 2% each on sales.

Net sales from the Fire & Safety/Diversified Products segment totaled $187.6 million, which decreased 3% year over year. Our estimate for segmental net sales was $187.1 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 3.3% year over year to $512.0 million. The adjusted gross profit was $387.1 million, up 4% year over year. The adjusted gross margin was 43.1%, in line with the year-ago quarter.

Selling, general and administrative expenses increased 1.6% year over year to $201.1 million. Adjusted EBITDA was $240.9 million, up 5.9% from the year-ago quarter figure. The adjusted EBITDA margin increased 40 bps year over year to 26.8%.

The operating income was $183.6 million, up 11.1% year over year. The operating margin was 20.4%, up 120 bps year over year. Interest expenses (net) decreased 3% year over year to $16.2 million.

Balance Sheet and Cash Flow of IDEX

While exiting the fourth quarter, IDEX’s cash and cash equivalents were $580 million compared with $620.8 million at the end of fourth-quarter 2024. Long-term borrowings (net) were $1.82 billion compared with $1.86 billion at the end of fourth-quarter 2024.

In 2025, IDEX generated net cash of $680.4 million from operating activities, down 1.8% from the year-ago period. Capital expenditures were $63.6 million compared with $65.1 million in 2024. In the same period, free cash flow was $616.8 million, up 2.3% year over year.

IDEX paid out dividends totaling $212.6 million in 2025, up 3.6% year over year.

IDEX’s Outlook

For the first quarter of 2026, IDEX anticipates adjusted earnings to be in the band of $1.73 - $1.78 per share. It expects organic sales to increase approximately 1% from the year-ago reading.

For 2026, the company anticipates adjusted earnings to be in the range of $8.15-$8.35 per share. Organic sales are predicted to increase 1-2%.

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

Graco Inc. GGG posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.

Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.

Baker Hughes Company BKR reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.

Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.

3M Company MMM delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.

MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.

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

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