Idex (IEX) Down 4.5% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Idex (IEX). Shares have lost about 4.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Idex due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for IDEX Corporation before we dive into how investors and analysts have reacted as of late.

IDEX Q4 Earnings Surpass Estimates, Sales Increase Year Over Year

IDEX’s 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.

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, IT reported net revenues of $3.5 billion, which increased 6% year over year.

It 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. 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. 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. 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%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, Idex has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Idex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Idex belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Crane (CR), has gained 5.8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Crane reported revenues of $581 million in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $1.53 for the same period compares with $1.26 a year ago.

For the current quarter, Crane is expected to post earnings of $1.44 per share, indicating a change of +3.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Crane. Also, the stock has a VGM Score of D.

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

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