IDEX Reports Record Third Quarter Results

Third Quarter Highlights

(All comparisons are against the prior year period unless otherwise noted)

• Record sales of $952 million increased 8% on both a reported and organic basis
• Reported diluted EPS of $1.95 and record adjusted diluted EPS of $2.33 both increased 15%
• Orders of $991 million increased 13% on both a reported and organic basis
• Strategic acquisitions gaining momentum through higher-value applications in advantaged markets
• Returned $129 million to shareholders through dividends and share repurchases

NORTHBROOK, Ill.--(BUSINESS WIRE)--IDEX Corporation (NYSE: IEX) today announced its financial results for the three-month period ended September 30, 2026.

“We are pleased to report another strong quarter, with results ahead of our expectations. This quarter, we delivered both record sales and adjusted EPS while expanding margins and booked nearly $1 billion in orders. Advantaged markets and larger acquired businesses are driving this performance, and momentum is broadening across the rest of the portfolio,” said Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President.

“Our teams continued to execute well as we met our customers’ increasing demand and drove strong incremental margins on the increased volume. Our ability to drive margin expansion during a period of continued inflation demonstrates the strength of our team and the power of 8020. Additionally, 8020 drives each business toward its full potential and provides the right framework for allocating resources and technologies toward the most attractive opportunities for sustainable value creation across IDEX.”

“We are again increasing our full-year financial guidance due to our strong performance year-to-date, with improved visibility and momentum as we close out 2026.”

Outlook⁽¹⁾

• Full year organic sales projected to increase 6.5% to 6.8% over the prior year, up from previous guidance of 5% to 6%
• Full year adjusted diluted EPS of $8.91 to $8.96, up approximately 12% year-over-year at midpoint, up from previous guidance of $8.70 to $8.85

Consolidated Financial Results

• Net sales increased primarily as a result of increased organic sales. The increase in organic sales was driven by higher volumes, primarily in our Health & Science Technologies (“HST”) segment, and positive price across the segments.
• Gross margin and Adjusted gross margin both increased due to volume leverage, net productivity improvements and favorable mix. These increases were partially offset by price/cost headwinds. Adjusted gross margin excludes the impact of restructuring-related charges, consisting primarily of accelerated depreciation related to the anticipated closure of a facility in the HST segment.
• Both Diluted EPS and Adjusted diluted EPS increased, primarily due to improved operational results discussed above.
• Cash flows from operating activities and free cash flow both increased compared to the prior year period, primarily due to higher earnings and improved working capital, driven by timing of shipments and collection of receivables during the prior year period, partly offset by higher cash income tax payments in the current year period. These improvements in cash flows from operating activities also benefited free cash flow but were partly offset by higher capital expenditures during the current year period to support continued growth.

Segment Financial Results

Health & Science Technologies Segment

• Net sales for the third quarter 2026 increased 14%. Organic sales increased 13% driven by higher volumes primarily due to AI-driven demand for data center power and semiconductor markets, as well as strength in space and defense and positive price.
• Adjusted EBITDA margin for the third quarter 2026 increased primarily due to volume leverage and favorable mix. These increases were partially offset by higher employee-related costs, including variable compensation and the impact of acquisitions.

Fluid & Metering Technologies Segment

• Net sales for the third quarter 2026 increased 3%. Organic sales increased 4% primarily driven by positive price. Higher volumes in our businesses serving municipal water, semiconductor and industrial markets were partially offset by lower volumes in our businesses serving chemical, agriculture and energy markets.
• Adjusted EBITDA margin for the third quarter 2026 increased slightly, reflecting net productivity improvements and volume leverage, mostly offset by unfavorable mix and higher variable compensation.

Fire & Safety/Diversified Products Segment

• Net sales for the third quarter 2026 increased 5%. Organic sales increased 6% primarily driven by higher volumes in our BAND-IT and Fire & Safety businesses as well as positive price.
• Adjusted EBITDA margin for the third quarter 2026 increased primarily due to volume leverage, favorable mix and net productivity improvements. These increases were partially offset by price/cost headwinds.

Corporate Costs

Corporate costs included in consolidated Adjusted EBITDA were $25.5 million during the third quarter 2026, up from $21.7 million during the same prior year period primarily driven by higher employee-related costs, including variable compensation.

Other Items

• Amended and restated our $800 million revolving credit facility to extend the maturity date to September 2031.

Conference Call

IDEX will host its third quarter earnings conference call on Wednesday, October 28, 2026 at 8:00 a.m. CT. The call will be an audio webcast and accessible on the Company's Investor Relations site at https://investors.idexcorp.com. Associated earnings presentation materials will be available on the Company's website prior to the call.

Interested parties can access the conference by dialing 833.461.5787 and using confirmation code 274998795. Please connect five minutes prior to the start of the conference call.

A replay of the earnings call and associated earnings presentation materials will be available on the Company’s website after the call.

Forward-Looking Statements

This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company’s full year 2026 outlook including expected organic sales and expected adjusted earnings per share and the assumptions underlying these expectations, capital return strategy, anticipated future acquisition behavior and the anticipated benefits and performance of the Company’s recent or future acquisitions, resource and capital deployment and focus and organic and inorganic growth, the Company’s ability to adapt to macroeconomic challenges, anticipated impacts of tariffs and global trade policies and changes in law, anticipated trends in end markets, including expectations regarding future order volumes and order patterns, anticipated growth initiatives and expansions and execution of those growth initiatives and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “guidance,” “expects,” “projects,” “forecasts,” “should,” “could,” “will,” “likely to be,” “management believes,” “the Company believes,” “the Company intends” and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this news release.

The risks and uncertainties include, but are not limited to, the following: levels of industrial activity and economic conditions in the U.S. and other countries around the world, including uncertainties in the financial markets; pricing pressures, including inflation and rising interest rates, and other competitive factors and levels of capital spending in certain industries; the impact of severe weather events, natural disasters and public health threats; economic and political consequences resulting from terrorist attacks, wars and global conflicts; the Company’s ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; cybersecurity incidents; the continued growth of artificial intelligence (“AI”) and any related changes to demand in AI-driven markets served by the Company’s customers; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in countries in which the Company operates; developments with respect to trade policy and existing, new or increased tariffs or other similar measures; changes to applicable laws and regulations, including tax laws; interest rates; capacity utilization and the effect this has on costs; labor markets; supply chain conditions; market conditions and material costs; risks related to environmental, social and corporate governance issues, including those related to climate change and sustainability; and developments with respect to contingencies, such as litigation and environmental matters.

Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included in the Company’s most recent annual report on Form 10-K and the Company’s subsequent quarterly reports filed with the United States Securities and Exchange Commission (“SEC”) and the other risks discussed in the Company’s filings with the SEC. The forward-looking statements included here are only made as of the date of this news release, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.

About IDEX

IDEX Corporation (NYSE: IEX), a global engineered products company, is comprised of three primary business segments – Health & Science Technologies, Fluid & Metering Technologies, and Fire & Safety/Diversified Products. Thousands of IDEX employees around the world design and manufacture highly engineered components and applied solutions that are vital to the advances of modern life and help IDEX live its purpose – Trusted Solutions, Improving Lives™. From satellite communications to water systems, from medical diagnostic components to emergency rescue tools and more, we collaborate with customers in the most critical industries to develop solutions that make the world better today and into the future. Founded in 1988, IDEX now includes more than 50 dynamic businesses around the world and manufacturing operations in more than 20 countries.

For further information on IDEX Corporation and its business units, visit the Company’s website at www.idexcorp.com.

(Financial reports follow)

Non-GAAP Measures of Financial Performance

The Company prepares its financial statements in accordance with U.S. GAAP. To supplement its U.S. GAAP financial results, the Company presents certain non-GAAP financial measures. Management uses these non-GAAP measures to evaluate operating performance, assess trends, allocate resources and support financial and operational decision-making. Management believes these measures provide investors with additional insight into the Company’s ongoing business performance and enhance comparability across reporting periods by excluding the impact of items that management does not consider reflective of ongoing operations.

Management uses Adjusted EBITDA as its measure of segment performance. Management believes it is a useful indicator of the strength and performance of the Company and its segments’ ongoing business operations as well as a way for investors to evaluate and compare operating performance and value companies within the Company’s industry. Management believes that Adjusted EBITDA margin is useful for the same reasons as Adjusted EBITDA. The definition of Adjusted EBITDA used here may differ from that used by other companies.

The Company defines its non-GAAP measures below and presents reconciliations of these non-GAAP measures to their most directly comparable U.S. GAAP measures in the tables that follow. There were no adjustments to U.S. GAAP financial performance metrics other than the items noted below.

• Organic orders and organic sales are calculated as orders and Net sales excluding amounts from acquired or divested businesses during the first twelve months of ownership or prior to divestiture and excluding the impact of foreign currency translation.
• Adjusted gross profit is calculated as Gross profit, adjusted to exclude the impact of fair value inventory step-up charges and restructuring-related charges.
• Adjusted gross margin is calculated as Adjusted gross profit divided by Net sales.
• Adjusted net income attributable to IDEX is calculated as Net income attributable to IDEX, adjusted to exclude the impact of fair value inventory step-up charges, Restructuring expenses and asset impairments and other restructuring-related charges, acquisition-related intangible asset amortization and legal settlements and contingencies, all net of the statutory tax expense or benefit.
• Adjusted diluted EPS attributable to IDEX is calculated as Adjusted net income attributable to IDEX divided by the diluted weighted average shares outstanding.

For further information:
Investor Contact:
Jim Giannakouros, CFA
Vice President, Investor Relations
(847) 313-9506