IEX · IDEX Corporation

IDEX delivered a strong first quarter 2026, with reported net sales of $886.9 million (+9% YoY) and organic sales growth of 5%, significantly outpacing prior guidance. The Health & Science Technologies (HST) segment was the primary growth engine—net sales rose 17% YoY (11% organic), driven by AI-related demand in data center power and semiconductors, as well as strength in space and defense; this more than offset modest declines in FSDP’s Dispensing business and softer volumes in FMT’s chemical and general industrial end markets. Gross margin declined 40 bps to 44.9%, attributed to unfavorable product mix and price/cost pressure, partially offset by productivity gains and volume leverage. Adjusted EBITDA rose 11% to $230.4 million (26.0% margin), reflecting disciplined cost management and segment-level improvements—particularly in HST (EBITDA margin up 100 bps) and FSDP (up 30 bps). GAAP diluted EPS surged 28% to $1.61, aided by higher earnings and lower restructuring expense ($7.4M vs. $17.5M YoY); adjusted diluted EPS grew 14% to $2.00. Management raised full-year 2026 organic sales guidance to 3–4% (from 1–2%) and adjusted EPS guidance to $8.35–$8.55 (from $8.15–$8.35), citing sustained momentum in growth platforms and successful application of its 80/20 resource reallocation strategy. Record orders of $988.3 million (+13% YoY, +10% organic) signal durable demand, especially in AI-adjacent and defense markets. Capital return totaled $129 million ($76M buybacks, $53M dividends), underscoring continued commitment to shareholder returns amid robust free cash flow generation ($86.0M) and healthy balance sheet liquidity ($586.2M cash as of March 31, 2026).