IDEX raises 2026 forecast as Q3 profit tops estimates

IDEX Corporation (IEX) said on Oct. 28 that third-quarter adjusted diluted earnings per share rose to $2.33, topping the $2.26 consensus estimate compiled by Finnhub. Revenue of $951.7 million was above the $940.06 million estimate.

The company reported results for the three months ended Sept. 30 in a press release furnished as Exhibit 99.1 to a regulatory filing.

Here's how the company did:

• Adjusted diluted EPS: $2.33 vs. $2.03 a year earlier, against the $2.26 estimate compiled by Finnhub
• Reported diluted EPS: $1.95 vs. $1.70 a year earlier
• Revenue: $951.7 million vs. $878.7 million a year earlier, against the $940.06 million estimate
• Net income attributable to IDEX: $144.1 million vs. $127.8 million a year earlier
• Orders: $991.2 million, up 13% from a year earlier

Net sales rose 8% from a year earlier, and organic sales rose 8% as well. The company said the increase was driven by higher volumes, primarily in its Health & Science Technologies segment, and by positive price across the segments.

Segment results

Health & Science Technologies net sales rose 14% to $433.5 million. The company attributed the gain to AI-driven demand for data center power and semiconductor markets, as well as strength in space and defense and positive price.

Fluid & Metering Technologies net sales rose 3% to $327.9 million. Organic sales rose 4%, primarily on positive price. Higher volumes in municipal water, semiconductor and industrial markets were partly offset by lower volumes in chemical, agriculture and energy markets.

Fire & Safety/Diversified Products net sales rose 5% to $191.5 million, with organic sales up 6% on higher volumes in its BAND-IT and Fire & Safety businesses.

Gross margin was 45.1%, up from 44.5% a year earlier. The company said volume leverage, net productivity improvements and favorable mix more than offset price/cost headwinds.

2026 guidance

The company now expects full-year organic sales to rise 6.5% to 6.8% over the prior year, up from the 5% to 6% range it gave on July 29. It also raised its full-year adjusted diluted EPS forecast to $8.91 to $8.96, up from $8.70 to $8.85. The company said that midpoint represents growth of approximately 12% from a year earlier.

CEO Eric D. Ashleman said: “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.”

The company does not reconcile its forward-looking non-GAAP measures to U.S. GAAP measures, because the timing and magnitude of certain items cannot be reasonably estimated without unreasonable effort.

Costs and charges

Corporate costs included in Adjusted EBITDA were $25.5 million, up from $21.7 million a year earlier, driven mainly by higher employee-related costs, including variable compensation.

The company recorded restructuring-related charges tied to the anticipated closure of a facility in the Health & Science Technologies segment. Accelerated depreciation for the quarter was $0.7 million.

Cash and capital returns

Operating cash flow was $239.5 million, up from $203.5 million a year earlier. Free cash flow was $214.3 million, up from $188.7 million.

The company returned $129 million to shareholders through dividends and share repurchases during the quarter. It repurchased $74.6 million of common stock.

In other news, the company amended and restated its $800 million revolving credit facility, extending the maturity date to September 2031.