Idex Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 29 April 2026: press release. Guidance figures: 2 raised, 2 new. The quarter’s numbers.

Key takeaways

Sales rose 9%, organic 5%: Net sales of $886.9 million rose 9% reported and 5% organically. Management attributed growth to organic sales, favorable currency and acquisitions. Source
Diluted EPS up 28%: Reported diluted EPS of $1.61 rose 28%; adjusted diluted EPS of $2.00 rose 14%. Management said both rose on improved operational results. Source
HST sales up 17%, organic 11%: HST net sales were $398.4 million, up 17% reported and 11% organic. Higher volumes came from AI-driven data center power, semiconductor and space and defense demand. Source
Gross margin fell 40 bps: Gross margin was 44.9% versus 45.3%. Management cited unfavorable mix and pressured price/cost, partly offset by net productivity gains and volume leverage. Source
Record orders up 13%: Orders of $988.3 million were a record for the quarter, up 13% reported and 10% organic, against net sales of $886.9 million. Source
Capital returned to shareholders: The company returned capital through $76 million of share repurchases and $53 million of dividends in the quarter. Source
8020 sharpens priorities: Management said 8020 is sharpening priorities and moving resources toward higher-growth, higher-margin areas. Source

“We remain focused on disciplined execution as we continue to build long-term value at IDEX.”
Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President

Guidance

Area	Period	Figure	Against last quarter
Organic sales growth Source	Full year 2026	3% to 4%	Raised from 1% to 2%
Adjusted diluted EPS Source	Full year 2026	$8.35 to $8.55	Raised from $8.15 to $8.35
Organic sales growth Source	Second quarter 2026	3% to 4%	New
Adjusted diluted EPS Source	Second quarter 2026	$2.07 to $2.12	New

What changed from last quarter

Guidance raised: Full-year organic sales growth guidance raised to 3% to 4% from 1% to 2%. Source
Guidance raised: Full-year adjusted diluted EPS guidance raised to $8.35 to $8.55 from $8.15 to $8.35. Source
New guidance: Second-quarter 2026 guidance given for organic sales and adjusted diluted EPS. Source

Results and growth drivers

Sales rose 9%, organic 5%: Net sales of $886.9 million rose 9% reported and 5% organically. Management attributed growth to organic sales, favorable currency and acquisitions. Source
Diluted EPS up 28%: Reported diluted EPS of $1.61 rose 28%; adjusted diluted EPS of $2.00 rose 14%. Management said both rose on improved operational results. Source
Restructuring charges fell: Restructuring expenses and asset impairments were $7.4 million, down from $17.5 million, and were excluded from adjusted diluted EPS. Source

Segment performance

HST sales up 17%, organic 11%: HST net sales were $398.4 million, up 17% reported and 11% organic. Higher volumes came from AI-driven data center power, semiconductor and space and defense demand. Source
HST margin rose 100 bps: HST adjusted EBITDA margin was 26.6%, up from 25.6%. Management cited volume leverage and favorable price/cost, partly offset by unfavorable mix and acquisitions. Source
FMT sales up 4%, organic 2%: FMT net sales were $301.5 million, up 4% reported and 2% organic. Positive price was the main driver of the organic increase. Source
FMT margin slightly lower: FMT adjusted EBITDA margin was 32.7%, down 10 bps. Management attributed the decline to unfavorable mix and volume deleverage, mostly offset by net productivity improvements. Source
FSDP organic sales fell 1%: FSDP net sales were $188.3 million, up 2% reported and down 1% organic. Dispensing volumes fell on project timing, offsetting higher fire and safety volumes and positive price. Source
Micro-LAM adds to HST sales: Three-month figures include Micro-LAM, acquired in July 2025 in HST. Acquisitions added 3 points to HST reported sales growth. Source

“Based on this momentum, we are raising our full-year guidance and are encouraged by how our strategies are translating into higher-quality growth.”
Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President

Costs, margins and pricing

Gross margin fell 40 bps: Gross margin was 44.9% versus 45.3%. Management cited unfavorable mix and pressured price/cost, partly offset by net productivity gains and volume leverage. Source
Consolidated adjusted EBITDA margin up: Consolidated adjusted EBITDA was $230.4 million, a 26.0% margin, up from 25.5%. Net income margin rose to 13.5% from 11.7%. Source
Corporate costs rose slightly: Corporate costs within adjusted EBITDA were $30.1 million, up from $28.9 million, on higher employee-related costs. Source

Demand and the order book

Record orders up 13%: Orders of $988.3 million were a record for the quarter, up 13% reported and 10% organic, against net sales of $886.9 million. Source
Life sciences volumes lower: Life sciences volumes were lower, partly offsetting HST gains from space, defense and semiconductor demand. Source
Chemical and industrial volumes lower: FMT chemical and general industrial volumes fell, more than offsetting higher municipal water, semiconductor and mining volumes. Source

Capital, cash and returns to shareholders

Capital returned to shareholders: The company returned capital through $76 million of share repurchases and $53 million of dividends in the quarter. Source
Operating and free cash flow lower: Operating cash flow was $103.7 million and free cash flow $86.0 million, both slightly down. Capital expenditures rose to $17.7 million. Source
Revolver borrowings in quarter: Borrowings under revolving credit facilities were $100.0 million, with payments of $45.3 million in the quarter. Source
Diluted share count declined: Diluted weighted average shares were 74.4 million, down from 75.8 million a year earlier. Source

Strategy and execution

8020 sharpens priorities: Management said 8020 is sharpening priorities and moving resources toward higher-growth, higher-margin areas. Source
Growth platforms in HST: Management pointed to continued momentum in growth platforms within HST as a driver of the first quarter. Source
Disciplined execution emphasized: Management said it remains focused on disciplined execution while building long-term value at IDEX. Source

Coming up, as management said on 29 April 2026

Micro-LAM escrow payments: Restricted cash held in escrow for Micro-LAM merger consideration is expected to be paid between July 2026 and January 2028. Source
Letters of credit expire: Restricted cash tied to letters of credit is due to expire between June 2026 and July 2027. Source

Figures management reported

Figure	Reported
Orders Source	$988.3 million, up 13% reported and 10% organic

Risks management discussed

Demand: Life sciences volumes were lower and partly offset HST growth. Source
Demand: Lower chemical and general industrial volumes in FMT more than offset gains in other FMT markets. Source
Operational: Gross margin was pressured by unfavorable mix and price/cost. Source
Demand: Dispensing volumes in FSDP were lower because of project timing. Source
Financial: Customer payment timing offset higher earnings in operating cash flow. Source

Earlier plans management reported on

Ahead: Management said first quarter results were ahead of its expectations, led by HST growth platforms. Source
Not stated: Management raised full-year organic growth and adjusted EPS ranges from the ranges given with fourth quarter results. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

For further information: TRADED: NYSE (IEX) EX-99.1

Jim Giannakouros, CFA

IDEX REPORTS FIRST QUARTER RESULTS

Highlights

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

Sales of $887 million increased 9% on a reported basis and 5% organically
Reported diluted EPS of $1.61 increased 28% and adjusted diluted EPS of $2.00 increased 14%
Record orders of $988 million increased 13% on a reported basis and increased 10% organically
Returned capital to shareholders via $76 million of share repurchases and $53 million of dividends
Raising full year 2026 organic growth and adjusted EPS guidance ranges

NORTHBROOK, IL, April 29, 2026 - IDEX Corporation (NYSE: IEX) today announced its financial results for the three-month period ended March 31, 2026.

“We delivered a strong first quarter, with results ahead of our expectations led by continued momentum in our growth platforms within our Health & Science Technologies segment,” said Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President.

“Our first quarter results demonstrate that our strategy is working, with strong execution across the portfolio and increasing traction in the markets where we are choosing to compete. The application of 8020 continues to sharpen our priorities and reallocate resources toward opportunities with stronger growth and margin profiles.”

“Based on this momentum, we are raising our full-year guidance and are encouraged by how our strategies are translating into higher-quality growth. We remain focused on disciplined execution as we continue to build long-term value at IDEX.”

Outlook

Full year organic sales projected to increase 3% to 4% over the prior year, up from previous guidance of 1% to 2%
Full year adjusted diluted EPS of $8.35 to $8.55, up from previous guidance of $8.15 to $8.35
Second quarter 2026 organic sales projected to increase 3% to 4% from the prior year period
Second quarter 2026 adjusted diluted EPS of $2.07 to $2.12

The Company does not reconcile its forward-looking non-GAAP measures to the most directly comparable U.S. GAAP financial measure because the timing and magnitude of certain items, including future foreign exchange impacts, acquisitions, divestitures, restructuring costs, impairments, tax impacts, and other special items, cannot be reasonably estimated at this time without unreasonable effort. The unavailable information could have a significant impact on GAAP results.

Consolidated Financial Results

	Three Months Ended March 31,
(Dollars in millions, except per share amounts)		2026		2025	Increase (Decrease)
U.S. GAAP Results
Orders		$988.3		$871.9		$116.4
Change in reported orders					13%
Net sales		886.9		814.3		72.6
Change in reported net sales					9%
Gross profit		398.1		368.9		29.2
Gross margin	44.9%		45.3%			(40) bps
Net income attributable to IDEX		120.0		95.5		24.5
Net income margin	13.5%		11.7%			180 bps
Diluted EPS attributable to IDEX		1.61		1.26		0.35
Cash flows from operating activities		103.7		105.7		(2.0)
Operating cash flow as a percent of net income		86%		111%		NM
Non-GAAP Results*
Change in organic orders					10%
Change in organic sales					5%
Adjusted gross profit		398.1		368.9		29.2
Adjusted gross margin	44.9%		45.3%			(40) bps
Adjusted net income attributable to IDEX		148.6		133.0		15.6
Adjusted EBITDA		230.4		208.0		22.4
Adjusted EBITDA margin	26.0%		25.5%			50 bps
Adjusted diluted EPS attributable to IDEX		2.00		1.75		0.25
Free cash flow		86.0		91.4		(5.4)
Free cash flow conversion		58%		69%		NM
NM - Not Meaningful
*Each of these items below are non-GAAP measures. See the definitions of these non-GAAP measures in the section in this release titled “Non-GAAP Measures of Financial Performance” and reconciliations to their most directly comparable GAAP financial measures in the reconciliation tables at the end of this release.
Adjusted gross profit is calculated as Gross profit plus fair value inventory step-up charges. Adjusted gross margin is calculated as Adjusted gross profit divided by Net sales. There were no fair value inventory step-up charges recorded during the three months ended March 31, 2026 or March 31, 2025.

Net sales increased as a result of increased organic sales, as well as favorable impacts from foreign currency and contributions from acquisitions. The increase in organic sales was driven by higher volumes in our Health & Science Technologies (“HST”) segment, which were slightly offset by lower volumes in our Fire & Safety/Diversified Products (“FSDP”) and Fluid & Metering Technologies (“FMT”) segments. The increase also reflects positive price across our businesses.
Gross margin decreased due to unfavorable mix and pressured price/cost, partially offset by net productivity improvements and volume leverage.
Both Diluted EPS and Adjusted diluted EPS increased, primarily due to improved operational results discussed above. GAAP Diluted EPS also reflects lower restructuring and asset impairment expense, which was excluded from Adjusted diluted EPS.
Cash flows from operating activities and free cash flow were both slightly down compared to the prior year period. Higher earnings were offset by the timing of customer payments. Free cash flow also reflects higher capital expenditures during the current year period.

Segment Financial Results

	Three Months Ended March 31,
(Dollars in millions)		2026		2025	Increase (Decrease)
Health & Science Technologies
Net sales		$398.4		$341.5		$56.9
Change in reported net sales					17%
Change in organic sales*					11%
Adjusted EBITDA		106.0		87.4		18.6
Adjusted EBITDA margin	26.6%		25.6%			100 bps
Fluid & Metering Technologies
Net sales		$301.5		$290.5		$11.0
Change in reported net sales					4%
Change in organic sales*					2%
Adjusted EBITDA		98.7		95.3		3.4
Adjusted EBITDA margin	32.7%		32.8%			(10) bps
Fire & Safety/Diversified Products
Net sales		$188.3		$184.3		$4.0
Change in reported net sales					2%
Change in organic sales*					(1%)
Adjusted EBITDA		55.8		54.2		1.6
Adjusted EBITDA margin	29.7%		29.4%			30 bps
*These are non-GAAP measures. See the definitions of these non-GAAP measures in the section in this release titled “Non-GAAP Measures of Financial Performance” and reconciliations to their most directly comparable GAAP financial measures in the reconciliation tables at the end of this release.
Three month data includes the results of the acquisition of Micro-LAM, Inc. (“Micro-LAM”) (July 2025) in the HST segment.
Segment Adjusted EBITDA excludes unallocated corporate costs which are included in Corporate and other.

Health & Science Technologies Segment

Net sales for the first quarter 2026 increased 17%. Organic sales increased 11% due to higher volumes primarily due to AI-driven demand for data center power and semiconductor markets, as well as strength in space and defense, partially offset by lower volumes in our life sciences businesses. Net sales also reflect positive price across the segment.
Adjusted EBITDA margin for the first quarter 2026 increased primarily due to volume leverage and favorable price/cost, partially offset by unfavorable mix and acquisitions.

Fluid & Metering Technologies Segment

Net sales for the first quarter 2026 increased 4%. Organic sales increased 2% primarily driven by positive price. Higher volumes in our businesses serving municipal water, semiconductor and mining markets were more than offset by lower volumes in our chemical and general industrial businesses.
Adjusted EBITDA margin for the first quarter 2026 decreased primarily due to unfavorable mix and volume deleverage, mostly mitigated by net productivity improvements.

Fire & Safety/Diversified Products Segment

Net sales for the first quarter 2026 increased 2%. Organic sales decreased 1%. Higher volumes in our Fire & Safety businesses and positive price were more than offset by lower volumes within our Dispensing businesses driven by timing of projects.
Adjusted EBITDA margin for the first quarter 2026 increased primarily due to net productivity improvements, partially offset by unfavorable mix and volume deleverage.

Corporate Costs

Corporate costs included in consolidated Adjusted EBITDA were $30.1 million during the first quarter 2026, up slightly from $28.9 million during the same prior year period driven by higher employee-related costs.

Conference Call

IDEX will host its first quarter earnings conference call on Wednesday, April 29, 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 888.596.4144 and using confirmation code #2518354. 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 second quarter 2026 and 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)

IDEX CORPORATION

Condensed Consolidated Statements of Income

(in millions, except per share amounts)

	Three Months Ended March 31,
	2026	2025
Net sales	$886.9	$814.3
Cost of sales	488.8	445.4
Gross profit	398.1	368.9
Selling, general and administrative expenses	218.3	209.4
Restructuring expenses and asset impairments	7.4	17.5
Operating income	172.4	142.0
Other (income) expense - net	(0.6)	1.4
Interest expense - net	16.0	16.1
Income before income taxes	157.0	124.5
Provision for income taxes	37.1	29.1
Net income	119.9	95.4
Net loss attributable to noncontrolling interest	0.1	0.1
Net income attributable to IDEX	$120.0	$95.5
Earnings per Common Share:
Basic earnings per common share attributable to IDEX	$1.61	$1.26
Diluted earnings per common share attributable to IDEX	$1.61	$1.26
Share Data:
Basic weighted average common shares outstanding	74.3	75.7
Diluted weighted average common shares outstanding	74.4	75.8

IDEX CORPORATION

Condensed Consolidated Balance Sheets

	March 31, 2026	December 31, 2025
Assets
Current assets
Cash and cash equivalents	$586.2	$580.0
Receivables - net	553.0	521.7
Inventories - net	501.0	479.4
Other current assets	76.5	62.1
Total current assets	1,716.7	1,643.2
Property, plant and equipment - net	462.3	468.0
Goodwill	3,390.2	3,414.5
Intangible assets - net	1,200.2	1,247.4
Other noncurrent assets	149.2	153.9
Total assets	$6,918.6	$6,927.0
Liabilities and equity
Current liabilities
Trade accounts payable	$224.8	$224.7
Accrued expenses	280.6	297.0
Current portion of long-term borrowings	0.5	0.7
Dividends payable	0.1	53.0
Total current liabilities	506.0	575.4
Long-term borrowings - net	1,871.8	1,820.1
Deferred income taxes	299.5	303.0
Other noncurrent liabilities	192.9	202.3
Total liabilities	2,870.2	2,900.8
Shareholders' equity
Preferred stock	-	-
Common stock	0.9	0.9
Treasury stock	(1,453.6)	(1,423.2)
Additional paid-in capital	868.5	892.1
Retained earnings	4,620.1	4,500.1
Accumulated other comprehensive income	13.9	57.6
Total shareholders' equity	4,049.8	4,027.5
Noncontrolling interest	(1.4)	(1.3)
Total equity	4,048.4	4,026.2
Total liabilities and equity	$6,918.6	$6,927.0

IDEX CORPORATION

Condensed Consolidated Statements of Cash Flows

	Three Months Ended March 31,
	2026	2025
Cash flows from operating activities
Net income	$119.9	$95.4
Adjustments to reconcile net income to net cash flows provided by operating activities:
Asset impairments	4.8	-
Depreciation	19.9	18.4
Amortization of intangible assets	33.8	31.5
Share-based compensation expense	15.8	13.6
Deferred income taxes	(0.6)	0.9
Changes in (net of the effect from acquisitions/divestitures and foreign currency translation):
Receivables - net	(35.4)	(12.3)
Inventories - net	(25.5)	(34.9)
Other current assets	(15.1)	(7.0)
Trade accounts payable	0.6	9.6
Deferred revenue	4.2	8.8
Accrued expenses	(18.8)	(17.9)
Other - net	0.1	(0.4)
Net cash flows provided by operating activities	103.7	105.7
Cash flows from investing activities
Capital expenditures	(17.7)	(14.3)
Acquisition of business, net of cash acquired	-	4.2
Other - net	(2.7)	0.1
Net cash flows used in investing activities	(20.4)	(10.0)
Cash flows from financing activities
Borrowings under revolving credit facilities	100.0	-
Payments under revolving credit facilities	(45.3)	(30.2)
Cash dividends paid to shareholders	(52.8)	(52.4)
Proceeds (payments) from share issuances, net of shares withheld for taxes	5.8	(0.5)
Repurchases of common stock	(76.3)	(50.0)
Other - net	(0.2)	(0.2)
Net cash flows used in financing activities	(68.8)	(133.3)
Effect of exchange rate changes on cash and cash equivalents	(8.6)	10.9
Net increase (decrease) in cash and cash equivalents and restricted cash	5.9	(26.7)
Cash and cash equivalents and restricted cash at beginning of year	585.9	638.9
Cash and cash equivalents and restricted cash at end of period	$591.8	$612.2

The Company has restricted cash related to certain letters of credit and is required to keep these balances in separate accounts for the duration of the letter of credit agreements. The underlying letters of credit expire between June 2026 and July 2027. The Company also has restricted cash related to funds held in escrow for the payment of certain merger consideration in connection with the acquisition of Micro-LAM. These payments are expected to be paid between July 2026 and January 2028. Restricted cash is included in the Condensed Consolidated Balance Sheets as follows:

	Restricted Cash
	March 31, 2026		December 31, 2025		March 31, 2025		December 31, 2024
Other current assets	$2.7		$3.0		$16.5		$18.1
Other noncurrent assets		2.9		2.9		1.6	-
Total	$5.6		$5.9		$18.1		$18.1

IDEX CORPORATION

Company and Segment Financial Information

	Three Months Ended March 31,
	2026	2025
Net sales
Health & Science Technologies	$398.4	$341.5
Fluid & Metering Technologies	301.5	290.5
Fire & Safety/Diversified Products	188.3	184.3
Eliminations	(1.3)	(2.0)
Total IDEX	$886.9	$814.3
Depreciation
Health & Science Technologies	$12.5	$11.7
Fluid & Metering Technologies	4.9	4.4
Fire & Safety/Diversified Products	2.4	2.2
Corporate Office	0.1	0.1
Total IDEX	$19.9	$18.4
Amortization of intangible assets
Health & Science Technologies	$27.1	$24.6
Fluid & Metering Technologies	5.4	5.3
Fire & Safety/Diversified Products	1.3	1.6
Total IDEX	$33.8	$31.5
Restructuring expenses and asset impairments
Health & Science Technologies	$1.1	$11.4
Fluid & Metering Technologies	5.1	4.2
Fire & Safety/Diversified Products	0.3	1.6
Corporate Office	0.9	0.3
Total IDEX	$7.4	$17.5

Non-GAAP Measures of Financial Performance

The Company prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company supplements certain U.S. GAAP financial performance metrics with non-GAAP financial performance metrics. Management believes these non-GAAP financial performance metrics provide investors with greater insight, transparency and a more comprehensive understanding of the financial information used by management in its financial and operational decision making because certain of these adjusted metrics exclude items not reflective of ongoing operations, as identified in the reconciliations below. Reconciliations of non-GAAP financial performance metrics to their most directly comparable U.S. GAAP financial performance metrics are defined and presented below and should not be considered a substitute for, nor superior to, the financial data prepared in accordance with U.S. GAAP. Due to rounding, numbers presented throughout this and other documents may not add up or recalculate precisely.

All table footnotes can be found at the end of this Non-GAAP Measures section. 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 plus fair value inventory step-up charges. There were no fair value inventory step-up charges recorded during the three months ended March 31, 2026 or March 31, 2025.
Adjusted gross margin is calculated as Adjusted gross profit divided by Net sales. There were no fair value inventory step-up charges recorded during the three months ended March 31, 2026 or March 31, 2025.
Adjusted net income attributable to IDEX is calculated as Net income attributable to IDEX plus Restructuring expenses and asset impairments, plus acquisition-related intangible asset amortization, less gain on legal settlement, 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.
Consolidated Adjusted EBITDA is calculated as consolidated earnings before interest expense - net, income taxes, depreciation and amortization, or consolidated EBITDA, plus Restructuring expenses and asset impairments, less gain on legal settlement.
Consolidated Adjusted EBITDA margin is calculated as Consolidated Adjusted EBITDA divided by Net sales.
Free cash flow is calculated as cash flows from operating activities less capital expenditures. Free cash flow conversion is calculated as free cash flow divided by adjusted net income attributable to IDEX.

Table 1: Reconciliations of the Change in Net Sales to Organic Sales

	HST	FMT	FSDP	IDEX
	Three Months Ended March 31, 2026
Change in net sales	17%	4%	2%	9%
Less:
Net impact from acquisitions/divestitures	3%	- %	- %	1%
Impact from foreign currency	3%	2%	3%	3%
Change in organic sales	11%	2%	(1%)	5%

Table 2: Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, except per share amounts)

	Three Months Ended March 31,
	2026	2025
Reported net income attributable to IDEX	$120.0	$95.5
Restructuring expenses and asset impairments	7.4	17.5
Tax impact on restructuring expenses and asset impairments	(1.7)	(4.1)
Gain on legal settlement	(3.7)	-
Tax impact on gain of legal settlement	0.8	-
Acquisition-related intangible asset amortization	33.8	31.5
Tax impact on acquisition-related intangible asset amortization	(8.0)	(7.4)
Adjusted net income attributable to IDEX	$148.6	$133.0
Reported diluted EPS attributable to IDEX	$1.61	$1.26
Restructuring expenses and asset impairments	0.10	0.23
Tax impact on restructuring expenses and asset impairments	(0.02)	(0.05)
Gain on legal settlement	(0.05)	-
Tax impact on gain of legal settlement	0.01	-
Acquisition-related intangible asset amortization	0.46	0.41
Tax impact on acquisition-related intangible asset amortization	(0.11)	(0.10)
Adjusted diluted EPS attributable to IDEX	$2.00	$1.75
Diluted weighted average shares outstanding	74.4	75.8

Table 3: Reconciliations of Net Income to Adjusted EBITDA (dollars in millions)

	Three Months Ended March 31,
	2026		2025
Reported net income		$119.9		$95.4
Provision for income taxes		37.1		29.1
Interest expense - net		16.0		16.1
Depreciation		19.9		18.4
Amortization		33.8		31.5
Restructuring expenses and asset impairments		7.4		17.5
Gain on legal settlement		(3.7)		-
Adjusted EBITDA		$230.4		$208.0
Adjusted EBITDA Components
HST		$106.0		$87.4
FMT		98.7		95.3
FSDP		55.8		54.2
Corporate and other		(30.1)		(28.9)
Total Adjusted EBITDA		$230.4		$208.0
Net sales		$886.9		$814.3
Net income margin	13.5%		11.7%
Adjusted EBITDA margin	26.0%		25.5%

Table 4: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (dollars in millions)

	Three Months Ended March 31,
	2026	2025
Cash flows from operating activities	$103.7	$105.7
Less: Capital expenditures	17.7	14.3
Free cash flow	$86.0	$91.4
Reported net income attributable to IDEX	$120.0	$95.5
Adjusted net income attributable to IDEX	148.6	133.0
Operating cash flow as a percent of net income	86%	111%
Free cash flow conversion	58%	69%

Represents the sales from acquired or divested businesses during the first 12 months of ownership or prior to divestiture.

The portion of sales attributable to foreign currency translation is calculated as the difference between (a) the period-to-period change in organic sales, and (b) the period-to-period change in organic sales after applying prior period foreign exchange rates to the current year period.

Gain on legal settlement represents settlement funds received in excess of legal costs incurred related to a patent infringement lawsuit within the FMT segment.

Contacts
Vice President, Investor Relations
(847) 313-9506