third quarter 2026
Filed Oct 28, 2026IDEX REPORTS RECORD THIRD QUARTER RESULTS
Record sales of $952 million increased 8% on both a reported and organic basis, reported diluted EPS of $1.95 and adjusted diluted EPS of $2.33 each increased 15%, orders increased 13%, margins expanded, and the company raised full-year organic sales and adjusted diluted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Orders, three months ended September 30, 2026GAAP | $991.2M | – | 13% |
| Net sales, three months ended September 30, 2026GAAP | $951.7M | – | 8% |
| Change in organic sales, three months ended September 30, 2026non-GAAP | 8% | – | 8% |
| Gross profit, three months ended September 30, 2026GAAP | $429.5M | – | – |
| Gross margin, three months ended September 30, 2026GAAP | 45.1% | – | 60 bps |
| Adjusted gross profit, three months ended September 30, 2026non-GAAP | $430.3M | – | – |
| Adjusted gross margin, three months ended September 30, 2026non-GAAP | 45.2% | – | 70 bps |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $218.1M | – | – |
| Restructuring expenses and asset impairments, three months ended September 30, 2026GAAP | $3.4M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $208M | – | – |
| Net income attributable to IDEX, three months ended September 30, 2026GAAP | $144.1M | – | – |
| Net income margin, three months ended September 30, 2026GAAP | 15.1% | – | 60 bps |
| Diluted EPS attributable to IDEX, three months ended September 30, 2026GAAP | $1.95 | – | $0.25 |
| Adjusted net income attributable to IDEX, three months ended September 30, 2026non-GAAP | $172.8M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $264.8M | – | – |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 27.8% | – | 50 bps |
| Adjusted diluted EPS attributable to IDEX, three months ended September 30, 2026non-GAAP | $2.33 | – | $0.30 |
| Cash flows from operating activities, three months ended September 30, 2026GAAP | $239.5M | – | – |
| Operating cash flow as a percent of net income, three months ended September 30, 2026other | 166% | – | NM |
| Free cash flow, three months ended September 30, 2026non-GAAP | $214.3M | – | – |
| Free cash flow conversion, three months ended September 30, 2026non-GAAP | 124% | – | 100 bps |
| Net sales, nine months ended September 30, 2026GAAP | $2.76B | – | 8% |
| Gross profit, nine months ended September 30, 2026GAAP | $1.25B | – | – |
| Gross margin, nine months ended September 30, 2026GAAP | 45.5% | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $580.3M | – | – |
| Net income attributable to IDEX, nine months ended September 30, 2026GAAP | $407.5M | – | – |
| Diluted EPS attributable to IDEX, nine months ended September 30, 2026GAAP | $5.49 | – | – |
| Adjusted net income attributable to IDEX, nine months ended September 30, 2026non-GAAP | $493.8M | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $753.5M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 27.3% | – | – |
| Adjusted diluted EPS attributable to IDEX, nine months ended September 30, 2026non-GAAP | $6.65 | – | – |
| Cash flows from operating activities, nine months ended September 30, 2026GAAP | $543.2M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $477.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Health & Science Technologies, three months ended September 30, 2026Organic 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 was $124.8 million and adjusted EBITDA margin was 28.8%. | $433.5M | – | 14% |
| Fluid & Metering Technologies, three months ended September 30, 2026Organic sales increased 4% primarily driven by positive price. Higher volumes in municipal water, semiconductor and industrial markets were partially offset by lower volumes in chemical, agriculture and energy markets. Adjusted EBITDA was $111.0 million and adjusted EBITDA margin was 33.9%. | $327.9M | – | 3% |
| Fire & Safety/Diversified Products, three months ended September 30, 2026Organic sales increased 6% primarily driven by higher volumes in BAND-IT and Fire & Safety businesses as well as positive price. Adjusted EBITDA was $54.5 million and adjusted EBITDA margin was 28.5%. | $191.5M | – | 5% |
Full year 2026 outlook
- RevenueOrganic sales projected to increase 6.5% to 6.8% over the prior year
- NoteAdjusted diluted EPS of $8.91 to $8.96
- NoteFull year organic sales guidance was up from previous guidance of 5% to 6%
- NoteAdjusted diluted EPS guidance was up from previous guidance of $8.70 to $8.85
Capital returns
- Returned $129 million to shareholders through dividends and share repurchases.
- Cash dividends paid to shareholders were $54.0 million during the three months ended September 30, 2026, compared with $53.5 million during the three months ended September 30, 2025.
- Repurchases of common stock were $74.6 million during the three months ended September 30, 2026, compared with $75.0 million during the three months ended September 30, 2025.
- Cash dividends paid to shareholders were $160.7 million during the nine months ended September 30, 2026, compared with $159.4 million during the nine months ended September 30, 2025.
- Repurchases of common stock were $228.0 million during the nine months ended September 30, 2026, compared with $175.0 million during the nine months ended September 30, 2025.
What drove it
- Consolidated net sales increased primarily from increased organic sales, driven by higher volumes primarily in HST and positive price across segments.
- Gross margin and adjusted gross margin increased due to volume leverage, net productivity improvements and favorable mix, partly offset by price/cost headwinds.
- HST growth included AI-driven demand for data center power and semiconductor markets and strength in space and defense.
- Operating cash flow and free cash flow increased primarily due to higher earnings and improved working capital, partly offset by higher cash income tax payments and higher capital expenditures.
Concerns
- Fluid & Metering Technologies experienced lower volumes in businesses serving chemical, agriculture and energy markets.
- Price/cost headwinds partly offset gross-margin gains and Fire & Safety/Diversified Products margin gains.
- HST adjusted EBITDA margin faced higher employee-related costs, including variable compensation, and the impact of acquisitions.
- Corporate costs were $25.5 million, up from $21.7 million, primarily driven by higher employee-related costs, including variable compensation.
- The release identifies risks including industrial activity and economic conditions, pricing pressures, tariffs and global trade policies, labor markets, supply chain conditions, material costs, acquisition integration and changes in AI-driven demand.
What to watch
- Order trends following $991.2 million of third-quarter orders and 13% reported and organic growth.
- The sustainability of HST demand in data center power, semiconductor, space and defense markets.
- Whether positive pricing and productivity continue to offset price/cost headwinds and higher employee-related costs.
- Execution against full-year organic sales growth guidance of 6.5% to 6.8% and adjusted diluted EPS guidance of $8.91 to $8.96.
- Capital expenditure levels, which were $25.2 million in the third quarter versus $14.8 million in the prior-year period.
Balance sheet and cash flow
- Cash and cash equivalents were $602.1 million at September 30, 2026, compared with $580.0 million at December 31, 2025.
- Long-term borrowings, net were $1,751.1 million at September 30, 2026, compared with $1,820.1 million at December 31, 2025.
- Total assets were $6,878.8 million at September 30, 2026, compared with $6,927.0 million at December 31, 2025.
- Capital expenditures were $25.2 million during the three months ended September 30, 2026, compared with $14.8 million during the three months ended September 30, 2025.
- Capital expenditures were $65.9 million during the nine months ended September 30, 2026, compared with $43.9 million during the nine months ended September 30, 2025.
- The company amended and restated its $800 million revolving credit facility to extend the maturity date to September 2031.
Analysis
IDEX reported a strong third quarter, with net sales of $951.7 million versus $878.7 million and 8% growth on both a reported and organic basis. Orders were $991.2 million versus $880.3 million, increasing 13% on both a reported and organic basis. The company characterized sales as record, and said results were ahead of its expectations. HST was the largest contributor to growth, with $433.5 million of sales, 14% reported growth and 13% organic growth.
Profitability expanded despite price/cost headwinds. GAAP gross margin rose to 45.1% from 44.5%, while adjusted gross margin rose to 45.2% from 44.5%. The company attributed the gains to volume leverage, net productivity improvements and favorable mix. GAAP operating income was $208.0 million versus $185.8 million, net income attributable to IDEX was $144.1 million versus $127.8 million, and diluted EPS was $1.95 versus $1.70. Adjusted EBITDA increased to $264.8 million from $239.8 million, with adjusted EBITDA margin improving to 27.8% from 27.3%.
Segment performance was broad but uneven. HST benefited from AI-driven data center power and semiconductor demand, strength in space and defense, and positive price. FMT recorded 3% reported sales growth and 4% organic growth, with positive price offsetting lower volumes in chemical, agriculture and energy end markets. Fire & Safety/Diversified Products delivered 5% reported sales growth and 6% organic growth, supported by BAND-IT and Fire & Safety volumes and positive price. Corporate costs increased to $25.5 million from $21.7 million, primarily due to higher employee-related costs including variable compensation.
Cash generation improved, with operating cash flow of $239.5 million versus $203.5 million and free cash flow of $214.3 million versus $188.7 million. The company said higher earnings and improved working capital drove the improvement, while higher capital expenditures partly offset free-cash-flow growth. It returned $129 million to shareholders through dividends and repurchases, held $602.1 million of cash and cash equivalents, and had $1,751.1 million of long-term borrowings, net, at September 30, 2026.
Management raised full-year guidance. Organic sales are projected to increase 6.5% to 6.8% over the prior year, up from 5% to 6%, while adjusted diluted EPS is projected at $8.91 to $8.96, up from $8.70 to $8.85. The raised outlook follows nine-month net sales of $2,759.2 million, adjusted EBITDA of $753.5 million and adjusted diluted EPS of $6.65. The key operating variables identified in the release are continued HST demand, FMT end-market volumes, pricing and cost trends, and execution on productivity and capital spending.
Management, verbatim
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.
Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President
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.
Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics were not provided.
- GAAP full-year revenue, gross margin, operating expenses, tax rate and GAAP EPS guidance were not provided.
- A quarterly effective tax rate was not reported.
- A separate previous-release outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is presented.
- Segment orders were not reported.
- Segment operating income was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.