second quarter 2026
Filed Jul 29, 2026Record sales of $921 million increased 6% on a reported basis and 5% organically; reported diluted EPS of $1.93 increased 11% and record adjusted diluted EPS of $2.32 increased 12%.
Record orders, sales, adjusted diluted EPS, operating cash flow and free cash flow increased from the prior-year period, while the company raised its full-year organic sales and adjusted diluted EPS guidance ranges.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| OrdersGAAP | $ 1,071.6 | – | 29 % |
| Change in organic ordersnon-GAAP | 28 % | – | – |
| Net salesGAAP | 920.6 | – | 6 % |
| Change in organic salesnon-GAAP | 5 % | – | – |
| Gross profitGAAP | 426.8 | – | – |
| Gross marginGAAP | 46.3 % | – | 100 bps |
| Net income attributable to IDEXGAAP | 143.4 | – | – |
| Net income marginGAAP | 15.6 % | – | 50 bps |
| Diluted EPS attributable to IDEXGAAP | 1.93 | – | – |
| Cash flows from operating activitiesGAAP | 200.0 | – | – |
| Operating cash flow as a percent of net incomeGAAP | 140% | – | NM |
| Adjusted gross profitnon-GAAP | 427.3 | – | – |
| Adjusted gross marginnon-GAAP | 46.4 % | – | 110 bps |
| Adjusted net income attributable to IDEXnon-GAAP | 172.4 | – | – |
| Adjusted EBITDAnon-GAAP | 258.3 | – | – |
| Adjusted EBITDA marginnon-GAAP | 28.1 % | – | 70 bps |
| Adjusted diluted EPS attributable to IDEXnon-GAAP | 2.32 | – | – |
| Free cash flownon-GAAP | 177.0 | – | – |
| Free cash flow conversionnon-GAAP | 103% | – | NM |
| Corporate costs included in consolidated Adjusted EBITDAnon-GAAP | $26.2 million | – | – |
| IEEPA tariff refunds cash receivedother | $21.1 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Health & Science TechnologiesOrganic sales increased 12% 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. | $ 415.0 | – | 14 % |
| Fluid & Metering TechnologiesOrganic sales increased 1% primarily driven by positive price. Higher volumes in municipal water, semiconductor and mining markets were largely offset by lower volumes in energy, agriculture and chemical markets. | $ 317.1 | – | 2 % |
| Fire & Safety/Diversified ProductsLower volumes within Fire & Safety businesses driven by lower European rescue demand and in Dispensing businesses more than offset higher volumes in BAND-IT and positive price across the segment. | $ 189.9 | – | (1 %) |
Full year 2026 and third quarter 2026 outlook
- RevenueFull year organic sales projected to increase 5% to 6% over the prior year; third quarter 2026 organic sales projected to increase 5% to 7% from the prior year period
- NoteFull year adjusted diluted EPS of $8.70 to $8.85, up approximately 10% year-over-year at midpoint
- NoteThird quarter 2026 adjusted diluted EPS of $2.20 to $2.25
Capital returns
- $77 million of share repurchases
- $54 million of dividends
What drove it
- Reported orders increased 29% and organic orders increased 28%.
- Net sales increased primarily from increased organic sales and contributions from acquisitions.
- Higher HST volumes, positive price, and AI-driven demand for data center power and semiconductor markets supported organic growth.
- Gross margin and Adjusted gross margin increased due to net productivity improvements, volume leverage and positive price/cost.
- The net benefit of IEEPA tariff refunds contributed 150 basis points to both gross-margin measures and benefited both Diluted EPS and Adjusted diluted EPS by $0.08.
- Three month data includes the results of the acquisition of Micro-LAM, Inc. in the HST segment.
Concerns
- Net sales included a $14.7 million reduction from expected customer rebates associated with IEEPA tariff refunds.
- Unfavorable mix partially offset consolidated gross-margin expansion.
- Fluid & Metering Technologies Adjusted EBITDA margin decreased to 34.8 % from 35.0 %.
- Fire & Safety/Diversified Products net sales and organic sales each decreased 1%, while Adjusted EBITDA margin decreased to 28.9 % from 29.4 %.
- Increased working capital, driven by higher sales volumes, partially offset cash-flow growth.
- Corporate costs rose to $26.2 million from $22.9 million, primarily due to higher employee-related costs, including variable compensation.
What to watch
- Third quarter 2026 organic sales projected to increase 5% to 7% from the prior year period.
- Third quarter 2026 adjusted diluted EPS guidance of $2.20 to $2.25.
- Full year organic sales guidance of 5% to 6% over the prior year.
- Full year adjusted diluted EPS guidance of $8.70 to $8.85.
- Demand trends in data center power, semiconductor, space and defense markets.
- European rescue demand and volumes in energy, agriculture and chemical markets.
- The impact of expected customer rebates associated with IEEPA tariff refunds.
Balance sheet and cash flow
- Cash flows from operating activities 200.0, compared with 161.7 in the prior-year period
- Free cash flow 177.0, compared with 146.9 in the prior-year period
- Cash flows from operating activities and free cash flow increased primarily due to cash received for IEEPA tariff refunds of $21.1 million and higher earnings, partially offset by increased working capital driven by higher sales volumes.
- Higher capital expenditures during the current year period partly offset the improvement in free cash flow.
Analysis
IDEX reported a strong second quarter, with record orders of $ 1,071.6 and record sales of 920.6. Reported orders increased 29% and organic orders increased 28%, while net sales increased 6% and organic sales increased 5%. The company attributed sales growth to higher HST volumes, positive price and acquisition contributions, with HST benefiting from AI-driven data center power and semiconductor demand as well as strength in space and defense markets.
Profitability improved across the consolidated business. GAAP gross margin increased to 46.3 % from 45.3 %, and Adjusted gross margin increased to 46.4 % from 45.3 %. Net productivity improvements, volume leverage and positive price/cost supported the improvement, although unfavorable mix was a partial offset. IEEPA tariff refunds were material to the period, contributing 150 basis points to both consolidated gross-margin measures and benefiting both Diluted EPS and Adjusted diluted EPS by $0.08.
Segment performance was uneven beneath the consolidated growth. HST net sales increased 14% and organic sales increased 12%, with Adjusted EBITDA margin expanding to 28.7 % from 26.0 %. FMT posted 2% reported sales growth and 1% organic growth, but its Adjusted EBITDA margin declined to 34.8 % from 35.0 % due to unfavorable mix. Fire & Safety/Diversified Products declined 1% in both reported and organic sales, and its Adjusted EBITDA margin fell to 28.9 % from 29.4 % amid unfavorable mix and volume deleverage.
Cash generation improved, with cash flows from operating activities of 200.0 and free cash flow of 177.0, compared with 161.7 and 146.9, respectively, in the prior-year period. Cash received for IEEPA tariff refunds of $21.1 million and higher earnings supported the increase. Higher working capital and higher capital expenditures were offsets. The company returned capital through $77 million of share repurchases and $54 million of dividends.
Management raised full-year 2026 organic sales guidance to 5% to 6% over the prior year from 3% to 4%, and raised full-year adjusted diluted EPS guidance to $8.70 to $8.85 from $8.35 to $8.55. Third-quarter guidance calls for organic sales growth of 5% to 7% and adjusted diluted EPS of $2.20 to $2.25. The raised outlook follows strong year-to-date results and management's stated improved visibility into the second half.
Management, verbatim
We are very pleased to see continued results momentum as our IDEX teams drove another quarter of strong sales and earnings growth. Orders of over $1 billion in the quarter were a record as we continue to see elevated demand across the advantaged markets where we’ve focused our investments and capabilities.
Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President
Our teams executed exceptionally well, as flow-through on strong volume drove earnings above our expectations, demonstrating the benefits of the work already completed to strengthen the quality of our businesses. We continue to advance 8020 initiatives to both fuel higher growth and unlock further margin expansion opportunities across IDEX.
Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President
We are increasing our full-year financial guidance expectations due to our strong performance year-to-date and improved visibility in the second half of our fiscal year.
Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President
Not in the filing
stated, not guessed- GAAP operating income
- GAAP operating margin
- Cash balance
- Debt balance
- Capital expenditures amount
- GAAP tax rate
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior-quarter comparisons for reported metrics
- A separately provided previous outlook section for formal actual-versus-prior-guidance comparisons
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.