IDEX (IEX) investor relations material

Executive summary

• Achieved record Q2 2025 sales of $865.4M, up 7% year-over-year and 1% organically, with strong execution despite macro uncertainty and shifting customer demand.

• Adjusted diluted EPS was flat at $2.07, while reported EPS declined 6% due to acquisition-related costs; net income margin was 15.1%.

• Order patterns were volatile, with organic orders up 2% but large order decisions delayed amid policy and macro uncertainty.

• Growth in data center, pharma, energy, and defense offset by weakness in chemicals, auto, semiconductor, and agriculture.

• Focus remains on integrating acquisitions, platform optimization, and capital deployment for long-term growth.

Financial highlights

• Q2 2025 net sales: $865.4M (+7% year-over-year); organic sales up 1%; adjusted EBITDA margin 27.4% (down 40 bps); gross margin 45.3%.

• Adjusted EPS was $2.07 (flat year-over-year); reported EPS $1.74 (down 6%).

• Free cash flow rose 25% year-over-year to $147M, with 94% conversion; operating cash flow as a percent of net income increased to 123%.

• Net income attributable to shareholders was $131.6M, down from $141.3M in Q2 2024.

• $50M in share repurchases in Q2, totaling $100M for the first half; $106M in dividends paid YTD.

Outlook and guidance

• Full-year 2025 organic sales growth guidance reduced to ~1%; Q3 organic revenue growth expected at 2–3%.

• Adjusted EPS guidance lowered to $7.85–$7.95 from $8.10–$8.45; GAAP EPS guidance $6.30–$6.44.

• Q3 adjusted EPS expected at $1.90–$1.95; revenue to be flat sequentially.

• 2025 tariff impact estimated at $50M, with mitigation through price increases and supply chain savings.

• On track for 100%+ free cash flow conversion in 2025.