IDEX (IEX) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 orders and backlog across all segments, with results exceeding expectations despite a 1% organic sales decline and market softness in agriculture, automotive, and semiconductor businesses.

• Net sales rose 2% to $814.3 million, driven by the Mott acquisition, while adjusted EPS decreased 7% to $1.75 and diluted EPS fell 21% to $1.26 due to higher interest and absence of prior year tax benefits.

• Proactively identified $20 million in additional cost savings for 2025, totaling $80 million with previous initiatives, and platform optimization/delayering efforts targeting $43 million impact.

• Strong performance in municipal water, space, defense, energy transition, and North American Fire & Safety; continued focus on portfolio optimization and capital deployment.

• Deployed $50 million to share repurchases and continued M&A and platform optimization initiatives.

Financial highlights

• Q1 2025 sales were $801M–$814.3M, up 2% overall but down 1% organically year-over-year; adjusted EBITDA was $208M, margin declined 50 bps to 25.5%.

• Adjusted EPS was $1.75 (down 7%), exceeding guidance by $0.10; diluted EPS was $1.26 (down 21%).

• Free cash flow was $91–$91.4 million, down from $136.6 million in Q1 2024, with $50 million deployed for share repurchases and $490 million remaining authorized.

• Gross profit increased to $368.9 million, gross margin improved 70 bps to 45.3%.

• Adjusted net income was $133 million, down from $143 million in Q1 2024.

Outlook and guidance

• Maintained full-year 2025 organic growth guidance of 1–3% and adjusted EPS of $8.10–$8.45; Q2 adjusted EPS expected at $1.95–$2.05.

• Full-year adjusted EBITDA margin guidance is 27.5–28.0%; free cash flow conversion targeted at 100%+.

• Tariffs expected to have a $100 million annualized impact, with mitigation through price increases and cost savings.

• Additional $20 million in cost savings identified to offset potential 3–4% volume pressure in the back half of the year.