IDEX (IEX) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 sales of $865.4M, up 7% year-over-year and 1% organically, with strong adjusted EBITDA margin and EPS despite macro uncertainty and volatile order patterns.

• Adjusted diluted EPS was flat at $2.07, while reported diluted EPS declined 6% to $1.74 due to higher amortization and interest from the Mott acquisition.

• Order recovery was observed in July after Q2 disruptions from trade policy and tariff announcements, but slower customer decision-making and inconsistent day rate patterns led to reduced guidance for the back half of the year.

• Growth platforms in Health & Science and Material Science Solutions, supported by acquisitions like MicroLam and Mott Corporation, continue to drive value.

• Operating performance remained strong, with price/cost execution offsetting volume pressures and ongoing tariff-related market uncertainty.

Financial highlights

• Q2 2025 net sales reached $865.4M (+7% year-over-year), with organic sales up 1%; adjusted EBITDA was $237.2M (+6%), and adjusted EBITDA margin was 27.4%.

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

• Free cash flow was $147M, up 25% year-over-year, with 94% conversion versus adjusted net income.

• Adjusted gross margin for Q2 2025 was 45.3%, down 10 bps year-over-year.

• Liquidity at quarter-end was $1.1B, including $568M in cash.

Outlook and guidance

• Full-year 2025 organic sales growth guidance lowered to ~1% (from 1–3%) due to slower large order decisions and a key semiconductor customer reducing growth expectations.

• Adjusted EPS guidance revised to $7.85–$7.95 (from $8.10–$8.45); Q3 organic revenue growth expected at 2–3% with adjusted EPS of $1.90–$1.95.

• Tariff impact for 2025 estimated at $50M, with mitigation planned through price increases and supply chain actions.

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

• Full-year GAAP diluted EPS expected at $6.30–$6.44, down from prior guidance of $6.56–$6.95.