IDEX (IEX) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 sales of $879M, up 10% year-over-year, with organic growth of 5%, and delivered better than expected results amid macroeconomic uncertainty through strong execution and integrated growth strategies.

• Adjusted diluted EPS rose 7% to $2.03, reported diluted EPS increased 8% to $1.70, and robust cash generation supported capital deployment.

• Strategic focus on integrating recent acquisitions, optimizing the portfolio, and leveraging the 80/20 operating model to drive sustainable growth.

• Five thematic growth platforms now represent half of revenue, fueling organic growth above traditional industrial indexes.

• Large order deferrals and macro uncertainty continue to weigh on near-term visibility, but a diversified business model and strong balance sheet support performance.

Financial highlights

• Q3 2025 net sales reached $879M, up 10% year-over-year, with organic sales growth of 5%; gross margin was 44.5%, up 20 bps.

• Adjusted EBITDA was $239.8M (27.3% margin), up 40 bps year-over-year; adjusted EPS rose 7% to $2.03.

• Free cash flow was $189M in Q3 (down 2% YoY), with a 123% conversion rate; liquidity at quarter-end was $1.1B, including $600M cash and $500M revolver capacity.

• Organic orders increased 7% year-over-year, reaching a record $390M in HST and $880M overall.

• Net income attributable to shareholders was $127.8M, up 7% year-over-year; operating income increased 11% to $185.8M.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance narrowed to $7.86–$7.91; GAAP diluted EPS expected at $6.35–$6.40.

• Organic revenue growth for FY25 expected at 1%; adjusted EBITDA margin guidance maintained at 26.5%–27.5%.

• Free cash flow expected to exceed 100% of adjusted net income; platform optimization and cost containment actions on track for $60M+ annual savings.

• Expect continued strength in HST and stability in FMT, offsetting FSDP headwinds; macro uncertainty expected to persist into 2026.