IDEX (IEX) Q3 2026 earnings summary

Executive summary

• Record Q3 sales of $951.7M rose 8% reported and organically; orders increased 13% to $991.2M, while adjusted diluted EPS reached a record $2.33, up 15%.

• Advantage-market strength and broader industrial demand supported results; all three segments expanded adjusted EBITDA margins and FY26 guidance increased.

Financial highlights

• Adjusted EBITDA was $264.8M, up from $239.8M; margin expanded 50 bps to 27.8%.

• Adjusted gross margin increased 70 bps to 45.2%; GAAP gross margin rose 60 bps to 45.1%. Volume leverage, productivity and mix helped offset price/cost headwinds.

• Free cash flow was $214.3M, up 14%, with 124% conversion; operating cash flow was $239.5M.

• Nine-month organic sales increased 6%, adjusted EBITDA margin rose 50 bps to 27.3%, and adjusted EPS grew 14% to $6.65.

Outlook and guidance

• FY26 organic sales growth guidance rose to 6.5%–6.8% from 5%–6%; adjusted EBITDA margin guidance is 27.1%–27.3%.

• FY26 adjusted EPS guidance increased to $8.91–$8.96 from $8.70–$8.85, implying ~12% growth at the midpoint; guidance excludes future acquisitions.

• FY26 assumptions include ~$110M capex and at least 100% free cash flow conversion; Q4 margins are expected to decline sequentially on fewer production days and planned shutdowns.

• High-30s to 40% incremental margins net of reinvestment remain the framework; HST targets high-single-digit through-cycle growth, and industrial businesses are expected to outgrow their markets.