IDEX (IEX) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 sales of $863M, up 9% overall and 3% organically, with double-digit adjusted EPS growth and strong productivity amid macroeconomic uncertainty.

• Delivered record sales in Fire & Safety and Diversified Products, robust performance in water, and successful integration of the Mott acquisition, which is accretive ahead of schedule.

• Strategic capital deployment focused on high-growth verticals, thematic integration, and pruning of less advantaged businesses.

• Collaboration and integration across business groups are driving both top-line growth and margin expansion.

• Completed largest acquisition (Mott), with integration ahead of schedule and expected to be accretive to 2025 adjusted EPS.

Financial highlights

• Q4 2024 sales: $863M (+9% YoY), adjusted EBITDA margin: 26.4% (+60 bps YoY), adjusted EPS: $2.04 (+11% YoY), free cash flow: $157M (-12% YoY).

• FY 2024 sales: $3.3B (flat YoY), adjusted EBITDA margin: 26.7% (-80 bps YoY), adjusted EPS: $7.89 (-4% YoY), free cash flow: $603M (-4% YoY).

• Q4 adjusted gross margin: 43.1% (up 40 bps YoY); full year adjusted gross margin: 44.5% (up 30 bps YoY).

• Q4 net income: $123.2M (+13% YoY); full year net income: $505.0M.

• Free cash flow conversion: 101% for both Q4 and FY 2024; operating cash flow as a percent of net income: 132% FY 2024.

Outlook and guidance

• 2025 organic growth expected at 1%-3%, with HST leading segment growth.

• Adjusted EPS guidance: $8.10-$8.45 (up 3%-7%); GAAP EPS: $6.56-$6.96.

• Adjusted EBITDA margin expected at 27.5%-28%.

• Q1 2025: organic revenue to decline 3%-4% YoY, adjusted EPS $1.60-$1.65, reflecting project timing and compensation resets.

• Revenue and EPS expected to be weighted to the second half of 2025, driven by semiconductor recovery, water project timing, and Mott shipments.