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 despite macroeconomic uncertainty.

• Completed the largest acquisition to date (Mott), with integration ahead of schedule and contributing to HST segment growth and energy transition verticals.

• Set new sales records in Fire & Safety and Diversified Products, with robust performance in water and fire OEM markets.

• Entering 2025 with stable inventories, normalized lead times, and optimism for growth driven by secular mega trends and targeted investments.

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).

• Full year 2024 sales: $3.3B (flat YoY, -2% organically); adjusted EBITDA margin: 26.7% (-80 bps YoY); adjusted EPS: $7.89 (-4% YoY); free cash flow: $603M (-4% YoY); adjusted gross margin: 44.5%.

• Q4 net income: $123.2M (+13% YoY); full year net income: $505.0M (down $91.1M YoY); adjusted net income for FY 2024: $598.5M.

• 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% YoY); GAAP EPS: $6.56-$6.96.

• Adjusted EBITDA margin expected to improve to 27.5%-28%.

• Q1 2025 organic revenue expected to decline 3%-4% YoY, with sequential improvement in the second half due to semiconductor recovery, water project timing, and Mott project pacing.

• Platform optimization and delayering expected to contribute $0.43 to adjusted EPS in 2025, with $21M-$25M in restructuring charges.