IDEX (IEX) Q4 2025 earnings summary

Executive summary

• Delivered record Q4 2025 sales and orders, with strong organic growth and margin expansion, led by the HST segment's demand in data centers, semiconductors, and space/defense.

• Integration of acquisitions, such as Micro-LAM, progressed well, supporting growth and capacity expansion.

• Platforming strategy, cross-business collaboration, and the 8020 operating model fueled growth in targeted markets.

• Industrial businesses remained sluggish, with no near-term recovery in leading indicators.

Financial highlights

• Q4 2025 organic sales grew 1% year-over-year; full-year organic sales also up 1%.

• Adjusted EBITDA margin for Q4 2025 was 26.8%, up 40 bps year-over-year; adjusted EPS for Q4 was $2.10, full-year $7.95.

• Orders grew 16% organically in Q4; HST orders reached a record $493 million.

• Free cash flow for 2025 was $617 million, up 2% year-over-year, with 103% conversion of adjusted net income.

• Share repurchases totaled $73 million in Q4 and $248 million for the year.

Outlook and guidance

• 2026 organic growth expected at 1%-2%, with HST mid-single digit growth and flat to slightly down FMT and FSDP.

• Adjusted EBITDA margin guidance for 2026 is 26.5%-27%; adjusted EPS expected at $8.15-$8.35.

• Q1 2026 guidance: ~1% organic growth, 24.5% adjusted EBITDA margin, and $1.73-$1.78 adjusted EPS.

• Capital deployment to focus on tuck-in acquisitions and consistent share repurchases.