IDEX Corporation Reports First Quarter 2025 Results

IDEX Corporation has released its financial results for the first quarter of 2025, showcasing a mix of record orders and slight declines in organic sales. The company, known for its engineered products and mission-critical components, continues to navigate market challenges while maintaining a positive outlook for the year.

Financial Highlights

For the first quarter of 2025, IDEX reported:

• Record orders of $872 million, with a 6% increase overall and a 1% organic growth.
• Sales of $814 million, marking a 2% increase but a 1% decrease organically.
• Reported diluted EPS of $1.26, a 21% decline from the previous year.
• Adjusted EPS of $1.75, a 7% decline from the previous year.

Business and Operational Highlights

The company achieved record orders within its Health & Science Technologies (HST) and Fire & Safety/Diversified Products (FSDP) segments. However, organic sales saw a slight decline due to lower volumes in certain sectors, partially offset by targeted growth initiatives and price capture.

Gross margin improved to 45.3%, driven by favorable operational productivity and price/cost management, despite volume deleverage and higher employee-related costs.

Strategic Initiatives and Corporate Developments

IDEX has undertaken several strategic initiatives, including:

• Platform optimization and delayering efforts expected to yield a $43 million impact for 2025.
• Additional cost containment actions projected to save $20 million in 2025.
• Repayment of $30.2 million under the revolving credit facility in January 2025 and $12.5 million in April 2025.
• Repurchase of 256,159 shares at a cost of $50 million in February 2025.

Management's Perspective

Eric Ashleman, President and CEO of IDEX, expressed satisfaction with the company's performance, highlighting better-than-expected revenue and profitability across all segments. He noted the accumulation of backlog, particularly within the HST segment, driven by a significant clean water project win.

Ashleman acknowledged potential customer caution and slower decision-making but emphasized the company's proactive cost containment measures and strong cash generation capabilities.

Future Outlook

IDEX maintains its full-year guidance, expecting GAAP diluted EPS of $6.56 to $6.95 and adjusted diluted EPS of $8.10 to $8.45. The company anticipates full-year organic sales growth of 1% to 3%. For the second quarter of 2025, IDEX projects GAAP diluted EPS of $1.60 to $1.72 and adjusted diluted EPS of $1.95 to $2.05, with organic sales growth of 0% to 2%.

SEC Filing: IDEX CORP /DE/ [ IEX ] - 8-K - May. 01, 2025