IEX

Industrials

IDEX Corporation

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2008–2025(18yr)

Revenue

Net Income

Free CF

Metric	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$1.5B	$1.3B	$1.5B	$1.8B	$2.0B	$2.0B	$2.1B	$2.0B	$2.1B	$2.3B	$2.5B	$2.5B	$2.4B	$2.8B	$3.2B	$3.3B	$3.3B	$3.5B	+5.8%
Gross Profit	$597.4M	$522.4M	$618.5M	$738.7M	$803.7M	$873.4M	$949.3M	$904.3M	$930.8M	$1.0B	$1.1B	$1.1B	$1.0B	$1.2B	$1.4B	$1.4B	$1.4B	$1.5B	+6.5%
Gross Margin	40.1%	39.3%	40.9%	40.2%	41.1%	43.1%	44.2%	44.8%	44.0%	44.9%	45.0%	45.1%	43.7%	44.3%	44.8%	44.2%	44.2%	44.5%	+0.3pp
Operating Income	$206.0M	$184.9M	$249.1M	$304.7M	$128.2M	$395.5M	$431.2M	$431.7M	$405.8M	$502.6M	$569.1M	$579.0M	$520.7M	$637.0M	$751.4M	$732.5M	$677.2M	$699.3M	+3.3%
Operating Margin	13.8%	13.9%	16.5%	16.6%	6.6%	19.5%	20.1%	21.4%	19.2%	22.0%	22.9%	23.2%	22.1%	23.0%	23.6%	22.4%	20.7%	20.2%	-0.5pp
Net Income	$127.0M	$113.4M	$157.1M	$193.9M	$37.6M	$255.2M	$279.4M	$282.8M	$271.1M	$337.3M	$410.6M	$425.5M	$377.8M	$449.4M	$586.9M	$596.1M	$505.0M	$483.2M	-4.3%
Net Margin	8.5%	8.5%	10.4%	10.5%	1.9%	12.6%	13.0%	14.0%	12.8%	14.7%	16.5%	17.1%	16.1%	16.3%	18.4%	18.2%	15.4%	14.0%	-1.5pp
Free Cash Flow	$195.2M	$187.5M	$152.7M	$182.1M	$290.4M	$370.0M	$320.0M	$316.5M	$361.7M	$388.9M	$423.3M	$477.1M	$517.7M	$492.6M	$489.4M	$626.8M	$603.0M	$616.8M	+2.3%
FCF Margin	13.1%	14.1%	10.1%	9.9%	14.9%	18.3%	14.9%	15.7%	17.1%	17.0%	17.0%	19.1%	22.0%	17.8%	15.4%	19.1%	18.4%	17.8%	-0.6pp
EPS (Diluted)	$1.53	$1.40	$1.90	$2.32	$0.45	$3.09	$3.45	$3.62	$3.53	$4.36	$5.29	$5.56	$4.94	$5.88	$7.71	$7.85	$6.64	$6.41	-3.5%

Total Debt$1.8B

Cash & Equiv.$580.0M

Net Debt$1.2B

3 min read

1. THE BIG PICTURE

IDEX is successfully shifting its business mix from traditional industrial fluidics toward high-growth technology niches to sustain its position as a margin leader. While its Fire & Safety and Fluid segments face a "challenging demand environment," the Health & Science Technologies (HST) unit is capturing significant momentum from AI and semiconductor applications, allowing IDEX Corporation to lead its peer group in both revenue growth and free cash flow conversion (8-K, XBRL).

2. WHERE THE RISKS HIT HARDEST

The "IDEX Difference"—a decentralized focus on niche market leadership—is threatened by intense competitive pressures where rivals may use AI or machine learning to innovate more quickly, potentially forcing IDEX to sacrifice its 44.9% gross margins to remain competitive (10-K Item 1, XBRL). Furthermore, IDEX Corporation’s core acquisition strategy is threatened by the $4.66 billion in combined goodwill and intangible assets on its balance sheet; any failure to successfully integrate new businesses or meet growth targets could trigger substantial non-cash impairment charges that would wipe out years of reported net income (10-K Item 1, Risks).

3. WHAT THE NUMBERS SAY TOGETHER

IDEX is an efficiency powerhouse, ranking first among its peers with an 18.4% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin, yet its growth trajectory is entering a period of uncertainty. While its TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth of 5.8% leads the peer group, management’s 2026 guidance projects a sharp deceleration to just 1% to 2% organic growth (8-K, XBRL). This divergence stems from a split in the portfolio: the HST segment is seeing strong orders from data center and semiconductor projects, while the FMT and FSDP segments are struggling with lower volumes (8-K). Short interest at 3.2% of the float suggests a degree of market skepticism regarding this transition, though consistent share repurchases—including $73 million in the most recent quarter—continue to support earnings per share (8-K, Supplemental Signals).

4. IS IT WORTH IT AT THIS PRICE?

At 22.0x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, IDEX trades in line with the peer median of 22.3x. The market is currently pricing in approximately 5.2% long-term growth (CAPM analysis). This valuation appears fair given that IDEX maintains the highest FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin (18.4%) in its group, even though its net margins (14.1%) trail leaders like ITW (21.6%). IDEX Corporation’s actual growth trajectory supports this implied rate only if the HST segment continues to outperform; if total organic growth remains stuck at the 1% floor of management's guidance, the justified multiple could fall toward 13.7x (CAPM analysis). Investors are essentially paying a fair price for a best-in-class cash generator, but there is no "margin of safety" if the industrial slowdown in its Fluid and Fire segments deepens.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if 2026 organic growth guidance is revised downward or if the FMT and FSDP segments report further volume declines despite "aggressively managing" controllable factors (8-K).
Constructive if the HST segment’s AI-related orders accelerate enough to meaningfully reduce the relative weight of the $4.66 billion in intangible assets on the balance sheet (Risks, 8-K).

6. BOTTOM LINE

Structural Advantage: Exceptional free cash flow conversion driven by a decentralized "80/20" operational philosophy and a dominant position in mission-critical, niche engineering markets.

Bottom Line: IDEX is a premium operator priced for stability, but its near-term upside depends entirely on whether its high-tech segments can outrun a broader industrial slowdown.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Product Innovation: IDEX Corporation’s organic growth depends on its ability to deliver new, competitive products; failure to do so could negatively impact cash flow and results of operations.
Acquisition Strategy: IDEX Corporation relies on acquisitions for growth but faces risks regarding the identification of suitable candidates, the successful integration of operations, and the potential incurrence of substantial additional indebtedness.
Competitive Pressures: Most products are sold in highly competitive markets where rivals may use AI or machine learning to innovate more quickly, potentially forcing IDEX Corporation to adjust prices and accept lower profit margins.
Supply Chain and Raw Materials: IDEX Corporation is dependent on the availability and pricing of raw materials and components; disruptions caused by geopolitical unrest, trade barriers, or climate-related events could materially affect financial results.
Information Systems and Cybersecurity: Reliance on internal and third-party IT systems exposes IDEX Corporation to operational delays, data theft, and regulatory fines, particularly as IDEX Corporation increases its digital footprint and remote workforce.

2. Company-Specific Risks

Divestiture Execution: IDEX Corporation may divest business units that do not fit its strategic plan, risking the loss of customer relationships, decreased revenues, and potential ongoing financial obligations like guarantees or indemnities.
AI Integration: IDEX Corporation is in the early stages of adopting AI; ineffective deployment or flawed algorithms could lead to operational failures, legal liability, or reputational harm.
Sustainability Expectations: IDEX Corporation faces risks from both the transition to a lower-carbon economy—which may increase manufacturing costs—and the emergence of "anti-ESG" policies that could negatively impact its appeal to certain investors.
Geographic Exposure: With 49% of sales derived from customers outside the U.S. in 2025, IDEX Corporation is uniquely exposed to international risks, including currency fluctuations, trade wars, and political instability.

3. Regulatory/Legal Risks

Data Privacy Compliance: IDEX Corporation must comply with complex, evolving regulations such as the EU’s GDPR and the California CCPA/CPRA; violations can result in significant monetary penalties and reputational damage.
Anti-Bribery Laws: IDEX Corporation operates in countries with recognized corruption risks and is subject to the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act; non-compliance could lead to criminal or civil sanctions.
Sustainability Reporting: New mandates, such as California’s climate-related disclosure laws and the EU’s Corporate Sustainability Reporting Directive, impose substantial compliance costs and require third-party attestation.
Pending Litigation: IDEX Corporation is involved in various legal proceedings, including product liability and contract disputes, where future operating results could be affected by changes in settlement assumptions or insurance coverage availability.

4. Financial Impact Map

Product Innovation Failure → Sales Growth → Limits organic expansion and cash flow. Acquisition Integration → Indebtedness → Incurrence of substantial additional debt and potential non-accretive earnings. Competitive Pricing Pressures → Profit Margins → Requires price adjustments to maintain market share, reducing overall financial performance. Goodwill/Intangible Impairment → Net Worth → A write-off of the $3,414.5 million in goodwill or $1,247.4 million in intangible assets would significantly reduce net worth. Foreign Currency Fluctuations → Net Sales → 34% of 2025 net sales were recorded in non-U.S. functional currencies, making them sensitive to U.S. Dollar strengthening.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—