IDEX (IEX) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with 9% reported and 5% organic sales growth, record orders up 13% reported and 10% organically, and robust performance in Health & Science Technologies (HST), especially in AI, data centers, semiconductors, and space/defense.

• Adjusted diluted EPS increased 14% to $2.00; net income attributable to shareholders rose 26% to $120 million.

• Capital deployment included $76 million in share repurchases and $53 million in dividends in Q1.

• Business portfolio pivoted toward advantaged markets, leveraging the 80/20 operating model for growth and value creation.

• Record backlog in HST driven by demand in AI, data center, semiconductor, pharma, and space & defense markets.

Financial highlights

• Adjusted EBITDA reached $230.4 million (26.0% margin), up from $208 million (25.5% margin); adjusted EBITDA margin expanded by 50 bps year-over-year.

• Gross margin declined 40 bps to 44.9% due to mix, despite productivity gains.

• Adjusted EPS significantly exceeded guidance; full-year EPS guidance raised by $0.20 to $8.35-$8.55.

• Free cash flow was $86 million, down from $91.4 million year-over-year, with conversion at 58%.

• Net income margin improved to 13.5% from 11.7% year-over-year.

Outlook and guidance

• Full-year 2026 organic growth guidance raised to 3%-4% (from 1%-2%), with HST high single-digit growth and FMT/FSDP flattish.

• Adjusted EBITDA margin guidance unchanged at 26.5%-27%; Q2 2026 guidance: 3%-4% organic growth, adjusted EBITDA margin 26.5%-27%, adjusted EPS $2.07-$2.12.

• Free cash flow conversion expected to exceed 100% for FY26.

• No significant net impact expected from new tariffs; price/cost expected to remain a net positive.

• Management expects current cash, operations, and credit facilities to cover all foreseeable cash requirements.