IDEX : Q1 2025 IDEX Earnings Conference Call Webcast Slide

Published: 2025-05-01 08:05:07 ET IEX

Published on 05/01/2025 at 08:05

First Quarter 2025 Earnings

CORPORATION

Trusted Solutions, Improving LivesTM

IDEX 1Q25 Highlights

Built backlog across all three segments

Experienced steady industrial day rates

Delivered targeted growth wins and industrial channel automation and digitization benefits

Furthered platform optimization and delayering efforts

Deployed $50M capital to share repurchases

Q1 2025 Financial Performance

($ in millions excl. EPS)

$801 $814

Q1'24 Q1'25

26.0% 25.5%

Q1'24 Q1'25

$1.88

$1.75

Q1'24 Q1'25

$137

$91

Q1'24 Q1'25

Organic*

M&A

Y/Y ∆

Sales Growth

-1%

Organic* orders increased 1% y/y

Q1 results above expectations and record order intake

*This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and in our Q1 '25 earnings release.

Q1 2025 Adjusted EBITDA Walk

($ in millions)

$208

(2)

(8)

1Q'24 ACT *

Volume

Net Price /

Mix

Variable Comp

Acq / Div / FX

1Q'25 ACT

Adj EBITDA

Flow Thru

Productivity

Adj EBITDA

Flow thru @ PY GM%* 45.0%

Total flow through (2%)

Organic flow thru** (39%)

**Excludes Acquisition, Divestiture, FX

Price-cost and platform optimization and delayering benefits offset by lower volumes and higher variable compensation

*This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and in our Q1 '25 earnings release.

Q1 2025: Health & Science Technologies

($ in millions)

$314

$384

Q1'24 Q1'25

$310

$341

Q1'24 Q1'25

26.2% 25.6%

Q1'24 Q1'25

Strong targeted growth wins across space and energy transition

Analytical Instrumentation steady with trend towards LSD growth

Semiconductor businesses mixed with positive metrology and consumables and soft wafer-fabrication

Adj EBITDA margin y/y results driven by volume deleverage and the inclusion of Mott partly offset by favorable net productivity and mix

Organic*

M&A

Y/Y ∆

Sales Growth

-1%

12%

10%

Solid targeted growth wins within Energy Transition and Space / Defense

Energy Transition/Data Center Space/Defense

Analytical Instrumentation

Semiconductor

Pharma/Food

2025

Positive Catalysts

Stable / moderate lift

Flat / No signs of bounce

*This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and in our Q1 '25 earnings release. 6

Q1 2025: Fluid & Metering Technologies

($ in millions)

$314

$291

33.6% 32.8%

Continued strength in Municipal Water and downstream energy markets

Stable industrial day rates

Near-term pressure Chemical, Agriculture, and Semi Wafer businesses

Adj EBITDA y/y results impacted by unfavorable volume leverage partly offset by favorable price-cost

Q1'24 Q1'25

Downstream Energy

Water Solutions & Services

$314

$295

2025

Organic*

M&A

Y/Y ∆

Sales Growth

-4%

-1%

-2%

-7%

Diversified Industrials

Strong Municipal Water and steady Industrials more than offset by Chemical and Ag pressure

Agriculture

Positive Catalysts

Stable / moderate lift

Flat / No signs of bounce back / Cyclically down

*This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and in our Q1 '25 earnings release.

Q1 2025: Fire & Safety / Diversified Products

($ in millions)

$194 $196

$178 $184

28.9% 29.4%

Fire and Safety seeing strong NA Fire OEM and integrated solutions demand

Dispensing building on leadership position with stable global trends

BAND-IT share gains within Energy

Adj EBITDA y/y results driven by volume leverage and positive price-cost, partially offset by higher employee costs

Q1'24 Q1'25

Organic*

M&A

Y/Y ∆

Sales Growth

-1%

2025

Fire & Rescue

Targeted growth, positive price, and operational efficiencies drive revenue and adj. EBITDA margin expansion

Auto Dispensing

Positive Catalysts

Stable / moderate lift

Flat / No signs of bounce back / Cyclically down

*This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and in our Q1 '25 earnings release.

2025 Guidance Summary

Full Year

Second Quarter

Current Guidance

Organic Revenue % vs Prior Year*

1% - 3%

0% - 2%

Adjusted EBITDA %*

27.5% - 28.0%

26.5% - 27.0%

Reported Earnings Per Share

$6.56 - $6.95

$1.60 - $1.72

Adjusted Earnings Per Share*

$8.10 - $8.45

$1.95 - $2.05

Other Modeling Items: FX Impact on Sales

Slight Headwind (a)

Acquisition/Divesture Impact on Sales Depreciation

Amortization

Net Interest

~3%

~$77 Million

~$127 Million

~$63 Million

~6%

~$19 Million

~$32 Million

~$16 Million

Restructuring charges Capital Expenditures Tax Rate

Free Cash Flow % of Adjusted Net Income* Corporate Costs

~$21 - $25 Million

~$90 Million

~23% 100%+

~$104 Million

~$1 - $3 Million

~23%

~$25 Million

(a) - Based on 3/31/2025 FX Rate

Earnings per share estimates exclude all future acquisitions

*This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included in both this presentation or in our Q1 '25 earnings release. Reconciliations of the Company's Free Cash Flow as a percentage of Adjusted Net Income guidance to the most directly comparable GAAP financial measures cannot be 9

provided without unreasonable efforts and are not provided herein because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations.

Implications of Current Tariff Exposures

IDEX is Advantaged to Manage Tariff Impacts

Tariff induced pricing actions adding 3-4% to sales on an annualized basis

Tariff-related inflation expected to be 5-6% of Cost of Goods Sold

Predominantly manufacture local for local

Mission-critical products tied to niche application sets

Agility in resource reallocation and flexible manufacturing footprint

Long-term customer relationships

Annualized Tariff Estimates(1)

China

European Union Mexico / Canada* Rest of World

Total Annualized Tariff Impact ~$100M

Other Steel & Aluminum

~$80M

~$5M

~$0M

~$5M

~$10M

Leveraging scale to drive sourcing savings

Taking additional cost measures to mitigate potential impacts on demand

(1)Tariff estimates represent incremental cost to IDEX prior to any mitigation actions

* On products that are not covered by USMCA

Deliver Differentiated Growth and Earnings Through Scaled Strategic Growth Platforms

SCALED STRATEGIC GROWTH PLATFORMS REPRESENT MORE THAN 50% OF IDEX

Material Sciences Solutions

Life Sciences Severe Duty Flow Control

Intelligent Water

Fire & Safety

Leading-edge portfolio of applied materials forming capabilities focused on rapidly growing, nascent markets

Unique innovative solutions built on broad toolkit for premium, global pharma and life science customers

Differentiated rugged technologies ensuring high reliability and uptime in high-risk applications

Wastewater monitoring and analytics mitigating infrastructure risk and ensuring efficient investment

On-Scene Automation and tools delivering Mission-Critical Tech in "Life & Death" Situations

Automation & Digitization

INTEGRATIVE PERFORMANCE DRIVERS

Cross-BU Growth

Productivity

Customer Acquisition & Interface

Disruptive Solutions

Unique Technologies

Commercial Access & Critical Mass

Sourcing & Continuous Improvement

Organizational Efficiency

MEGATRENDS

AI & Digitization | Regionalization & Defensive Industrialization | Reimagined Supply Chains | Energy Efficiency | Demographic Shifts

Flexible and Opportunistic Capital Deployment

Investing in Organic and Acquisitive Growth

Focusing on top organic investments

Cultivating bolt-ons in advantaged markets

Prioritizing IDEX integrated platforms

Returning Capital to Shareholders

Financial and strategic flexibility afforded by strong cash generation and balance sheet

Maintaining an attractive dividend

Strategically repurchasing shares

On track to generate 100%+ Free Cash Flow Conversion* in 2025

*This presentation contains non-GAAP financial information whose reconciliations are included in both this presentation and in our Q1 '25 earnings release.

IDEX Value Drivers

ORGANIC GROWTH

INORGANIC GROWTH

MARGIN EXPANSION

Leading market entitlement

Pricing execution

Growth bets prioritization

Strong funnel of M&A opportunities

Fast growing companies

Disciplined capital deployment

Leading the IDEX Op Model

80/20

Leverage

Non-GAAP Reconciliations

Table 1: Reconciliations of the Change in Net Sales to Organic Sales

FMT HST FSDP IDEX

Three Months Ended March 31, 2025

Change in net sales

(7%)

10%

Less:

Net impact from acquisitions/divestitures(1)

(2%)

12%

Impact from foreign currency(2)

(1%)

Change in organic sales (4%) (1%) 5% (1%)

Table 2: Reconciliations of Reported-to-Adjusted Gross Profit and Gross Margin (dollars in millions)

Gross profit $ 368.9 $ 357.4

Three Months Ended March 31, 2025 2024

Fair value inventory step-up charges - 2.5

Adjusted gross profit $ 368.9 $ 359.9

Net sales $ 814.3 $ 800.5

Gross margin 45.3% 44.6%

Adjusted gross margin 45.3% 45.0%

Table 3: Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, except per share amounts)

Three Months Ended March 31,

2025

2024

Reported net income attributable to IDEX

95.5

121.4

Fair value inventory step-up charges

2.5

Tax impact on fair value inventory step-up charges

(0.5)

Restructuring expenses and asset impairments

17.5

1.1

Tax impact on restructuring expenses and asset impairments

(4.1)

(0.3)

Acquisition-related intangible asset amortization

31.5

24.6

Tax impact on acquisition-related intangible asset amortization

(7.4)

(5.6)

Adjusted net income attributable to IDEX

133.0

143.2

Reported diluted EPS attributable to IDEX

1.26

1.60

Fair value inventory step-up charges

0.03

Tax impact on fair value inventory step-up charges

(0.01)

Restructuring expenses and asset impairments

0.23

0.01

Tax impact on restructuring expenses and asset impairments

(0.05)

Acquisition-related intangible asset amortization

0.41

0.32

Tax impact on acquisition-related intangible asset amortization

(0.10)

(0.07)

Adjusted diluted EPS attributable to IDEX

1.75

1.88

Diluted weighted average shares outstanding

75.8

75.9

Table 4: Reconciliations of Net Income to Adjusted EBITDA (dollars in millions)

Three Months Ended March 31,

2025

2024

Reported net income

95.4

121.3

Provision for income taxes

29.1

33.2

Interest expense - net

16.1

9.4

Depreciation

18.4

16.2

Amortization

31.5

24.6

Fair value inventory step-up charges

2.5

Restructuring expenses and asset impairments

17.5

1.1

Adjusted EBITDA $ 208.0 $ 208.3

Adjusted EBITDA Components:

FMT

95.3

105.4

HST

87.4

81.4

FSDP

54.2

51.4

Corporate and other

(28.9)

(29.9)

Total Adjusted EBITDA $ 208.0 $ 208.3

Net sales

814.3

800.5

Net income margin

11.7%

15.2%

Adjusted EBITDA margin

25.5%

26.0%

Table 5: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (dollars in millions)

Three Months Ended March 31,

2025

2024

Cash flows from operating activities

105.7

156.6

Less: Capital expenditures

14.3

20.0

Free cash flow

$ 91.4

136.6

Reported net income attributable to IDEX

$ 95.5

$ 121.4

Adjusted net income attributable to IDEX

133.0

143.2

Operating cash flow conversion

111%

129%

Free cash flow conversion

69%

95%

Table 6: Reconciliation of Estimated 2025 Change in Net Sales to Change in Organic Sales

Guidance

Second Quarter 2025 Full Year 2025

Low End

High End

Low End

High End

Estimated change in net sales

Less:

Net impact from acquisitions/divestitures(1)

Impact from foreign currency(2)

Estimated change in organic sales

Table 7: Reconciliation of Estimated 2025 Diluted EPS Attributable to IDEX to Adjusted Diluted EPS Attributable to IDEX

Guidance

Second Quarter 2025

Full Year 2025

Estimated diluted EPS attributable to IDEX

$1.60 - $1.72

$6.56 - $6.95

Restructuring expenses(3)

$0.01 - $0.04

$0.28 - $0.34

Tax impact on restructuring expenses

$0.00 - $(0.01)

$(0.05) - $(0.07)

Acquisition-related intangible asset amortization

$0.42

$1.67

Tax impact on acquisition-related intangible asset amortization

$(0.10)

$(0.40)

Estimated adjusted diluted EPS attributable to IDEX $1.95 - $2.05 $8.10 - $8.45

Table 8: Reconciliation of Estimated 2025 Net Income to Adjusted EBITDA (dollars in millions)

Guidance

Second Quarter 2025 Full Year 2025

Low End

High End

Low End

High End

Estimated Reported net income

$ 121.3

$ 130.1

$ 498.8

$ 527.7

Provision for income taxes

35.3

37.8

149.3

157.8

Interest expense - net

16.4

63.2

Depreciation

19.1

76.6

Amortization of intangible assets

31.8

126.9

Restructuring expenses(3)

2.9

0.9

25.0

21.0

Estimated Adjusted EBITDA $ 226.8 $ 236.1 $ 939.8 $ 973.2

Estimated Net sales

$ 854.3

$ 870.4

$ 3,415.5

$ 3,480.9

Estimated Net income margin

14.2%

14.9%

14.6%

15.2%

Estimated Adjusted EBITDA margin

26.5%

27.0%

27.5%

28.0%

(1)Represents the sales from acquired or divested businesses during the first 12 months of ownership or prior to divestiture.

(2)The portion of sales attributable to foreign currency translation is calculated as the difference between (a) the period-to-period change in organic sales, and (b) the period-to-period change in organic sales after applying prior period foreign exchange rates to the current year period.

(3)Represents estimated restructuring costs to be incurred during the remainder of 2025, primarily related to severance.

Disclaimer

IDEX Corporation published this content on May 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2025 at 12:04 UTC.