Financial Data and Key Metrics Changes - In Q2 2025, IDEXX's revenue came in toward the midpoint of guidance, with organic sales increasing by 1% year over year, while orders grew organically by 2% [27][28] - Adjusted gross margin declined by 10 basis points year over year, primarily due to dilution from the Mod acquisition and unfavorable mix [29] - Free cash flow increased by 25% year over year to $147 million, representing 94% conversion versus adjusted net income [30] Business Line Data and Key Metrics Changes - In the HST segment, organic orders increased by 2% and organic sales increased by 4%, supported by positive pricing and volume increases in pharmaceutical and defense businesses [31] - In the FMT segment, organic orders increased by 7%, but organic sales declined by 2%, with growth in downstream energy and agriculture offset by declines in chemicals and semiconductor [32] - In the FST segment, organic sales grew by 2%, but organic orders declined by 7%, attributed to choppy order patterns [34] Market Data and Key Metrics Changes - Demand remained healthy in food, pharma, space, and defense applications, while weaker areas included chemicals, automotive, and semiconductor lithography [11] - The company experienced dynamic daily demand levels influenced by trade policy announcements, leading to a modest order recovery in July [12] Company Strategy and Development Direction - IDEXX aims to extend growth potential through variable levels of integration to win in advantaged markets, focusing on cross-business collaboration and operational improvements [14][18] - The company is actively pursuing tuck-in acquisitions to scale and expand critical capabilities in advantaged markets, with a focus on maintaining a strong balance sheet and cash flow generation [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality of its businesses despite lowering back half financial projections due to slower decision-making and order patterns [13][41] - The company anticipates a stable baseline for orders moving forward, with a focus on leveraging operational capabilities to drive growth [50][51] Other Important Information - IDEXX updated its full-year organic sales growth guidance to approximately 1%, down from 1% to 3%, and adjusted adjusted EPS guidance to $7.85 to $7.95 [36] - The company expects to fully mitigate tariff-related inflation with price increases and additional sourcing and supply chain savings [37] Q&A Session All Questions and Answers Question: Can you talk about the delayed orders on the semiconductor side and your confidence in those projects coming through? - Management noted that while there was oscillation in order patterns, they saw order recovery in July and expressed confidence in the stability of the baseline moving forward [48][50] Question: How much of the guidance cut is attributed specifically to Mott? - The guidance cut is primarily attributed to the MSS group and Mott, with frozen decision-making impacting revenue and profitability flow-through [93] Question: What is the current state of the life sciences segment? - The life sciences segment is experiencing a slow recovery, growing low single digits, with some areas weaker but generally offset by stronger applications in pharma drug discovery [98]

Financial Data and Key Metrics Changes - In Q2 2025, IDEXX's revenue came in toward the midpoint of guidance, with organic sales increasing by 1% year over year [27][30] - Adjusted EBITDA margin declined by 40 basis points to 27.4%, reflecting gross margin performance and lower variable compensation expenses [28] - Free cash flow increased by 25% year over year to $147 million, representing 94% conversion versus adjusted net income [29] Business Line Data and Key Metrics Changes - In the Health and Science Technology (HST) segment, organic orders increased by 2% and organic sales increased by 4%, driven by positive pricing and volume increases in pharmaceuticals and data centers [30] - In the Fluid Management Technologies (FMT) segment, organic orders increased by 7%, but organic sales declined by 2% due to challenging prior year comparisons [31] - In the Fire and Safety Technologies (FST) segment, organic sales grew by 2%, but organic orders declined by 7% due to choppy order patterns [32] Market Data and Key Metrics Changes - Demand remained healthy in food and pharma applications, space and defense, and data center thermal management, while weaker areas included chemicals, automotive, and semiconductor lithography [10][11] - The company experienced a modest order recovery in July after a dynamic demand pattern in Q2, influenced by trade policy announcements [11][12] Company Strategy and Development Direction - IDEXX aims to extend growth potential through variable levels of integration to win in advantaged markets, focusing on cross-business collaboration and operational improvements [13][20] - The company is actively pursuing tuck-in acquisitions to scale and expand critical capabilities in advantaged markets, with a focus on maintaining a strong balance sheet and robust cash flow generation [37][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality of its businesses despite lowering back half financial projections due to slower decision-making and tariff-related uncertainties [12][34] - The company anticipates a stable baseline for orders moving forward, with a focus on leveraging operational capabilities to drive growth [50][76] Other Important Information - The company has updated its full-year organic sales growth guidance to approximately 1%, down from 1% to 3% previously, and adjusted adjusted EPS guidance to $7.85 to $7.95 [34] - IDEXX expects to fully mitigate tariff-related inflation through price increases and additional sourcing and supply chain savings [36] Q&A Session Summary Question: Can you discuss the delayed orders on the semiconductor side and the confidence in future orders? - Management noted that while there was oscillation in order patterns, July showed a recovery in both small and larger orders, providing confidence in future order fulfillment [46][48] Question: How much of the guidance cut is attributed specifically to Mott? - The guidance cut is primarily due to the MSS group and Mott, with frozen decision-making impacting revenue and profitability flow-through [92][93] Question: What is the current state of the life sciences segment? - The life sciences segment is experiencing a slow recovery, growing in low single digits, with some areas offsetting weaker segments [97] Question: Can you provide more detail on water performance in Q2? - Water performance was impacted by timing dynamics similar to other segments, but the business is expected to perform well going forward [104] Question: What is the strategic fit of the Microlam acquisition? - Microlam complements IDEXX's optical technologies business by providing precision optics, enhancing capabilities within the MSS platform [107][110]

July 30, 2025 Second Quarter 2025 Earnings Click Here to Edit Title Cautionary Statement Click Here to Edit Title Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company's third quarter 2025 and full year 2025 outlook including expected organic sales, expected earnings ...

[Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) The company reported record Q2 sales but revised its full-year guidance downwards due to a more cautious customer outlook [Highlights & CEO Commentary](index=1&type=section&id=Highlights%20%26%20CEO%20Commentary) IDEX reported strong Q2 execution with record sales, but a cautious customer outlook prompted a reset of its 2025 financial assumptions Q2 2025 Key Metrics | Metric | Value | Change vs. Prior Year | | :--- | :--- | :--- | | **Sales** | $865 million | +7% reported, +1% organic | | **Orders** | $830 million | +7% reported, +2% organic | | **Reported Diluted EPS** | $1.74 | -6% | | **Adjusted Diluted EPS** | $2.07 | Flat | - CEO Eric D. Ashleman highlighted **strong execution** but acknowledged a challenging operating environment and a downshift in order trends for rapid-turn businesses exiting the quarter[2](index=2&type=chunk)[3](index=3&type=chunk) - Due to a more cautious customer stance on larger orders, which delayed expected second-half acceleration, the company is **resetting its baseline financial assumptions** for the rest of 2025[3](index=3&type=chunk) [Financial Guidance (Q3 & Full Year 2025)](index=1&type=section&id=Financial%20Guidance%20(Q3%20%26%20Full%20Year%202025)) The company revised its full-year 2025 guidance downwards, now anticipating approximately 1% organic sales growth Revised 2025 Financial Guidance | Period | Metric | New Guidance | Previous Guidance | | :--- | :--- | :--- | :--- | | **Full Year 2025** | GAAP Diluted EPS | $6.30 - $6.44 | $6.56 - $6.95 | | **Full Year 2025** | Adjusted Diluted EPS | $7.85 - $7.95 | $8.10 - $8.45 | | **Q3 2025** | GAAP Diluted EPS | $1.54 - $1.61 | N/A | | **Q3 2025** | Adjusted Diluted EPS | $1.90 - $1.95 | N/A | - The updated full-year guidance is based on an expected **organic sales growth of approximately 1%**[4](index=4&type=chunk) - The third-quarter guidance is based on an expected **organic sales growth of 2% to 3%**[4](index=4&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Q2 2025 saw record net sales driven by an acquisition, but GAAP net income and EPS declined while operating cash flow increased Consolidated Financial Results (Three Months Ended June 30) | Metric (in millions, except EPS) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $865.4 | $807.2 | +7% | | **Organic Sales Growth** | - | - | +1% | | **Gross Margin** | 45.3% | 45.4% | (10) bps | | **Net Income (GAAP)** | $131.6 | $141.3 | (6.9%) | | **Diluted EPS (GAAP)** | $1.74 | $1.86 | (6.5%) | | **Adjusted Net Income** | $156.5 | $156.1 | +0.3% | | **Adjusted Diluted EPS** | $2.07 | $2.06 | +0.5% | | **Adjusted EBITDA** | $237.2 | $224.2 | +5.8% | | **Cash Flow from Operations** | $161.7 | $133.6 | +21.0% | - Net sales growth was largely due to the **Mott acquisition**, with organic growth driven by positive pricing and initiatives in HST and FSDP segments, partially offset by lower volumes in the FMT segment[7](index=7&type=chunk) - The decrease in GAAP Diluted EPS was influenced by higher amortization from the Mott acquisition, higher interest expense, and a **higher effective tax rate** compared to the prior year[7](index=7&type=chunk) - Operating cash flow and free cash flow increased due to higher operating results and **favorable working capital**, mainly from the timing of collections[8](index=8&type=chunk) [Segment Financial Results](index=3&type=section&id=Segment%20Financial%20Results) The HST and FSDP segments reported sales growth, driven by acquisitions and pricing, while the FMT segment saw a sales decline Segment Performance (Three Months Ended June 30, 2025) | Segment | Net Sales (M) | Reported Sales Change | Organic Sales Change | Adjusted EBITDA (M) | Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | **Health & Science Technologies** | $365.3 | +20% | +4% | $95.0 | 26.0% | | **Fluid & Metering Technologies** | $310.9 | (3%) | (2%) | $108.7 | 35.0% | | **Fire & Safety/Diversified Products** | $191.5 | +3% | +2% | $56.4 | 29.4% | [Health & Science Technologies (HST)](index=3&type=section&id=Health%20%26%20Science%20Technologies%20(HST)) The HST segment's sales growth was primarily driven by the Mott acquisition, though its adjusted EBITDA margin contracted - Organic sales increased 4% due to positive pricing, growth initiatives, and **strong volumes in aerospace/defense and pharmaceutical businesses**[10](index=10&type=chunk) - Growth was partially offset by **lower volumes in the semiconductor, automotive, and industrial businesses**[10](index=10&type=chunk) - **Adjusted EBITDA margin decreased to 26.0%** primarily due to the impact of the Mott acquisition and unfavorable mix[10](index=10&type=chunk) [Fluid & Metering Technologies (FMT)](index=4&type=section&id=Fluid%20%26%20Metering%20Technologies%20(FMT)) The FMT segment experienced a sales decline due to lower volumes in key end markets, but its adjusted EBITDA margin improved - Organic sales decreased 2% due to **lower volumes in chemical, water, energy, agriculture, and semiconductor businesses**[15](index=15&type=chunk) - **Adjusted EBITDA margin increased to 35.0%** due to positive price/cost and net productivity improvements that outweighed volume deleverage[15](index=15&type=chunk) [Fire & Safety/Diversified Products (FSDP)](index=4&type=section&id=Fire%20%26%20Safety%2FDiversified%20Products%20(FSDP)) The FSDP segment achieved modest sales growth and a slight margin increase, driven by positive pricing and strong OEM demand - Organic sales increased 2% due to **positive pricing and strong North America Fire OEM demand**[15](index=15&type=chunk) - Growth was partially offset by lower volumes related to the **timing of Dispensing projects in emerging markets**[15](index=15&type=chunk) - **Adjusted EBITDA margin increased to 29.4%** as positive price/cost more than offset unfavorable productivity, mix, and volume deleverage[15](index=15&type=chunk) [Corporate Costs & Other Items](index=4&type=section&id=Corporate%20Costs%20%26%20Other%20Items) Corporate costs increased due to higher compensation, while the company actively allocated capital to share repurchases and an acquisition - Corporate costs included in consolidated Adjusted EBITDA were **$22.9 million**, an increase of $1.4 million from the prior year, primarily due to higher employee-related variable compensation[12](index=12&type=chunk) - Key capital allocation activities in Q2 2025 and shortly after include repurchasing **$50.0 million** of shares, repaying a **$100.0 million** senior note, and acquiring Micro-LAM, Inc. for **$90.0 million**[15](index=15&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, and cash flows for the reporting period [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales increased in Q2 2025, but higher costs led to a decline in net income and diluted EPS compared to the prior year Q2 Income Statement Highlights (in millions) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales | $865.4 | $807.2 | | Gross profit | $392.2 | $366.8 | | Operating income | $187.9 | $182.7 | | Net income attributable to IDEX | $131.6 | $141.3 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and shareholders' equity increased as of June 30, 2025, while total liabilities decreased from year-end 2024 Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,616.5 | $1,592.7 | | Goodwill | $3,368.6 | $3,251.7 | | **Total assets** | **$6,876.1** | **$6,745.3** | | Total current liabilities | $529.8 | $629.7 | | Long-term borrowings – net | $1,847.1 | $1,859.5 | | **Total liabilities** | **$2,865.7** | **$2,951.2** | | **Total shareholders' equity** | **$4,011.6** | **$3,794.7** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased for the six-month period, while financing activities used significant cash for debt repayment and shareholder returns Six-Month Cash Flow Summary (in millions) | Activity | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $267.4 | $290.2 | | Net cash (used in) provided by investing activities | $(24.5) | $11.7 | | Net cash used in financing activities | $(349.2) | $(118.2) | | **Net (decrease) increase in cash** | **$(68.9)** | **$166.4** | [Non-GAAP Measures & Guidance Reconciliation](index=11&type=section&id=Non-GAAP%20Measures%20%26%20Guidance%20Reconciliation) This section explains the company's use of non-GAAP metrics and provides detailed reconciliations to their GAAP equivalents [Explanation of Non-GAAP Measures](index=11&type=section&id=Explanation%20of%20Non-GAAP%20Measures) IDEX utilizes non-GAAP metrics like organic sales and adjusted EPS to provide deeper insight into its core operational performance - The company uses non-GAAP metrics to provide **greater insight, transparency, and a more comprehensive understanding** of financial information used by management[30](index=30&type=chunk) - Key non-GAAP metrics include: **Organic orders/sales, Adjusted gross profit/margin, Adjusted net income, Adjusted diluted EPS, Consolidated Adjusted EBITDA, and Free cash flow**[31](index=31&type=chunk) [Reconciliations of GAAP to Non-GAAP Results](index=12&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Results) This section provides detailed reconciliations of reported GAAP results to adjusted non-GAAP figures for key financial metrics - For Q2 2025, reported net sales growth of 7% was reconciled to **1% organic growth** after accounting for a 5% impact from acquisitions/divestitures and a 1% impact from foreign currency[34](index=34&type=chunk) - Q2 2025 reported diluted EPS of $1.74 was adjusted for acquisition-related intangible amortization (+$0.42) and other items to reach an **adjusted diluted EPS of $2.07**[35](index=35&type=chunk) - Q2 2025 reported net income of $131.1 million was reconciled to **Adjusted EBITDA of $237.2 million** by adding back taxes, interest, D&A, and other adjustments[36](index=36&type=chunk) [Reconciliations of 2025 Financial Guidance](index=15&type=section&id=Reconciliations%20of%202025%20Financial%20Guidance) The company provides a bridge from its estimated GAAP EPS and sales growth to its non-GAAP guidance for Q3 and full-year 2025 Full Year 2025 EPS Guidance Reconciliation | Item | Low End | High End | | :--- | :--- | :--- | | **Estimated GAAP Diluted EPS** | **$6.30** | **$6.44** | | Restructuring expenses | $0.33 | $0.28 | | Acquisition-related intangible asset amortization | $1.69 | $1.69 | | Tax impacts | $(0.47) | $(0.46) | | **Estimated Adjusted Diluted EPS** | **$7.85** | **$7.95** | - The full-year 2025 estimated change in net sales of 5-6% is reconciled to an estimated **1% organic sales growth** after accounting for impacts from acquisitions (3%) and foreign currency (1%)[38](index=38&type=chunk)

Core Viewpoint - IDEX Corporation (IEX) is expected to report second-quarter 2025 results on July 30, with a consensus estimate for revenues at $857.2 million, reflecting a 6.2% year-over-year increase, while adjusted earnings are projected at $2.00 per share, indicating a 2.9% decline from the previous year [1][2][10] Group 1: Revenue and Earnings Estimates - The consensus estimate for revenues is $857.2 million, which is a 6.2% increase from the prior-year quarter [2] - The adjusted earnings estimate is $2.00 per share, showing a 2.9% decline compared to the same quarter last year [2] Group 2: Segment Performance - The Health & Science Technologies (HST) segment is anticipated to generate revenues of $356 million, marking a 17.1% year-over-year increase due to strong momentum in energy transition and analytical instrumentation [3] - The Fire & Safety/Diversified Products (FSDP) segment is expected to report revenues of $188.4 million, up 1.6% year over year, driven by strong demand in OEM and integrated solutions [4] - The Fluid & Metering Technologies (FMT) segment is projected to see revenues of $312.2 million, reflecting a 2.2% decline year over year, primarily due to softness in the chemical and agriculture markets [5] Group 3: Recent Acquisitions - The acquisition of Mott Corp. in September 2024 and STC Material Solutions in December 2023 has expanded IDEX's capabilities in applied materials science technology, likely enhancing performance in high-value end markets [6][10] Group 4: Earnings Prediction - IDEX has an Earnings ESP of +0.25%, with the Most Accurate Estimate at $2.01 per share, suggesting a potential earnings beat [9] - The company currently holds a Zacks Rank of 2, indicating a favorable outlook for earnings performance [9]

Financial Data and Key Metrics Changes - Revenue for the company grew by 19.2% year-on-year, increasing from INR 154.5 crore in Q1 FY '25 to INR 184.2 crore in Q1 FY '26 [20] - FAT increased by 25.2%, rising from INR 96.4 crore in Q1 FY '25 to INR 120.7 crore in Q1 FY '26 [20] - Electricity trading volume recorded a growth of 15% year-on-year, reaching 32.4 billion units [19] Business Line Data and Key Metrics Changes - Nearly 53 lakh renewable energy certificates were traded, marking a growth of nearly 150% over the same quarter last year [21] - RTM volumes increased by 41% year-on-year, reaching nearly 13 billion units, highlighting its critical role in managing short-term requirements [21] - Green market volume rose by 51% year-on-year to 2.7 billion units, supporting the integration of clean energy sources [22] Market Data and Key Metrics Changes - India's power consumption in Q1 FY '26 was 446 billion units, a decrease of 1.3% compared to Q1 FY '25 [10] - Average day-ahead market price was INR 4.41 per unit, down 16% year-on-year, while the real-time market price averaged INR 3.91 per unit, a 20% drop [22] - Imported coal prices remained steady at around USD 50 per tonne, lower by 9% compared to the same period last year [10] Company Strategy and Development Direction - The company is focused on maintaining its leadership position in the day-ahead and RTM markets, leveraging robust technology and customer engagement [33][34] - The introduction of electricity derivatives and market coupling is expected to enhance market participation and volumes [18][19] - The company is actively working on diversification initiatives and adapting to regulatory changes to ensure continued growth [25][27] Management Comments on Operating Environment and Future Outlook - The management highlighted India's macroeconomic stability and growth potential, with a GDP forecast of 6.5% for FY '26 [8] - Despite lower than expected power demand due to weather conditions, the long-term outlook for power demand growth remains positive at 6% per annum [11] - The management expressed confidence in maintaining market share and customer loyalty even after market coupling implementation [37][38] Other Important Information - The company is awaiting regulatory approval for extending the Term Air market contract and has completed public comments on the Green segment petition [23] - The Ministry of Power has finalized funding mechanisms for battery energy storage solutions, indicating a shift towards renewable energy integration [12][27] Q&A Session Summary Question: What advantages does IEX have over competitors in the diamond RCM segment? - IEX has maintained a leadership position due to robust technology, customer engagement, and advisory roles with state regulatory commissions [33][34] Question: What percentage of volumes does CTC India contribute to IEX? - CTC India contributes approximately 12% of the volumes on the IEX platform [40] Question: Will competition use transaction fees to gain market share post-market coupling? - The management indicated that they will address any competitive pricing strategies as they arise, emphasizing the small impact of transaction fees on overall power procurement costs [44][45] Question: Is there any mention of MBED in the recent market coupling order? - There is no mention of MBED in the order, and the management expressed uncertainty about its future implementation [60][61] Question: What explains the sharp increase in gas volume in the quarter? - The increase in gas volume was attributed to significant demand from global marketing companies and favorable pricing conditions [116] Question: What are the key advantages needed to sustain a market share above 50%? - The management is focused on retaining current market share and is working on strategies to maintain leadership in the market [102]

Financial Data and Key Metrics Changes - Revenue for the company grew by 19.2% year-on-year, increasing from INR 154.5 crore in Q1 FY '25 to INR 184.2 crore in Q1 FY '26 [19] - FAT increased by 25.2%, rising from INR 96.4 crore in Q1 FY '25 to INR 120.7 crore in Q1 FY '26 [19] - Electricity trading volume recorded a growth of 15% year-on-year, reaching 32.4 billion units [18] Business Line Data and Key Metrics Changes - Nearly 5.3 million renewable energy certificates were traded, marking a growth of nearly 150% over the same quarter last year [20] - RTM volumes increased by 41% year-on-year, reaching nearly 13 billion units, highlighting its critical role in managing short-term requirements [20] - Green market volume rose by 51% year-on-year to 2.7 billion units, supporting the integration of clean energy sources [21] Market Data and Key Metrics Changes - India's power consumption in Q1 FY '26 was 446 billion units, down by 1.3% compared to Q1 FY '25 [8] - The average day-ahead market price was INR 4.41 per unit, down 16% year-on-year, while the real-time market price averaged INR 3.91 per unit, a 20% drop [21] - Supply liquidity in the day-ahead market increased by 45.2% year-on-year [21] Company Strategy and Development Direction - The company is focusing on maintaining its leadership position in the day-ahead and RTM markets, leveraging robust technology and customer engagement [30][32] - The introduction of electricity derivatives and market coupling is expected to deepen India's power market and enhance liquidity [16][27] - The company is actively working on regulatory updates and policy initiatives to support power market development [12][14] Management Comments on Operating Environment and Future Outlook - The management highlighted India's macroeconomic stability and growth potential, with a GDP growth forecast of 6.5% for FY '26 [6] - Despite lower than expected power demand due to early monsoons, the long-term outlook for power demand growth remains positive, projected at 6% per annum until 2032 [9] - The management expressed confidence in maintaining market share and customer loyalty even after the implementation of market coupling [34][70] Other Important Information - The company is awaiting approval from the CRC for extending the Term Air market contract from three months to eleven months [22] - The Ministry of Power has finalized two tranches of viability gap funding for battery energy storage solutions, indicating a push towards renewable energy integration [10] - The company is also involved in developing an Extended Producer Responsibility trading platform and is awaiting further directives regarding coal exchange legislation [26][27] Q&A Session Summary Question: What advantages does IEX have over competitors in the market coupling context? - IEX has maintained a leadership position due to robust technology, customer engagement, and advisory roles with regulatory commissions, resulting in over 95% market share [30][32] Question: What percentage of volumes does CTC India contribute to IEX? - CTC India contributes approximately 12% of the volumes on the IEX platform, but cannot trade on IEX due to holding more than 5% equity in a competing exchange [35] Question: Will transaction fees be a tool for competition post-market coupling? - The management indicated that transaction fees are a small component of total power procurement costs, and they will address any competitive pricing strategies as they arise [38] Question: What is the timeline for implementing market coupling? - The management expressed uncertainty about the January 2026 timeline for market coupling implementation, citing the need for common software and regulatory frameworks [40][41] Question: Is there any mention of MBED in the recent market coupling order? - There was no mention of MBED in the order, and the management could not comment on its future implementation [46] Question: What are the options available post-CRC order? - The company has several options, including seeking a review from CRC or appealing to APTEL, and is currently evaluating the order [102]

IEX Performance and Market Position - IEX's electricity volume in Q1 FY26 reached 32.4 Billion Units (BU), a 15% increase, while FY25 saw 121 BU, an 18.7% increase, and FY24 had 101.7 BU, a 12.3% increase[30] - Renewable Energy Certificates (RECs) traded on IEX in Q1 FY26 amounted to 53 Lakh, a 150% increase, and FY25 saw 178 Lakh, a 136% increase[30] - Collectives (DAM, RTM, G-DAM) constitute approximately 75% of IEX's total volumes[33] - Total Revenue for Q1 FY26 was ₹120.2 Cr, with EBITDA at ₹164.4 Cr and PAT at ₹117.1 Cr[70] - IEX is India's first carbon-neutral power exchange since FY22[73] Energy Sector Transition and Growth Drivers - India has achieved 50% share of non-fossil fuel in installed electricity generation capacity 5 years ahead of the 2030 target[17] - Thermal energy generates 72% of India's electricity, while renewables contribute 25%[14] - IEX expects significant volume growth based on business as usual, with further growth anticipated from additional levers[41] - By FY30, India's power demand is forecasted to reach approximately 2,300 BU[41] - The Ministry of Coal (MoC) aims to produce 1.3 billion tonnes of domestic coal by FY26 and 1.5 billion tonnes by FY30[58] Indian Gas Exchange (IGX) Performance - IGX has over 45 registered members and over 200 registered clients[78] - IGX yearly volumes in FY25 reached 60 Million MMBTU, while Q1 FY26 saw 24.6 Million MMBTU[81] - IGX anticipates its share in overall gas consumption to increase from the current 2% to 4-5% by 2030, reaching approximately 250 Million MMBTU, with a CAGR of approximately 36%[89]

Core Viewpoint - The market anticipates Idex (IEX) will report a year-over-year decline in earnings despite higher revenues in its upcoming earnings report for the quarter ended June 2025 [1] Earnings Expectations - Idex is expected to post quarterly earnings of $2.00 per share, reflecting a year-over-year decrease of 2.9% [3] - Revenues are projected to reach $856.7 million, representing a 6.1% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.69% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for Idex is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.25% [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10] - Idex currently holds a Zacks Rank of 2, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Idex exceeded the expected earnings of $1.64 per share by delivering $1.75, resulting in a surprise of +6.71% [13] - Over the past four quarters, Idex has consistently beaten consensus EPS estimates [14] Conclusion - While an earnings beat may influence stock movement, other factors can also play a significant role in stock performance [15] - Monitoring Earnings ESP and Zacks Rank is crucial for making informed investment decisions ahead of quarterly releases [16]

Core Insights - The article discusses the author's academic and professional background in Machine Learning, Economics, and Finance, highlighting expertise in Data Science and Machine Learning applications within the banking and finance sectors [1] - The current research focus is on Generative AI in sustainable finance, indicating a trend towards integrating advanced technologies in financial practices [1] Group 1: Academic and Professional Background - The author holds a PhD in Machine Learning with a focus on Economics and Finance, and has affiliations with prestigious business schools and research centers [1] - Professional experience includes working at Deloitte Financial Advisory, specializing in Data Science and Machine Learning applications for clients in banking, insurance, and finance [1] - The author teaches Asset Pricing and Introduction to Corporate Finance at ESADE Business School at both MSc and BSc levels [1] Group 2: Research Interests and Skills - Current research interests include Generative AI applications in sustainable finance, reflecting a growing intersection of technology and finance [1] - Proficient in programming languages such as Python, R, and SQL, which are essential for data analysis and machine learning applications in finance [1]