Investor Presentation MAY 2025 1 Cautionary Note Regarding Forward-Looking Statements 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. Such forward- looking statements include anticipated revenue growth, earnings growth and compound annual growth rate, margin expansion or improvement, anticipated future acquisition behavior, ...

Group 1 - The Company announced a share consolidation and change of ISIN, effective on 20 June 2025, as resolved by the Extraordinary General Meeting on 11 April 2025 [1][2] - The Subsequent Offering will be completed prior to the share consolidation, which has been postponed from 11 June 2025 to 20 June 2025 for technical reasons [2] - IDEX Biometrics ASA is a global leader in fingerprint biometrics, providing authentication solutions for payments, access control, and digital identity [3]

Core Insights - IDEX Corporation (IEX) is expected to benefit from strong performance in the Fire & Safety/Diversified Products (FSDP) segment, driven by increased demand for OEM and integrated solutions [1] - The company has been enhancing its business through acquisitions, with a 4% positive impact on sales in Q1 2025 from acquisitions [2] - Recent acquisitions, including Mott Corporation and STC Material Solutions, have expanded IDEX's capabilities in applied materials science and advanced material science solutions [2][3] - IDEX is committed to rewarding shareholders through dividends and share buybacks, with dividend payments totaling $52.4 million in Q1 2025, an 8% increase year over year [4] Segment Performance - The FSDP segment is experiencing solid momentum, particularly in the aerospace end market, which is beneficial for the BAND-IT business [1] - The Health & Science Technologies (HST) segment is facing weaker volumes due to softness in semiconductor, automotive, and industrial businesses [6] - The Fluid & Metering Technologies (FMT) segment is also experiencing weakness in agriculture, energy, and semiconductor businesses, compounded by challenges in the European chemicals market [6] Financial Metrics - Selling, general and administrative expenses increased by 7.3% year over year in Q1 2025, with a rise in amortization and professional services spending [9] - As a percentage of sales, selling, general and administrative expenses increased by 130 basis points to 25.7% in the same period [9] - The cost of sales recorded a 0.5% year-over-year increase in Q1 2025 [9]

Core Insights - IDEX Biometrics ASA announced a new strategy aimed at fundamentally shifting how the company markets its unique technology and products [1] - The company appointed a new CEO, Anders Storbråten, to lead this strategic change [1] - IDEX secured a new debt facility of NOK 30 million, which has been converted to shares, and renegotiated its Heights convertible bond [1] Financial Performance - For Q1 2025, IDEX Biometrics reported revenues of $0.1 million [2] - The ordinary operating expenses for the quarter amounted to $2.4 million [3] - The net loss for the quarter was $4.1 million, with a cash balance of $1.1 million as of March 31, 2025 [3] Operational Developments - The company is implementing a range of operational improvement initiatives, targeting a quarterly run rate of operating expenses between $1.5 million and $1.7 million by the end of Q3 2025 [1] - IDEX received a production order valued at approximately $50,000 from Beautiful Card Corporation in Japan [2] - The company also secured an order from DigAware for biometric sensor solutions for access cards and received an order for 10,000 VISA biometric cards in the Middle East & Africa region [2]

Financial Performance - Net sales for Q1 2025 were $814.3 million, a 1.0% increase from $800.5 million in Q1 2024[15] - Gross profit for Q1 2025 was $368.9 million, up from $357.4 million in Q1 2024, reflecting a gross margin improvement[15] - Operating income decreased to $142.0 million in Q1 2025 from $161.2 million in Q1 2024, a decline of 11.1%[15] - Net income attributable to IDEX for Q1 2025 was $95.5 million, down 21.4% from $121.4 million in Q1 2024[15] - Basic earnings per share for Q1 2025 were $1.26, compared to $1.60 in Q1 2024, a decrease of 21.3%[15] - The company reported a comprehensive income of $149.2 million for Q1 2025, significantly higher than $57.0 million in Q1 2024[16] - The Adjusted EBITDA for the total segments was $236.9 million for the three months ended March 31, 2025, slightly down from $238.2 million in the same period of 2024[39] - Diluted EPS for Q1 2025 was $1.26, down 21% from $1.60 in Q1 2024, while adjusted diluted EPS decreased by 7% to $1.75[95][96] - Reported net income for Q1 2025 was $95.4 million, down from $121.3 million in Q1 2024, representing a decrease of 21.5%[140] - Net income margin decreased to 11.7% in Q1 2025 from 15.2% in Q1 2024[140] - Adjusted EBITDA margin also saw a decline to 25.5% in Q1 2025 from 26.0% in Q1 2024[140] Assets and Liabilities - Total assets increased to $6,795.1 million as of March 31, 2025, compared to $6,745.3 million at December 31, 2024[19] - Cash and cash equivalents decreased to $594.1 million from $620.8 million at the end of 2024[19] - Total borrowings as of March 31, 2025, amounted to $1,950.4 million, a decrease from $1,971.3 million as of December 31, 2024[55] - The fair value of total borrowings as of March 31, 2025, was $1,846.5 million, compared to a carrying amount of $1,949.2 million[62] - The company had $249.0 million outstanding under its Revolving Facility, with a net available borrowing capacity of approximately $548.0 million[55] Segment Performance - The Fluid & Metering Technologies segment generated net sales of $290.5 million in Q1 2025, down from $313.7 million in Q1 2024, reflecting a decrease of 7.1%[37] - The Health & Science Technologies segment reported net sales of $341.5 million in Q1 2025, an increase from $310.1 million in Q1 2024, marking a growth of 10.5%[37] - The Fire & Safety/Diversified Products segment achieved a 4% increase in net sales to $184.3 million, driven by targeted growth initiatives[111][113] Cash Flow and Investments - Net cash flows provided by operating activities for Q1 2025 were $105.7 million, down from $156.6 million in Q1 2024[23] - Cash flows from operating activities decreased by $50.9 million to $105.7 million for the three months ended March 31, 2025, mainly due to increased investments in working capital[120] - Free cash flow for the three months ended March 31, 2025, was $91.4 million, down from $136.6 million in the prior year[124] Shareholder Returns - Total dividend payments to common shareholders increased to $52.4 million in Q1 2025, compared to $48.5 million in Q1 2024[128] - The company repurchased 0.3 million shares at a cost of $50.0 million during the three months ended March 31, 2025[127] - The company repurchased 0.3 million shares at a cost of $50.4 million during Q1 2025, leaving $489.7 million remaining in share repurchase authorization[72] Expenses and Costs - Selling, general and administrative expenses increased by 7% to $209.4 million, primarily due to acquisition-related costs[97][100] - Restructuring expenses surged to $17.5 million, compared to $1.1 million in the same period last year, reflecting higher severance costs[97][101] - Acquisition-related costs incurred during the three months ended March 31, 2025, were $0.7 million, compared to $1.3 million in the same period of 2024[34] Tax and Legal Matters - The effective tax rate for the three months ended March 31, 2025, was 23.4%, compared to 21.5% for the same period in 2024[89] - The company is involved in ongoing legal proceedings related to asbestos claims, but does not expect these to have a material adverse effect on its financial position[148] Market and Economic Conditions - The company expects to mitigate potential unfavorable impacts from tariffs and global trade policy changes through price increases and cost reductions[94] - Organic sales for the three months ended March 31, 2025, decreased by 1% compared to the prior year, primarily due to lower volumes in the semiconductor, automotive, and industrial sectors[115] Miscellaneous - The company maintained an interest coverage ratio of 14.08 to 1 and a leverage ratio of 2.22 to 1 as of March 31, 2025, in compliance with financial covenants[129] - There were no material changes in market risks or risk factors compared to the previous fiscal year[141][149] - The company's disclosure controls and procedures were deemed effective as of March 31, 2025[143]

Core Insights - The article discusses the author's background in analytics and accounting, highlighting over 10 years of experience in the investment sector, progressing from an analyst to a management role [1]. Group 1 - The author holds a master's degree in Analytics from Northwestern University and a bachelor's degree in Accounting [1]. - The author has a personal interest in dividend investing and aims to share insights with the Seeking Alpha community [1].

Core Viewpoint - IDEX Corporation reported first-quarter 2025 adjusted earnings of $1.75 per share, exceeding the Zacks Consensus Estimate of $1.64, but down 7% from $1.88 per share in the prior year [1]. Revenue Details - IDEX's net sales reached $814.3 million, surpassing the Zacks Consensus Estimate of $811 million, reflecting a 2% year-over-year increase. Organic sales decreased by 1%, while acquisitions/divestitures contributed positively by 4%, and foreign currency translation negatively impacted sales by 1% [1]. - The Fluid & Metering Technologies segment reported net sales of $290.5 million, down 7% year over year, with organic sales decreasing by 4% [2]. - The Health & Science Technologies segment achieved net sales of $341.5 million, up 10% year over year, despite a 1% decline in organic sales [3]. - The Fire & Safety/Diversified Products segment's net sales totaled $184.3 million, increasing by 4% year over year, with organic sales rising by 5% [4]. Margin Profile - IDEX's cost of sales increased by 0.5% year over year to $445.4 million, while gross profit rose by 3.2% to $368.9 million, resulting in a gross margin of 45.3%, up from 44.6% in the previous year [5]. - Operating income fell by 11.9% year over year to $142.0 million, with an operating margin of 17.4%, down 270 basis points [6]. Balance Sheet and Cash Flow - At the end of the first quarter, IDEX had cash and cash equivalents of $594.1 million, down from $620.8 million at the end of the previous quarter. Long-term borrowings decreased to $1.84 billion from $1.9 billion [7]. - The company generated net cash of $105.7 million from operating activities, a decrease of 32.5% year over year. Free cash flow was $91.4 million, down 33.1% year over year, while capital expenditures were $14.3 million [8]. Outlook - For the second quarter, IDEX anticipates adjusted earnings in the range of $1.95 - $2.05 per share, with organic sales expected to increase by 0-2% year over year [10]. - For the full year 2025, the company reaffirmed its guidance, projecting adjusted earnings between $8.10-$8.45 per share, an increase from $7.89 per share in 2024, with organic sales expected to rise by 1-3% [11].

Financial Performance - First quarter sales increased by 2% year-over-year, from $800.5 million to $814.3 million[18, 80] - Organic sales decreased by 1%[19] - Adjusted EBITDA margin decreased by 50 bps, from 26% to 25.5%[18] - Adjusted EPS decreased by 7%, from $1.88 to $1.75[18] - Free cash flow decreased by 33%, from $136.6 million to $91.4 million[18, 82] Segment Results - Health & Science Technologies (HST) sales increased by 10%, with organic sales down by 1%[27] - Fluid & Metering Technologies (FMT) sales decreased by 7%, with organic sales down by 4%[33] - Fire & Safety/Diversified Products (FSDP) sales increased by 4%, with organic sales up by 5%[42] Guidance - The company expects organic revenue to increase by 1% to 3% for the full year 2025[49] - The company expects adjusted EBITDA to be 27.5% to 28.0% for the full year 2025[49] - The company expects adjusted EPS to be $8.10 to $8.45 for the full year 2025[49] Tariff Impact - The total annualized tariff impact is estimated to be approximately $100 million[54]

Group 1 - Idex reported quarterly earnings of $1.75 per share, exceeding the Zacks Consensus Estimate of $1.64 per share, but down from $1.88 per share a year ago, representing an earnings surprise of 6.71% [1] - The company achieved revenues of $814.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.36% and increasing from $800.5 million year-over-year [2] - Idex has outperformed consensus EPS estimates in all four quarters over the past year and has topped revenue estimates twice during the same period [2] Group 2 - The stock has underperformed the market, losing approximately 16.9% since the beginning of the year compared to the S&P 500's decline of 5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the next quarter is $2.08 on revenues of $847.07 million, and for the current fiscal year, it is $8.03 on revenues of $3.38 billion [7] Group 3 - The Zacks Industry Rank indicates that the Manufacturing - General Industrial sector is in the bottom 42% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - The correlation between near-term stock movements and earnings estimate revisions is strong, and investors can track these revisions or use tools like the Zacks Rank for guidance [5][6]

IDEX (IEX) Q1 2025 Earnings Call May 01, 2025 09:00 AM ET Speaker0 Please note this conference is being recorded. I will now turn the conference over to your host, Jim Gianacoros. Thank you. You may begin. Speaker1 Thank you. Good morning, everyone, and welcome to IDEXX's first quarter twenty twenty five earnings conference call. We released our first quarter financial results earlier this morning, and you can find both our press release and earnings call slide presentation in the Investor Relations section ...