Third Quarter 2025 Earnings October 29, 2025 Click Here to Edit Title Cautionary Statement Click Here to Edit Title 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 fourth quarter 2025 and full year 2025 outlook including expected sales, expected organic sales, expected earnings per share, expected adjusted earnings per share, expected revenue, esti ...

Financial Performance - Record sales of $879 million increased 10% on a reported basis and 5% organically[4] - Reported diluted EPS of $1.70 increased 8%, and adjusted diluted EPS of $2.03 increased 7%[4] - Record orders of $880 million increased 13% on a reported basis and 7% organically[4] - Full year 2025 GAAP diluted EPS outlook narrowed to $6.35 - $6.40, with adjusted diluted EPS narrowed to $7.86 - $7.91[5] - Full year 2025 organic sales growth of approximately 1% remains unchanged[5] - Net sales for Q3 2025 reached $878.7 million, a 10.1% increase from $798.2 million in Q3 2024[22] - Basic earnings per share attributable to IDEX for Q3 2025 were $1.70, compared to $1.57 in Q3 2024, reflecting an increase of 8.3%[22] - The estimated change in net sales for the full year 2025 is projected to be between 5% and 6%, with organic sales expected to grow by 1%[35] - Estimated diluted EPS attributable to IDEX for 2025 is forecasted to be between $6.35 and $6.40, while adjusted diluted EPS is expected to range from $7.86 to $7.91[36] Segment Performance - Health & Science Technologies segment net sales increased 22% to $381 million, with organic sales up 10%[8] - Fluid & Metering Technologies segment net sales increased 5% to $317.1 million, with organic sales up 4%[11] - Fire & Safety/Diversified Products segment net sales decreased 3% to $181.9 million, with organic sales down 5%[15] - Health & Science Technologies segment reported net sales of $381.0 million in Q3 2025, a significant increase of 22.5% from $311.0 million in Q3 2024[28] Cash Flow and Income - Cash flows from operating activities were $203.5 million, with operating cash flow as a percent of net income at 159%[6] - The company reported net cash flows provided by operating activities of $470.9 million for the nine months ended September 30, 2025, down from $495.5 million in the same period of 2024[26] - Free cash flow for the three months ended September 30, 2025, was $188.7 million, with a free cash flow conversion rate of 123%[34] - Reported net income attributable to IDEX for the three months ended September 30, 2025, was $127.8 million, with adjusted net income rising to $152.8 million[32] - Net income attributable to IDEX for the nine months ended September 30, 2025, was $354.9 million, compared to $381.8 million for the same period in 2024, indicating a decrease of 7.5%[22] Margins and Profitability - Gross profit for Q3 2025 was $390.6 million, up from $353.9 million in Q3 2024, reflecting a gross margin improvement[22] - Adjusted gross profit for the same period was $391.2 million, resulting in an adjusted gross margin of 44.5%[32] - The company reported a net income margin of 14.5% for the three months ended September 30, 2025[33] Assets and Liabilities - Total assets as of September 30, 2025, were $6.97 billion, an increase from $6.75 billion at the end of 2024[24] - Cash and cash equivalents decreased to $593.8 million as of September 30, 2025, down from $620.8 million at the end of 2024[24] Restructuring and Expenses - The company incurred restructuring expenses of $18.3 million for the nine months ended September 30, 2025, compared to $5.4 million in the same period of 2024[22] - Restructuring expenses and asset impairments for the nine months ended September 30, 2025, amounted to $18.3 million[33] Other Factors - The impact from foreign currency translation on net sales was 1% for the three months ended September 30, 2025[31] - $75 million utilized for share repurchases in Q3 2025, with a total of $175 million year-to-date and increased share repurchase authorization to $1 billion[4] - Operating income for the nine months ended September 30, 2025, was $515.7 million, slightly up from $511.9 million in the same period of 2024[22]

Core Insights - IDEX Corporation (IEX) is set to announce its third-quarter 2025 results on October 29, with a consensus estimate for earnings showing a 1% decrease over the past month [1][10] - The revenue consensus estimate stands at $858.4 million, reflecting a 7.5% increase year-over-year, while adjusted earnings are expected to be $1.93 per share, indicating a 1.6% rise from the previous year [2] Revenue Performance by Segment - The Health & Science Technologies (HST) segment is projected to generate revenues of $363.9 million, marking a 17% year-over-year increase, driven by strong performance in pharma and data center businesses, as well as growth in aerospace/defense markets [3] - The Fire & Safety/Diversified Products (FSDP) segment is expected to report revenues of $195.1 million, up 3.8% year-over-year, benefiting from solid momentum in the energy market and strong demand for OEM solutions [4] - Conversely, the Fluid & Metering Technologies (FMT) segment is anticipated to see revenues of $297.3 million, reflecting a 1.2% decline year-over-year, impacted by softness in agriculture, energy, and chemical markets [6] Acquisitions and Integration Costs - Recent acquisitions, including Mott Corp. and STC Material Solutions, are expected to enhance IDEX's capabilities in applied materials science, potentially boosting overall performance [5] - However, escalating costs and operating expenses related to business integration and amortization are likely to pressure the company's margins in the upcoming quarter [7] Earnings Prediction - The current model indicates a low probability of an earnings beat for IEX, with an Earnings ESP of -0.09% and a Zacks Rank of 4 (Sell) [8]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Idex (IEX) due to higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Idex is expected to report quarterly earnings of $1.93 per share, reflecting a +1.6% change year-over-year, with revenues projected at $858.37 million, up 7.5% from the previous year [3]. - The earnings report is scheduled for release on October 29, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.47% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - For Idex, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.09%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a positive reading being a strong predictor of an earnings beat [9][10]. - Idex's current Zacks Rank is 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - Idex has consistently beaten consensus EPS estimates over the last four quarters, with a notable surprise of +3.50% in the last reported quarter [13][14]. Industry Comparison - Crane (CR), another player in the Zacks Manufacturing - General Industrial industry, is expected to post earnings of $1.46 per share, indicating a +5.8% year-over-year change, with revenues expected to decline by 3.6% [18]. - Crane's consensus EPS estimate has been revised 0.3% higher, and it has a positive Earnings ESP of +4.93%, suggesting a likely earnings beat [19].

Core Insights - IDEX Corporation is an applied solutions company with a market cap of $12.3 billion, specializing in fluid and metering technologies, health and science technologies, and fire and safety products, operating across the Americas, Europe, and the Indo-Pacific [1] Financial Performance - IDEX is set to release its Q3 results on October 29, with analysts expecting an adjusted profit of $1.93 per share, a 1.6% increase from $1.90 in the same quarter last year [2] - For fiscal 2025, analysts project an adjusted EPS of $7.89, remaining flat year-over-year, while fiscal 2026 earnings are expected to grow by 8.4% to $8.55 per share [3] Stock Performance - IEX stock has declined by 21.6% over the past 52 weeks, underperforming the Industrial Select Sector SPDR Fund's 8.9% gains and the S&P 500 Index's 13.5% returns during the same period [4] - Following the release of Q2 results on July 30, where IDEX reported record sales of $865.4 million (up 7.2% year-over-year) and an adjusted EPS of $2.07, the stock dropped 11.3% in a single trading session due to disappointing full-year guidance [5] Analyst Ratings - Analysts maintain a consensus "Moderate Buy" rating for IDEX, with 13 analysts covering the stock, including six "Strong Buys," one "Moderate Buy," and six "Holds," and a mean price target of $192.64 indicating a 16.7% upside potential from current levels [6]

Core Points - IDEX Corp. is scheduled to release its third quarter 2025 results on October 29, 2025, prior to market opening [1] - An investor call is set for 8:00 a.m. CT on the same day [1]

Market Overview - Mid cap growth equities experienced modest gains in Q3, with the Russell Midcap Growth Index returning 2.8%, lagging behind the Russell Midcap Value Index at 6.2% and the Russell Midcap Index at 5.3% [3] - The U.S. Federal Reserve's rate cut in September contributed to easing monetary policy, benefiting rate-sensitive sectors and renewing interest in cyclical and innovation-led areas [3] Investor Sentiment - Investor sentiment improved due to the passage of the One Big Beautiful Bill and progress on trade agreements, reducing policy uncertainty and enabling companies to execute delayed strategic decisions [4] - Earnings estimates stabilized, particularly in technology and AI-related sectors, despite ongoing challenges in non-residential construction and discretionary segments [4] Portfolio Performance - The ClearBridge Mid Cap Growth Strategy outperformed its benchmark in Q3, driven by stock selection in IT, consumer staples, and healthcare sectors, while consumer discretionary and financials sectors slightly detracted from performance [5] Sector Contributions - In the IT sector, AppLovin (APP) and Monolithic Power Systems (MPWR) were standout performers, with AppLovin benefiting from strong earnings and optimism around its e-commerce business [6] - Consumer staples saw positive contributions from Performance Food Group (PFGC) and Casey's General Stores (CASY), both benefiting from strong operational performance [7] - The consumer discretionary sector faced challenges, particularly with Chipotle Mexican Grill (CMG) and Wingstop (WING) experiencing declines due to competitive pressures and softer spending trends [8] - Financials sector was a modest drag on performance, with Tradeweb Markets (TW) and Corpay facing challenges from macro volatility and company-specific issues [9] Portfolio Positioning - New positions were initiated in Roblox, benefiting from improved growth dynamics and advertising opportunities, and APi Group, which is well-positioned in safety and industrial services [10][11] - Exited position in Deckers Outdoor (DECK) due to increasing competitive pressures in the sneaker market [12] Outlook - Leadership within mid growth stocks remains selective, with a few companies rewarded for differentiated technology and strong pipelines, while others struggle with demand and competition [13] - Focus remains on identifying businesses with secular growth drivers across technology, healthcare, and industrials sectors [14] - Near-term market uncertainty is expected to persist, but the strategy is positioned to benefit from companies sustaining durable growth in earnings and cash flow [15] Portfolio Highlights - The ClearBridge Mid Cap Growth Strategy had positive contributions across seven of the 11 sectors, with IT and healthcare being the leading contributors [16] - Stock selection in IT, consumer staples, healthcare, and energy sectors contributed positively, while consumer discretionary and financials sectors weighed on performance [17] - Individual stock contributions included AppLovin, United Rentals (URI), and Performance Food, while detractors included Chipotle Mexican Grill and Tradeweb Markets [18]

Core Insights - The City of Madison Wastewater Collections Systems has added approximately 1,500 wastewater customers to its Metro East footprint near St. Louis [1] Company Summary - The expansion of the wastewater collection system indicates growth in the customer base, enhancing service coverage in the region [1] Industry Summary - The addition of new customers reflects ongoing developments in the wastewater management sector, which is crucial for urban infrastructure and environmental sustainability [1]

Company Overview - IDEX Corporation (IEX) is experiencing significant activity in the options market, particularly with the Oct 17, 2025 $125.00 Call option showing high implied volatility, indicating potential for a major price movement [1] Implied Volatility Insights - Implied volatility reflects market expectations for future price movements, suggesting that investors anticipate a significant change in IDEX's stock price, possibly due to an upcoming event [2] Analyst Sentiment - IDEX currently holds a Zacks Rank of 4 (Sell) within the Manufacturing - General Industrial industry, which is in the top 21% of the Zacks Industry Rank. Over the past 60 days, earnings estimates for the current quarter have decreased from $2.20 to $1.95 per share, with four analysts lowering their estimates [3] Trading Strategy Implications - The high implied volatility surrounding IDEX may indicate a developing trading opportunity. Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the stock does not move as much as anticipated [4]

Company Overview - IDEX Corporation (IEX) is an applied solutions company with a market cap of $12.1 billion, specializing in fluid and metering technologies, health and science technologies, and fire and safety products [1][2] Stock Performance - IDEX's stock has decreased by 32.4% from its 52-week high of $238.22 on November 6, 2024, and has dropped 8% over the past three months, underperforming the Nasdaq Composite's 15.8% increase during the same period [3] - Year-to-date, IDEX's stock has declined by 23.1%, and over the past 52 weeks, it has fallen by 23.5%, significantly lagging behind the Nasdaq's gains of 17.2% in 2025 and 25.6% over the past year [4] - The stock has consistently traded below its 200-day moving average since early February and mostly below its 50-day moving average since mid-December 2024, indicating bearish momentum [4] Financial Results - In Q2, IDEX reported net sales of $865.4 million, a 7.2% year-over-year increase, surpassing expectations by nearly 1%. The adjusted EPS was $2.07, exceeding consensus estimates by 3.5%. However, the company's full-year guidance did not meet market expectations, leading to an 11.3% drop in stock price following the earnings release [5] Peer Comparison - Compared to its peer AMETEK, Inc. (AME), IDEX's performance appears weaker, with AMETEK showing a 4.2% increase in 2025 and 9.1% gains over the past 52 weeks [6]