Core Viewpoint - IDEX Corporation is discussing its financial and operational performance for Q4 and the full year of 2024 during the earnings conference call [3][4]. Group 1: Financial Performance - The company issued a press release detailing its financial highlights for the three months and full year ending December 31, 2024 [4]. - The conference call includes presentations of certain non-GAAP financial measures and forward-looking statements [5]. Group 2: Leadership and Participants - The call features key participants including Wendy Palacios (Vice President, FP&A and Investor Relations), Eric Ashleman (CEO and President), and Abhishek Khandelwal (Senior Vice President and CFO) [3][5]. - Various analysts from firms such as Baird, Citigroup, Stifel, RBC Capital Markets, TD Cowen, Mizuho, and Melius Research are participating in the Q&A session [1].

Financial Data and Key Metrics Changes - Fourth quarter orders reached $817 million, an increase of approximately 8% on a reported basis and 5% organically [29] - Fourth quarter sales were $863 million, up 9% reported and 3% organically compared to the prior year [31] - Full year sales totaled $3.3 billion, flat overall and down 2% organically [33] - Fourth quarter net income was $123 million, resulting in GAAP diluted EPS of $1.62, while adjusted net income was $155 million with an adjusted EPS of $2.04 [38] - Free cash flow for the quarter was $157 million, a decrease of 12%, with a full year free cash flow of $603 million, down 4% versus last year [39] Business Line Data and Key Metrics Changes - Health and Science Technology (HST) segment experienced 8% organic growth in Q4, driven by blanket order activity [29] - Fire Safety and Diversified Products (FSDP) had mid-single-digit organic growth, while Flow Measurement Technologies (FMT) experienced low single-digit growth [29] - HST contracted by 7% on an organic basis for the full year, driven by life sciences and semiconductor cyclical market headwinds [34] - FSDP drove low single-digit growth, bolstered by North America Fire OEM and integrated system solution demand [34] Market Data and Key Metrics Changes - The company noted a stable business base with inventories and lead times recalibrated back to normal levels as it enters 2025 [13] - The outlook for 2025 includes organic growth of 1% to 3%, with HST expected to be the highest growth segment [45] - The company anticipates a modest lift in life sciences and optical filters, alongside a second-half recovery in semiconductor capital equipment [46] Company Strategy and Development Direction - The company is focused on integrating Mott and leveraging its filtration technologies into new innovative solutions [26] - A strategic roadmap emphasizes collaboration across business units to drive growth and earnings expansion [17] - The company continues to apply the 80/20 principle at the enterprise level to enhance productivity and focus on high-quality businesses [15] Management's Comments on Operating Environment and Future Outlook - Management expressed a climate of uncertain optimism as macroeconomic conditions stabilize, with geopolitical tensions remaining a concern [13] - The company is committed to outperforming throughout the economic cycle, leveraging differentiated technologies to address complex problems [14] - Management highlighted the importance of customer intimacy and pricing power in driving above-market growth [44] Other Important Information - The company plans to take $21 to $25 million in restructuring charges during 2025, primarily related to severance [53] - The effective tax rate for 2025 is projected to be approximately 22% to 23%, reflecting a heavier mix of improved performance in regions with higher tax rates [55] Q&A Session Summary Question: Why is Q1 expected to be soft, and what gives confidence in the remaining part of the year? - Management explained that Q1 softness is due to $40 million of project shipments in Q4 not repeating and a $0.20 headwind from share-based compensation [76][77] - Confidence in HST orders comes from strong blanket order activity tied to life sciences and semiconductor businesses [80] Question: What does platform optimization and delayering mean for growth and margins? - Management indicated that moving top-line growth while optimizing costs will enhance both gross margins and EBITDA margins over time [125][126] Question: What assumptions are made regarding potential tariff impacts? - Management stated that there are no material assumptions in the guidance regarding tariffs, emphasizing a localized sourcing model to mitigate risks [102][106] Question: What is the mix of proprietary versus competitive targets in the M&A funnel? - Management noted a focus on proprietary transactions, aiming to maintain an 80% proprietary level in future deals [110][112]

Financial Data and Key Metrics Changes - Fourth quarter orders reached $817 million, an increase of approximately 8% on a reported basis and up 5% organically [21] - Fourth quarter sales were $863 million, up 9% reported and up 3% organically compared to the prior year [23] - Fourth quarter net income was $123 million, resulting in GAAP diluted EPS of $1.62, while adjusted net income was $155 million with an adjusted EPS of $2.04, up $0.21 or 11% [28] - Full year sales totaled $3.3 billion, flat overall and down 2% organically [24] - Full year adjusted net income was $599 million, generating an EPS of $7.89, down $0.33 or 4% from last year [28] Business Line Data and Key Metrics Changes - Health and Science Technology (HST) segment experienced 8% organic growth in Q4, driven by blanket order activity [21] - Fire Safety and Diversified Products (FSDP) had mid-single digit organic growth, while Flow Control (FMT) experienced low single digit growth [21] - For the full year, HST contracted by 7% on an organic basis, driven by life sciences and semiconductor cyclical market headwinds [24] - FSDP drove low single digit growth bolstered by North America Fire OEM and Fire Integrated System Solution demand [24] Market Data and Key Metrics Changes - The U.S. market saw a noticeable uptick in industrial day rates at the beginning of 2024, but this changed with high inflation rates later in the year [10] - The semiconductor capital equipment market is expected to recover in the second half of 2025, following a challenging first half [33] - The Intelligent Water Platform is expected to grow due to continued municipal water market investments and aging infrastructure improvements [35] Company Strategy and Development Direction - The company is focused on integrating Mott and leveraging its filtration technologies into new innovative solutions [19] - IDEXX aims to build scale through thematic integration and has pruned smaller, less growth-advantage businesses [14] - The company is applying an "80-20" strategy at the enterprise level to drive power, scale, and focus through its portfolio of high-quality businesses [12] Management's Comments on Operating Environment and Future Outlook - Management expressed a climate of uncertain optimism as they enter 2025, with stable business bases and recalibrated inventories [11] - The company anticipates organic growth of 1% to 3% for 2025, with HST expected to be the highest growth segment [32] - Management highlighted the importance of pricing power, targeted growth initiatives, and customer intimacy in driving above-market growth [32] Other Important Information - The fourth quarter gross margin declined by 20 basis points to 42.5% on a reported basis, but adjusted gross margin expanded by 40 basis points [25] - Free cash flow for the quarter was $157 million, a decrease of 12%, with a conversion rate of 101% of adjusted net income [29] - The company expects to take $21 million to $25 million in restructuring charges during 2025, primarily related to severance [37] Q&A Session Summary Question: What are the reasons for the soft Q1 guidance? - Management explained that the softness in Q1 is due to the absence of $40 million in project shipments that occurred in Q4 and a $0.22 impact from share-based compensation [53][54] Question: How does the platform optimization impact growth and margins? - Management indicated that platform optimization will lead to improved gross margins and SG&A leverage, contributing positively to EBITDA margins over time [91][92] Question: What assumptions are made regarding potential tariff impacts? - Management stated that there are no material assumptions in the guidance regarding tariffs, emphasizing a localized model for sourcing and production [69][70]

Core Insights - Idex (IEX) reported revenue of $862.9 million for the quarter ended December 2024, marking a year-over-year increase of 9.4% and an EPS of $2.04 compared to $1.83 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $864.97 million by 0.24%, while the EPS exceeded the consensus estimate of $2.03 by 0.49% [1] Financial Performance Metrics - Organic net sales growth was 3%, slightly below the two-analyst average estimate of 3.7% [4] - Net Sales in Fluid & Metering Technologies (FMT) were reported at $299.30 million, lower than the average estimate of $315.03 million, reflecting a year-over-year change of +0.1% [4] - Net Sales in Fire & Safety/Diversified Products (FSDP) reached $192.90 million, surpassing the average estimate of $190.13 million, with a year-over-year increase of +7.8% [4] - Health & Science Technologies (HST) net sales were $373.20 million, exceeding the average estimate of $360.84 million, representing a +19.4% change year-over-year [4] Adjusted EBITDA Analysis - Adjusted EBITDA for Fluid & Metering Technologies (FMT) was $94.70 million, below the average estimate of $101 million [4] - Adjusted EBITDA for Corporate was reported at -$20.10 million, better than the average estimate of -$21.95 million [4] - Adjusted EBITDA for Fire & Safety/Diversified Products (FSDP) was $54.30 million, slightly above the average estimate of $53.40 million [4] - Adjusted EBITDA for Health & Science Technologies (HST) was $98.60 million, lower than the average estimate of $101.95 million [4] Stock Performance - Idex shares have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Idex reported quarterly earnings of $2.04 per share, exceeding the Zacks Consensus Estimate of $2.03 per share, and up from $1.83 per share a year ago, representing an earnings surprise of 0.49% [1] - The company posted revenues of $862.9 million for the quarter ended December 2024, which was 0.24% below the Zacks Consensus Estimate, and an increase from $788.9 million year-over-year [2] - Idex has surpassed consensus EPS estimates in all four of the last quarters, but has only topped consensus revenue estimates once in the same period [2] Group 2 - The stock has gained approximately 4.6% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [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 upcoming quarter is $1.99 on revenues of $846.77 million, and for the current fiscal year, it is $8.47 on revenues of $3.47 billion [7] Group 3 - The Zacks Industry Rank indicates that the Manufacturing - General Industrial sector is currently in the bottom 32% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - Fourth quarter net sales were $862.9 million, an increase of 9% overall and 3% organically compared to Q4 2023[3] - Full year net sales totaled $3.3 billion, flat overall and down 2% organically from 2023[3] - Reported diluted EPS for Q4 was $1.62, up 13%, while adjusted diluted EPS was $2.04, up 11%[3] - Net sales for Q4 2024 increased by 19% to $862.9 million, driven by the acquisition of Mott, while organic sales remained flat[18] - Total net sales for Q4 2024 reached $862.9 million, a 9.4% increase from $788.9 million in Q4 2023[32] - For the year ended December 31, 2024, total net sales were $3,268.8 million, slightly down from $3,273.9 million in 2023, reflecting a 0.2% decrease[32] - Reported net income for Q4 2024 was $123.2 million, up from $108.3 million in Q4 2023, while full-year net income decreased to $504.6 million from $595.6 million[39] Cash Flow and Earnings - Operating cash flow for Q4 was $173 million, down 14%, representing 140% of net income, a decrease from 185%[3] - Free cash flow for Q4 was $157 million, down 12%, yielding a conversion of 101% of adjusted net income, down from 129%[3] - Free cash flow for Q4 2024 was $157.1 million, down from $179.4 million in Q4 2023, with full-year free cash flow at $603.0 million compared to $626.8 million in 2023[39] - Adjusted EBITDA for Q4 2024 reached $227.5 million, compared to $203.6 million in Q4 2023, with a full-year adjusted EBITDA of $874.3 million, slightly down from $899.6 million[39] Segment Performance - The Health & Science Technologies segment reported net sales of $373.2 million, an increase of 19.4% compared to Q4 2023[10] - The Fire & Safety/Diversified Products segment achieved record sales of $192.9 million, up 13.9% compared to Q4 2023[10] - Organic sales growth for Fluid & Metering Technologies was 3%, while Health & Science Technologies experienced a decline of 7%[37] Guidance and Projections - Full year organic sales are projected to increase by 1% to 3% over the prior year[3] - First quarter 2025 organic sales are projected to decrease by 3% to 4% from the prior year period[3] - The company anticipates organic sales growth and earnings per share guidance for Q1 2025 and full year 2025[19] - Estimated diluted EPS for Q1 2025 is projected to be between $1.18 and $1.24, with full-year estimates ranging from $6.56 to $6.96[40] - The company anticipates a change in organic sales for 2025 to be between -4% and 3%, with net sales expected to increase by 1% to 6%[40] Balance Sheet and Assets - Total assets as of December 31, 2024, reached $6.745 billion, an increase from $5.865 billion in 2023[28] - Cash and cash equivalents at the end of 2024 were $620.8 million, up from $534.3 million at the end of 2023[28] - IDEX's goodwill increased to $3.252 billion in 2024 from $2.838 billion in 2023, reflecting recent acquisitions[28] - IDEX's total liabilities increased to $2.951 billion in 2024 from $2.324 billion in 2023, indicating higher leverage due to acquisitions[28] Profitability Metrics - The company reported a gross profit of $367.1 million for Q4 2024, compared to $336.8 million in Q4 2023[26] - Adjusted gross profit for Q4 2024 was $372.1 million, compared to $337.2 million in Q4 2023, indicating a growth of 10.3%[36] - The gross margin for Q4 2024 was 42.5%, slightly down from 42.7% in Q4 2023[36] - Estimated net income margin for Q1 2025 is expected to be between 11.2% and 11.8%, while the full-year margin is projected to be between 14.7% and 15.3%[41] Expenses and Charges - Restructuring expenses and asset impairments totaled $3.9 million for Q4 2024, compared to $2.7 million in Q4 2023[38] - The company reported a fair value inventory step-up charge of $5.0 million for Q4 2024, up from $0.4 million in Q4 2023[36] - Total depreciation and amortization expenses for the year ended December 31, 2024, were $68.5 million, compared to $57.2 million in 2023, reflecting an increase of 19.0%[32]

IDEX Corporation (IEX) is scheduled to release fourth-quarter 2024 results on Feb. 4, after market close.The Zacks Consensus Estimate for fourth-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 2.9%.The consensus estimate for revenues is pegged at $865 million, indicating an increase of 9.6% from the prior-year quarter’s figure. The c ...

Reference is made to the private placement (the “Private Placement”) completed in IDEX Biometrics ASA (the “Company”) on 17 September 2024, and to the subsequent offering completed in the Company on 29 November 2024 (the “Subsequent Offering”). The subscribers in the Private Placement and the Subsequent Offering were allocated two warrants, Warrants A and Warrants B (collectively, the “Warrants”), respectively, issued by the Company for every two Offer Shares allocated to, and paid by, them in the Private P ...

Goodbridge Capital Corp. Announces Execution of Definitive Agreement and Updates Proposed Qualifying Transaction With IDEX Metals CorpDecember 03, 2024 1:00 PM EST | Source: Goodbridge Capital Corp.Vancouver, British Columbia--(Newsfile Corp. - December 3, 2024) - Goodbridge Capital Corp. (TSXV: GODB.P) ("Goodbridge" or the "Company"), a capital pool company listed on the TSX Venture Exchange (the "Exchange"), is pleased to announce that, further to its news release dated May 28, 2024, it has ...

­­­­­Reference is made to the subsequent offering in IDEX Biometrics ASA (the “Company”) approved by the Extraordinary General Meeting on 9 October 2024, including notifications with regards to primary insiders’ subscriptions on 28 November 2024 and 2 December 2024. The Company’s Chair, Morten Opstad, subscribed to 1,000,000 shares, at NOK 0.15 per share, through his associated companies. Opstad was allocated 250,000 shares for K-Konsult AS and 750,000 shares for Marc O Polo Norge AS. After the subscription ...