Group 1: Share Repurchase Program - IDEX Corporation has expanded its share repurchase program, increasing total authorization to $1 billion, including $440 million remaining from the previous plan [1][8] - In the first half of 2025, IDEX repurchased shares worth $100 million and paid dividends totaling $105.9 million, reflecting a year-over-year increase of 5.2% [2][8] Group 2: Financial Expectations - For 2025, IDEX anticipates free cash flow exceeding 100% of adjusted net income, with at least 70% of this free cash flow allocated for dividends and share buybacks [3][8] - The board of directors has approved a quarterly cash dividend of 71 cents per share, payable on October 24, 2025, to shareholders of record as of October 10, 2025 [3] Group 3: Market Performance and Challenges - IDEX has a market capitalization of $12.2 billion and currently holds a Zacks Rank of 4 (Sell), facing challenges in its Fluid & Metering Technologies unit due to weaknesses in agriculture, energy, water, and semiconductor sectors [4] - The company's shares have decreased by 11.8% over the past six months, contrasting with a 9% growth in the industry [5]

Core Viewpoint - IDEX Corp. has announced a share purchase authorization that increases its total repurchase capacity to $1 billion [1] Group 1 - The new share repurchase authorization reflects the company's commitment to returning value to shareholders [1] - The total repurchase capacity now stands at $1 billion, indicating a significant financial strategy to enhance shareholder value [1]

Core Point - Illinois American Water is investing in the improvement of water and wastewater systems in the Village of Hardin, with a total investment of $2 million since June 2022 [1] Investment Details - The investment of $2 million has been made since June 2022, indicating a commitment to enhancing local infrastructure [1]

Core Viewpoint - IDEX Corporation has experienced a significant decline from approximately $244 to $165 since April 2024, indicating a potential deeper issue as it may be entering the descent leg of its Himalayan Formation, with a target range of $110–115 [1][8]. Summary by Sections IDEX and the Cakra Formation - IDEX's stock has followed the Adhishthana Principles, entering a Cakra formation in Phase 4 back in 2002, which lasted over 5,300 days [2]. - The true inflection point occurs in Phase 9, leading to a decisive breakout that initiates the Himalayan Formation, a three-part sequence [2]. Ascent and Peak - In Phase 9, IDEX saw a significant surge of nearly 61%, reaching around $246, marking the culmination of the Himalayan ascent [3]. - The peak formation is expected to occur within the 18th or 23rd interval, and if not achieved, it is anticipated to happen in subsequent phases [3]. Decline - Following the peak, IDEX has sharply declined, consistent with the initiation of the descent leg of the Himalayan Formation [7]. - The descent leg typically targets the breakout origin of the Cakra, which for IDEX is near $115, indicating a potential downside risk [8]. Investor Outlook - The structural peak for IDEX appears firmly established, suggesting that the descent leg may continue until the stock revisits its breakout origin [9]. - Investors are advised to wait for signs of stabilization closer to the $115 region before initiating positions, while existing holders should reassess their exposure based on this cyclical outlook [11].

Group 1 - IDEX Corporation (NYSE:IEX) is considered an undervalued stock with a strong competitive advantage, making it a recommended buy [1][2] - The company has experienced significant growth, with a diversified business model that produces essential industrial components, allowing it to maintain cash flow even during market volatility [2][3] - IDEX has a robust M&A strategy that enhances its operational capabilities by integrating new skills and knowledge [3][4] Group 2 - IDEX operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP), providing a range of applied solutions [4] - The company has seen a 69.2% increase in holdings by Metzler seel. Sohn & Co. AG, indicating strong institutional interest [1]

Core Viewpoint - IDEX's second-quarter 2025 earnings exceeded estimates, with adjusted earnings of $2.07 per share, surpassing the Zacks Consensus Estimate of $2.00, while net sales reached $865.4 million, a 7% year-over-year increase [2][3]. Financial Performance - Adjusted earnings for Q2 2025 were $2.07 per share, slightly flat year-over-year, with management projecting adjusted earnings between $1.95 and $2.05 for the upcoming quarter [2]. - Net sales of $865.4 million exceeded the Zacks Consensus Estimate of $857 million, with a 7% year-over-year increase, driven by a 5% contribution from acquisitions and a 1% increase from organic sales [3]. - The Fluid & Metering Technologies segment reported net sales of $310.9 million, down 3% year-over-year, while the Health & Science Technologies segment saw a 20% increase to $365.3 million, and the Fire & Safety/Diversified Products segment increased by 3% to $191.5 million [3][4][5]. Margin and Cost Analysis - Cost of sales rose by 7.4% year-over-year to $473.2 million, with adjusted gross profit increasing by 6.9% to $392.2 million, resulting in an adjusted gross margin of 45.3% [6]. - Selling, general, and administrative expenses increased by 11.4% to $203.6 million, while adjusted EBITDA rose by 5.7% to $237.2 million, leading to an adjusted EBITDA margin of 27.4% [6][7]. Balance Sheet and Cash Flow - At the end of Q2 2025, cash and cash equivalents were $568.2 million, down from $620.8 million at the end of Q4 2024, while long-term borrowings decreased to $1.85 billion [8]. - In the first half of 2025, IDEX generated net cash of $267.4 million from operating activities, a 7.9% decline year-over-year, with free cash flow at $238.3 million, down 6.3% [9]. Dividend and Future Outlook - IDEX paid out dividends totaling $105.9 million in the first half of 2025, reflecting a 5.2% increase year-over-year [10]. - For Q3 2025, IDEX anticipates adjusted earnings between $1.90 and $1.95 per share, with organic sales expected to grow by 2-3% [11]. For the full year, adjusted earnings are projected to be in the range of $7.85 to $7.95 per share, indicating a slight increase from 2024 [12]. Estimate Revisions and Market Position - Recent estimates for IDEX have shown a downward trend, with a consensus estimate shift of -11.19% [13]. The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the near term [15]. - IDEX operates within the Zacks Manufacturing - General Industrial industry, where competitor Graco Inc. reported a 3.4% year-over-year revenue increase, highlighting a mixed performance within the sector [16].

Core Insights - IDEX Corporation (IEX) has underperformed in operational performance, particularly in the Fluid & Metering Technologies (FMT) segment, leading to a Zacks Rank of 4 (Sell) [1] - The stock has declined by 18.3% over the past year, contrasting with the industry's growth of 9.4% [1] Business Weakness - The FMT segment is experiencing softness, particularly in agriculture, energy, water, and semiconductor markets, with organic revenues decreasing by 2% year over year in Q2 2025 [4] - Weakness in the European chemicals market is negatively impacting the chemical businesses within the FMT segment [4] Rising Expenses - Selling, general and administrative expenses increased by 11.4% year over year in Q2 2025, with amortization and professional services spending contributing to this rise [5] - As a percentage of sales, these expenses rose by 90 basis points to 23.5% in the same period [5] - The cost of sales also saw a year-over-year increase of 7.4% in Q2 2025 [5] Forex Woes - IDEX's international operations expose it to risks from adverse currency fluctuations, particularly due to a strengthening U.S. dollar, which may pressure profit margins abroad [6][8]

Group 1 - The articles emphasize that they do not provide or publish investment advice and are opinion pieces only [1][3][4] - The authors express their personal opinions, which may change at any time without notice [1][2][3] - There is a clear statement that past performance is not indicative of future results, and no recommendations are made regarding investment suitability [4] Group 2 - The articles clarify that the authors have no current stock, option, or derivative positions in the companies mentioned and no plans to initiate such positions in the near future [2][4] - The content is produced by third-party authors, including both professional and individual investors, who may not be licensed or certified [4]

Core Insights - IDEX reported Q2 2025 adjusted EPS of $2.07, exceeding consensus estimates of $1.995439, with GAAP revenue reaching a record $865.4 million, a 7% increase year-over-year [1][2] - The company experienced margin compression and revised its full-year guidance downward due to softening demand in certain segments and increased macroeconomic uncertainty [1][14] Financial Performance - Adjusted EBITDA for Q2 2025 was $237 million, up 5.8% from $224 million in Q2 2024 [2] - Free cash flow increased by 24.8% to $146.9 million from $117.7 million in Q2 2024, with a free cash flow conversion rate of 94% [2][10] - Net income (GAAP) decreased by 6.9% to $131.6 million compared to $141.3 million in Q2 2024 [2] Segment Performance - The Health & Science Technologies (HST) segment was the primary growth driver, with GAAP net sales of $365.3 million, a 20% increase year-over-year, largely due to the integration of Mott Corporation [5] - The Fluid & Metering Technologies (FMT) segment saw a 3% decline in GAAP net sales to $310.9 million, with organic sales down 2%, impacted by lower volumes in key end-markets [6] - Fire & Safety/Diversified Products segment grew net sales by 3% to $191.5 million, benefiting from North American OEM demand [7] Operational Insights - IDEX's gross margin (GAAP) was 45.3%, nearly flat year-over-year, while the adjusted EBITDA margin decreased by 40 basis points to 27.4% [8] - The company highlighted margin pressures in the HST segment due to acquisition dilution and unfavorable product mix, while FMT and FSDP segments showed margin improvements [8][9] Strategic Developments - IDEX maintained a strong balance sheet with $568.2 million in cash and reduced long-term debt after repaying $100 million in senior notes [12] - The company completed the acquisition of Micro-LAM for $90 million, enhancing capabilities in HST's Optics Technologies [10] Future Outlook - Revised full-year 2025 guidance now projects adjusted EPS of $7.85 to $7.95, down from $8.10 to $8.45, with organic sales growth forecast trimmed to approximately 1% [14] - For Q3 2025, IDEX expects adjusted diluted EPS between $1.90 and $1.95, with 2% to 3% organic sales growth [14] - Key watchpoints include order trends in short-cycle businesses, integration of recent acquisitions, and ongoing margin pressures [15]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements for H1 2025 show increased net sales but decreased net income and operating cash flow, with asset growth [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 and H1 2025 income statements show net sales growth but a decline in net income attributable to IDEX Q2 2025 vs Q2 2024 Income Statement Highlights (in millions USD) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $865.4 | $807.2 | +7.2% | | Gross profit | $392.2 | $366.8 | +6.9% | | Operating income | $187.9 | $182.7 | +2.8% | | Net income attributable to IDEX | $131.6 | $141.3 | -6.9% | | Diluted EPS | $1.74 | $1.86 | -6.5% | H1 2025 vs H1 2024 Income Statement Highlights (in millions USD) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $1,679.7 | $1,607.7 | +4.5% | | Gross profit | $761.1 | $724.2 | +5.1% | | Operating income | $329.9 | $343.9 | -4.1% | | Net income attributable to IDEX | $227.1 | $262.7 | -13.5% | | Diluted EPS | $3.00 | $3.46 | -13.3% | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets show total assets increased to **$6.88 billion**, while total liabilities decreased, and shareholders' equity grew Balance Sheet Summary (in millions USD) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $568.2 | $620.8 | | Inventories – net | $487.8 | $429.7 | | Goodwill | $3,368.6 | $3,251.7 | | Total assets | $6,876.1 | $6,745.3 | | **Liabilities & Equity** | | | | 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=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 cash flow from operations decreased, while cash used in investing and financing activities significantly increased Six-Month Cash Flow Summary (in millions USD) | Cash Flow Activity | H1 2025 | H1 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 | - The decrease in operating cash flow was primarily driven by a **$45.6 million increase in inventories**, compared to a $19.8 million increase in the prior year period[22](index=22&type=chunk) - Financing activities in H1 2025 included **$100.0 million for common stock repurchases** and **$100.0 million for payment of long-term borrowings**, activities not present or smaller in H1 2024[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, recent acquisitions, segment performance, restructuring expenses, and share repurchase activities [Note 2. Acquisitions and Divestitures](index=9&type=section&id=Note%202.%20Acquisitions%20and%20Divestitures) Details on the July 2025 Micro-LAM acquisition, the 2024 Mott acquisition, and the 2024 Alfa Valvole divestiture - On July 29, 2025, the Company acquired Micro-LAM, Inc. for **$90.0 million cash**, plus a potential earnout of up to **$12.0 million**, to be part of the Health & Science Technologies segment[30](index=30&type=chunk) - The acquisition of Mott Corporation in September 2024 for **$982.0 million** resulted in the recognition of **$488.2 million in goodwill** and **$412.8 million in intangible assets**[31](index=31&type=chunk)[32](index=32&type=chunk) - The company completed the sale of Alfa Valvole in June 2024 for proceeds of **$45.5 million**, recognizing a gain of **$4.6 million**[37](index=37&type=chunk) [Note 3. Business Segments](index=11&type=section&id=Note%203.%20Business%20Segments) Q2 2025 segment performance shows sales growth in HST and FSDP, a decline in FMT, and varied Adjusted EBITDA changes Segment Net Sales (Q2 2025 vs Q2 2024, in millions USD) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Health & Science Technologies (HST) | $363.9 | $303.0 | | Fluid & Metering Technologies (FMT) | $310.5 | $318.9 | | Fire & Safety/Diversified Products (FSDP) | $191.0 | $185.3 | Segment Adjusted EBITDA (Q2 2025 vs Q2 2024, in millions USD) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Health & Science Technologies (HST) | $95.0 | $84.2 | | Fluid & Metering Technologies (FMT) | $108.7 | $107.7 | | Fire & Safety/Diversified Products (FSDP) | $56.4 | $53.8 | [Note 8. Borrowings](index=19&type=section&id=Note%208.%20Borrowings) Total borrowings decreased to **$1.86 billion** due to debt repayment, with **$540.6 million** available under the revolving facility - Total borrowings decreased from **$1,971.3 million** at Dec 31, 2024 to **$1,857.9 million** at June 30, 2025[62](index=62&type=chunk) - The **$100.0 million 3.37% Senior Notes** were repaid upon maturity in June 2025 using cash on hand and a temporary draw on the Revolving Facility[62](index=62&type=chunk) - At June 30, 2025, the company had **$540.6 million of available borrowing capacity** under its Revolving Facility and was in compliance with all debt covenants[62](index=62&type=chunk) [Note 10. Restructuring Expenses and Asset Impairments](index=21&type=section&id=Note%2010.%20Restructuring%20Expenses%20and%20Asset%20Impairments) H1 2025 restructuring actions resulted in **$18.2 million** in pre-tax charges, primarily for severance, with more expected H1 2025 Restructuring Expenses by Segment (in millions USD) | Segment | Severance Costs | Total Charges | | :--- | :--- | :--- | | Health & Science Technologies | $11.4 | $12.1 | | Fluid & Metering Technologies | $4.2 | $4.2 | | Fire & Safety/Diversified Products | $1.6 | $1.6 | | Corporate/Other | $0.3 | $0.3 | | **Total** | **$17.5** | **$18.2** | - The 2025 restructuring initiative is designed to connect scalable groups of businesses, self-fund growth resources, improve agility, and position the company closer to customers[72](index=72&type=chunk) - An additional **$3 million to $7 million** in restructuring charges, primarily for severance, is expected in the remainder of 2025[73](index=73&type=chunk) [Note 12. Share Repurchases](index=23&type=section&id=Note%2012.%20Share%20Repurchases) In H1 2025, the company repurchased **0.5 million shares** for **$100.9 million**, with **$439.7 million** remaining for future repurchases - In H1 2025, the company repurchased **0.5 million shares** for **$100.9 million** (including taxes)[80](index=80&type=chunk) - As of June 30, 2025, the remaining share repurchase authorization was **$439.7 million**[80](index=80&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 performance, highlighting sales growth from acquisitions, declining EPS, and changes in cash flow and liquidity [Overview](index=30&type=section&id=Overview) Q2 2025 saw record net sales and organic growth, but diluted EPS declined due to acquisition-related costs amid market uncertainty - Q2 2025 delivered strong operating performance despite persistent macroeconomic uncertainty[104](index=104&type=chunk) - Customer ordering patterns showed caution, with delays in larger commitments due to market uncertainty[105](index=105&type=chunk) Q2 2025 Financial Highlights | Metric | Value | Change vs Q2 2024 | | :--- | :--- | :--- | | Net Sales | $865.4M | +7% | | Organic Sales | - | +1% | | Reported Diluted EPS | $1.74 | -6% | | Adjusted Diluted EPS | $2.07 | Flat | [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q2 2025 net sales increased due to acquisitions, but higher SG&A and interest expenses led to a decline in net income - Net sales for Q2 2025 increased **7% YoY**, primarily due to contributions from the Mott acquisition, while organic sales increased **1%**[109](index=109&type=chunk) - SG&A expenses for H1 2025 increased by **$33.5 million** from acquisitions (net of divestitures), including amortization[111](index=111&type=chunk) - Net interest expense for Q2 2025 increased **93% to $15.6 million** due to higher debt outstanding used to finance the Mott acquisition[115](index=115&type=chunk) - The effective tax rate for Q2 2025 rose to **22.9%** from 21.2% in Q2 2024, primarily due to a less favorable impact from discrete tax items compared to the prior year[116](index=116&type=chunk) [Results of Reportable Business Segments](index=33&type=section&id=Results%20of%20Reportable%20Business%20Segments) Q2 2025 segment results show HST sales growth, FMT sales decline, FSDP sales growth, and varied Adjusted EBITDA margins - **HST Segment:** Q2 organic sales grew **4%**, driven by price, growth initiatives, and aerospace/defense volumes, though offset by weakness in semiconductor and industrial businesses; Adjusted EBITDA margin fell to **26.0%** due to the Mott acquisition and unfavorable mix[121](index=121&type=chunk) - **FMT Segment:** Q2 organic sales fell **2%** due to lower volumes in chemical, water, energy, and agriculture, partially offset by price; Adjusted EBITDA margin improved to **35.0%** from 33.7% due to positive price/cost and productivity[123](index=123&type=chunk) - **FSDP Segment:** Q2 organic sales grew **2%**, driven by strong North America Fire OEM demand, partially offset by timing of Dispensing projects; Adjusted EBITDA margin increased to **29.4%** from 29.0% due to positive price/cost[126](index=126&type=chunk)[127](index=127&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$568.2 million** cash, despite decreased operating cash flow due to inventory increases Key Liquidity Metrics (June 30, 2025, in millions USD) | Metric | Value | | :--- | :--- | | Cash and cash equivalents | $568.2 | | Revolving Facility availability | $540.6 | | Working capital | $1,086.7 | - Operating working capital increased by **$61.9 million** since year-end 2024, primarily driven by a **$58.1 million increase in inventories** to support planned production[131](index=131&type=chunk) - Free cash flow for H1 2025 was **$238.3 million**, down from $254.3 million in H1 2024[137](index=137&type=chunk) - The company was in compliance with all debt covenants as of June 30, 2025, with a leverage ratio of **2.08 to 1** (maximum 3.50 to 1)[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risks were reported since the last annual report - There have been no material changes with respect to market risks since the last annual report[155](index=155&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[157](index=157&type=chunk) - No material changes were made to the company's internal control over financial reporting during the second quarter of 2025[158](index=158&type=chunk) [Part II. Other Information](index=45&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including asbestos-related lawsuits, not expected to have a material adverse effect - The company and its subsidiaries are defendants in numerous asbestos-related personal injury lawsuits[162](index=162&type=chunk) - The majority of settlement and legal costs for asbestos claims have been covered by insurance, and the company does not currently expect a material adverse effect from these proceedings[162](index=162&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last annual report - No material changes to risk factors were reported since the last annual report[163](index=163&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **268,586 shares** for **$186.16 per share**, with **$439.7 million** remaining for future repurchases Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | — | $— | | May 2025 | 268,586 | $186.16 | | June 2025 | — | $— | | **Total** | **268,586** | **$186.16** | - The approximate dollar value that may yet be purchased under the plans is **$439.7 million** as of the end of the quarter[164](index=164&type=chunk) [Other Information](index=45&type=section&id=Item%205.%20Other%20Information) The Board adopted amended bylaws effective July 28, 2025, and no Rule 10b5-1 trading plans were adopted or terminated - The company's Board adopted amended and restated bylaws effective July 28, 2025[165](index=165&type=chunk) - Key amendments enhance procedures for stockholder nominations and proposals and align with developments in Delaware law[168](index=168&type=chunk) - No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter ended June 30, 2025[167](index=167&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including bylaws, CEO/CFO certifications, and iXBRL financial data - Filed exhibits include Amended and Restated Bylaws (3.1), CEO/CFO Certifications (31.1, 31.2, 32.1, 32.2), and iXBRL data files (101, 104)[169](index=169&type=chunk)