IDEX(IEX) - 2024 Q4 - Annual Results

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]