IDEX(IEX)2025-05-01 20:34Financial 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]