IDEX(US:IEX)2026-02-19 21:33Financial Performance - Reported net sales reached $3,457.5 million, a 6% increase overall and a 1% organic growth[147]. - Adjusted diluted EPS attributable to the company increased by 1% to $7.95, while reported diluted EPS decreased by 3% to $6.41[147]. - Operating cash flow was $680.4 million, up 2% and representing 141% of net income, an increase from 132%[147]. - Free cash flow increased by 2% to $616.8 million, equating to 103% of adjusted net income, up from 101%[147]. - Domestic sales increased by 9% to $1,760.8 million, while international sales rose by 3% to $1,696.7 million[150]. - Adjusted EBITDA for 2025 was $925.9 million, an increase from $874.3 million in 2024, reflecting a margin of 26.8%[199]. - Reported net income attributable to IDEX for 2025 was $483.2 million, down from $505.0 million in 2024, with diluted EPS of $6.41 compared to $6.64 in the previous year[198]. - Gross profit for 2025 was $1,538.8 million, with an adjusted gross profit of $1,539.4 million, resulting in a gross margin of 44.5%[197]. - Organic sales growth for 2025 was 4%, with acquisitions contributing 10% to the change in net sales[196]. Segment Performance - IDEX's Health & Science Technologies (HST) segment contributed 43% of net sales in 2025, up from 39% in 2024, while Adjusted EBITDA increased from 36% to 39%[21]. - The Fluid & Metering Technologies (FMT) segment accounted for 35% of net sales in 2025, a slight decrease from 38% in 2024, with Adjusted EBITDA dropping from 42% to 40%[21]. - The Fire & Safety/Diversified Products (FSDP) segment represented 22% of net sales in both years, with Adjusted EBITDA remaining stable at 21% in 2025 and 22% in 2024[21]. - The company anticipates continued growth in the HST segment, driven by strong demand in data center, semiconductor, and pharmaceutical markets[146]. - The FMT segment expects ongoing momentum in the Water business, although core industrial markets remain flat[146]. Corporate Strategy and Operations - IDEX's diverse business model is supported by over 50 wholly-owned subsidiaries, focusing on organic growth and strategic acquisitions[16]. - The company plans to expand its Life Sciences segment to include analytical instruments and pharmaceutical sales starting in 2025[19]. - IDEX's strategic acquisitions and integration capabilities have been key drivers of its strong financial performance[21]. - The Company plans to pursue disciplined bolt-on acquisitions while maintaining a balanced capital deployment strategy[145]. - The Company operates approximately 210 plants and office facilities globally, with about 20% owned and the remainder leased, indicating a strong operational footprint[127]. Employee Engagement and Culture - The Company maintains a focus on employee engagement and development, conducting annual surveys and implementing improvements based on feedback[57]. - The Company offers competitive pay and benefits, including performance-based compensation and a 401(k) retirement plan for U.S. employees[60][61]. - The Company is committed to fostering a strong and inclusive culture, with initiatives such as inclusive leadership training and employee resource groups[58]. - The Company has conducted pay equity analyses for U.S. employees since 2018, providing base pay adjustments for identified outliers[62]. Risk Management and Compliance - The Company emphasizes a commitment to Environmental, Health, and Safety (EH&S) policies, overseen by senior executives and local specialists[63]. - Cybersecurity risks are increasing, with potential impacts on operations and financial condition due to system interruptions or data breaches[82]. - The Company is subject to evolving data privacy laws, which may increase compliance costs and operational interruptions[83]. - The Company has experienced a rise in cyberattacks, which may adversely affect its financial condition and operational results[86]. - The Company faces risks related to environmental regulations that may increase expenses and adversely affect operating results due to compliance costs[89]. - Increased public awareness regarding environmental risks may lead to more stringent sustainability-related reporting requirements, potentially imposing substantial additional costs[90]. - The Company is subject to various legal and regulatory proceedings that could materially affect future operating results[108]. Financial Position and Capital Management - The company maintains a Credit Agreement with a revolving credit facility of $800 million, which could see increased costs if interest rates rise unexpectedly[104]. - The company's goodwill and indefinite-lived intangible assets totaled $3,505.4 million, representing 51% of total assets as of December 31, 2025[192]. - The interest coverage ratio was 13.13 to 1, and the leverage ratio was 1.96 to 1, indicating compliance with financial covenants[185]. - The company had net borrowings of $58.2 million on the Revolving Facility subsequent to December 31, 2025[179]. - The Company has authorized a total of $1.135 billion for common stock repurchases, with $924.69 million remaining under the current plans[134]. - The Company purchased 432,280 shares of its common stock during the quarter ended December 31, 2025, at an average price of $173.50 per share[135]. Market Presence and Customer Base - In 2025, the Company reported that no single customer accounted for more than 3% of net sales, indicating a broad customer base[46]. - The Company maintains a global operational presence, with facilities in the United States, Europe, and Asia, enhancing its market reach and service capabilities[28]. - The Company has a diverse international presence, with manufacturing and sales facilities in over 20 countries, including the UK, Germany, and China, allowing for greater operational stability and access to new markets[47]. - In 2025, 51% of the company's sales were derived from customers within the U.S. and 49% from international customers, indicating a balanced market presence[99]. - Approximately 34% of net sales in 2025 were recorded by subsidiaries with functional currencies other than the U.S. Dollar, exposing the company to foreign currency exchange rate fluctuations[103].