IDEX Q4 Earnings Surpass Estimates, Sales Increase Year Over Year

Core Insights - IDEX Corporation's fourth-quarter 2024 adjusted earnings were $2.04 per share, exceeding the Zacks Consensus Estimate of$ 2.03, marking an 11% increase from $1.83 per share in the same quarter last year [1] - For the full year, adjusted earnings were reported at$ 7.89 per share, reflecting a 4% decline year over year [1] Revenue Details - IDEX's net sales for the fourth quarter were $863 million, slightly below the Zacks Consensus Estimate of$ 865 million, but up 9% year over year [2] - Organic sales increased by 3% year over year, while acquisitions/divestitures contributed positively to sales by 6% [2] - For the full year 2024, net revenues were reported at $3.3 billion, remaining flat compared to the previous year [2] - The Fluid & Metering Technologies segment reported net sales of$ 299.3 million, flat year over year, with organic sales up 3% [2] - The Health & Science Technologies segment saw net sales of $373.2 million, a 19% increase year over year, while organic sales remained flat [3] - The Fire & Safety/Diversified Products segment reported net sales of$ 192.9 million, an 8% increase year over year, with organic sales also up 8% [3] Margin Profile - IDEX's cost of sales increased by 9.7% year over year to $495.8 million, with gross profit rising 9% to$ 367.1 million [4] - The gross margin was reported at 42.5%, slightly down from 42.7% in the previous year [4] - Selling, general and administrative expenses rose by 10.3% year over year to $197.9 million [4] - Adjusted EBITDA increased by 11.7% year over year to$ 227.5 million, with an adjusted EBITDA margin of 26.4%, up 60 basis points [4] - Operating income was $165.3 million, a 3% increase year over year, with an operating margin of 19.2%, down 110 basis points [5] Balance Sheet and Cash Flow - At the end of the fourth quarter, IDEX had cash and cash equivalents of$ 620.8 million, up from $534.3 million a year earlier [6] - Long-term borrowings increased to$ 1.9 billion from $1.33 billion at the end of the previous year [6] - In 2024, IDEX generated net cash from operating activities of$ 668.1 million, down 6.8% year over year [7] - Capital expenditures were reported at $65.1 million, a decrease from$ 89.9 million in 2024 [7] - Free cash flow was $603 million, down 3.8% year over year, while dividends paid totaled$ 205.3 million, up 7.7% year over year [7] Outlook - For the first quarter of 2025, IDEX anticipates adjusted earnings in the range of $1.18-$ 1.24 per share, with organic sales expected to decrease by 3-4% [9] - For the full year 2025, adjusted earnings are projected to be between $8.10-$ 8.45 per share, indicating an increase from $7.89 per share in 2024 [10] - Organic sales for 2025 are expected to grow in the range of 1-3% [10]