IDEX (NYSE:IEX) Q3 2025 Earnings Call October 29, 2025 09:00 AM ET Speaker1Greetings and welcome to the third quarter.Speaker02025 IDEX Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.Speaker1If anyone should require operating assistance, please.Speaker0Press Star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jim Gi ...

Financial Data and Key Metrics Changes - Revenue for the second quarter was $6.8 billion, representing a 4% year-over-year growth [5][12] - Operating margin was 6%, maintaining this level for four consecutive quarters, with adjusted EPS of $0.79, up 23% year-over-year [6][12] - Gross profit totaled $632 million, with a gross margin improvement to 9.3%, up 80 basis points [12] Business Line Data and Key Metrics Changes - In the Reliability Solutions segment, revenue was $3 billion, up 3% year-over-year, driven by strong growth in power and moderate growth in health solutions [12] - Agility Solutions revenue totaled $3.8 billion, an increase of 4% year-over-year, primarily due to robust cloud demand [12][13] - Operating income for Reliability Solutions improved to $197 million, with a segment margin expansion to 6.5% [13] Market Data and Key Metrics Changes - The data center business is expected to grow at least 35% this year, reflecting strong demand in cloud and power sectors [7][8] - Medical device demand is steady, with anticipated improvements in medical equipment later this year [10] - The automotive market is stabilizing compared to prior quarters, with new compute deals validating investments in software-defined vehicles [10] Company Strategy and Development Direction - The company is strategically shifting its portfolio towards higher-margin, technology-driven businesses, particularly in AI and data center infrastructure [8][9] - Flex unveiled a new AI infrastructure platform aimed at enhancing data center deployment efficiency [9] - The company is committed to rebuilding operations in Ukraine following facility damage, emphasizing resilience and support for employees [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate a dynamic tariff landscape and raised full-year revenue guidance to between $26.7 billion and $27.3 billion [15][16] - The company anticipates strong cash generation and maintains an 80%+ free cash flow conversion target for FY2026 [16] - Management highlighted the importance of partnerships with leading technology companies to support growth in the data center space [46] Other Important Information - Free cash flow for the quarter increased to $305 million, with net CapEx totaling $148 million [13][14] - The company repurchased $297 million of stock, approximately 5.6 million shares [14] Q&A Session Summary Question: Why was there no upside to data center revenues despite strong performance? - Management clarified that data center growth is not updated quarterly, but they expect at least 35% growth for the year, which is strong compared to industry standards [20][22] Question: How does the mix of custom silicon versus merchant silicon impact the cloud business? - Management indicated that they benefit significantly from hyperscale growth and will provide updated guidance in May regarding the mix of custom versus merchant silicon [25][27] Question: What is driving margin improvements in the second half? - Management noted that growth in higher-margin businesses, particularly products and services, is expected to drive margin improvements [33][34] Question: How does the company view the automotive market's growth potential? - Management stated that they are cautiously optimistic about stabilizing growth in the automotive sector, with opportunities across various platforms [55][56] Question: What is the outlook for data center capacity and potential supply constraints? - Management expressed confidence in capacity and capability across regions, with plans for significant CapEx investments to support growth [70][71] Question: How is AI and automation being utilized in operations? - Management highlighted ongoing efforts to deploy AI and robotics to enhance productivity and efficiency in manufacturing and logistics [72][76]

EARNINGS UPDATE | OCTOBER 29, 2025 Q3 2025 THIRD QUARTER 2025 EARNINGS CALL | 1 Forward-looking statements This presentation contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company's future financial position, business strategy, growth and drivers, capital allocation, resiliency, targets ( ...

Core Insights - Materion Corporation reported strong financial results for the third quarter of 2025, with net sales of $444.8 million, an increase from $436.7 million in the prior year period, and affirmed its full-year outlook [1][4][11] - The company highlighted significant improvements in its Electronic Materials and Precision Optics segments, with record margin performance and a return to double-digit EBITDA margins in Precision Optics [3][4] Financial Summary - Net sales for Q3 2025 were $444.8 million, up 1% from $436.7 million in Q3 2024 [4][11] - Value-added sales were $263.9 million, reflecting a 1% organic growth driven by non-China semiconductor and space markets [4][11] - Operating profit increased to $34.9 million from $31.3 million year-over-year, while net income rose to $25.4 million, or $1.22 per diluted share, compared to $22.3 million, or $1.07 per share, in the prior year [5][11] - Adjusted EBITDA was $55.5 million, representing 21.0% of value-added sales, slightly down from 21.5% in the prior year [6][11] Business Highlights - The Electronic Materials segment achieved record EBITDA margins of 27.1%, up 700 basis points year-on-year, while Precision Optics saw a significant sales increase and approximately 1000 basis points of margin expansion [11][11] - Order rates increased double-digit sequentially across all business segments, driven by strong macroeconomic trends in semiconductor, energy, space, and defense markets [4][11] - Materion announced a supply agreement with Commonwealth Fusion Systems to provide materials for fusion technologies, indicating a strategic move into emerging energy markets [11] Outlook - The company expects a strong fourth quarter and has reaffirmed its guidance for adjusted earnings per share for the full year to be between $5.30 and $5.70 [8][11]

ESAB Corporation Announces Third Quarter 2025 Results NORTH BETHESDA, Md.--(BUSINESS WIRE)--ESAB Corporation ("ESAB†or the "Company†) (NYSE: ESAB), a focused premier industrial compounder, today announced financial results for the third quarter of 2025. Share ESAB reported third quarter sales of $728 million, an increase of 8% on a reported basis or an increase of 2% on a core organic growth basis before acquisitions and currency translation, as compared to the prior year. ESAB also reported third quarter ...

America is re-industrializing, reshoring manufacturing across every industry. In Houston, Texas, Foxcon is building a state-of-the-art robotic facility for manufacturing NVIDIA AI infrastructure systems. With labor shortages and skills gaps, digitalization, robotics, and physical AI are more important than ever.The factory is born digital in Omniverse. Foxcon engineers assemble their virtual factory in a seaman's digital twin solution developed on Omniverse Technologies. Every system, mechanical, electrical ...

Oct 28, 2025 4:30 PM Eastern Daylight Time Luxfer Reports Strong Profitablity and Cash Generation in Third Quarter Share Driven by Continued Demand Across Defense and Aerospace * Comparative information is relative to prior-year third quarter; results exclude discontinued operations Note: Adjusted results exclude Graphic Arts and 2024 legal fee recoveries Luxfer Third Quarter 2025 Earnings Release RIVERSIDE, Calif.--(BUSINESS WIRE)--Luxfer Holdings PLC (NYSE: LXFR) ("Luxfer†or the "Company†), a global ind ...

Key Takeaways Cost of sales and services makes up about half of Berkshire's total costs and 45% of total revenues.Controlling these costs supports margin growth, cash generation and reinvestment opportunities.A decentralized model lets subsidiaries manage expenses independently, boosting long-term value creation.For Berkshire Hathaway (BRK.B) , the cost of sales and services is an important driver determining profitability, operational efficiency and long-term growth. Being a holding company, it owns subsid ...

Oct 28, 2025 2:15 PM Eastern Daylight Time Belden Advances Physical AI Safety Systems in Manufacturing With Accenture, NVIDIA Omniverse and Metropolis Libraries Share New virtual safety fence and real-time quality inspection systems use industrial-grade network infrastructure Together, Accenture, NVIDIA, and Belden are creating safer, smarter, and more connected industrial operations where the physical and digital worlds converge. ST. LOUIS--(BUSINESS WIRE)--Belden Inc. (NYSE: BDC), a leading global provide ...

NVIDIA Omniverse for Manufacturing Leading U.S. manufacturers, software developers, and robotics companies are using NVIDIA Omniverse technologies to build robotic factories and autonomous collaborative robots. News Summary: “Mega” NVIDIA Omniverse Blueprint expands to include libraries for building factory-scale digital twins, with Siemens’ Digital Twin software first to support the blueprint and FANUC and Foxconn Fii first to connect their robot models.Belden, Caterpillar, Foxconn, Lucid Motors, Toyot ...