Core Insights - IDEX reported better-than-expected Q4 results, driven by strong demand in the Health & Science Technologies (HST) segment and effective execution of its strategic initiatives [4][5] Financial Performance - Adjusted EBITDA margin expanded by 40 basis points year-over-year in Q4, attributed to productivity gains and favorable price-cost dynamics, despite volume deleverage [1] - Total organic revenue grew by 1% in Q4, with adjusted EPS exceeding the company's guidance [2][5] - Free cash flow reached $617 million, representing a 103% conversion rate of adjusted net income, with a 2% increase compared to the previous year [5] Segment Performance - HST segment orders surged by 34% organically, reaching a record $493 million, with organic revenue growth of 5% and an adjusted EBITDA margin improvement of 60 basis points year-over-year [2][6] - Fluid & Metering Technologies (FMT) saw organic orders grow by 4%, with municipal water businesses achieving double-digit growth, while facing softness in chemical, energy, and agriculture markets [9][10] - Fire & Safety / Diversified Products (FSDP) experienced flat organic orders and a 5% decline in organic sales for the second consecutive quarter [11] Demand Drivers - Demand in HST is linked to the AI-related ecosystem within data centers, with significant collaboration on thermal management applications [6] - Other growth areas include semiconductor-related filtration, space and defense applications, and food and pharma markets, although industrial and auto exposures remain flat [7] Pricing and Cost Management - Fiscal 2025 price contribution was approximately 3%, with expectations for a smaller contribution in 2026 [12] - Cost containment measures generated around $60 million in savings for the full year, with no additional cost-cutting actions planned for 2026 [13] Capital Allocation and Outlook - IDEX ended 2025 with approximately $1.1 billion in liquidity, reduced gross leverage to 2.0x, and returned capital through buybacks and dividends [14] - For fiscal 2026, management guided organic growth of 1% to 2%, with expectations of mid-single-digit growth in HST and flat to slightly down expectations for FMT and FSDP [15][16] - Adjusted EPS is projected to be between $8.15 and $8.35 for 2026, indicating low- to mid-single-digit year-over-year growth [16]