IDEX Corp Reports Strong Q4 Earnings Growth
IDEX Corp's stock rose by 3.05% as it reached a 20-day high, reflecting positive investor sentiment following its earnings report.
The company reported a net income of $128.3 million for Q4, translating to an EPS of $1.71, which marks an increase from last year's $123.2 million and $1.62 per share. Additionally, adjusted earnings stood at $157.2 million, or $2.10 per share, showcasing strong performance in core operations. Revenue rose by 4.2% year-over-year to $899.1 million, reflecting stable recovery in market demand. IDEX also provided Q1 EPS guidance in the range of $1.73 to $1.78, demonstrating management's confidence in future performance.
This strong earnings performance reinforces IDEX's competitive position in the market and suggests continued growth potential, which may attract further investment interest.
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- Performance Growth: IDEX achieved a 34% organic sales growth in Q4 2025, with the HST segment reaching a record $493 million in orders, indicating strong demand in data center and defense markets, thereby enhancing the company's market position in these rapidly growing sectors.
- Margin Improvement: The HST segment saw a 34% increase in organic orders and a 5% rise in sales, while achieving a 60 basis point year-over-year margin improvement, demonstrating effective strategies in cost control and price enhancement.
- Future Outlook: IDEX projects organic growth of 1% to 2% for 2026, with adjusted EPS guidance set at $8.15 to $8.35, reflecting moderate growth expectations for HST alongside flat to slightly declining outlooks for FMT and FSDP.
- Cash Flow and Buybacks: Free cash flow for 2025 was $617 million, with a conversion rate of 103% of adjusted net income, while the company repurchased nearly $250 million in stock during the year, showcasing strong financial health and commitment to shareholder returns.
- Earnings Growth: IDEX Corp. reported a net income of $128.3 million for Q4, translating to an EPS of $1.71, which marks an increase from last year's $123.2 million and $1.62 per share, indicating sustained profitability improvements.
- Adjusted Earnings: Excluding non-recurring items, the adjusted earnings stood at $157.2 million, or $2.10 per share, showcasing strong performance in the company's core operations.
- Revenue Increase: The company's revenue rose by 4.2% year-over-year to $899.1 million, up from $862.9 million last year, reflecting a stable recovery in market demand.
- Future Guidance: IDEX provided Q1 EPS guidance in the range of $1.73 to $1.78, with an expected revenue growth of about 1%, demonstrating management's confidence in future performance.
- Earnings Beat: IDEX's Q4 Non-GAAP EPS of $2.10 exceeded expectations by $0.06, indicating sustained profitability and reinforcing the company's competitive position in the market.
- Revenue Growth: The company reported Q4 revenue of $899 million, a 4.2% year-over-year increase, surpassing market expectations by $16.61 million, reflecting robust product demand, particularly in the HST sector.
- Record Orders: IDEX achieved record orders of $979 million, a 20% increase year-over-year with 16% organic growth, highlighting the company's enhanced market appeal and customer trust.
- Strong Cash Flow: Operating cash flow reached $680 million, up 2%, representing 141% of net income, showcasing effective cash management and further strengthening shareholder return capabilities.
- Earnings Announcement Schedule: IDEX Corporation is set to release its Q4 earnings on February 4th before market open, with consensus EPS estimates at $2.04, flat year-over-year, and revenue estimates at $882.39 million, reflecting a 2.2% year-over-year growth potential for the company.
- Historical Performance Review: Over the past two years, IDEX has beaten EPS estimates 100% of the time, although it has only surpassed revenue estimates 50% of the time, indicating strong profitability but a need for improvement in revenue growth.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen no upward revisions and seven downward revisions, while revenue estimates experienced three upward and six downward revisions, reflecting a cautious market sentiment regarding the company's future performance, which may impact investor confidence.
- Management Change Impact: The appointment of IDEX's new CFO is viewed as a key catalyst for investors, with analysts highlighting the potential strategic adjustments and value creation capabilities that could positively influence the company's financial performance moving forward.
- Earnings Release Schedule: IDEX Corporation is set to announce its fourth quarter 2026 financial results on February 4, 2026, prior to market open, reflecting its ongoing performance in the global engineered products sector.
- Investor Conference Call: An investor conference call will take place at 8:00 a.m. (CT) on the same day, hosted by CEO Eric Ashleman and CFO Sean Gillen, aimed at updating investors on the company's latest developments.
- Webcast Availability: The event and associated earnings presentation will be available via webcast in listen-only mode on the company's Investor Relations site, ensuring investors can access real-time information.
- Replay Feature: A replay of the earnings call will be available on the company's website after the call concludes, allowing investors who could not participate live to review the meeting content.








