IDEX (IEX) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 sales of $921 million, up 6% reported and 5% organically year-over-year, with adjusted EPS up 12% to $2.32, exceeding guidance.

• Record orders exceeded $1 billion, up 28% organically, driven by strong demand in data center, semiconductor, and space/defense markets, especially in Health & Science Technologies (HST).

• Raised full-year 2026 outlook, reflecting strong Q2 performance, robust backlog, and momentum in HST markets.

• Operational execution and strategic focus on high-growth platforms and 80/20 resource allocation supported margin expansion.

• Industrial businesses showed incremental strength, particularly in water, mining, and aerospace.

Financial highlights

• Net sales reached $920.6 million, up 6% year-over-year; organic sales up 5%.

• Adjusted EBITDA margin expanded 70 bps to 28.1%; adjusted gross margin up 110 bps to 46.4%.

• Adjusted EPS reached $2.32, including a $0.08 benefit from IEEPA tariff refunds.

• Free cash flow was $177 million, with conversion exceeding 100%; liquidity exceeded $1.1 billion at quarter-end.

• $77 million in share repurchases and $54 million in dividends paid in Q2.

Outlook and guidance

• Full-year 2026 organic growth guidance raised to 5%-7%, with HST expected to deliver low double-digit growth.

• Adjusted EBITDA margin guidance increased to 27%-27.5%; adjusted EPS guidance raised to $8.70-$8.85.

• Q3 2026 outlook: 5%-7% organic growth, adjusted EBITDA margin 27%-27.5%, adjusted EPS $2.20-$2.25.

• CapEx forecast for 2026 increased to ~$110 million to support capacity expansion in high-growth businesses.

• Management expects current cash, operations, and credit facilities to be sufficient for foreseeable needs.