IDEX Raises Outlook as Record Sales Climb 8% and Orders Jump 13%

IDEX raised its full-year outlook for the second time on Wednesday after the industrial products maker posted record third-quarter sales and adjusted earnings, helped by AI-driven demand from data center power and semiconductor customers.

The Northbrook, Illinois, company now expects 2026 adjusted diluted EPS of $8.91 to $8.96, up from previous guidance of $8.70 to $8.85, and organic sales growth of 6.5% to 6.8%, up from 5% to 6%, according to the earnings release it filed with an 8-K on Wednesday. The company said the new EPS range implies growth of about 12% at the midpoint.

Records across the board

Third-quarter sales rose 8% on both a reported and organic basis to a record $951.7 million. Orders climbed 13% to $991.2 million, also on both a reported and organic basis.

Diluted EPS rose 15% to $1.95, and adjusted diluted EPS rose 15% to a record $2.33 from $2.03. Net income attributable to IDEX increased to $144.1 million from $127.8 million.

Gross margin widened 60 basis points to 45.1%, which the company attributed to volume leverage, net productivity improvements and favorable mix, partly offset by price/cost headwinds. Adjusted EBITDA rose to $264.8 million, for a margin of 27.8%.

"We are pleased to report another strong quarter, with results ahead of our expectations," CEO and President Eric Ashleman said in the release. "This quarter, we delivered both record sales and adjusted EPS while expanding margins and booked nearly $1 billion in orders."

AI demand lifts Health and Science

The Health & Science Technologies segment led the way. Net sales rose 14% to $433.5 million, with organic sales up 13% on higher volumes the company tied primarily to "AI-driven demand for data center power and semiconductor markets," as well as strength in space and defense and positive pricing. Segment adjusted EBITDA margin widened 110 basis points to 28.8%.

Fluid & Metering Technologies sales rose 3% to $327.9 million, with organic growth of 4% driven mainly by price. Higher volumes in municipal water, semiconductor and industrial markets were partly offset by weaker chemical, agriculture and energy markets.

Fire & Safety/Diversified Products sales grew 5% to $191.5 million, or 6% organically, on higher volumes at its BAND-IT and Fire & Safety businesses.

Cash and shareholder returns

Operating cash flow rose to $239.5 million from $203.5 million, and free cash flow increased to $214.3 million from $188.7 million.

IDEX returned $129 million to shareholders in the quarter through dividends and share repurchases. Its cash flow statement shows $74.6 million of stock buybacks and $54.0 million of dividends paid.

The company also amended and restated its $800 million revolving credit facility, extending the maturity to September 2031.

Ashleman said IDEX is "again increasing our full-year financial guidance due to our strong performance year-to-date, with improved visibility and momentum as we close out 2026."

Sources

1. IDEX Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0000832101-26-000026)

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