Back to top

Image: Bigstock

IDEX Q1 Earnings Surpass Estimates, Sales Increase Year Over Year

Read MoreHide Full Article

IDEX Corporation’s (IEX - Free Report) first-quarter 2025 adjusted earnings of $1.75 per share surpassed the Zacks Consensus Estimate of $1.64. The bottom line decreased 7% from the year-ago quarter’s earnings of $1.88 per share. Management projected adjusted earnings to be in the band of $1.18-$1.24 per share in the quarter.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

IEX’s Revenue Details

IDEX’s net sales of $814.3 million beat the Zacks Consensus Estimate of $811 million. The top line increased 2% year over year. Organic sales decreased 1% year over year. Acquisitions/divestitures had a positive impact on sales of 4%, while foreign currency translation had a negative impact of 1% on sales.

IEX reports net sales under three business segments, the results of which are discussed below:

Net sales from the Fluid & Metering Technologies segment totaled $290.5 million, down 7% year over year. Our estimate for segmental net sales was $293.6 million. Organic sales decreased 4% year over year. Acquisition/divestitures impacted sales by 2%, while foreign currency translation had a negative impact of 1% on sales.

Net sales from the Health & Science Technologies segment totaled $341.5 million, up 10% year over year. Our estimate for segmental net sales was $332.9 million. Organic sales declined 1% year over year. Acquisitions/divestitures had a positive impact on sales of 12%, while foreign currency translation had a negative impact of 1% on sales.

Net sales from the Fire & Safety/Diversified Products segment totaled $184.3 million, which increased 4% year over year. Our estimate for segmental net sales was $177.6 million. Organic sales increased 5% on a year-over-year basis, while foreign currency translation had a negative impact of 1% on sales.

IDEX Corporation Price, Consensus and EPS Surprise

IDEX Corporation Price, Consensus and EPS Surprise

IDEX Corporation price-consensus-eps-surprise-chart | IDEX Corporation Quote

IDEX’s Margin Profile

IDEX’s cost of sales increased 0.5% year over year to $445.4 million. The gross profit was $368.9 million, up 3.2% year over year. The gross margin was 45.3% compared with 44.6% in the year-ago quarter.

Selling, general and administrative expenses increased 7.3% year over year to $209.4 million. Adjusted EBITDA was $208.0 million, almost in line with the year-ago quarter. The adjusted EBITDA margin decreased 50 bps year over year to 25.5%.

The operating income was $142.0 million, down 11.9% year over year. The operating margin was 17.4%, down 270 bps year over year. Interest expenses (net) increased 72.3% year over year to $16.1 million.

Balance Sheet and Cash Flow of IDEX

While exiting the first quarter, IDEX’s cash and cash equivalents were $594.1 million compared with $620.8 million at the end of fourth-quarter 2024. Long-term borrowings (net) were $1.84 billion compared with $1.9 billion at the end of fourth-quarter 2024.

In the first quarter of 2025, IDEX generated net cash of $105.7 million from operating activities, down 32.5% from the year-ago period. Capital expenditures were $14.3 million compared with $20 million in first-quarter 2024. In the same period, free cash flow was $91.4 million, down 33.1% year over year.

IDEX paid out dividends totaling $52.4 million in the first three months of 2025, up 8% year over year.

IDEX’s Outlook

For the second quarter, IDEX anticipates adjusted earnings to be in the band of $1.95 - $2.05 per share.

On a GAAP basis, IEX predicts earnings to be in the range of $1.60 - $1.72 per share. It expects organic sales to increase in the range of 0-2% from the year-ago reading.

For 2025, the company has reaffirmed its guidance. IDEX anticipates adjusted earnings to be in the band of $8.10-$8.45 per share. The figure indicates an increase from earnings of $7.89 per share reported in 2024. On a GAAP basis, earnings are predicted to be in the band of $6.56-$6.96 per share.

Organic sales are predicted to increase in the range of 1-3%.

IEX’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

AZZ Inc. (AZZ - Free Report) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share a year ago.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with year-ago revenues of $366.5 million. 

Valmont Industries (VMI - Free Report) reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share of $4.32 for the same period compare with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate being $4.24 per share.

Pentair plc (PNR - Free Report) came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share a year ago.

Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Valmont Industries, Inc. (VMI) - free report >>

AZZ Inc. (AZZ) - free report >>

IDEX Corporation (IEX) - free report >>

Pentair plc (PNR) - free report >>

Published in