A month has gone by since the last earnings report for Idex (IEX Quick QuoteIEX - Free Report) . Shares have added about 1.1% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Idex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

IDEX Q2 Earnings Surpass Estimates, Sales Increase Year Over Year

IDEX’s second-quarter 2025 adjusted earnings of $2.07 per share surpassed the Zacks Consensus Estimate of $2.00. The bottom line was relatively flat on a year-over-year basis. Management projected adjusted earnings to be in the band of $1.95-$2.05 per share in the quarter.

Revenue Details

IDEX’s net sales of $865.4 million beat the Zacks Consensus Estimate of $857 million. The top line increased 7% year over year. Organic sales increased 1% year over year. While acquisitions/divestitures had a positive impact on sales of 5%, organic sales and foreign currency translation had a positive impact of 1% each on sales.

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

Net sales from the Fluid & Metering Technologies segment totaled $310.9 million, down 3% year over year. Our estimate for segmental net sales was $312.2 million. Organic sales decreased 2% year over year. Acquisitions/divestitures had an adverse impact on sales of 2%, while foreign currency translation had a positive impact of 1% on sales.

Net sales from the Health & Science Technologies segment totaled $365.3 million, up 20% year over year. Our estimate for segmental net sales was $355.6 million. Organic sales increased 4% year over year. Acquisitions/divestitures and foreign currency translation had a positive impact of 15% and 1%, respectively, on sales.

Net sales from the Fire & Safety/Diversified Products segment totaled $191.5 million, which increased 3% year over year. Our estimate for segmental net sales was $188.4 million. Organic sales increased 2% on a year-over-year basis, while foreign currency translation had a favorable impact of 1% on sales.

IDEX’s Margin Profile

IDEX’s cost of sales increased 7.4% year over year to $473.2 million. The adjusted gross profit was $392.2 million, up 6.9% year over year. The adjusted gross margin was 45.3% compared with 45.4% in the year-ago quarter.

Selling, general and administrative expenses increased 11.4% year over year to $203.6 million. Adjusted EBITDA was $237.2 million, up 5.7% from the year-ago quarter figure. The adjusted EBITDA margin decreased 40 bps year over year to 27.4%.

The operating income was $187.9 million, up 2.8% year over year. The operating margin was 21.7%, down 90 bps year over year. Interest expenses (net) increased 92.6% year over year to $15.6 million.

Balance Sheet and Cash Flow of IDEX

While exiting the second quarter, IDEX’s cash and cash equivalents were $568.2 million compared with $620.8 million at the end of fourth-quarter 2024. Long-term borrowings (net) were $1.85 billion compared with $1.9 billion at the end of fourth-quarter 2024.

In the first six months of 2025, IDEX generated net cash of $267.4 million from operating activities, down 7.9% from the year-ago period. Capital expenditures were $29.1 million compared with $35.9 million in the first six months of 2024. In the same period, free cash flow was $238.3 million, down 6.3% year over year.

IDEX paid out dividends totaling $105.9 million in the first six months of 2025, up 5.2% year over year.

IDEX’s Outlook

For the third quarter, IDEX anticipates adjusted earnings to be in the band of $1.90-$1.95 per share.

On a GAAP basis, the company predicts earnings to be in the range of $1.54-$1.61 per share. It expects organic sales to increase in the range of 2-3% from the year-ago reading.

For 2025, the company anticipates adjusted earnings to be in the range of $7.85-$7.95 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 $6.30-$6.44 per share.

Organic sales are predicted to increase approximately 1%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -11.19% due to these changes.

VGM Scores

Currently, Idex has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Idex has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Idex belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Graco Inc. (GGG Quick QuoteGGG - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Graco reported revenues of $571.81 million in the last reported quarter, representing a year-over-year change of +3.4%. EPS of $0.75 for the same period compares with $0.77 a year ago.

Graco is expected to post earnings of $0.75 per share for the current quarter, representing a year-over-year change of +5.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Graco. Also, the stock has a VGM Score of D.