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IEX sees broad demand lift in FMT and HST, supported by municipal water, industrial and high-tech markets.
Acquisitions like Micro-LAM and Mott boosted sales and expanded IEX's capabilities in high-value technologies.
IEX increased dividends and buybacks, while FSDP weakness and currency risks weigh on near-term performance.
IDEX Corporation’s (IEX - Free Report) strong performance of the Fluid & Metering Technologies (FMT) & Health & Science Technologies (HST) segments bodes well. A rise in demand for products across the municipal water business has been proving beneficial for the FMT segment. Higher volume in the industrial businesses bodes well for the segment. Solid momentum in the pharma, life science, semiconductor consumables and data center businesses is aiding the HST segment. Also, the targeted growth initiatives in the space business and strength in defense markets bode well for the segment.
The company solidified its product portfolio and leveraged business opportunities through asset additions. In the third quarter of 2025, acquisitions had a positive impact on sales of 4%. In July 2025, IEX acquired Micro-LAM, Inc. (Micro-LAM), which expanded its optics technologies offerings. The acquired company has been incorporated within the HST segment. In September 2024, IDEX acquired Mott Corp. and its subsidiaries (Mott) for a cash consideration of $1 billion. This acquisition expanded the company’s applied materials science technology capabilities across high-value end markets.
IEX’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In the first nine months of 2025, IDEX’s dividend payments totaled $159.4 million (up 4.2% year over year). The current quarterly dividend rate is 71 cents per share (a hike of 2.9% was announced in May 2025). In September 2025, the company’s board of directors increased the share repurchase authorization to $1 billion. Exiting the third quarter of 2025, IDEX had a remaining balance of $999.7 million under its stock repurchase program.
IEX’s Zacks Rank
In the past three months, this Zacks Rank #3 (Hold) company’s shares gained 5.6% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
However, IDEX has been witnessing weakness in the Fire & Safety/Diversified Products (FSDP) segment. Softness in the dispensing business due to unfavorable timing of dispensing projects in emerging markets and slower equipment replenishment is concerning for the segment. Also, weakness in the fire OEM business and a decrease in demand for rescue tools are acting as headwinds for its performance.
The company has a significant presence in the international markets. As a result, its financial performance is subject to various risks like the foreign currency exchange rate, interest rate fluctuations and hyperinflation in some foreign countries. The increased value of the U.S. dollar relative to the local currencies of the foreign markets is likely to affect the top line in the quarters ahead.
CR delivered a trailing four-quarter average earnings surprise of 9.3%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 2.9%.
Ferguson Enterprises Inc. (FERG - Free Report) currently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter average earnings surprise of 7.7%.
In the past 60 days, the Zacks Consensus Estimate for Ferguson’s fiscal 2026 earnings has increased 1.3%.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 6.2%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 4%.
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IDEX Stock Exhibits Strong Prospects Despite Persisting Headwinds
Key Takeaways
IDEX Corporation’s (IEX - Free Report) strong performance of the Fluid & Metering Technologies (FMT) & Health & Science Technologies (HST) segments bodes well. A rise in demand for products across the municipal water business has been proving beneficial for the FMT segment. Higher volume in the industrial businesses bodes well for the segment. Solid momentum in the pharma, life science, semiconductor consumables and data center businesses is aiding the HST segment. Also, the targeted growth initiatives in the space business and strength in defense markets bode well for the segment.
The company solidified its product portfolio and leveraged business opportunities through asset additions. In the third quarter of 2025, acquisitions had a positive impact on sales of 4%. In July 2025, IEX acquired Micro-LAM, Inc. (Micro-LAM), which expanded its optics technologies offerings. The acquired company has been incorporated within the HST segment. In September 2024, IDEX acquired Mott Corp. and its subsidiaries (Mott) for a cash consideration of $1 billion. This acquisition expanded the company’s applied materials science technology capabilities across high-value end markets.
IEX’s commitment to rewarding shareholders through dividends and share buybacks is encouraging. In the first nine months of 2025, IDEX’s dividend payments totaled $159.4 million (up 4.2% year over year). The current quarterly dividend rate is 71 cents per share (a hike of 2.9% was announced in May 2025). In September 2025, the company’s board of directors increased the share repurchase authorization to $1 billion. Exiting the third quarter of 2025, IDEX had a remaining balance of $999.7 million under its stock repurchase program.
IEX’s Zacks Rank
In the past three months, this Zacks Rank #3 (Hold) company’s shares gained 5.6% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
However, IDEX has been witnessing weakness in the Fire & Safety/Diversified Products (FSDP) segment. Softness in the dispensing business due to unfavorable timing of dispensing projects in emerging markets and slower equipment replenishment is concerning for the segment. Also, weakness in the fire OEM business and a decrease in demand for rescue tools are acting as headwinds for its performance.
The company has a significant presence in the international markets. As a result, its financial performance is subject to various risks like the foreign currency exchange rate, interest rate fluctuations and hyperinflation in some foreign countries. The increased value of the U.S. dollar relative to the local currencies of the foreign markets is likely to affect the top line in the quarters ahead.
Stocks to Consider
Some better-ranked companies are discussed below.
Crane Company (CR - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CR delivered a trailing four-quarter average earnings surprise of 9.3%. In the past 60 days, the Zacks Consensus Estimate for Crane’s 2025 earnings has increased 2.9%.
Ferguson Enterprises Inc. (FERG - Free Report) currently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter average earnings surprise of 7.7%.
In the past 60 days, the Zacks Consensus Estimate for Ferguson’s fiscal 2026 earnings has increased 1.3%.
Parker-Hannifin Corporation (PH - Free Report) presently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 6.2%.
In the past 60 days, the consensus estimate for Parker-Hannifin’s fiscal 2026 earnings has increased 4%.