IDEX Corporation (IEX Quick QuoteIEX - Free Report) reported third-quarter 2026 adjusted earnings of $2.33 per share, beating the Zacks Consensus Estimate of $2.23 by 4.5%. The bottom line increased 14.8% year over year. Net sales of $951.7 million surpassed the consensus mark of $919.36 million by 3.5% and increased 8.3% from the year-ago quarter. Organic sales increased 8% year over year.

Results benefited from strong demand in the Health & Science Technologies segment, particularly across data center power, semiconductor, and space and defense markets. IDEX also recorded orders of $991.2 million, up 13% year over year.

IEX's Segmental Performance

Net sales from the Fluid & Metering Technologies segment totaled $327.9 million, up 3% year over year. Organic sales increased 4%, primarily driven by positive pricing. Higher volumes in municipal water, semiconductor and industrial markets were partially offset by lower volumes in chemical, agriculture and energy markets. Foreign currency translation had a negative impact of 1% on sales.

Net sales from the Health & Science Technologies segment totaled $433.5 million, up 14% year over year. Organic sales increased 13%, supported by higher volumes stemming from AI-driven demand in data center power and semiconductor markets, strength in space and defense, and positive pricing. Acquisitions contributed 1% to sales growth, while foreign currency translation had no impact.

Net sales from the Fire & Safety/Diversified Products segment totaled $191.5 million, up 5% year over year. Organic sales increased 6%, primarily driven by higher volumes in the BAND-IT and Fire & Safety businesses and positive pricing. Foreign currency translation had a negative impact of 1% on sales.

IEX's Orders Reflect Broadening Demand

IDEX's organic orders increased 13% year over year, reflecting healthy demand across its businesses. The Health & Science Technologies segment recorded orders of approximately $468 million, representing organic growth of 21%.

Fluid & Metering Technologies' orders totaled approximately $349 million, with organic growth of 11%. Management highlighted broadening industrial demand beyond water-related applications, while previously pressured agriculture and energy markets showed signs of stabilization.

Fire & Safety/Diversified Products recorded orders of approximately $176 million, with organic growth of 1%. The subdued order growth primarily reflected timing-related factors.

IDEX's Margin Profile

IDEX’s cost of sales increased 7% year over year to $522.2 million. The adjusted gross margin was 45.2%, up 70 basis points year over year, reflecting net productivity improvements, volume leverage and favorable mix, partially offset by price-cost headwinds. Selling, general and administrative expenses increased 6.5% year over year to $218.1 million.

Adjusted EBITDA rose 10.4% to $264.8 million and the adjusted EBITDA margin improved 50 basis points to 27.8%. Operating income increased 11.9% to $208 million, aided by improved operating performance. The operating margin was 21.9%, up from 21.1% in the prior-year period. Interest expenses (net) decreased to $15.4 million from $16.5 million in the prior-year period.

Balance Sheet and Cash Flow of IDEX

While exiting the third quarter, IDEX’s cash and cash equivalents were $602.1 million compared with $580 million at the end of 2025. Long-term borrowings (net) were $1.75 billion compared with $1.82 billion at the end of 2025.

In the first nine months of 2026, IDEX generated net cash of $543.2 million from operating activities, up 15.4% from the year-ago period. Capital expenditures were $65.9 million compared with $43.9 million in the prior-year period. In the same period, free cash flow was $477.3 million, up 11.8% year over year.

IDEX paid out dividends totaling $160.7 million in the first nine months of 2026, up 0.8% year over year.

IDEX’s Raised 2026 Outlook Reflects Confidence

The company raised its full-year 2026 guidance, projecting organic sales growth of 6.5-6.8% compared with prior expectations of 5-6%. The company also lifted its full-year adjusted earnings outlook to $8.91-$8.96 per share from $8.70-$8.85 previously.

For full-year 2026, IDEX expects adjusted EBITDA margin in the range of 27.1-27.3% compared with the previous guidance of 27-27.3%. The company also anticipates free cash flow conversion of at least 100%.

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

In the third quarter of 2026, Graco Inc. (GGG Quick QuoteGGG - Free Report) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares with earnings of $0.73 per share a year ago.

Graco reported revenues of $586.39 million in the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.58%. This compares with year-ago revenues of $543.36 million.

Dover Corporation (DOV Quick QuoteDOV - Free Report) has reported third-quarter 2026 adjusted earnings of $2.88 per share, rising 10% year over year and beating the Zacks Consensus Estimate of $2.83 by 1.77%. The improvement reflected broad-based demand, higher revenues and operational execution.

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Allegion plc (ALLE Quick QuoteALLE - Free Report) reported third-quarter 2026 adjusted earnings of $2.60 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate of $2.49 by 4.4%, supported by strong organic growth and margin expansion.

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