IDEX Beats Q2 Earnings Estimates on HST Momentum, Raises View

IDEX Corporation IEX delivered second-quarter 2026 adjusted earnings of $2.32 per share, topping the Zacks Consensus Estimate of $2.10. The metric rose 12.1% year over year. Net sales of $920.6 million beat the consensus mark of $902.43 million by 2% and increased 6.4% from the year-ago quarter. Organic sales increased 5% year over year. Acquisitions had a positive impact of 1% on sales, while foreign currency translation had no impact.

Results were driven by solid traction in the Health & Science Technologies segment, where higher volumes in AI-linked data center power and semiconductor end markets, along with strength in space and defense, supported growth. IDEX also posted record orders of more than $1 billion, signaling improving demand.

Segmental Details

Net sales from the Fluid & Metering Technologies segment totaled $317.1 million, up 2% year over year. The Zacks Consensus Estimate was pegged at $314 million. Organic sales increased 1% year over year. Foreign currency translation had a positive impact of 1% on sales.

Net sales from the Health & Science Technologies segment totaled $415 million, up 14% year over year. The consensus estimate was pegged at $407 million. Organic sales increased 12% year over year. Acquisitions/divestitures had a positive impact of 2% on sales, while foreign currency translation had no impact.

Net sales from the Fire & Safety/Diversified Products segment totaled $189.9 million, which decreased 1% year over year. The Zacks Consensus Estimate was pegged at $189 million. Organic sales decreased 1% on a year-over-year basis, while acquisitions/divestitures and foreign currency translation had no impact on sales.

IDEX’s Margin Profile

IDEX’s cost of sales increased 4.4% year over year to $493.8 million. The adjusted gross margin was 46.4%, up 110 basis points year over year, reflecting net productivity improvements, volume leverage and positive price-cost dynamics, partially offset by unfavorable mix. Selling, general and administrative expenses increased 10.1% year over year to $224.1 million.

Adjusted EBITDA rose 8.9% to $258.3 million and the adjusted EBITDA margin improved 70 basis points to 28.1%. Operating income increased 6.4% to $199.9 million, aided by improved operating performance. The operating margin was 21.7%, unchanged year over year on a rounded basis. Interest expenses (net) decreased to $15.1 million from $15.6 million in the prior-year period.

Balance Sheet and Cash Flow of IDEX

While exiting the second quarter, IDEX’s cash and cash equivalents were $621.3 million compared with $580 million at the end of 2025. Long-term borrowings (net) were $1.86 billion compared with $1.82 billion at the end of 2025.

In the first six months of 2026, IDEX generated net cash of $303.7 million from operating activities, up 13.6% from the year-ago period. Capital expenditures were $40.7 million compared with $29.1 million in the prior-year period. In the same period, free cash flow was $263 million, up 10.4% year over year.

IDEX paid out dividends totaling $106.7 million in the first six 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 5-6% compared with prior expectations of 3-4%. The company also lifted its full-year adjusted earnings outlook to $8.70-$8.85 per share from $8.35-$8.55 previously.

For the third quarter of 2026, IDEX expects organic sales to increase 5-7% from the year-ago period and adjusted earnings in the range of $2.20-$2.25 per share.

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

Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.

Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.

Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.

Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.

Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.

The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research