Executive Summary

Q2 2025 delivered record sales of $865.4M (+7% reported, +1% organic) and adjusted EPS of $2.07; management highlighted outperformance on adjusted EBITDA margin and adjusted EPS despite macro uncertainty .
Versus Wall Street, IDEX beat on EPS ($2.07 vs $1.99*) and revenue ($865.4M vs $859.4M*); adjusted EBITDA also exceeded consensus ($241.0M vs $229.4M*) as pricing and productivity offset mix and volume headwinds. Bold beats: EPS, revenue, EBITDA*.
Guidance reset: FY25 GAAP EPS cut to $6.30–$6.44 (from $6.56–$6.95) and adjusted EPS to $7.85–$7.95 (from $8.10–$8.45); Q3 adjusted EPS guided to $1.90–$1.95 and organic growth 2–3% .
Order patterns were choppy due to trade/tariff headlines, with backlog reductions in late June and a steady recovery through July; larger-order decision-making slowed, particularly in recently acquired HST platforms (MSS, Mott), tempering back-half acceleration .
Capital deployment remains balanced: $50M buyback in Q2, $100M 1H25 repurchases; dividend maintained at $0.71 (123rd consecutive payment) .

Note: Values marked with an asterisk (*) in this section were retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

Adjusted performance beat: “While revenue came in toward the midpoint of our guidance, we outperformed on both adjusted EBITDA margin and adjusted EPS” .
Platform execution: HST organic sales +4% with strength in pharma, space/defense, and data-center thermal management (pneumatics); FMT margin expanded 130 bps YoY on price/cost and productivity; FSDP margin +40 bps YoY on price/cost .
Cash generation: Free cash flow $146.9M (+25% YoY) and 94% conversion; operating cash flow $161.7M; liquidity of ~$1.1B (cash $568M + undrawn revolver $541M) after debt repayment .

What Went Wrong

Mix/volume headwinds: Adjusted EBITDA margin declined 40 bps YoY to 27.4% and gross margin slipped 10 bps YoY; organic sales only +1% .
Semi lithography and larger orders: MSS semi-lithography remained flat with high-margin business pressure; Mott’s back-half ramp moderated as customers paused decisions on bigger projects amid trade/tariff uncertainty .
Higher costs and tax: Interest expense increased (net $15.6M vs $8.1M YoY) and effective tax rate was higher, weighing on GAAP EPS ($1.74 vs $1.86 YoY) despite adjusted EPS flat .

Financial Results

Consolidated results vs prior periods

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$862.9	$814.3	$865.4
GAAP Diluted EPS ($)	$1.62	$1.26	$1.74
Adjusted Diluted EPS ($)	$2.04	$1.75	$2.07
Gross Margin (%)	42.5%	45.3%	45.3%
Adjusted EBITDA ($USD Millions)	$227.5	$208.0	$237.2
Adjusted EBITDA Margin (%)	26.4%	25.5%	27.4%

Year-over-year reference (Q2 2024): Revenue $807.2M, GAAP EPS $1.86, adjusted EPS $2.06, gross margin 45.4% .

Actual vs S&P Global consensus (Q2 2025)

Metric	Consensus	Actual
EPS ($)	1.99*	2.07
Revenue ($USD Millions)	859.4*	865.4
EBITDA ($USD Millions)	229.4*	241.0

Values retrieved from S&P Global. Estimates count: EPS (11), Revenue (10)*.

Segment breakdown (Q2 2025 vs Q2 2024)

Segment	Net Sales Q2’24 ($M)	Net Sales Q2’25 ($M)	YoY %	Adjusted EBITDA Q2’24 ($M)	Adjusted EBITDA Q2’25 ($M)	Margin Q2’24	Margin Q2’25
HST	$303.8	$365.3	+20%	$84.2	$95.0	27.7%	26.0%
FMT	$319.4	$310.9	-3%	$107.7	$108.7	33.7%	35.0%
FSDP	$185.4	$191.5	+3%	$53.8	$56.4	29.0%	29.4%

KPIs and cash metrics

KPI	Q2 2024	Q1 2025	Q2 2025
Orders ($USD Millions)	$773.3	$871.9	$829.8
Operating Cash Flow ($USD Millions)	$133.6	$105.7	$161.7
Free Cash Flow ($USD Millions)	$117.7	$91.4	$146.9
OCF Conversion (%)	95%	111%	123%
FCF Conversion (%)	75%	69%	94%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Diluted EPS	FY 2025	$6.56–$6.95	$6.30–$6.44	Lowered
Adjusted Diluted EPS	FY 2025	$8.10–$8.45	$7.85–$7.95	Lowered
Organic Sales Growth	FY 2025	1%–3%	~1%	Lowered
GAAP Diluted EPS	Q3 2025	—	$1.54–$1.61	New
Adjusted Diluted EPS	Q3 2025	—	$1.90–$1.95	New
Organic Sales Growth	Q3 2025	—	2%–3%	New
Tariff Impact Assumption	FY 2025	~$100M annualized; ~⅔ recognized in 2025	~ $50M with ~⅔ recognized in 2025	Lowered
Dividend per Share	Q2 2025	$0.71 (May 30)	$0.71 (July 25)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Tariffs/Macro	Discussed $100M annualized tariff impact; price actions to offset	Choppy day rates; backlog reduction in late June; steady recovery in July; updated tariff impact ~$50M in 2025; price actions and sourcing savings to offset	Uncertainty easing slightly; assumptions lowered
Semi Lithography	Flat organic in HST; inventory adjustment at key wafer-fab customer	High-margin MSS lithography business flat; recovery delayed due to geopolitics; mixed semi exposure with metrology/optics stronger	Recovery slower; mix headwind persists
Data Center Exposure	Airtech data center thermal/power solutions emerging	Pneumatics growth tied to data center cooling; Muon optical switching win; sizing still small but growing niches	Building pipeline; early wins
Water (Municipal/Intelligent)	Strength and resilience; backlog build	Q2 timing-related softness; July release; underlying strength intact	Intact growth trajectory
Cost Actions	Platform optimization/delayering and $20M incremental containment to hedge 2H volume risk	$14M savings in Q2; tracking $62M FY; baseline productivity partly volume-dependent	On track; 2H run-rate
Capital Allocation/M&A	Active funnel; bolt-ons prioritized; accretive tuck-ins	Micro-LAM acquisition (optics forming); opportunistic tuck-ins; market thawing post tariff headlines	Bolt-ons continue; pipeline active
Regional/China	Limited exposure (~6% revenue); cautious outlook	China sluggish; small exposure; India strong	Neutral to slightly negative

Management Commentary

“The IDEX teams across all three segments delivered better than expected results in Q2 despite continued macro uncertainty” .
“We saw order recovery build through July… [but] unpredictable shifts in policy are slowing down decision making for larger orders… we are lowering our back half financial projections” .
“Adjusted EPS guidance moves to $7.85 to $7.95… we expect to fully mitigate tariff related inflation with price increases and additional sourcing and supply chain savings” .
On Mott/MSS: “Mott’s acceleration has slowed a bit this year… we’ve recalibrated its growth potential for the back half… we confirm the acquisition will be accretive exiting the year” .
On data centers: “Airtech… solutions within data center applications… fuel cell power support and thermal management via liquid cooling” .

Q&A Highlights

Semi/larger orders: Confidence improved as patterns stabilized post early-July clarity; high-margin MSS lithography likely flat near term; Mott’s acceleration moderated given paused decisions; physics limits constrain Q4 production ramp .
Tariffs: FY25 impact updated to ~$50M with ~⅔ recognized; plan to offset via 3%+ pricing and sourcing/supply chain savings; further tariffs not in guidance .
Day rates/backlog: April/May steady; backlog reductions concentrated in late June; July rebuilt to expected baseline .
Pricing capture: ~3% in Q2 (traditional + tariff-related), with acceleration as tariff pricing rolls through 2H .
Water: Timing-driven Q2 dip; July release; underlying numbers “good going forward” .
Data center revenue sizing: Important for Airtech but not yet a major corporate catalyst; early peripheral wins at Muon .

Estimates Context

Q2 2025 actual vs consensus: EPS $2.07 vs $1.99*, revenue $865.4M vs $859.4M*, EBITDA $241.0M vs $229.4M*. IDEX posted broad-based beats on all three metrics*.
Estimate counts: EPS (11), revenue (10)*. Near-term estimate adjustments likely trend lower for FY25 EPS given lowered guidance ranges and moderated 2H volume/mix expectations .

Values retrieved from S&P Global.

Key Takeaways for Investors

Q2 was resilient: record revenue and strong adjusted EPS/EBITDA despite macro/tariff noise; free cash flow conversion improved materially .
Bold beat against Street: EPS, revenue, and EBITDA all exceeded consensus; supports near-term credibility even as FY25 guide resets* .
Guidance reset reflects slower larger-order decisions and MSS mix; expect softer 2H margin trajectory vs prior plan with Q3 adjusted EPS $1.90–$1.95 and flat sequential revenue .
Tariff risk better bounded: FY25 impact updated to ~$50M with mitigation via price and sourcing; monitor potential incremental tariff announcements .
Segment dynamics: HST growth supported by pharma/space/defense/data center; FMT margin sturdy on price/productivity; FSDP steady with integrated Fire & Safety adoption .
M&A and platforms: Micro-LAM adds complementary optics capabilities; bolt-on pipeline active; platform integration remains a medium-term margin/ROIC lever .
Capital returns: Dividend maintained; buybacks accelerated ($100M 1H25); liquidity ample for balanced deployment .

IDEX CORP /DE/ (IEX)·Q2 2025 Earnings Summary