e3af1fc5baba545b0c802029b58491ae69ac347318cb720be1af6ecdf48a7783

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

4abdf7f6e92b7dbb2da699330dfcb845e6e44302833648386cab6a5280a18db6

IDEX Corporation is an applied solutions provider specializing in the manufacturing of fluid and metering technologies, health and science technologies, and fire, safety, and other diversified products **[0000832101-24-000009_iex-20231231.htm:4]** **[0000832101-24-000030_iex-20231231xex101.htm:1]** **[0001193125-24-044498_d753014ds3asr.htm:4]**. The company operates through three main segments, offering a range of products that serve various industries. IDEX's offerings include positive displacement pumps, precision fluidics, and firefighting pumps, catering to markets such as food, life sciences, and fire and rescue **[0000832101-24-000009_iex-20231231.htm:93]** **[0000832101-24-000009_iex-20231231.htm:11]**.

1. **Health & Science Technologies (HST)** - Offers precision fluidics, pneumatic components, and biocompatible medical devices, catering to markets such as life sciences and pharmaceuticals **[0000832101-24-000009_iex-20231231.htm:93]**.
2. **Fluid & Metering Technologies (FMT)** - Includes products such as positive displacement pumps, valves, and flow meters, serving industries like food, chemical, and energy **[0000832101-24-000009_iex-20231231.htm:93]**.
3. **Fire & Safety/Diversified Products (FSDP)** - Provides firefighting pumps, rescue tools, and dispensing equipment for paints, serving the fire and rescue industry and various commercial applications **[0000832101-24-000009_iex-20231231.htm:11]**.

56bf4e8cba49fa0c9c1a80447a17bf3fc0c186a3194efd72e1e427f9c57328f0

| Geographical Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| **U.S.** (in millions) | **$415.8**  **[0000832101-23-000019_iex-20230331.htm:10]**  | **$425.9**  **[0000832101-23-000034_iex-20230630.htm:13]**  | **$402.0**  **[0000832101-23-000048_iex-20230930.htm:14]**  | N/A | **$397.6**  **[0000832101-24-000016_iex-20240331.htm:9]**  | **$407.5**  **[0000832101-24-000044_iex-20240630.htm:11]**  | **$397.3**  **[0000832101-24-000055_iex-20240930.htm:13]**  |
| **North America, excluding U.S.** (in millions) | **$33.1**  **[0000832101-23-000019_iex-20230331.htm:10]**  | **$34.2**  **[0000832101-23-000034_iex-20230630.htm:13]**  | **$27.5**  **[0000832101-23-000048_iex-20230930.htm:14]**  | N/A | **$29.3**  **[0000832101-24-000016_iex-20240331.htm:9]**  | **$30.9**  **[0000832101-24-000044_iex-20240630.htm:11]**  | **$33.2**  **[0000832101-24-000055_iex-20240930.htm:13]**  |
| **Europe** (in millions) | **$224.8**  **[0000832101-23-000019_iex-20230331.htm:10]**  | **$205.1**  **[0000832101-23-000034_iex-20230630.htm:13]**  | **$197.3**  **[0000832101-23-000048_iex-20230930.htm:14]**  | N/A | **$207.9**  **[0000832101-24-000016_iex-20240331.htm:9]**  | **$200.1**  **[0000832101-24-000044_iex-20240630.htm:11]**  | **$190.5**  **[0000832101-24-000055_iex-20240930.htm:13]**  |
| **Asia** (in millions) | **$135.1**  **[0000832101-23-000019_iex-20230331.htm:10]**  | **$142.0**  **[0000832101-23-000034_iex-20230630.htm:13]**  | **$129.9**  **[0000832101-23-000048_iex-20230930.htm:14]**  | N/A | **$131.1**  **[0000832101-24-000016_iex-20240331.htm:9]**  | **$131.8**  **[0000832101-24-000044_iex-20240630.htm:11]**  | **$138.1**  **[0000832101-24-000055_iex-20240930.htm:13]**  |
| **Other** (in millions) | **$38.4**  **[0000832101-23-000019_iex-20230331.htm:10]**  | **$42.2**  **[0000832101-23-000034_iex-20230630.htm:13]**  | **$38.2**  **[0000832101-23-000048_iex-20230930.htm:14]**  | N/A | **$35.9**  **[0000832101-24-000016_iex-20240331.htm:9]**  | **$38.3**  **[0000832101-24-000044_iex-20240630.htm:11]**  | **$40.7**  **[0000832101-24-000055_iex-20240930.htm:13]**  |

3529e37759cf14f6a942da7531a8a9c275b3593e268070b42f635ca92eac4f9d

2d3c909a520f86495100156c62326588c8d8d0dc4f9106d6618bf6d041fce4dc

| Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Fluid & Metering Technologies (FMT) [USD Million]** | **287.8**  **[0000832101-23-000004_iex-20230131xex991.htm:3]**  | **321.8**  **[0000832101-23-000017_q12023earningsslides.htm:4]** **[0000832101-23-000019_iex-20230331.htm:9]**  | **325.1**  **[0000832101-23-000032_iex-20230630xex991.htm:1]**  | **301.1**  **[0000832101-23-000048_iex-20230930.htm:13]**  | **299.1**  **[0000832101-24-000004_iex-20240206xex991.htm:3]**  | **313.7**  **[0000832101-24-000013_iex-20240331xex991.htm:2]**  | **319.4**  **[0000832101-24-000044_iex-20240630.htm:10]**  | **300.8**  **[0000832101-24-000055_iex-20240930.htm:11]**  |
| **Health & Science Technologies (HST) [USD Million]** | **353.0**  **[0000832101-23-000004_iex-20230131xex991.htm:3]**  | **351.0**  **[0000832101-23-000017_q12023earningsslides.htm:4]** **[0000832101-23-000019_iex-20230331.htm:9]**  | **339.5**  **[0000832101-23-000032_iex-20230630xex991.htm:2]**  | **313.2**  **[0000832101-23-000048_iex-20230930.htm:13]**  | **312.7**  **[0000832101-24-000004_iex-20240206xex991.htm:3]**  | **310.1**  **[0000832101-24-000013_iex-20240331xex991.htm:2]**  | **303.8**  **[0000832101-24-000044_iex-20240630.htm:10]**  | **311.0**  **[0000832101-24-000055_iex-20240930.htm:11]**  |
| **Fire & Safety/Diversified Products (FSDP) [USD Million]** | **170.9**  **[0000832101-23-000004_iex-20230131xex991.htm:3]**  | **174.4**  **[0000832101-23-000017_q12023earningsslides.htm:4]** **[0000832101-23-000019_iex-20230331.htm:9]**  | **184.8**  **[0000832101-23-000034_iex-20230630.htm:33]**  | **180.6**  **[0000832101-23-000048_iex-20230930.htm:13]**  | **179.0**  **[0000832101-24-000004_iex-20240206xex991.htm:4]**  | **178.0**  **[0000832101-24-000013_iex-20240331xex991.htm:2]**  | **185.4**  **[0000832101-24-000044_iex-20240630.htm:10]**  | **188.0**  **[0000832101-24-000055_iex-20240930.htm:11]**  |

ecb6364b26a3f4591d5781258cc5d78f2350bf4d65fa1a5a439769ae69249f92

1. Given the **pullback in project commitments due to economic and political uncertainties**, how confident are you in your ability to **meet your guidance for the back half of the year**, and what **specific measures** are you taking to mitigate these risks?
2. With the **semiconductor market not yet turning into accelerating releases or increased order positions**, and recent **deferments** in that area, how are you adjusting your strategies within the **HST segment** to address these challenges?
3. Considering that **life sciences and analytical instrumentation markets are unlikely to see positive inflection until 2025**, what initiatives are in place to **drive growth and maintain profitability** in these segments until the market recovers?
4. You've mentioned **stable daily order rates but a pullback in project commitments**; can you elaborate on the discrepancy between the relatively optimistic demand outlook and the **more severe drop in organic trends for the second half**?
5. How do you anticipate the recent acquisitions of **Mott Corporation** and **Subterra** will contribute to your **growth and EBITDA margin expansion**, especially in light of current **market pressures** in your key segments?

736b7a650517d0c24f2a2464d05be6a7400ca80907feb9bc21d7a0c9a3a46152

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

cdd90afa486bba2df5f70b790e314ad84f030141ca797c26eb505974f976f214

U.S.

North America

North America, excluding U.S.

Europe

Asia

Other

Other (South America, Middle East, Australia, and Africa)

Intersegment elimination

Total Revenue

28a1fe1f5937878c0790390c9f912ffeb8952bc12fd10715cf3f9126b7a550f5

- **Dover Corporation**: Principal competitor in the FMT segment with respect to pumps and small horsepower compressors used in liquefied petroleum gas distribution facilities, rotary gear pumps, and air-operated double-diaphragm pumps  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Ingersoll Rand's Precision and Science Technologies (PST) division**: Competitor in the FMT segment with respect to metering, control, rotary gear pumps, and air-operated double-diaphragm pumps  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Thomas division of Ingersoll Rand**: Competitor in the HST segment with respect to vacuum pumps and compressors  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Parker Hannifin**: Competitor in the HST segment with respect to sealing devices  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Valco Instruments Co., Inc.**: Competitor in the HST segment with respect to connections, degassers, and valves  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Alluxa**: Competitor in the HST segment with respect to filters  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Jenoptik**: Competitor in the HST segment with respect to optical assemblies in life sciences  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Tecan Trading AG**: Competitor in the HST segment with respect to the life science fluidics market  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Waterous Company, a unit of American Cast Iron Pipe Company**: Competitor in the FSDP segment with respect to truck-mounted firefighting pumps  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Holmatro, Inc.**: Competitor in the FSDP segment with respect to rescue tools  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Corob S.p.A.**: Competitor in the FSDP segment with respect to dispensing and mixing equipment for the paint industry  **[0000832101-24-000009_iex-20231231.htm:12]** .
- **Panduit Corporation**: Competitor in the FSDP segment with respect to stainless steel bands, buckles, and clamping systems  **[0000832101-24-000009_iex-20231231.htm:12]** .

c362ab8890e9aac35dd479ec93fdd30508e29612468721d5fe042bdb8b3f836d

Change in organic net sales for FMT (percent)

Change in organic net sales for HST (percent)

Change in organic net sales for FSDP (percent)

Change in organic net sales for total (percent)

Free cash flow (USD millions)

f568c90c5a1a1220a86582fcf99e5f2756a9c5007e19b705504314b868501442

2e342759412c809f6f424e7d728864a1b7ca1f27f906527d3b8db2fe0c97062f

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  - **Organic Sales**: Projected to increase **0 to 1%** for Q3 2024.
  - **Adjusted EBITDA Margin**: Approximately **27%** for Q3 2024.
  - **GAAP EPS**: Expected to be **$1.61 to $1.66** for Q3 2024.
  - **Adjusted EPS**: Expected to be **$1.85 to $1.90** for Q3 2024.
  - **Full Year Revenue**: Expected to decline **1% to 2%** for FY 2024.
  - **Full Year Adjusted EBITDA Margin**: Approximately **27%** for FY 2024.
  - **Full Year GAAP Diluted EPS**: **$6.85 to $6.95** for FY 2024.
  - **Full Year Adjusted EPS**: **$7.80 to $7.90** for FY 2024.
  - **Organic Sales Decline in HST**: Mid-single-digit for FY 2024.
  - **Organic Sales Growth in FMT and FSDP**: Low single-digit for FY 2024  **[IEX_3396028_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  - **Organic Sales**: Increase by **0 to 1%** for Q3 2024.
  - **Adjusted EBITDA Margin**: Approximately **27%** for Q3 2024.
  - **GAAP EPS**: **$1.61 to $1.66** for Q3 2024.
  - **Adjusted EPS**: **$1.85 to $1.90** for Q3 2024.
  - **Full Year Revenue**: Decline by **1% to 2%** for FY 2024.
  - **Full Year Adjusted EBITDA Margin**: Approximately **27%** for FY 2024.
  - **Full Year GAAP Diluted EPS**: **$6.85 to $6.95** for FY 2024.
  - **Full Year Adjusted EPS**: **$7.80 to $7.90** for FY 2024.
  - **Organic Sales Decline in HST**: Mid-single-digit for FY 2024.
  - **Organic Sales Growth in FMT and FSDP**: Low single-digit for FY 2024  **[IEX_3396028_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  - **GAAP EPS**: **$1.75 to $1.80** for Q2 2024.
  - **Adjusted EPS**: **$2.00 to $2.05** for Q2 2024.
  - **Organic Revenue Decline**: **2% to 3%** for Q2 2024.
  - **Adjusted EBITDA Margin**: Approximately **27.5%** for Q2 2024.
  - **Full Year Organic Revenue Growth**: **0% to 2%** for FY 2024.
  - **Full Year Adjusted EBITDA Margin**: Approximately **28%** for FY 2024.
  - **Full Year Adjusted EPS**: **$8.15 to $8.45** for FY 2024  **[IEX_3380608_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  - **Organic Revenue Growth**: **0% to 2%** for FY 2024.
  - **GAAP EPS**: **$7.15 to $7.45** for FY 2024.
  - **Adjusted EPS**: **$8.15 to $8.45** for FY 2024.
  - **Adjusted EBITDA Margin**: Approximately **28%** for FY 2024.
  - **Capital Expenditures**: About **$75 million** for FY 2024.
  - **Free Cash Flow**: Over **100% of adjusted net income** for FY 2024.
  - **Corporate Costs**: Approximately **$95 million** for FY 2024.
  - **Q1 2024 GAAP EPS**: **$1.45 to $1.50**.
  - **Q1 2024 Adjusted EPS**: **$1.70 to $1.75**.
  - **Q1 2024 Organic Revenue**: Decline **6% to 7%**.
  - **Q1 2024 Adjusted EBITDA Margin**: About **25%**.
  - **Price Assumptions**: **2% price increase** for FY 2024.
  - **Inventory Reduction**: **0.5 point** improvement for FY 2024  **[IEX_3372322_5]** **[IEX_3372322_18]** **[IEX_3372322_11]** .

11d4dacdfc8d2ff6496a1c3df090fa4e8de2a762a2b1723735d494fc9d0dc8af

| Name                | Position                                                   | Start Date       | Short Bio                                                                                                                                                                                                 |
|---------------------|------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Eric D. Ashleman    | Chief Executive Officer and President                      | December 2020    | Eric D. Ashleman has been serving as the **Chief Executive Officer and President** of IDEX Corporation since **December 2020**. He joined IDEX in **March 2008** as President of Gast Manufacturing  **[0001193125-24-077229_d784515ddef14a.htm:10]** **[0000832101-24-000009_iex-20231231.htm:18]** .                                     |
| Abhishek Khandelwal | Senior Vice President and Chief Financial Officer          | November 2023    | Abhishek Khandelwal serves as the **Senior Vice President and Chief Financial Officer** at IDEX Corporation. He rejoined the company in **November 2023** after previously serving in various roles from 2010 to 2020  **[0000832101-24-000009_iex-20231231.htm:18]** .                      |
| Lisa M. Anderson    | Senior Vice President, General Counsel and Corporate Secretary | February 2022    | Lisa M. Anderson has served as **Senior Vice President, General Counsel and Corporate Secretary** at IDEX Corporation since **February 2022**. She joined IDEX as Assistant General Counsel in October 2016  **[0000832101-24-000009_iex-20231231.htm:18]** .                                |
| Melissa S. Flores   | Senior Vice President and Chief Human Resources Officer    | February 2021    | Melissa S. Flores has served as the **Senior Vice President and Chief Human Resources Officer** at IDEX since **February 2021**. She was previously the Global Vice President of Talent from May 2019 through February 2021  **[0000832101-24-000009_iex-20231231.htm:18]** .               |
| Roopa Unnikrishnan  | Senior Vice President, Strategy and Corporate Development  | March 2022       | Roopa Unnikrishnan has served as the **Senior Vice President, Strategy and Corporate Development** at IDEX since **March 2022**. Prior to joining IDEX, she was the Chief Strategy Officer at Vontier from October 2020 to July 2021  **[0000832101-24-000009_iex-20231231.htm:18]** .       |

d6526b959b6317ba88f73ba2e87701c643f0e7bce29157fe59122dcfa7c9ad95

| Program Details          | Program 1          | Program 2          |
|--------------------------|--------------------|--------------------|
| Approval Date            | December 1, 2015  **[0000832101-24-000055_iex-20240930.htm:20]**  | March 17, 2020  **[0000832101-24-000055_iex-20240930.htm:20]**  |
| End Date/Duration        | No expiration date  **[0000832101-24-000055_iex-20240930.htm:20]**  | No expiration date  **[0000832101-24-000055_iex-20240930.htm:20]**  |
| Total additional amount  | **$300.0 million**  **[0000832101-24-000055_iex-20240930.htm:20]**  | **$500.0 million**  **[0000832101-24-000055_iex-20240930.htm:20]**  |
| Remaining authorization amount | **$0.0 million**  **[0000832101-24-000055_iex-20240930.htm:34]**  | **$539.7 million**  **[0000832101-24-000055_iex-20240930.htm:34]**  |
| Details                  | No share repurchases during the nine months ended September 30, 2024  **[0000832101-24-000055_iex-20240930.htm:34]**  | Part of a disciplined approach to capital allocation; funded through future cash flow or borrowings  **[0000832101-24-000055_iex-20240930.htm:20]**  |

f51ab5863fc19f88b747ba4d6066367e1ccb6bde03efc5207bb940568882ebf7

**Quarterly guidance for Q3 2024:**
- Organic Sales: 0 to 1%  **[IEX_3396028_4]** (no change from prior guidance   )  
- Adjusted EBITDA Margin: 27%  **[IEX_3396028_4]** (no change from prior guidance   )  
- GAAP EPS: $1.61 to $1.66  **[IEX_3396028_4]** (no change from prior guidance   )  
- Adjusted EPS: $1.85 to $1.90  **[IEX_3396028_4]** (no change from prior guidance   )  

**Annual guidance for FY 2024:**
- Full Year Revenue: decline 1% to 2%  **[IEX_3396028_4]** (no change from prior guidance   )  
- Full Year Adjusted EBITDA Margin: 27%  **[IEX_3396028_4]** (no change from prior guidance   )  
- Full Year GAAP Diluted EPS: $6.85 to $6.95  **[IEX_3396028_4]** (no change from prior guidance   )  
- Full Year Adjusted EPS: $7.80 to $7.90  **[IEX_3396028_4]** (no change from prior guidance   )  
- Organic Sales Decline in HST: mid single-digit  **[IEX_3396028_4]** (no change from prior guidance   )  
- Organic Sales Growth in FMT and FSDP: low single-digit  **[IEX_3396028_4]** (no change from prior guidance   )  

baa7c0c08392ab7ca896c6ea444b143b27bacd33acfd3a7dfa12f46da23b7b01

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1987       | Present  | Current auditor   |  **[0000832101-24-000009_iex-20231231.htm:56]**  |

73635506945c49aa9c813b938a89d2111e7981434ac44e2513ee1f2fe19e9be0

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

9f1d359710aa70c60fab41bee57c5f8ff8ddabd9326917c39f68240716c5506a

| Year  | Amount Due (in millions) | Debt Type                  | Interest Rate (%) | % of Total Debt Calculation                                                                 |
|-------|--------------------------|----------------------------|-------------------|--------------------------------------------------------------------------------------------|
| 2024  | $0.6                    | Current Portion of Long-Term Borrowings | N/A               | 0.03% = (0.6 / 2087.4) * 100 **[0000832101-24-000055_iex-20240930.htm:17]**                                                      |
| 2025  | $100.0                  | 3.37% Senior Notes         | 3.37              | 4.8% = (100.0 / 2087.4) * 100 **[0000832101-24-000055_iex-20240930.htm:17]**                                                     |
| 2027  | $800.0                  | Revolving Facility         | 4.72 (weighted avg) | 38.3% = (800.0 / 2087.4) * 100 **[0000832101-24-000055_iex-20240930.htm:17]**                                                   |
| 2028  | $100.0                  | 5.13% Senior Notes         | 5.13              | 4.8% = (100.0 / 2087.4) * 100 **[0000832101-24-000055_iex-20240930.htm:17]**                                                     |
| 2029  | $500.0                  | 4.950% Senior Notes        | 4.950             | 23.9% = (500.0 / 2087.4) * 100 **[0000832101-24-000055_iex-20240930.htm:17]** **[0000832101-24-000055_iex-20240930.htm:18]**                                            |
| 2030  | $500.0                  | 3.00% Senior Notes         | 3.00              | 23.9% = (500.0 / 2087.4) * 100 **[0000832101-24-000055_iex-20240930.htm:17]**                                                   |
| 2031  | $500.0                  | 2.625% Senior Notes        | 2.625             | 23.9% = (500.0 / 2087.4) * 100 **[0000832101-24-000055_iex-20240930.htm:17]**                                                   |

1cc523b556a79a9ea8d1571ebc822ac1c1131ca5aad70683120618f77b752497

d18359fc475af293514ecb0dcb5926c77fbd90a5dd5c1292bde0160c8fffcf8b

1. **HST Orders and Market Outlook**  
   **Q:** Is there improvement in HST orders indicating market recovery?  
   **A:** Yes, HST orders grew **20% organically**, with about half from blanket orders and half from straight demand.  **[IEX_3404672_11]**  Life sciences remain stable, and we're seeing sequential improvement in semiconductor markets, though not yet at an inflection point.  **[IEX_3404672_11]**  The segment posted the highest order number for the year and built some backlog, signaling optimism as we move away from baseline stability.  **[IEX_3404672_11]** 

2. **Future Growth Expectations**  
   **Q:** How do you view growth after market recovery and impact of portfolio reshaping?  
   **A:** With our portfolio increasingly weighted toward faster-growing markets, especially in HST which is becoming our largest segment, we expect to be a **mid-single-digit organic grower plus**.  **[IEX_3404672_13]**  Adding inorganic growth from acquisitions could take us to **higher single-digit growth**.  **[IEX_3404672_13]**  This should result in strong flow-through due to high-margin businesses, leading to **double-digit earnings expansion**.  **[IEX_3404672_13]** 

3. **HST Margins and Acquisitions**  
   **Q:** How will margins in HST be impacted by subsegments and acquisitions like Mott?  
   **A:** HST margins were down **40 basis points** year-over-year on a **5% organic sales decline**, demonstrating effective cost management.  **[IEX_3404672_18]**  With the Mott acquisition starting at low **20% EBITDA**, we have a clear plan to generate **400 to 600 basis points** of margin improvement in the next 12 to 18 months.  **[IEX_3404672_18]**  Coupled with future organic growth, we expect HST to become a low **30% EBITDA** business.  **[IEX_3404672_18]** 

4. **Energy Market Softness in FMT**  
   **Q:** What dynamics are affecting energy markets in FMT, moving from stable to soft?  
   **A:** The softness is partly due to prior backlog normalization and partly market pressure.  **[IEX_3404672_14]**  We focus on downstream work in energy, and overhang from a **really warm winter** has affected the sector.  **[IEX_3404672_14]**  Going forward, overall health of the energy sector will influence CapEx deployment downstream, benefiting our business if conditions improve.  **[IEX_3404672_14]** 

5. **Progress on Mott Acquisition**  
   **Q:** Is the Mott acquisition integration ahead of schedule, potentially pulling forward accretion targets?  
   **A:** While it's early days, only **six weeks** into the acquisition, integration is progressing well.  **[IEX_3404672_21]**  The reality matches our expectations, and we're pleased with the fast integration of teams.  **[IEX_3404672_21]**  However, it's too soon to adjust accretion targets for **2025 versus 2026**.  **[IEX_3404672_21]** 

6. **Geographic Trends**  
   **Q:** Are there meaningful differences in trends between domestic and international markets?  
   **A:** **North America is leading significantly**, driving much of our performance.  **[IEX_3404672_15]**  Europe shows reasonable stability but lags behind.  **[IEX_3404672_15]**  **India is performing very well**, though it's a smaller part of IDEX.  **[IEX_3404672_15]**  **China trails** but remains positive for us, as we take a selective approach in that market.  **[IEX_3404672_15]** **[IEX_3404672_17]** 

7. **Supply Chain and Tariffs Preparedness**  
   **Q:** How are you positioned if tariffs return, and how is supply chain resilience?  
   **A:** We're more localized in ideation and production, reducing cross-border dependencies.  **[IEX_3404672_19]**  While some base-level commodities involve cross-border shipments, much of our work is **within country**, which positions us well against potential tariff impacts.  **[IEX_3404672_19]** 

8. **Buyer Behavior and Channel Inventory**  
   **Q:** Has channel inventory liquidation run its course, affecting 2025 outlook?  
   **A:** Inventory dynamics in HST have improved, suggesting we're moving from stability toward growth.  **[IEX_3404672_16]**  While the rate of inflection remains uncertain, positive order patterns across the life sciences indicate a better position heading into **2025**.  **[IEX_3404672_16]** 

9. **EBITDA Bridge and Investments**  
   **Q:** What's behind the $12 million resource investment and discretionary expense increase?  
   **A:** The **$12 million** headwind comprises one-third higher M&A spend due to the Mott acquisition, one-third related to timing of stock compensation, and the rest from discretionary spending on customer-facing travel and growth initiatives.  **[IEX_3404672_20]** 

10. **Digital Transformation Efforts**  
    **Q:** How are you evolving operations with the shift from analog to digital processes?  
    **A:** We're scaling digital initiatives, especially in FMT, enhancing customer interactions and leading in knowledge transfer automation.  **[IEX_3404672_24]**  In our fire and water businesses, we're integrating digital functionality to improve offerings and address industry challenges.  **[IEX_3404672_24]** 

d0801c90628ba568d6b6f0d8a9a994bcd9a415a161fa9d9d2d9b806b3e147c55

1. **Long-term Organic Growth Outlook**  
   **Q:** Confident in higher organic growth going forward?  
   **A:** Eric is confident in targeting **mid-single-digit organic growth**, leveraging faster-growing markets and capital deployment to outpace prior **3–4%** rates. They aim for **200–300 bps** of outperformance, focusing on portfolio enhancement and growth initiatives.  **[IEX_3372322_23]** 

2. **Life Sciences Recovery Timing**  
   **Q:** When will life sciences segment recover?  
   **A:** Eric stated they are conservatively planning for flat performance in life sciences for 2024 but are ready if recovery starts in the second half. He acknowledged customer expectations of inventory normalization by midyear but prefers cautious internal forecasting.  **[IEX_3372322_15]** 

3. **HST Cost Management and Margins**  
   **Q:** Is HST cost structure set for margin expansion?  
   **A:** Abhi confirmed comfort with current cost levels in HST, expecting margins to expand as volumes return. They've managed costs carefully, protecting core expertise, and are positioned to leverage demand recovery efficiently.  **[IEX_3372322_20]** 

4. **Segment Margin Outlook**  
   **Q:** Expectations for segment margins in 2024?  
   **A:** Abhi expects HST margins to approach **30%** as volumes increase, slight margin expansion in FMT, and slight contraction in FSDP margins due to mix pressure from the dispensing business.  **[IEX_3372322_22]** 

5. **2024 Guidance and Market Stability**  
   **Q:** How is guidance set amidst market conditions?  
   **A:** Eric described normal seasonality and early signs of growth, with stability in Q4 and a positive start in January across all segments. Guidance reflects cautious optimism, with growth bets positioned and expectations of sequential improvements.  **[IEX_3372322_12]** 

6. **Price Capture and Future Pricing**  
   **Q:** Will price increases remain above historical levels?  
   **A:** Abhi anticipates price increases in 2024 to be around **2%**, settling between pre-pandemic levels and recent highs. Eric views price capture as a competitive advantage, expecting pricing to remain slightly above historical norms as long as core inflation stays elevated.  **[IEX_3372322_24]** 

7. **Positive Trends in Short-Cycle Businesses**  
   **Q:** How are short-cycle businesses performing?  
   **A:** Eric noted that key short-cycle businesses like BAND-IT, Gast, and Warren Rupp are all moving positively together, signaling healthier demand and underpinning confidence in the outlook.  **[IEX_3372322_17]** 

8. **M&A Opportunities**  
   **Q:** Update on M&A prospects?  
   **A:** Eric stated that M&A remains a significant focus with increased potential. Improvements in the market may enhance the availability of targets, and they are confident in their ability to deploy capital effectively.  **[IEX_3372322_13]** 

9. **Energy Transition Demand**  
   **Q:** What growth is seen from energy transition?  
   **A:** Eric highlighted strong demand in areas like battery manufacturing, alternative energy solutions, and mining, driven by the energy transition. This includes involvement in material handling for batteries and thermal management in alternative energy applications across regions.  **[IEX_3372322_19]** 

10. **Customer CapEx Outlook**  
    **Q:** Has customer CapEx sentiment changed?  
    **A:** Eric observed early positive signs of increased capital deployment among customers, particularly in water, energy, and pharma sectors. While still in early days, indications point to more intentional capital spending on projects.  **[IEX_3372322_21]** 

d6a774c4d2f2b011d2a4003dc6348cea5f54ede0ab9949a3f4f1beac156891b6

1. **Change in Guidance**  
   **Q:** What's driving the change in guidance?  
   **A:** The guidance change is due to delays in semiconductor launches in HST and project pushouts, mainly caused by inflation uncertainty and geopolitical issues. This led to deferments and longer approval loops, affecting orders in FMT and HST. Management remains optimistic these issues will resolve.  **[IEX_3396028_6]** 

2. **Project Pushouts Concerns**  
   **Q:** Will project delays extend into 2025?  
   **A:** Management is confident that project delays won't push into 2025. They attribute the delays to uncertainties around interest rates and the upcoming U.S. election. They believe these factors will be resolved, and past cycles suggest a strong rebound once uncertainties clear.  **[IEX_3396028_11]** 

3. **Market Recovery Outlook**  
   **Q:** How will the recovery curve play out?  
   **A:** Management expects a potentially aggressive recovery once uncertainties around interest rates and geopolitical situations are resolved. There's optimism, especially in Life Sciences and Analytical Instrumentation, that they're nearing the end of a flat cycle, with signs like accelerating drug discovery and innovation. Semiconductors may see a strong cycle in **2025**.  **[IEX_3396028_7]** 

4. **Life Sciences Destocking**  
   **Q:** Is life sciences destocking over?  
   **A:** While it's uncertain, there are positive signs suggesting destocking may be ending. They've noticed more optimistic customer conversations and indications like accelerated drug trials. However, they're holding the line on guidance and expect a potential turn in **2025**.  **[IEX_3396028_12]** 

5. **HST Revenue Improvement**  
   **Q:** What's driving HST revenue uptick in H2?  
   **A:** Deferred projects are expected to materialize in the back half, particularly in semiconductors. Management is confident milestone-based HST programs will hit, contributing to revenue improvement.  **[IEX_3396028_10]** 

6. **HST Margin Expansion**  
   **Q:** Can HST margins return to 30%?  
   **A:** Margin improvement depends on volume growth, but they've improved margins by **180 basis points** sequentially through 80/20 initiatives and cost reductions, despite minimal volume help. They expect HST EBITDA margins to be around **28%** exiting Q4.  **[IEX_3396028_18]** 

7. **Discretionary Spending**  
   **Q:** Any changes to growth investments?  
   **A:** Management maintains a steady approach to growth investments, focusing on people and innovation. They're reallocating resources through 80/20 initiatives without increasing spend. Discretionary spend is down in FSDP and HST, up in FMT due to digitization efforts.  **[IEX_3396028_13]** 

8. **Free Cash Flow Confidence**  
   **Q:** How confident are you in hitting FCF targets?  
   **A:** They're highly confident in achieving over **100%** free cash flow conversion for the year. Focused on inventory reduction aligned with top-line trends, they expect this to drive working capital and meet cash flow targets.  **[IEX_3396028_8]** 

9. **Fire OEM Demand**  
   **Q:** What's behind the positive FSDP orders?  
   **A:** **6%** organic order growth in FSDP is driven by strong North America Fire OEM demand. Dispensing orders can be choppy, but current growth is tied to Fire OEMs.  **[IEX_3396028_9]** 

10. **Price Capture and Book-to-Bill**  
    **Q:** How did price capture and book-to-bill fare?  
    **A:** Achieved price capture of **2%** with a price/cost spread of **100 bps**, hitting the high end of their target. Book-to-bill was **0.96** in Q2 versus **1.02** in Q1, affected by timing of blanket orders. They're watching book-to-bill ratios into year-end for 2025 revenue.  **[IEX_3396028_14]** 

11. **Inventory Levels**  
    **Q:** Is inventory drawdown complete?  
    **A:** Component inventory levels with customers are typical, but finished goods inventory beyond customers is less clear. Demand has held flat, and they don't see inventory as a significant driver going forward, looking for a potential upturn in **2025**.  **[IEX_3396028_15]** 

12. **Municipal Water Outlook**  
    **Q:** What's the outlook for municipal water business?  
    **A:** The municipal water cycle is expected to continue for a while due to prolonged funding and complex projects. They view it as a multi-year "safety blanket" with much of the announced funding yet to be spent or engineered.  **[IEX_3396028_19]** 

13. **Order Expectations**  
    **Q:** Will FMT and HST orders improve in H2?  
    **A:** Yes, orders are expected to improve sequentially in dollars from first half to second half, as guided.  **[IEX_3396028_16]** 

14. **Backlog and Deliveries**  
    **Q:** Are customers delaying deliveries or canceling?  
    **A:** No significant delays or cancellations. They've returned to typical backlog profiles after pandemic-related changes, with half a quarter's orders assured. Lead times and replenishment are typical across all segments.  **[IEX_3396028_17]** 

15. **Project Delay Causes**  
    **Q:** What's causing project delays?  
    **A:** Delays are due to general uncertainties around inflation, interest rates, and political polarization in North America. These are not tied to specific government policies but are general concerns affecting spending decisions.  **[IEX_3396028_20]** 

16. **Rate-Sensitive Businesses**  
    **Q:** Which FMT businesses indicate market health?  
    **A:** FMT's rate-sensitive businesses include pumps and valves sold through distribution for broad industrial use. Rapid fulfillment provides insights into consumptive activities. Day-to-day rates are steady, but project work is delayed due to uncertainties.  **[IEX_3396028_21]** 

fafd6d84081f97a4daef73b68723f1b5866a3ebb143411f57d6bf6820cbcc282

- **Delays in Recovery of Key Markets:** IDEX's Health & Science Technologies (HST) segment is experiencing a delayed recovery in key markets such as life sciences and analytical instrumentation, which remain flat and are awaiting signs of improvement. The anticipated rebound in the semiconductor sector is not expected until **2025**  **[IEX_3380608_10]** **[IEX_3380608_5]** , which could suppress growth in these critical segments.
- **Margin Compression in HST Segment:** The HST segment is operating with margins well below peak levels due to lower volumes and underutilization. The company acknowledges that margin normalization, aiming for approximately **30% EBITDA margins**, depends on the volume recovery in life sciences and semiconductor markets  **[IEX_3380608_12]** **[IEX_3380608_6]** **[IEX_3380608_13]** , which may not materialize in the near term.
- **Uncertainty in International Markets, Particularly China:** There are significant concerns about the impact of China's regulatory environment and lack of stimulus on IDEX's growth prospects. China was previously a high catalyst for growth, and uncertainty in this market presents a risk to the company's performance.  **[IEX_3380608_14]**

a9a3ce040079b7f451917acc19156dd98d2d2d5f3bd29b32c3f209ad10e4161e

- **IDEX management anticipates a recovery in the semiconductor market starting in 2024, suggesting potential growth in the High Sensitivity Technology (HST) segment.**  **[IEX_3362349_17]**
- **The Fluid & Metering Technologies (FMT) segment is achieving strong margins despite declining organic sales, demonstrating effective cost management and operational efficiency.**  **[IEX_3362349_21]**
- **Leadership expresses confidence in IDEX's portfolio and agility, believing the company is well-positioned to capitalize on favorable market dynamics when they return.**  **[IEX_3362349_27]**

42eeaeaa0a2d9019afcf1890584af98341236b4f80334518146e300c89d9b5a6

- **IDEX Corporation is well-positioned to capitalize on growth in the semiconductor industry, particularly with the rise of AI, as they have expanded their technical capabilities to support the highest quality semiconductor technologies.**  **[IEX_3380608_18]**
- **The company expects significant margin expansion in their Health & Science Technologies (HST) segment, with adjusted EBITDA margins projected to return to approximately 30% as volumes recover, driven by strong operating leverage and thoughtful rightsizing during the downturn.**  **[IEX_3380608_6]** **[IEX_3380608_13]**
- **IDEX is pursuing strategic acquisitions to complement and amplify their organic growth initiatives, focusing on high-growth areas such as intelligent water technologies and thin-film optics, which enhances their competitive position in transformative markets.**  **[IEX_3380608_16]**

905029b3b00692a82f591c1b9396031ea1b922d57cca2067a6f699ec39dac720

- IDEX is heavily investing in its **HST segment**, both organically and inorganically, as a key element of their strategy, positioning the company for future growth in foundational markets like **Life Science & Analytical Instrumentation** and **advanced semiconductor manufacturing**.  **[IEX_3396028_21]**
- The acquisition of **Mott Corporation** completes the build of their HST segment, allowing IDEX to leverage **applied material science technology** in **high-quality application areas**, setting critical specification points that will position them for leadership in markets that will shape their future.  **[IEX_3396028_21]**
- The core **day-to-day rates** in their **Fluid & Metering Technologies (FMT) segment** are **steady** and supportive of **strong and relatively stable industrial activity**, providing a solid foundation for future growth as uncertainty decreases and project-driven opportunities arise.  **[IEX_3396028_6]** **[IEX_3396028_21]**

4b5ec7b225877a2ea4d8dd999ac179cc3f3e39702f35cb83ab65a55475ec5f01

- **Anticipated growth in the semiconductor market did not materialize into orders, with late deferments in Q2 impacting the HST segment's performance.**  **[IEX_3396028_6]**
- **Project commitments are being delayed due to economic uncertainty, affecting future growth prospects in the FMT and HST segments.**  **[IEX_3396028_21]** ,  **[IEX_3396028_6]**
- **The book-to-bill ratio decreased from 1.02 in Q1 to 0.96 in Q2, indicating weaker orders relative to revenue and potential weakening demand.**  **[IEX_3396028_14]**

fa3b6ccfc3fbe39d3fe56d97531c80c3792e1b4ebe296f7277a1fa389aabcb64

- **IDEX is seeing early signs of recovery in the vast majority of its end markets**, with **short-cycle businesses starting to move together**, indicating a positive outlook for growth in 2024 and beyond.  **[IEX_3372322_3]**
- The company is **targeting mid-single-digit organic growth**, investing in faster-growing markets and leveraging portfolio adjustments, aiming for **200 to 300 basis points of outperformance** over market growth rates.  **[IEX_3372322_16]**
- **Strong innovation capabilities and customer relationships**, particularly in the life sciences and analytical instrumentation sectors, position IDEX well for **long-term success and growth** as markets recover.  **[IEX_3372322_10]**

7847eaeba88bc457a6a2af1b25e2668bd712076f9e5ea7993f3062f1ea3fa80b

- **Margin Pressure Expected in FSDP Segment:** IDEX anticipates slight margin erosion in its Fire and Safety/Diversified Products (FSDP) segment due to mix pressure from the completion of the big box retail refresh cycle, impacting margins in 2024.  **[IEX_3372322_22]**
- **Uncertainty in Life Sciences Recovery Impacting HST Segment:** The company remains cautious about recovery in its life sciences and analytical instrumentation markets and is not forecasting significant growth in 2024, despite industry expectations of a second-half rebound. This could affect the performance of the Health and Science Technologies (HST) segment.  **[IEX_3372322_15]**
- **Declining Pricing Momentum May Pressure Margins:** Pricing gains decreased from approximately **4% in Q4** to an expected **2% in 2024**, which is lower than prior periods. Reduced price increases could lead to margin pressures if input costs remain elevated.  **[IEX_3372322_18]**

bbd8fb032aae8dae80fd312f2e3887e295b974e60f1ab3ed8bb6ad6383342f2d

1. **HST Margin Outlook**  
   **Q:** What is the expected margin normalization for HST segment?  
   **A:** Management expects HST margins to return to **30% EBITDA** once volumes rebound, particularly in life sciences and semiconductor end markets.  **[IEX_3380608_6]** 

2. **HST Incremental Margins**  
   **Q:** What incrementals should we expect in HST as volume returns?  
   **A:** Incremental margins in HST are expected to be **35-40%**, or potentially higher, due to careful management of highly-skilled labor and investment in the business during the downturn.  **[IEX_3380608_13]** 

3. **Market Outlook Unchanged**  
   **Q:** Has anything changed in the market outlook since last guidance?  
   **A:** Management sees little change in the market outlook, with broad but modest support in industrial markets and awaiting growth in higher-potential areas like life sciences and semiconductors; they observe sensitivity due to inflation, interest rates, and elections.  **[IEX_3380608_5]** 

4. **Life Sciences Destocking**  
   **Q:** When will destocking in life sciences and analytical instruments end?  
   **A:** Visibility is limited, but management believes inventory between them and factories has cleared; any early signs of recovery will align quickly due to their fast replenishment cycles.  **[IEX_3380608_8]** **[IEX_3380608_11]** 

5. **HST Orders and Destocking**  
   **Q:** Are customer inventories in HST right-sized now?  
   **A:** In the industrial half of HST, destocking trends are largely past; in life sciences and analytical instrumentation, it's harder to see, but there may be some remaining effects; overall, half the segment appears clear.  **[IEX_3380608_11]** 

6. **Impact of China on HST**  
   **Q:** Should we adjust the potential outlook for HST due to international factors like China?  
   **A:** China's position is a significant factor, with regulatory issues and lack of stimulus affecting growth; however, technology advancements provide offsetting opportunities globally; long-term demand remains assured.  **[IEX_3380608_14]** 

7. **M&A Pipeline Focus**  
   **Q:** What is the status and focus of the M&A pipeline?  
   **A:** IDEX is seeking complementary acquisitions in areas like optics, water, and material-intensive processing; despite high valuations, they remain disciplined and focus on proprietary deals with synergies.  **[IEX_3380608_16]** 

8. **Price vs. Cost Dynamics**  
   **Q:** How did price versus cost play out in the quarter and expectations ahead?  
   **A:** They achieved a price/cost spread close to **100 basis points**, on the high end of expectations; input costs are slightly favorable compared to prior assumptions, with pricing for 2024 around **2%**, higher than historical levels.  **[IEX_3380608_9]** 

9. **Industrial Health Indicators**  
   **Q:** What are you seeing in bellwether businesses like BAND-IT and Warren Rupp?  
   **A:** Bellwether businesses showed strong performance in January and February, a pullback in March, and stabilization in April; the supply chain normalization leads to faster demand swings.  **[IEX_3380608_7]** 

10. **Municipal Water Cycle**  
    **Q:** What is the outlook for the municipal water and wastewater cycle?  
    **A:** Management expects a durable, multi-year cycle driven by intentional funding and infrastructure needs; IDEX is well-positioned early in the cycle due to their role in infrastructure analysis.  **[IEX_3380608_17]** 

11. **Semiconductor and AI Exposure**  
    **Q:** What's your exposure to semiconductors amid the AI shift?  
    **A:** Semiconductor is a growing but modest part of IDEX; they focus on challenging areas like lithography instruments and metrology, positioning well for trends in chip architecture and packaging.  **[IEX_3380608_18]** 

43b26d1a902c8e22d0f3f0540cb488b05ff54bd1b2038b716a5619b28faa03a9

- **Low book-to-bill ratio below 1** in the **HST segment** indicates potential for organic decline in 2024 unless orders improve soon.  **[IEX_3362349_26]**
- **Recovery in the semiconductor market is delayed further into 2024**, which may impact growth in that segment.  **[IEX_3362349_17]**
- The company anticipates that the current **favorable price-cost spread** supporting margins **"is probably not going to continue out into the future"**, and **deleveraging is tough** if business trends negative, potentially affecting operating margins.  **[IEX_3362349_22]**

692ad7398d53cb6d6d44b2a421585027fea19b9a955f6c4e2ad487da5bb6b889

IDEX Corp (IEX)

Financials