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IDEX Reports Third Quarter Results

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IDEX (NYSE: IEX) reported Q3 2024 results with sales of $798 million, up 1% overall and flat organically compared to Q3 2023. The company reported diluted EPS of $1.57, down 43%, and adjusted diluted EPS of $1.90, down 10%. Operating cash flow was $205 million, down 9%. The company completed the acquisition of Mott for $986.2 million and issued $500 million in Senior Notes.

For full-year 2024, IDEX revised its outlook, projecting organic sales decline of 1-2% and adjusted diluted EPS of $7.85-$7.90, compared to previous guidance of $7.80-$7.90. GAAP diluted EPS guidance was lowered to $6.65-$6.70 from $6.85-$6.95.

IDEX (NYSE: IEX) ha riportato i risultati del terzo trimestre 2024 con vendite di 798 milioni di dollari, in aumento dell'1% complessivo e stabili organicamente rispetto al terzo trimestre 2023. L'azienda ha registrato un utile per azione diluito di 1,57 dollari, in calo del 43%, e un utile per azione diluito rettificato di 1,90 dollari, in calo del 10%. Il flusso di cassa operativo è stato di 205 milioni di dollari, in calo del 9%. L'azienda ha completato l'acquisizione di Mott per 986,2 milioni di dollari e ha emesso 500 milioni di dollari in Senior Notes.

Per l'intero anno 2024, IDEX ha rivisto le sue prospettive, prevedendo un calo delle vendite organiche dell'1-2% e un utile per azione diluito rettificato di 7,85-7,90 dollari, rispetto alla precedente stima di 7,80-7,90 dollari. La guida per l'utile per azione diluito GAAP è stata abbassata a 6,65-6,70 dollari da 6,85-6,95 dollari.

IDEX (NYSE: IEX) informó los resultados del tercer trimestre de 2024 con ventas de 798 millones de dólares, un aumento del 1% en general y estables orgánicamente en comparación con el tercer trimestre de 2023. La compañía reportó un EPS diluido de 1,57 dólares, una disminución del 43%, y un EPS diluido ajustado de 1,90 dólares, una disminución del 10%. El flujo de efectivo operativo fue de 205 millones de dólares, una disminución del 9%. La compañía completó la adquisición de Mott por 986,2 millones de dólares y emitió 500 millones de dólares en Notas Senior.

Para el año completo de 2024, IDEX revisó su perspectiva, proyectando una caída de las ventas orgánicas del 1-2% y un EPS diluido ajustado de 7,85-7,90 dólares, en comparación con la guía anterior de 7,80-7,90 dólares. La guía para el EPS diluido GAAP se redujo a 6,65-6,70 dólares desde 6,85-6,95 dólares.

IDEX (NYSE: IEX)는 2024년 3분기 실적을 발표했으며, 판매액은 7억 9,800만 달러로 전체적으로 1% 증가했으며 2023년 3분기 대비 유기적으로는 변동이 없었습니다. 회사는 희석 EPS가 1.57달러로 43% 감소했고, 조정된 희석 EPS는 1.90달러로 10% 감소했다고 보고했습니다. 운영 현금 흐름은 2억 5백만 달러로 9% 감소했습니다. 회사는 Mott의 인수를 9억 8,620만 달러에 완료했으며, 5억 달러의 선순위 노트를 발행했습니다.

2024년 전체 연도에 대해 IDEX는 전망을 수정하여 유기적 판매가 1-2% 감소하고 조정된 희석 EPS가 7.85-7.90달러가 될 것이라고 예상했습니다. 이전 가이던스인 7.80-7.90달러에서 조정되었습니다. GAAP 희석 EPS 가이던스는 6.65-6.70달러로 6.85-6.95달러에서 하향 조정되었습니다.

IDEX (NYSE: IEX) a publié ses résultats du troisième trimestre 2024 avec des ventes de 798 millions de dollars, en hausse de 1% en général et stable organiquement par rapport au troisième trimestre 2023. L'entreprise a signalé un BPA dilué de 1,57 dollar, en baisse de 43%, et un BPA dilué ajusté de 1,90 dollar, en baisse de 10%. Le flux de trésorerie d'exploitation a été de 205 millions de dollars, en baisse de 9%. L'entreprise a finalisé l'acquisition de Mott pour 986,2 millions de dollars et a émis 500 millions de dollars en Senior Notes.

Pour l'année entière 2024, IDEX a révisé ses prévisions, projetant une baisse des ventes organiques de 1 à 2% et un BPA dilué ajusté de 7,85 à 7,90 dollars, par rapport à la précédente prévision de 7,80 à 7,90 dollars. L'estimation du BPA dilué selon les normes GAAP a été abaissée à 6,65-6,70 dollars contre 6,85-6,95 dollars.

IDEX (NYSE: IEX) hat die Ergebnisse für das 3. Quartal 2024 bekannt gegeben, mit einem Umsatz von 798 Millionen US-Dollar, was einem Anstieg von 1% insgesamt und einer organischen Stabilität im Vergleich zum 3. Quartal 2023 entspricht. Das Unternehmen berichtete von einem verwässerten EPS von 1,57 US-Dollar, was einem Rückgang von 43% entspricht, und einem bereinigten verwässerten EPS von 1,90 US-Dollar, was einen Rückgang von 10% darstellt. Der operative Cashflow betrug 205 Millionen US-Dollar und ging um 9% zurück. Das Unternehmen hat die Übernahme von Mott für 986,2 Millionen US-Dollar abgeschlossen und 500 Millionen US-Dollar in Senior Notes ausgegeben.

Für das gesamte Jahr 2024 hat IDEX seine Prognose überarbeitet und erwartet einen Rückgang des organischen Umsatzes von 1-2% und ein bereinigtes verwässertes EPS von 7,85-7,90 US-Dollar, verglichen mit der vorherigen Prognose von 7,80-7,90 US-Dollar. Die GAAP-Prognose für das verwässerte EPS wurde auf 6,65-6,70 US-Dollar von 6,85-6,95 US-Dollar gesenkt.

Positive
  • Operating cash flow remains strong at 172% of net income, up from 108%
  • Free cash flow conversion improved to 133% of adjusted net income from 129%
  • Organic orders increased by 8%
  • Gross margin improved by 20 basis points to 44.3%
Negative
  • Organic sales growth projected to decline 1-2% for full year 2024
  • Q3 diluted EPS decreased 43% to $1.57
  • Adjusted EBITDA margin declined 150 basis points to 26.9%
  • Lowered full-year GAAP EPS guidance to $6.65-$6.70 from $6.85-$6.95

Insights

IDEX's Q3 2024 results show mixed performance with some concerning trends. $798 million in sales reflects minimal growth of 1%, while organic sales remained flat. The 43% drop in reported EPS to $1.57 and 10% decline in adjusted EPS to $1.90 signal operational challenges. The company has also lowered its full-year GAAP EPS guidance to $6.65-$6.70 from $6.85-$6.95.

The $986.2 million Mott acquisition and $500 million senior notes issuance are significant financial moves, though Mott's earnings accretion isn't expected until 2026. Segment performance varies, with HST showing concerning 5% organic sales decline, while FMT and FSDP segments demonstrated modest growth. Operating cash flow remains strong at 172% of net income, providing financial flexibility.

The acquisition of Mott strategically positions IDEX in high-growth markets including semiconductor fabrication, energy solutions and water purification. However, current market conditions present challenges, with visible softness in life science and semiconductor sectors. The 8% increase in organic orders suggests potential recovery, though this hasn't translated to current sales performance.

Margin pressure is evident across segments, with all three reporting declining EBITDA margins. The integration of Mott at approximately 19x 2024 EBITDA multiple indicates a premium valuation, reflecting long-term strategic value but creating near-term earnings pressure. Market uncertainty and cyclical headwinds in agriculture and energy sectors warrant careful monitoring.

Third Quarter 2024 Highlights

(All comparisons are against the third quarter of 2023 unless otherwise noted)

  • Sales of $798 million, up 1% overall and flat organically
  • Reported diluted EPS of $1.57, down 43%, and adjusted diluted EPS of $1.90, down 10%
  • Operating cash flow of $205 million, down 9%; and 172% of net income, up from 108%
  • Free cash flow of $192 million, down 7%; and 133% of adjusted net income, up from 129%
  • Completed acquisition of Mott Corporation on September 5, 2024
  • Completed a public offering of $500 million principal amount of 4.950% Senior Notes, due September 2029

Full Year 2024 Outlook

  • Full year organic sales growth is projected to decline 1% to 2% versus the prior year
  • Full year GAAP diluted EPS of $6.65 - $6.70 vs. previous guidance of $6.85 - $6.95. Current guidance includes purchase accounting impacts, such as acquisition-related amortization, from the acquisition of Mott Corporation
  • Adjusted diluted EPS of $7.85 - $7.90 vs. previous guidance of $7.80 - $7.90

NORTHBROOK, Ill.--(BUSINESS WIRE)-- IDEX Corporation (NYSE: IEX) today announced its financial results for the three-month period ended September 30, 2024.

“We are encouraged by our third quarter performance. The teams within our Fluid & Metering Technologies and Fire & Safety / Diversified Products segments drove organic growth against an uncertain economic backdrop while delivering strong margins through operational execution,” said Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President. “We saw a healthy organic increase in orders within our Health & Science Technologies segment, strengthening our business positioning as we look for signs of extended recovery within the life science and semiconductor sectors.”

“Meanwhile, less than two months since completing our acquisition of Mott, the partnership is off to a fast start. Teams from other IDEX businesses are already collaborating with their Mott colleagues, designing new prototypes together that incorporate Mott’s highly engineered filtration products. Talented IDEX employees have been integrated into Mott leadership since closing, helping initiate a smooth integration,” Ashleman said. “The core advanced technology markets Mott serves, including semiconductor wafer fabrication, transformative energy solutions, medical technologies, and water purification, are advantaged to outperform over the long haul.”

“IDEX remains well-positioned, solving difficult problems with customers on the cutting edge of new technologies. We expect to continue deploying resources across our portfolio with our 8020 mindset toward growth accelerators to position us to drive long-term value creation.”

Consolidated Financial Results

 

Three Months Ended September 30,

(Dollars in millions, except per share amounts)

 

2024

 

 

 

2023

 

 

Increase (Decrease)

Orders

$

780.5

 

 

$

712.3

 

 

$

68.2

 

Change in organic orders*

 

 

 

 

 

8

%

Net sales

 

798.2

 

 

 

793.4

 

 

 

4.8

 

Change in organic net sales*

 

 

 

 

 

 

Gross profit

 

353.9

 

 

 

349.6

 

 

 

4.3

 

Adjusted gross profit*

 

356.0

 

 

 

350.8

 

 

 

5.2

 

Net income attributable to IDEX

 

119.1

 

 

 

209.1

 

 

 

(90.0

)

Adjusted net income attributable to IDEX*

 

144.1

 

 

 

160.6

 

 

 

(16.5

)

Adjusted EBITDA*

 

214.3

 

 

 

225.5

 

 

 

(11.2

)

Diluted EPS attributable to IDEX

 

1.57

 

 

 

2.75

 

 

 

(1.18

)

Adjusted diluted EPS attributable to IDEX*

 

1.90

 

 

 

2.12

 

 

 

(0.22

)

Cash flows from operating activities

 

205.3

 

 

 

226.6

 

 

 

(21.3

)

Free cash flow*

 

191.6

 

 

 

206.5

 

 

 

(14.9

)

Gross margin

 

44.3

%

 

 

44.1

%

 

20 bps

Adjusted gross margin*

 

44.6

%

 

 

44.2

%

 

40 bps

Net income margin

 

14.9

%

 

 

26.3

%

 

(1,140) bps

Adjusted EBITDA margin*

 

26.9

%

 

 

28.4

%

 

(150) bps

*These are non-GAAP measures. See the definitions of these non-GAAP measures in the section in this release titled “Non-GAAP Measures of Financial Performance” and reconciliations to their most directly comparable GAAP financial measures in the reconciliation tables at the end of this release.

  • Net sales increased 1% compared to the prior year period as a result of the net impact of acquisitions and divestitures. Organic net sales were flat, reflecting lower volumes in our Health & Science Technologies segment, which were mitigated by price capture across all segments.
  • Gross margin of 44.3% increased 20 bps primarily due to strong price/cost, partially offset by higher employee-related costs.
  • Net income margin of 14.9% decreased 1,140 bps and reported Diluted EPS of $1.57 decreased $1.18, primarily as a result of the absence of the gain on sale of the Micropump, Inc. (“Micropump”) business, which occurred in the prior year period. Diluted EPS was further impacted by lower operating results as well as a higher effective tax rate. The effective tax rate in the prior year period included one-time benefits that lowered the effective tax rate, partially offset by tax recorded on the gain from the Micropump divestiture.
  • Adjusted EBITDA margin of 26.9% decreased 150 bps and Adjusted diluted EPS of $1.90 decreased $0.22 reflecting strong price/cost, which was more than offset by higher employee-related costs and lower volume. Additionally, the current year period included $3.7 million of higher transaction-related expenses in connection with the acquisition of Mott Corporation and its subsidiaries (“Mott").
  • Adjusted diluted EPS also reflects an $0.11 impact of a higher effective tax rate as compared to the prior year period as discussed above. The adjusted effective tax rate in the prior year period excludes the gain and associated tax impacts of the Micropump divestiture.

Segment Financial Results

 

Three Months Ended September 30, (a)

(Dollars in millions)

 

2024

 

 

 

2023

 

 

Increase (Decrease)

Fluid & Metering Technologies ("FMT")

 

 

 

 

 

Net sales

$

300.8

 

 

$

301.1

 

 

$

(0.3

)

Change in organic net sales*

 

 

 

 

 

2

%

Adjusted EBITDA(b)

 

98.5

 

 

 

103.6

 

 

 

(5.1

)

Adjusted EBITDA margin

 

32.8

%

 

 

34.4

%

 

(160) bps

Health & Science Technologies ("HST")

 

 

 

 

 

Net sales

$

311.0

 

 

$

313.2

 

 

$

(2.2

)

Change in organic net sales*

 

 

 

 

 

(5

%)

Adjusted EBITDA(b)

 

82.6

 

 

 

84.4

 

 

 

(1.8

)

Adjusted EBITDA margin

 

26.5

%

 

 

26.9

%

 

(40) bps

Fire & Safety/Diversified Products ("FSDP")

 

 

 

 

 

Net sales

$

188.0

 

 

$

180.6

 

 

$

7.4

 

Change in organic net sales*

 

 

 

 

 

4

%

Adjusted EBITDA(b)

 

54.7

 

 

 

52.8

 

 

 

1.9

 

Adjusted EBITDA margin

 

29.1

%

 

 

29.3

%

 

(20) bps

Corporate Office and Eliminations

 

 

 

 

 

Intersegment sales eliminations

$

(1.6

)

 

$

(1.5

)

 

$

(0.1

)

Adjusted EBITDA(b)

 

(21.5

)

 

 

(15.3

)

 

 

(6.2

)

*These are non-GAAP measures. See the definitions of these non-GAAP measures in the section in this release titled “Non-GAAP Measures of Financial Performance” and reconciliations to their most directly comparable GAAP financial measures in the reconciliation tables at the end of this release.

(a) Three month data includes the results of the acquisitions of STC Material Solutions (December 2023) and Mott Corporation (September 2024) in the HST segment. Three month data also includes the results of Micropump (August 2023) and Novotema, SpA (December 2023) in the HST segment and Alfa Valvole, Srl (June 2024) in the FMT segment through the respective dates of disposition.

(b) Segment Adjusted EBITDA excludes unallocated corporate costs which are included in Corporate and other.

Fluid & Metering Technologies Segment

  • Net sales were relatively flat compared to the prior year period while organic net sales were up 2%. Positive impacts of price capture were offset by the impact of divestitures. Volumes were relatively flat period over period with improvement in the industrial market and strength in our water business, offset by a down agriculture cycle and softness in the energy market.
  • Adjusted EBITDA margin for the third quarter 2024 decreased primarily due to higher employee-related costs, higher discretionary spending and unfavorable mix, partially offset by price/cost.

Health & Science Technologies Segment

  • Net sales for the third quarter 2024 were relatively flat while organic net sales were down 5%. Net sales were negatively impacted by lower volumes driven by continued broad based market softness. This decrease was partially offset by price capture and the positive net impact of acquisitions and divestitures.
  • Adjusted EBITDA margin for the third quarter 2024 decreased primarily due to lower volume and higher employee-related costs, partially offset by price/cost, favorable operational productivity and the net accretive impact of acquisitions and divestitures.

Fire & Safety/Diversified Products Segment

  • Both reported and organic net sales for the third quarter 2024 were up 4% and positively impacted by price capture and higher volumes. The benefit of key growth initiatives and strength in the aerospace market was partially offset by the cyclical nature of project sales in our North American dispensing business.
  • Adjusted EBITDA margin for the third quarter 2024 decreased due to unfavorable mix. Positive price/cost offset higher employee related costs.

Mott Acquisition

On September 5, 2024, IDEX acquired Mott for cash consideration of $986.2 million, net of cash acquired of $3.1 million. When adjusted for the present value of expected tax benefits of approximately $100 million, the net transaction value is approximately $900 million. This represents approximately 19x Mott’s forecasted full year 2024 EBITDA and a mid-teens multiple based on Mott’s forecasted 2025 EBITDA. The acquisition is expected to be accretive to IDEX’s adjusted earnings per share in fiscal year 2026.

Conference Call to be Broadcast over the Internet

IDEX will broadcast its third quarter earnings conference call over the Internet on Wednesday, October 30, 2024 at 9:30 a.m. CT. Chief Executive Officer and President Eric Ashleman and Senior Vice President and Chief Financial Officer Abhi Khandelwal will discuss the Company’s recent financial performance and respond to questions from the financial analyst community. IDEX invites interested investors to listen to the call and view the accompanying slide presentation, which will be available on its website at www.idexcorp.com. Those who wish to participate should log on several minutes before the discussion begins. After clicking on the presentation icon, investors should follow the instructions to ensure their systems are set up to hear the event and view the presentation slides or download the correct applications at no charge. Investors will also be able to hear a replay of the call by dialing 877.660.6853 (or 201.612.7415 for international participants) using the ID #13742105.

Forward-Looking Statements

This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company’s fourth quarter 2024 and full year 2024 outlook including expected sales, expected organic sales, expected earnings per share, expected adjusted earnings per share, estimated net income and estimated adjusted EBITDA and the assumptions underlying these expectations, anticipated future acquisition behavior, resource deployment and focus and organic and inorganic growth, anticipated trends in end markets, anticipated growth initiatives, the anticipated benefits of the Company’s recent acquisitions and integration plans, including the projected EBITDA of Mott and the related impact and timing for such impact on the Company’s earnings, and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “guidance,” “expects,” “projects,” “forecasts,” “should,” “could,” “will,” “management believes,” “the Company believes,” “the Company intends” and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this news release.

The risks and uncertainties include, but are not limited to, the following: levels of industrial activity and economic conditions in the U.S. and other countries around the world, including uncertainties in the financial markets; pricing pressures, including inflation and rising interest rates, and other competitive factors and levels of capital spending in certain industries; the impact of severe weather events, natural disasters and public health threats; economic and political consequences resulting from terrorist attacks and wars; the Company’s ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; cybersecurity incidents; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in foreign countries in which the Company operates; developments with respect to trade policy and tariffs; interest rates; capacity utilization and the effect this has on costs; labor markets; supply chain conditions; market conditions and material costs; risks related to environmental, social and corporate governance issues, including those related to climate change and sustainability; and developments with respect to contingencies, such as litigation and environmental matters.

Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included in the Company’s most recent annual report on Form 10-K and the Company’s subsequent quarterly reports filed with the Securities and Exchange Commission (“SEC”) and the other risks discussed in the Company’s filings with the SEC. The forward-looking statements included here are only made as of the date of this news release, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.

About IDEX

IDEX Corporation (NYSE: IEX) designs and builds engineered products and mission-critical components that make everyday life better. IDEX precision components help craft the microchip powering your electronics, treat water so it is safe to drink, and protect communities and the environment from sewer overflows. Our optics enable global broadband satellite communications, and our pumps move challenging fluids that range from hot, to viscous, to caustic. IDEX components assist healthcare professionals in saving lives as part of many leading diagnostic machines, including DNA sequencers that help doctors personalize treatment. And our fire and rescue tools, including the industry-leading Hurst Jaws of Life®, are trusted by rescue workers around the world. These are just some of the thousands of products that help IDEX live its purpose – Trusted Solutions, Improving Lives™. Founded in 1988 with three small, entrepreneurial manufacturing companies, IDEX now includes more than 50 diverse businesses around the world. With about 8,800 employees and manufacturing operations in more than 20 countries, IDEX is a diversified, high-performing, global company with approximately $3.3 billion in annual sales.

For further information on IDEX Corporation and its business units, visit the company’s website at www.idexcorp.com.

(Financial reports follow)

IDEX CORPORATION

Condensed Consolidated Statements of Income

(in millions, except per share amounts)

(unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended

September 30,

 

 

2024

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net sales

$

798.2

 

$

793.4

 

 

$

2,405.9

 

 

$

2,485.0

 

Cost of sales

 

444.3

 

 

443.8

 

 

 

1,327.8

 

 

 

1,374.9

 

Gross profit

 

353.9

 

 

349.6

 

 

 

1,078.1

 

 

 

1,110.1

 

Selling, general and administrative expenses

 

182.9

 

 

165.9

 

 

 

560.8

 

 

 

529.9

 

Restructuring expenses and asset impairments

 

3.0

 

 

4.1

 

 

 

5.4

 

 

 

8.2

 

Operating income

 

168.0

 

 

179.6

 

 

 

511.9

 

 

 

572.0

 

Gain on sale of business(1)

 

0.6

 

 

(93.8

)

 

 

(4.0

)

 

 

(93.8

)

Other expense (income) – net

 

2.7

 

 

(2.1

)

 

 

 

 

 

5.6

 

Interest expense - net

 

10.3

 

 

13.7

 

 

 

27.8

 

 

 

40.1

 

Income before income taxes

 

154.4

 

 

261.8

 

 

 

488.1

 

 

 

620.1

 

Provision for income taxes

 

35.5

 

 

52.8

 

 

 

106.7

 

 

 

132.8

 

Net income

 

118.9

 

 

209.0

 

 

 

381.4

 

 

 

487.3

 

Net loss attributable to noncontrolling interest

 

0.2

 

 

0.1

 

 

 

0.4

 

 

 

0.2

 

Net income attributable to IDEX

$

119.1

 

$

209.1

 

 

$

381.8

 

 

$

487.5

 

 

 

 

 

 

 

 

 

Earnings per Common Share:

 

 

 

 

 

 

 

Basic earnings per common share attributable to IDEX

$

1.57

 

$

2.76

 

 

$

5.03

 

 

$

6.44

 

Diluted earnings per common share attributable to IDEX

$

1.57

 

$

2.75

 

 

$

5.02

 

 

$

6.42

 

 

 

 

 

 

 

 

 

Share Data:

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

75.7

 

 

75.6

 

 

 

75.7

 

 

 

75.6

 

Diluted weighted average common shares outstanding

 

75.9

 

 

75.9

 

 

 

75.9

 

 

 

75.9

 

(1)

Activity recorded during the three months ended September 30, 2024 represents the finalization of the gain on the sale of Alfa Valvole, Srl resulting in a $0.6 million downward adjustment during the third quarter of 2024.

IDEX CORPORATION

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

 

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

633.2

 

 

$

534.3

 

Receivables - net

 

475.1

 

 

 

427.8

 

Inventories - net

 

488.2

 

 

 

420.8

 

Other current assets

 

81.3

 

 

 

63.4

 

Total current assets

 

1,677.8

 

 

 

1,446.3

 

Property, plant and equipment - net

 

468.6

 

 

 

430.3

 

Goodwill

 

3,316.0

 

 

 

2,838.3

 

Intangible assets - net

 

1,349.4

 

 

 

1,011.8

 

Other noncurrent assets

 

155.7

 

 

 

138.5

 

Total assets

$

6,967.5

 

 

$

5,865.2

 

 

 

 

 

Liabilities and equity

 

 

 

Current liabilities

 

 

 

Trade accounts payable

$

210.4

 

 

$

179.7

 

Accrued expenses

 

301.2

 

 

 

271.5

 

Current portion of long-term borrowings

 

0.6

 

 

 

0.6

 

Dividends payable

 

52.4

 

 

 

48.5

 

Total current liabilities

 

564.6

 

 

 

500.3

 

Long-term borrowings - net

 

2,075.1

 

 

 

1,325.1

 

Deferred income taxes

 

301.3

 

 

 

291.9

 

Other noncurrent liabilities

 

208.2

 

 

 

206.7

 

Total liabilities

 

3,149.2

 

 

 

2,324.0

 

Shareholders' equity

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

0.9

 

 

 

0.9

 

Treasury stock

 

(1,176.5

)

 

 

(1,187.0

)

Additional paid-in capital

 

859.9

 

 

 

839.0

 

Retained earnings

 

4,159.3

 

 

 

3,934.3

 

Accumulated other comprehensive loss

 

(24.7

)

 

 

(45.8

)

Total shareholders' equity

 

3,818.9

 

 

 

3,541.4

 

Noncontrolling interest

 

(0.6

)

 

 

(0.2

)

Total equity

 

3,818.3

 

 

 

3,541.2

 

Total liabilities and equity

$

6,967.5

 

 

$

5,865.2

 

IDEX CORPORATION

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 

Nine Months Ended
September 30,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities

 

 

 

Net income

$

381.4

 

 

$

487.3

 

Adjustments to reconcile net income to net cash flows provided by operating activities:

 

 

 

Gain on sale of business

 

(4.0

)

 

 

(93.8

)

Credit loss on note receivable from collaborative partner

 

 

 

 

7.7

 

Depreciation

 

49.9

 

 

 

41.9

 

Amortization of intangible assets

 

75.0

 

 

 

70.6

 

Share-based compensation expense

 

20.9

 

 

 

18.9

 

Deferred income taxes

 

0.4

 

 

 

(1.8

)

Changes in (net of the effect from acquisitions/divestitures and foreign currency translation):

 

 

 

Receivables - net

 

(14.5

)

 

 

11.6

 

Inventories - net

 

(21.6

)

 

 

24.5

 

Other current assets

 

(4.6

)

 

 

0.3

 

Trade accounts payable

 

15.3

 

 

 

(30.2

)

Deferred revenue

 

(4.3

)

 

 

5.6

 

Accrued expenses

 

(0.5

)

 

 

(34.0

)

Other - net

 

2.1

 

 

 

7.1

 

Net cash flows provided by operating activities

 

495.5

 

 

 

515.7

 

Cash flows from investing activities

 

 

 

Capital expenditures

 

(49.6

)

 

 

(68.3

)

Acquisition of businesses, net of cash acquired

 

(984.5

)

 

 

(110.3

)

Proceeds from sale of business, net of cash remitted

 

45.1

 

 

 

110.3

 

Purchases of marketable securities

 

 

 

 

(24.6

)

Proceeds from sale of marketable securities

 

4.5

 

 

 

 

Other - net

 

(7.3

)

 

 

2.9

 

Net cash flows used in investing activities

 

(991.8

)

 

 

(90.0

)

Cash flows from financing activities

 

 

 

Borrowings under revolving credit facilities

 

279.3

 

 

 

 

Proceeds from issuance of long-term borrowings

 

496.7

 

 

 

100.0

 

Payment of long-term borrowings

 

(25.0

)

 

 

(250.0

)

Debt issuance costs

 

(1.2

)

 

 

 

Cash dividends paid to shareholders

 

(153.0

)

 

 

(142.3

)

Proceeds from share issuances, net of shares withheld for taxes

 

10.5

 

 

 

7.7

 

Repurchases of common stock

 

 

 

 

(1.1

)

Other - net

 

(0.6

)

 

 

(1.0

)

Net cash flows provided by (used in) financing activities

 

606.7

 

 

 

(286.7

)

Effect of exchange rate changes on cash and cash equivalents

 

6.6

 

 

 

(6.5

)

Net increase in cash and cash equivalents and restricted cash

 

117.0

 

 

 

132.5

 

Cash and cash equivalents at beginning of year(1)

 

534.3

 

 

 

430.2

 

Cash and cash equivalents and restricted cash at end of period(1)

$

651.3

 

 

$

562.7

 

(1)

Includes $18.1 million of restricted cash at September 30, 2024. The restricted cash has been included in Other current assets in the Condensed Consolidated Balance Sheets. There was no restricted cash as of September 30, 2023, December 31, 2023, or December 31, 2022.

IDEX CORPORATION

Company and Segment Financial Information

(in millions)

(unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Fluid & Metering Technologies

 

 

 

 

 

 

 

Depreciation

$

4.3

 

$

3.1

 

$

12.9

 

$

10.3

Amortization of intangible assets

 

5.2

 

 

5.6

 

 

15.7

 

 

17.3

Restructuring expenses and asset impairments

 

1.0

 

 

1.7

 

 

1.6

 

 

2.4

Health & Science Technologies

 

 

 

 

 

 

 

Depreciation

$

10.6

 

$

9.0

 

$

29.5

 

$

24.1

Amortization of intangible assets

 

19.7

 

 

16.7

 

 

54.6

 

 

48.5

Restructuring expenses and asset impairments

 

1.7

 

 

1.5

 

 

3.3

 

 

4.5

Fire & Safety/Diversified Products

 

 

 

 

 

 

 

Depreciation

$

2.2

 

$

2.3

 

$

6.7

 

$

6.7

Amortization of intangible assets

 

1.6

 

 

1.5

 

 

4.7

 

 

4.8

Restructuring expenses and asset impairments

 

0.1

 

 

0.4

 

 

0.2

 

 

0.8

Corporate Office and Eliminations

 

 

 

 

 

 

 

Depreciation

$

0.3

 

$

0.3

 

$

0.8

 

$

0.8

Restructuring expenses and asset impairments

 

0.2

 

 

0.5

 

 

0.3

 

 

0.5

Total IDEX

 

 

 

 

 

 

 

Depreciation

$

17.4

 

$

14.7

 

$

49.9

 

$

41.9

Amortization of intangible assets

 

26.5

 

 

23.8

 

 

75.0

 

 

70.6

Restructuring expenses and asset impairments

 

3.0

 

 

4.1

 

 

5.4

 

 

8.2

Non-GAAP Measures of Financial Performance

The Company prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). The Company supplements certain GAAP financial performance metrics with non-GAAP financial performance metrics. Management believes these non-GAAP financial performance metrics provide investors with greater insight, transparency and a more comprehensive understanding of the financial information used by management in its financial and operational decision making because certain of these adjusted metrics exclude items not reflective of ongoing operations, as identified in the reconciliations below. Reconciliations of non-GAAP financial performance metrics to their most directly comparable GAAP financial performance metrics are defined and presented below and should not be considered a substitute for, nor superior to, the financial data prepared in accordance with GAAP. Due to rounding, numbers presented throughout this and other documents may not add up or recalculate precisely. The Company has not provided a reconciliation of Mott’s expected EBITDA for fiscal year 2024 or fiscal year 2025 because it is unable to quantify certain amounts that would be required to be included in Mott’s contribution to net income without unreasonable efforts. In addition, the Company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors.

All table footnotes can be found at the end of this Non-GAAP Measures section. There were no adjustments to GAAP financial performance metrics other than the items noted below.

  • Organic orders and net sales are calculated excluding amounts from acquired or divested businesses during the first twelve months of ownership or prior to divestiture and excluding the impact of foreign currency translation.
  • Adjusted gross profit is calculated as gross profit plus fair value inventory step-up charges.
  • Adjusted gross margin is calculated as adjusted gross profit divided by net sales.
  • Adjusted net income attributable to IDEX is calculated as net income attributable to IDEX plus fair value inventory step-up charges, plus restructuring expenses and asset impairments, less the gain on sale of a business, plus the credit loss on a note receivable from a collaborative partner, plus acquisition-related intangible asset amortization, all net of the statutory tax expense or benefit.
  • Adjusted diluted EPS attributable to IDEX is calculated as adjusted net income attributable to IDEX divided by the diluted weighted average shares outstanding.
  • Consolidated Adjusted EBITDA is calculated as consolidated earnings before interest expense - net, taxes, depreciation and amortization, or consolidated EBITDA, less the gain on sale of a business, plus fair value inventory step-up charges, plus restructuring expenses and asset impairments, plus the credit loss on a note receivable from a collaborative partner.
  • Consolidated Adjusted EBITDA margin is calculated as Consolidated Adjusted EBITDA divided by net sales.
  • Free cash flow is calculated as cash flows from operating activities less capital expenditures. Free cash flow conversion is calculated as free cash flow divided by adjusted net income attributable to IDEX.

Table 1: Reconciliations of the Change in Net Sales to Organic Net Sales

 

 

 

 

 

 

 

 

 

 

FMT

 

HST

 

FSDP

 

IDEX

 

Three Months Ended September 30, 2024

Change in net sales

%

 

(1

%)

 

4

%

 

1

%

Less:

 

 

 

 

 

 

 

Net impact from acquisitions/divestitures(1)

(3

%)

 

4

%

 

%

 

1

%

Impact from foreign currency

1

%

 

%

 

%

 

%

Change in organic net sales

2

%

 

(5

%)

 

4

%

 

%

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

Change in net sales

(1

%)

 

(8

%)

 

2

%

 

(3

%)

Less:

 

 

 

 

 

 

 

Net impact from acquisitions/divestitures(1)

(1

%)

 

2

%

 

%

 

%

Impact from foreign currency

%

 

%

 

%

 

%

Change in organic net sales

%

 

(10

%)

 

2

%

 

(3

%)

Table 2: Reconciliations of Reported-to-Adjusted Gross Profit and Gross Margin (dollars in millions)

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Gross profit

$

353.9

 

 

$

349.6

 

 

$

1,078.1

 

 

$

1,110.1

 

Fair value inventory step-up charge

 

2.1

 

 

 

1.2

 

 

 

4.6

 

 

 

1.2

 

Adjusted gross profit

$

356.0

 

 

$

350.8

 

 

$

1,082.7

 

 

$

1,111.3

 

 

 

 

 

 

 

 

 

Net sales

$

798.2

 

 

$

793.4

 

 

$

2,405.9

 

 

$

2,485.0

 

 

 

 

 

 

 

 

 

Gross margin

 

44.3

%

 

 

44.1

%

 

 

44.8

%

 

 

44.7

%

Adjusted gross margin

 

44.6

%

 

 

44.2

%

 

 

45.0

%

 

 

44.7

%

Table 3: Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, other than per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reported net income attributable to IDEX

 

$

119.1

 

 

$

209.1

 

 

$

381.8

 

 

$

487.5

 

Fair value inventory step-up charge

 

 

2.1

 

 

 

1.2

 

 

 

4.6

 

 

 

1.2

 

Tax impact on fair value inventory step-up charge

 

 

(0.5

)

 

 

(0.3

)

 

 

(1.0

)

 

 

(0.3

)

Restructuring expenses and asset impairments

 

 

3.0

 

 

 

4.1

 

 

 

5.4

 

 

 

8.2

 

Tax impact on restructuring expenses and asset impairments

 

 

(0.7

)

 

 

(0.9

)

 

 

(1.3

)

 

 

(1.8

)

Gain on sale of business(2)

 

 

0.6

 

 

 

(93.8

)

 

 

(4.0

)

 

 

(93.8

)

Tax impact on gain of sale of business

 

 

 

 

 

22.7

 

 

 

 

 

 

22.7

 

Credit loss on note receivable from collaborative partner(3)

 

 

 

 

 

 

 

 

 

 

 

7.7

 

Tax impact on credit loss on note receivable from collaborative partner

 

 

 

 

 

 

 

 

 

 

 

(1.6

)

Acquisition-related intangible asset amortization

 

 

26.5

 

 

 

23.8

 

 

 

75.0

 

 

 

70.6

 

Tax impact on acquisition-related intangible asset amortization

 

 

(6.0

)

 

 

(5.3

)

 

 

(17.1

)

 

 

(15.8

)

Adjusted net income attributable to IDEX

 

$

144.1

 

 

$

160.6

 

 

$

443.4

 

 

$

484.6

 

 

 

 

 

 

 

 

 

 

Reported diluted EPS attributable to IDEX

 

$

1.57

 

 

$

2.75

 

 

$

5.02

 

 

$

6.42

 

Fair value inventory step-up charge

 

 

0.03

 

 

 

0.02

 

 

 

0.06

 

 

 

0.02

 

Tax impact on fair value inventory step-up charge

 

 

 

 

 

 

 

 

(0.01

)

 

 

 

Restructuring expenses and asset impairments

 

 

0.04

 

 

 

0.06

 

 

 

0.07

 

 

 

0.11

 

Tax impact on restructuring expenses and asset impairments

 

 

(0.01

)

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.03

)

Gain on sale of business(2)

 

 

0.01

 

 

 

(1.24

)

 

 

(0.05

)

 

 

(1.24

)

Tax impact on gain of sale of business

 

 

 

 

 

0.30

 

 

 

 

 

 

0.30

 

Credit loss on note receivable from collaborative partner(3)

 

 

 

 

 

 

 

 

 

 

 

0.10

 

Tax impact on credit loss on note receivable from collaborative partner

 

 

 

 

 

 

 

 

 

 

 

(0.02

)

Acquisition-related intangible asset amortization

 

 

0.35

 

 

 

0.31

 

 

 

0.99

 

 

 

0.93

 

Tax impact on acquisition-related intangible asset amortization

 

 

(0.09

)

 

 

(0.07

)

 

 

(0.22

)

 

 

(0.21

)

Adjusted diluted EPS attributable to IDEX

 

$

1.90

 

 

$

2.12

 

 

$

5.84

 

 

$

6.38

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

 

75.9

 

 

 

75.9

 

 

 

75.9

 

 

 

75.9

 

Table 4: Reconciliations of Net Income to Adjusted EBITDA (dollars in millions)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reported net income

$

118.9

 

 

$

209.0

 

 

$

381.4

 

 

$

487.3

 

Provision for income taxes

 

35.5

 

 

 

52.8

 

 

 

106.7

 

 

 

132.8

 

Interest expense - net

 

10.3

 

 

 

13.7

 

 

 

27.8

 

 

 

40.1

 

Gain on sale of business(2)

 

0.6

 

 

 

(93.8

)

 

 

(4.0

)

 

 

(93.8

)

Depreciation

 

17.4

 

 

 

14.7

 

 

 

49.9

 

 

 

41.9

 

Amortization

 

26.5

 

 

 

23.8

 

 

 

75.0

 

 

 

70.6

 

Fair value inventory step-up charges

 

2.1

 

 

 

1.2

 

 

 

4.6

 

 

 

1.2

 

Restructuring expenses and asset impairments

 

3.0

 

 

 

4.1

 

 

 

5.4

 

 

 

8.2

 

Credit loss on note receivable from collaborative partner(3)

 

 

 

 

 

 

 

 

 

 

7.7

 

Adjusted EBITDA

$

214.3

 

 

$

225.5

 

 

$

646.8

 

 

$

696.0

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Components:

 

 

 

 

 

 

 

FMT

$

98.5

 

 

$

103.6

 

 

$

311.6

 

 

$

323.9

 

HST

 

82.6

 

 

 

84.4

 

 

 

248.2

 

 

 

278.8

 

FSDP

 

54.7

 

 

 

52.8

 

 

 

159.9

 

 

 

157.0

 

Corporate and other

 

(21.5

)

 

 

(15.3

)

 

 

(72.9

)

 

 

(63.7

)

Total Adjusted EBITDA

$

214.3

 

 

$

225.5

 

 

$

646.8

 

 

$

696.0

 

 

 

 

 

 

 

 

 

Net sales

$

798.2

 

 

$

793.4

 

 

$

2,405.9

 

 

$

2,485.0

 

 

 

 

 

 

 

 

 

Net income margin

 

14.9

%

 

 

26.3

%

 

 

15.9

%

 

 

19.6

%

Adjusted EBITDA margin

 

26.9

%

 

 

28.4

%

 

 

26.9

%

 

 

28.0

%

Table 5: Reconciliations of Cash Flows from Operating Activities to Free Cash Flow (dollars in millions)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities

$

205.3

 

 

$

226.6

 

 

$

495.5

 

 

$

515.7

 

Less: Capital expenditures

 

13.7

 

 

 

20.1

 

 

 

49.6

 

 

 

68.3

 

Free cash flow

$

191.6

 

 

$

206.5

 

 

$

445.9

 

 

$

447.4

 

 

 

 

 

 

 

 

 

Reported net income attributable to IDEX

$

119.1

 

 

$

209.1

 

 

$

381.8

 

 

$

487.5

 

Adjusted net income attributable to IDEX

 

144.1

 

 

 

160.6

 

 

 

443.4

 

 

 

484.6

 

 

 

 

 

 

 

 

 

Operating cash flow conversion

 

172

%

 

 

108

%

 

 

130

%

 

 

106

%

Free cash flow conversion

 

133

%

 

 

129

%

 

 

101

%

 

 

92

%

Table 6: Reconciliation of Estimated 2024 Change in Net Sales to Change in Organic Net Sales

 

 

Guidance

 

Fourth Quarter 2024

 

Full Year 2024

 

Low End

 

High End

 

Low End

 

High End

Change in net sales

10

%

 

11

%

 

%

 

1

%

Less:

 

 

 

 

 

 

 

Net impact from acquisitions/divestitures

6

%

 

6

%

 

2

%

 

2

%

Impact from foreign currency

1

%

 

1

%

 

%

 

%

Change in organic net sales

3

%

 

4

%

 

(2

%)

 

(1

%)

Table 7: Reconciliation of Estimated 2024 Diluted EPS Attributable to IDEX to Adjusted Diluted EPS Attributable to IDEX

 

 

 

Guidance

 

 

Fourth Quarter 2024

 

Full Year 2024

Estimated diluted EPS attributable to IDEX

 

$1.64 - $1.69

 

$6.65 - $6.70

Fair value inventory step-up charge

 

0.05

 

0.12

Tax impact on fair value inventory step-up charge

 

(0.01)

 

(0.03)

Restructuring expenses and asset impairments

 

 

0.08

Tax impact on restructuring expenses and asset impairments

 

 

(0.02)

Gain on sale of business

 

 

(0.05)

Tax impact on gain of sale of business

 

 

Acquisition-related intangible asset amortization

 

0.43

 

1.42

Tax impact on acquisition-related intangible asset amortization

 

(0.10)

 

(0.32)

Estimated adjusted diluted EPS attributable to IDEX

 

$2.01 - $2.06

 

$7.85 - $7.90

Table 8: Reconciliation of Estimated 2024 Net Income to Adjusted EBITDA (dollars in millions)

 

Guidance

 

Fourth Quarter 2024

 

Full Year 2024

 

Low End

 

High End

 

Low End

 

High End

Estimated Reported net income

$

123.1

 

 

$

127.4

 

 

$

504.5

 

 

$

508.8

 

Provision for income taxes

 

38.0

 

 

 

39.4

 

 

 

144.7

 

 

 

146.1

 

Interest expense - net

 

18.2

 

 

 

18.2

 

 

 

46.0

 

 

 

46.0

 

Gain on sale of business

 

 

 

 

 

 

 

(4.0

)

 

 

(4.0

)

Depreciation

 

19.3

 

 

 

19.3

 

 

 

69.2

 

 

 

69.2

 

Amortization of intangible assets

 

32.6

 

 

 

32.6

 

 

 

107.6

 

 

 

107.6

 

Fair value inventory step-up charge

 

4.2

 

 

 

4.2

 

 

 

8.8

 

 

 

8.8

 

Restructuring expenses and asset impairments

 

0.4

 

 

 

0.4

 

 

 

5.8

 

 

 

5.8

 

Estimated Adjusted EBITDA

$

235.8

 

 

$

241.5

 

 

$

882.6

 

 

$

888.3

 

 

 

 

 

 

 

 

 

Estimated Net sales

$

874.3

 

 

$

882.3

 

 

$

3,280.2

 

 

$

3,288.2

 

 

 

 

 

 

 

 

 

Estimated Net income margin

 

14.1

%

 

 

14.4

%

 

 

15.4

%

 

 

15.5

%

Estimated Adjusted EBITDA margin

 

27.0

%

 

 

27.4

%

 

 

26.9

%

 

 

27.0

%

(1)

Represents the sales from acquired or divested businesses during the first 12 months of ownership or prior to divestiture.

(2)

Activity recorded during the three months ended September 30, 2024 represents the finalization of the gain on the sale of Alfa Valvole, Srl resulting in a $0.6 million downward adjustment during the third quarter of 2024.

(3)

Represents a reserve on an investment with a collaborative partner recorded in Other expense (income) – net during the nine months ended September 30, 2023. During the fourth quarter of 2023, the Company converted the promissory note receivable from the collaborative partner to equity, resulting in a cost method investment with zero value.

 

Investor Contact:

Wendy Palacios

Vice President FP&A and Investor Relations

(847) 498-7070

Source: IDEX Corporation

FAQ

What was IDEX's (IEX) revenue in Q3 2024?

IDEX reported Q3 2024 sales of $798 million, representing a 1% increase overall compared to Q3 2023.

How much did IDEX (IEX) pay for Mott ?

IDEX acquired Mott for $986.2 million in cash (net of $3.1 million cash acquired), with a net transaction value of approximately $900 million after tax benefits.

What is IDEX's (IEX) full-year 2024 EPS guidance?

IDEX updated its full-year 2024 guidance with GAAP diluted EPS of $6.65-$6.70 and adjusted diluted EPS of $7.85-$7.90.

What was IDEX's (IEX) Q3 2024 operating cash flow?

IDEX reported Q3 2024 operating cash flow of $205 million, down 9% from the previous year but representing 172% of net income.

IDEX Corporation

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16.67B
75.57M
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Specialty Industrial Machinery
Pumps & Pumping Equipment
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