IDEX Stories Third Quarter Outcomes

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Third Quarter 2024 Highlights
(All comparisons are towards the third quarter of 2023 except in any other case famous)

• Gross sales of $798 million, up 1% general and flat organically
• Reported diluted EPS of $1.57, down 43%, and adjusted diluted EPS of $1.90, down 10%
• Working money stream of $205 million, down 9%; and 172% of internet revenue, up from 108%
• Free money stream of $192 million, down 7%; and 133% of adjusted internet revenue, up from 129%
• Accomplished acquisition of Mott Company on September 5, 2024
• Accomplished a public providing of $500 million principal quantity of 4.950% Senior Notes, due September 2029

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Full 12 months 2024 Outlook

• Full yr natural gross sales progress is projected to say no 1% to 2% versus the prior yr
• Full yr GAAP diluted EPS of $6.65 – $6.70 vs. earlier steerage of $6.85 – $6.95. Present steerage consists of buy accounting impacts, reminiscent of acquisition-related amortization, from the acquisition of Mott Company
• Adjusted diluted EPS of $7.85 – $7.90 vs. earlier steerage of $7.80 – $7.90

NORTHBROOK, Sick. — IDEX Company (NYSE: IEX) at the moment introduced its monetary outcomes for the three-month interval ended September 30, 2024.

“We’re inspired by our third quarter efficiency. The groups inside our Fluid & Metering Applied sciences and Hearth & Security / Diversified Merchandise segments drove natural progress towards an unsure financial backdrop whereas delivering robust margins by means of operational execution,” mentioned Eric D. Ashleman, IDEX Company Chief Govt Officer and President. “We noticed a wholesome natural improve in orders inside our Well being & Science Applied sciences phase, strengthening our enterprise positioning as we search for indicators of prolonged restoration throughout the life science and semiconductor sectors.”

“In the meantime, lower than two months since finishing our acquisition of Mott, the partnership is off to a quick begin. Groups from different IDEX companies are already collaborating with their Mott colleagues, designing new prototypes collectively that incorporate Mott’s extremely engineered filtration merchandise. Gifted IDEX workers have been built-in into Mott management since closing, serving to provoke a easy integration,” Ashleman mentioned. “The core superior know-how markets Mott serves, together with semiconductor wafer fabrication, transformative vitality options, medical applied sciences, and water purification, are advantaged to outperform over the lengthy haul.”

“IDEX stays well-positioned, fixing troublesome issues with clients on the leading edge of latest applied sciences. We anticipate to proceed deploying assets throughout our portfolio with our 8020 mindset towards progress accelerators to place us to drive long-term worth creation.”

Consolidated Monetary Outcomes

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• Web gross sales elevated 1% in comparison with the prior yr interval on account of the online affect of acquisitions and divestitures. Natural internet gross sales have been flat, reflecting decrease volumes in our Well being & Science Applied sciences phase, which have been mitigated by worth seize throughout all segments.
• Gross margin of 44.3% elevated 20 bps primarily on account of robust worth/value, partially offset by larger employee-related prices.
• Web revenue margin of 14.9% decreased 1,140 bps and reported Diluted EPS of $1.57 decreased $1.18, primarily on account of the absence of the acquire on sale of the Micropump, Inc. (“Micropump”) enterprise, which occurred within the prior yr interval. Diluted EPS was additional impacted by decrease working outcomes in addition to the next efficient tax charge. The efficient tax charge within the prior yr interval included one-time advantages that lowered the efficient tax charge, partially offset by tax recorded on the acquire from the Micropump divestiture.
• Adjusted EBITDA margin of 26.9% decreased 150 bps and Adjusted diluted EPS of $1.90 decreased $0.22 reflecting robust worth/value, which was greater than offset by larger employee-related prices and decrease quantity. Moreover, the present yr interval included $3.7 million of upper transaction-related bills in reference to the acquisition of Mott Company and its subsidiaries (“Mott”).
• Adjusted diluted EPS additionally displays an $0.11 affect of a better efficient tax charge as in comparison with the prior yr interval as mentioned above. The adjusted efficient tax charge within the prior yr interval excludes the acquire and related tax impacts of the Micropump divestiture.

Phase Monetary Outcomes

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Fluid & Metering Applied sciences Phase

• Web gross sales have been comparatively flat in comparison with the prior yr interval whereas natural internet gross sales have been up 2%. Optimistic impacts of worth seize have been offset by the affect of divestitures. Volumes have been comparatively flat interval over interval with enchancment within the industrial market and energy in our water enterprise, offset by a down agriculture cycle and softness within the vitality market.
• Adjusted EBITDA margin for the third quarter 2024 decreased primarily on account of larger employee-related prices, larger discretionary spending and unfavorable combine, partially offset by worth/value.

Well being & Science Applied sciences Phase

• Web gross sales for the third quarter 2024 have been comparatively flat whereas natural internet gross sales have been down 5%. Web gross sales have been negatively impacted by decrease volumes pushed by continued broad based mostly market softness. This lower was partially offset by worth seize and the optimistic internet affect of acquisitions and divestitures.
• Adjusted EBITDA margin for the third quarter 2024 decreased primarily on account of decrease quantity and better employee-related prices, partially offset by worth/value, favorable operational productiveness and the online accretive affect of acquisitions and divestitures.

Hearth & Security/Diversified Merchandise Phase

• Each reported and natural internet gross sales for the third quarter 2024 have been up 4% and positively impacted by worth seize and better volumes. The good thing about key progress initiatives and energy within the aerospace market was partially offset by the cyclical nature of venture gross sales in our North American dishing out enterprise.
• Adjusted EBITDA margin for the third quarter 2024 decreased on account of unfavorable combine. Optimistic worth/value offset larger worker associated prices.

Mott Acquisition

On September 5, 2024, IDEX acquired Mott for money consideration of $986.2 million, internet of money acquired of $3.1 million. When adjusted for the current worth of anticipated tax advantages of roughly $100 million, the online transaction worth is roughly $900 million. This represents roughly 19x Mott’s forecasted full yr 2024 EBITDA and a mid-teens a number of based mostly on Mott’s forecasted 2025 EBITDA. The acquisition is predicted to be accretive to IDEX’s adjusted earnings per share in fiscal yr 2026.

Convention Name to be Broadcast over the Web

IDEX will broadcast its third quarter earnings convention name over the Web on Wednesday, October 30, 2024 at 9:30 a.m. CT. Chief Govt Officer and President Eric Ashleman and Senior Vice President and Chief Monetary Officer Abhi Khandelwal will focus on the Firm’s latest monetary efficiency and reply to questions from the monetary analyst neighborhood. IDEX invitations traders to take heed to the decision and think about the accompanying slide presentation, which will probably be out there on its web site at www.idexcorp.com. Those that want to take part ought to go online a number of minutes earlier than the dialogue begins. After clicking on the presentation icon, traders ought to observe the directions to make sure their programs are set as much as hear the occasion and think about the presentation slides or obtain the right functions at no cost. Traders may even be capable to hear a replay of the decision by dialing 877.660.6853 (or 201.612.7415 for worldwide contributors) utilizing the ID #13742105.

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Ahead-Wanting Statements

This information launch comprises “forward-looking” statements throughout the that means of the Non-public Securities Litigation Reform Act of 1995, as amended. These statements could relate to, amongst different issues, the Firm’s fourth quarter 2024 and full yr 2024 outlook together with anticipated gross sales, anticipated natural gross sales, anticipated earnings per share, anticipated adjusted earnings per share, estimated internet revenue and estimated adjusted EBITDA and the assumptions underlying these expectations, anticipated future acquisition conduct, useful resource deployment and focus and natural and inorganic progress, anticipated traits in finish markets, anticipated progress initiatives, the anticipated advantages of the Firm’s latest acquisitions and integration plans, together with the projected EBITDA of Mott and the associated affect and timing for such affect on the Firm’s earnings, and are indicated by phrases or phrases reminiscent of “anticipates,” “estimates,” “plans,” “steerage,” “expects,” “initiatives,” “forecasts,” “ought to,” “may,” “will,” “administration believes,” “the Firm believes,” “the Firm intends” and comparable phrases or phrases. These statements are topic to inherent uncertainties and dangers that might trigger precise outcomes to vary materially from these anticipated on the date of this information launch.

The dangers and uncertainties embody, however should not restricted to, the next: ranges of business exercise and financial circumstances within the U.S. and different nations around the globe, together with uncertainties within the monetary markets; pricing pressures, together with inflation and rising rates of interest, and different aggressive elements and ranges of capital spending in sure industries; the affect of extreme climate occasions, pure disasters and public well being threats; financial and political penalties ensuing from terrorist assaults and wars; the Firm’s means to make acquisitions and to combine and function acquired companies on a worthwhile foundation; cybersecurity incidents; the connection of the U.S. greenback to different currencies and its affect on pricing and value competitiveness; political and financial circumstances in international nations during which the Firm operates; developments with respect to commerce coverage and tariffs; rates of interest; capability utilization and the impact this has on prices; labor markets; provide chain circumstances; market circumstances and materials prices; dangers associated to environmental, social and company governance points, together with these associated to local weather change and sustainability; and developments with respect to contingencies, reminiscent of litigation and environmental issues.

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Extra elements that might trigger precise outcomes to vary materially from these mirrored within the forward-looking statements embody, however should not restricted to, the dangers mentioned within the “Danger Components” part included within the Firm’s most up-to-date annual report on Kind 10-Okay and the Firm’s subsequent quarterly stories filed with the Securities and Trade Fee (“SEC”) and the opposite dangers mentioned within the Firm’s filings with the SEC. The forward-looking statements included listed here are solely made as of the date of this information launch, and administration undertakes no obligation to publicly replace them to mirror subsequent occasions or circumstances, besides as could also be required by legislation. Traders are cautioned to not rely unduly on forward-looking statements when evaluating the knowledge introduced right here.

About IDEX

IDEX Company (NYSE: IEX) designs and builds engineered merchandise and mission-critical parts that make on a regular basis life higher. IDEX precision parts assist craft the microchip powering your electronics, deal with water so it’s protected to drink, and defend communities and the surroundings from sewer overflows. Our optics allow world broadband satellite tv for pc communications, and our pumps transfer difficult fluids that vary from sizzling, to viscous, to caustic. IDEX parts help healthcare professionals in saving lives as a part of many main diagnostic machines, together with DNA sequencers that assist medical doctors personalize therapy. And our hearth and rescue instruments, together with the industry-leading Hurst Jaws of Life®, are trusted by rescue staff around the globe. These are simply a number of the hundreds of merchandise that assist IDEX stay its goal – Trusted Options, Bettering Lives™. Based in 1988 with three small, entrepreneurial manufacturing firms, IDEX now consists of greater than 50 numerous companies around the globe. With about 8,800 workers and manufacturing operations in additional than 20 nations, IDEX is a diversified, high-performing, world firm with roughly $3.3 billion in annual gross sales.

For additional info on IDEX Company and its enterprise models, go to the corporate’s web site at www.idexcorp.com.

(Monetary stories observe)

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Non-GAAP Measures of Monetary Efficiency

The Firm prepares its public monetary statements in conformity with accounting ideas typically accepted in the US of America (GAAP). The Firm dietary supplements sure GAAP monetary efficiency metrics with non-GAAP monetary efficiency metrics. Administration believes these non-GAAP monetary efficiency metrics present traders with higher perception, transparency and a extra complete understanding of the monetary info utilized by administration in its monetary and operational resolution making as a result of sure of those adjusted metrics exclude objects not reflective of ongoing operations, as recognized within the reconciliations beneath. Reconciliations of non-GAAP monetary efficiency metrics to their most instantly comparable GAAP monetary efficiency metrics are outlined and introduced beneath and shouldn’t be thought of an alternative choice to, nor superior to, the monetary information ready in accordance with GAAP. Resulting from rounding, numbers introduced all through this and different paperwork could not add up or recalculate exactly. The Firm has not offered a reconciliation of Mott’s anticipated EBITDA for fiscal yr 2024 or fiscal yr 2025 as a result of it’s unable to quantify sure quantities that might be required to be included in Mott’s contribution to internet revenue with out unreasonable efforts. As well as, the Firm believes such reconciliation would indicate a level of precision that might be complicated or deceptive to traders.

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All desk footnotes will be discovered on the finish of this Non-GAAP Measures part. There have been no changes to GAAP monetary efficiency metrics apart from the objects famous beneath.

• Natural orders and internet gross sales are calculated excluding quantities from acquired or divested companies in the course of the first twelve months of possession or previous to divestiture and excluding the affect of international foreign money translation.
• Adjusted gross revenue is calculated as gross revenue plus truthful worth stock step-up prices.
• Adjusted gross margin is calculated as adjusted gross revenue divided by internet gross sales.
• Adjusted internet revenue attributable to IDEX is calculated as internet revenue attributable to IDEX plus truthful worth stock step-up prices, plus restructuring bills and asset impairments, much less the acquire on sale of a enterprise, plus the credit score loss on a observe receivable from a collaborative associate, plus acquisition-related intangible asset amortization, all internet of the statutory tax expense or profit.
• Adjusted diluted EPS attributable to IDEX is calculated as adjusted internet revenue attributable to IDEX divided by the diluted weighted common shares excellent.
• Consolidated Adjusted EBITDA is calculated as consolidated earnings earlier than curiosity expense – internet, taxes, depreciation and amortization, or consolidated EBITDA, much less the acquire on sale of a enterprise, plus truthful worth stock step-up prices, plus restructuring bills and asset impairments, plus the credit score loss on a observe receivable from a collaborative associate.
• Consolidated Adjusted EBITDA margin is calculated as Consolidated Adjusted EBITDA divided by internet gross sales.
• Free money stream is calculated as money flows from working actions much less capital expenditures. Free money stream conversion is calculated as free money stream divided by adjusted internet revenue attributable to IDEX.

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Desk 8: Reconciliation of Estimated 2024 Web Revenue to Adjusted EBITDA ({dollars} in tens of millions)

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View supply model on businesswire.com: https://www.businesswire.com/information/dwelling/20241029769149/en/

Contacts

Investor Contact:
Wendy Palacios
Vice President FP&A and Investor Relations
(847) 498-7070

#distro

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