IDEX Raises 2026 Outlook as Q3 Organic Sales Grow 8%

IDEX Corp. (NYSE: IEX) raised its full-year 2026 outlook after third-quarter organic sales increased 8%, led by strong demand in Health & Science Technologies and broader industrial growth in Fluid & Metering Technologies. All three operating segments expanded adjusted EBITDA margins, supported by higher volumes, productivity initiatives and the company’s 8020 operating model.

For the quarter ended Sept. 30, net sales rose 8% to $951.7 million from $878.7 million a year earlier. Adjusted EBITDA margin increased 50 basis points to 27.8%, while adjusted earnings per share climbed 15% to $2.33 from $2.03. Free cash flow rose 14% to $214 million.

For the first nine months of 2026, organic sales grew 6%, adjusted EBITDA margin expanded 50 basis points and adjusted EPS increased 14%. Free cash flow was up 12%.

IDEX now expects full-year organic sales growth of 6.5% to 6.8%, compared with its previous forecast of 5% to 6%. Adjusted EPS is projected at $8.91 to $8.96, up from the prior range of $8.70 to $8.85. The company maintained its adjusted EBITDA margin forecast at 27.1% to 27.3%, narrowing the lower end from the previous 27.0% to 27.3% range.

The updated guidance also calls for free cash flow conversion above 100%, capital expenditures of about $110 million and a tax rate of approximately 24%. Net interest expense is expected to be about $62 million, compared with the previous estimate of $63 million to $65 million. The outlook is based on Sept. 30 foreign-exchange rates and excludes future acquisitions from adjusted EPS estimates.

Health and Science leads segment growth

Health & Science Technologies delivered the strongest quarterly performance. Organic orders increased 21% and organic sales rose 13%, with reported sales reaching $434 million from $381 million a year earlier. Adjusted EBITDA margin expanded 110 basis points to 28.8%.

IDEX said demand remained robust across data centers, semiconductors, and space and defense. Those targeted markets represent more than one-third of segment sales and about 20% of the company overall. Management attributed the segment’s margin improvement primarily to volume leverage and a favorable sales mix.

The company is directing resources toward applications including wafer positioning, thermal management, gas purification, critical sealing, satellite communications and data-center cooling. It is also adapting existing precision manufacturing and filtration capabilities for newer applications such as semiconductor impurity removal, optical circuit switching and radio-frequency antennas.

Industrial demand broadens

Fluid & Metering Technologies posted 11% organic order growth and 4% organic sales growth. Reported sales increased 3% to $328 million, as a one-percentage-point foreign-exchange headwind partly offset organic growth. Adjusted EBITDA margin rose 20 basis points to 33.9%.

The company said strength was extending beyond water-related markets, with orders and sales ahead of its initial forecasts for roughly flat year-over-year revenue. Previously pressured agricultural and energy markets were stabilizing, while productivity gains and higher volumes supported incremental margins.

Fire & Safety/Diversified Products recorded 6% organic sales growth, driven by aerospace demand. Reported sales increased 5% to $192 million, while adjusted EBITDA margin advanced 140 basis points to 28.5%. Organic orders rose 1%, with IDEX describing the subdued order result as largely timing-related. Volume leverage, productivity and mix supported profitability, partially offset by price-cost pressure.

Across the company, price remained ahead of cost on a dollar basis during the quarter. IDEX said productivity measures and its 8020 approach helped absorb higher expenses and support margin expansion.

Capital allocation and risks

Gross leverage declined to 1.8 times trailing 12-month adjusted EBITDA from 2.1 times a year earlier, below the company’s target of 2.0 times. IDEX said its near-term acquisition focus is on tuck-in transactions while it continues investing in organic growth, integrating acquired businesses, paying dividends and repurchasing shares.

The outlook remains subject to industrial activity, inflation, interest rates, tariffs and changes in global trade policy. Other uncertainties identified by the company include currency movements, supply-chain and labor conditions, material costs, geopolitical conflicts, cybersecurity incidents, acquisition integration and changes in demand in AI-related markets. IDEX also noted restructuring costs associated with the anticipated closure of a Health & Science Technologies facility.