IDEX (NYSE:IEX) reported third-quarter 2026 results that exceeded its prior guidance, driven by growth in its Health & Science Technologies, Fluid & Metering Technologies and Fire & Safety/Diversified Products segments. The company also raised its full-year outlook, citing momentum in data centers, semiconductors, space and defense, water and select industrial markets.
President and Chief Executive Officer Eric Ashleman said sales and adjusted earnings per share reached records during the quarter. Organic sales increased 8% year over year, adjusted EBITDA margin expanded 50 basis points to 27.8%, and adjusted EPS rose 15% to $2.33. Orders grew 13% organically to nearly $1 billion, with organic order growth reported in each of the company’s three segments.
“Sales and adjusted EPS were both records,” Ashleman said, adding that the results reflected the company’s efforts to build integrated growth platforms focused on what it calls advantage markets.
Segment performance and cash flow
Chief Financial Officer Sean Gillen said third-quarter organic revenue growth surpassed the company’s 5% to 7% guidance range. Adjusted EBITDA margin of 27.8% was also above the company’s expected 27% to 27.5% range, while adjusted EPS exceeded its forecast of $2.20 to $2.25.
- Health & Science Technologies: Organic orders rose 21% to a third-quarter record of $468 million, while organic sales increased 13%. Adjusted EBITDA margin expanded 110 basis points to 28.8%.
- Fluid & Metering Technologies: Organic orders increased 11% to a third-quarter record of $349 million, and organic sales grew 4%. Adjusted EBITDA margin increased 20 basis points to 33.9%.
- Fire & Safety/Diversified Products: Organic orders rose 1% and organic sales grew 6%. Adjusted EBITDA margin improved 140 basis points to 28.5%.
Gillen said free cash flow totaled $214 million, up 14% from a year earlier, representing 124% conversion. IDEX ended the quarter with more than $1.2 billion of liquidity, while gross leverage improved to 1.8 times from 2.1 times a year earlier.
The company paid $54 million in dividends and repurchased $75 million of shares during the quarter. Gillen said IDEX expects to maintain repurchases at about $75 million per quarter through the remainder of 2026, while retaining flexibility based on leverage, bolt-on acquisitions and portfolio actions.
Advantage markets drive HST growth
Ashleman highlighted data centers, semiconductors, space and defense, and water as major sources of growth. In HST, demand was supported by semiconductor original equipment and consumables, data-center applications, and space and defense. Gillen said nearly all of that growth came from businesses IDEX acquired during the past several years and from markets targeted by its integrated growth strategy.
Management said data-center activity includes thermal-management products for behind-the-meter power generation and technologies intended to improve liquid-cooling-system reliability. Semiconductor demand has included filtration, sealing, optics and thermal-management offerings used in process tools and metrology equipment. About half of IDEX’s semiconductor business is tied to consumables, according to Ashleman.
In space and defense, the company’s optical technologies support satellite signal transmission, reception and filtering in low-Earth orbit, while Mott provides filtration solutions for launch and defense applications. BAND-IT engineered clamping products also posted strong growth across commercial aerospace, defense and spacecraft platforms.
Ashleman said the company’s advantage markets collectively represent more than one-third of the HST portfolio and have grown at roughly 50% year to date compared with the prior year. He said these markets are expected to remain growth drivers into 2027, though comparisons will become more difficult.
Industrial conditions show signs of broadening
Management said FMT had been expected to post relatively flat revenue for 2026, but orders and sales have outpaced that plan. Third-quarter growth was led by semiconductor and municipal water activity, as well as growth at industrial pump businesses.
Ashleman said IDEX has seen modest improvement in smaller-volume order rates and distributor demand. He also cited early signs of improvement in agriculture and energy, including stronger preseason agricultural orders, terminal-automation activity and pipeline-related work. Chemical markets, however, remained “very fatigued,” he said, largely because of elevated input pricing.
IDEX’s intelligent water platform grew at a high-single-digit rate in the third quarter. The company introduced PERISPEK, a cloud-based platform that connects flow monitoring, robotic pipe inspection, AI-enabled software and rehabilitation tools. Ashleman said the platform is designed to help municipalities identify water-system problems before making capital-spending decisions.
Raised 2026 outlook
IDEX raised its full-year 2026 forecast to organic growth of 6.5% to 6.8%, from a prior range of 5% to 6%. The company tightened its adjusted EBITDA margin outlook to 27.1% to 27.3% and raised its adjusted EPS guidance to $8.91 to $8.96, compared with its previous $8.70 to $8.85 range.
The company continues to expect approximately $110 million in capital expenditures and free-cash-flow conversion of at least 100% for the year. Management expects fourth-quarter margins to decline sequentially because of fewer production days and planned maintenance shutdowns, a seasonal pattern the company said also occurred last year.
Gillen said pricing contributed about 2% to 2026 revenue growth, excluding second-quarter noise related to IEEPA tariffs. He said IDEX expects to continue pricing above cost, supported by targeted price actions and productivity initiatives.
Looking ahead, management reiterated its framework for high-30% to 40% incremental margins net of reinvestment. Ashleman said the company plans to continue investing in growth areas, pursue bolt-on acquisitions tied to its platforms, and return capital to shareholders through dividends and share repurchases.
About IDEX (NYSE:IEX)
IDEX Corporation is an industrial manufacturing company headquartered in Lake Forest, Illinois. The company designs and produces engineered products and technologies used to move, control, measure and apply fluids, as well as equipment used in fire and safety applications.
IDEX operates through businesses serving fluid and metering technologies, health and science technologies, and fire and safety markets. Its products include pumps, valves, flow meters, compressors, dispensing equipment, precision fluidics components and systems, fire pumps, rescue tools and other specialized equipment.
The company serves a broad range of industries, including healthcare, life sciences, water and wastewater, chemical processing, energy, food and beverage, agriculture, industrial manufacturing and municipal fire protection.
