IDEX Reports Record Second Quarter Results; Lowers Full Year Guidance in Response to Softening Second Half Outlook

News Release
July 26, 2023

Second Quarter 2023 Highlights

(All comparisons are against the second quarter of 2022 unless otherwise noted)

  • Record sales of $846.2 million, up 6% overall and 3% organically
  • Reported EPS of $1.82, up 1% and record adjusted EPS of $2.18, up 8%
  • Strong operating cash flow of $141 million, up 26%; free cash flow of $120 million, up 24%
  • Completed acquisition of Iridian Spectral Technologies on May 19, 2023

NORTHBROOK, Ill.–(BUSINESS WIRE)–Jul. 26, 2023– IDEX Corporation (NYSE: IEX) today announced its financial results for the three month period ended June 30, 2023.

“IDEX achieved record sales and adjusted earnings per share in the second quarter,” said Eric D. Ashleman, IDEX Corporation Chief Executive Officer and President. “Our view on core IDEX industrial markets continues to hold as inventory and backlog recalibrates in line with our supply chain improvements and lead time reductions. Our Fluid & Metering and Fire & Safety / Diversified Products businesses delivered strong organic growth and profitability within this environment.”

“Our businesses within our Health & Science Technologies segment remained challenged, impacted by customers’ sharp inventory recalibration and demand softness after two years of double-digit growth. At this point we no longer expect market recovery within the second half of the year. Our teams are appropriately balanced as they execute targeted cost reductions to mitigate a portion of these volume declines, drive strong cash flow overall, and continue to innovate for our customers.”

“Regardless of macroeconomic fluctuations, we remain focused on initiatives to drive long-term growth. IDEX continues to be well positioned in markets with strong secular growth trends and critical technologies that enable above-market performance over an economic cycle. Our balance sheet is strong and provides ample capacity to fund our disciplined capital deployment strategy.”

2023 Outlook
Full year 2023 organic sales are projected to decline 1 to 2 percent over the prior year, with GAAP EPS of $6.80 – $6.90 (adjusted EPS of $7.90 – $8.00).

Third quarter 2023 organic sales are projected to decline 7 to 8 percent over the prior year period, with GAAP EPS of $1.60 – $1.65 (adjusted EPS of $1.84 – $1.89).

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