IDEX Corporation Q4 FY2025 earnings call

• Introduced Sean Gillen as Chief Financial Officer, who brings extensive experience in driving profitable growth. - Progressing through phase three of IDEX's purposeful evolution using the 8020 playbook, both organically and through M&A. - HST segment saw acceleration in order rates, driven by data center-related applications, semiconductor filtration, sealing consumables, space and defense, and food/pharma markets. - Completed a small acquisition of Microlam, which is integrating well and has strong growth momentum. - Teams leveraging 8020 playbook for margin expansion within segments, with focus on cross-business unit collaboration and innovation.

HST Segment

• Organic orders grew 34% in Q4 2025. Volumes increased in data center applications, semiconductor consumables, and space and defense. Adjusted EBITDA margin expanded 60 basis points year over year.

FMT Segment

• Organic orders increased 4% and organic sales increased 1%. Impacted by softness in chemical end markets. Adjusted EBITDA margin declined 20 basis points year over year.

FSDP Segment

• Organic orders were flat year over year and organic sales declined by 5% for the second consecutive quarter. Adjusted EBITDA margin increased 50 basis points year over year

• Full-year 2026 organic growth expected to be 1%-2%. - Adjusted EBITDA margin expected to be in the 26%-27% range. - Adjusted EPS guidance for 2026 is $8.15 to $8.35, representing low to mid-single-digit growth year over year. - First quarter typically seasonally soft, with second quarter expected to show a more pronounced step up in earnings due to higher volumes and normalization at the corporate expense line.

• Actual results could differ materially from forward-looking statements due to macro uncertainties, including risks and uncertainties discussed in press releases and SEC filings. - Volatility in policy headwinds and potential impacts on market demand for certain segments.

Q: Could you talk about how much price ended up contributing to top line overall in 2025 and within the 1%-2% organic growth outlook for 2026?

A: In fiscal year 2025, price was around 3%. In Q4 2025, it was in the three and a half percent range. For 2026, forecasting around 1-2% price contribution, still additive overall.

Q: Could you parse out the disconnect between orders and revenue conversion, especially in relation to the portfolio reshaping?

A: On the FMT side, weather impacts cause seasonal variations, with lower revenue in Q1 and recovery in Q2. In HST, larger orders captured in Q4 may move into Q2 due to lead times. Assurance levels are higher in HST this year compared to last.

Q: How much of Q4 order growth in HST was AI-related versus other markets?

A: Approximately half of the backlog build in HST was in very specific data center supported applications, but a lot of the growth is also tangentially related to semiconductor and other related markets within the same ecosystem