filings.toolsItem 1. Financial Statements
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Item 1. Financial Statements
IDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net sales | $ | 865.4 | $ | 807.2 | $ | 1,679.7 | $ | 1,607.7 | |||||||||||||||
| Cost of sales | 473.2 | 440.4 | 918.6 | 883.5 | |||||||||||||||||||
| Gross profit | 392.2 | 366.8 | 761.1 | 724.2 | |||||||||||||||||||
| Selling, general and administrative expenses | 203.6 | 182.8 | 413.0 | 377.9 | |||||||||||||||||||
| Restructuring expenses and asset impairments | 0.7 | 1.3 | 18.2 | 2.4 | |||||||||||||||||||
| Operating income | 187.9 | 182.7 | 329.9 | 343.9 | |||||||||||||||||||
| Gain on sale of business | — | (4.6) | — | (4.6) | |||||||||||||||||||
| Other expense (income) – net | 2.4 | — | 3.8 | (2.7) | |||||||||||||||||||
| Interest expense – net | 15.6 | 8.1 | 31.7 | 17.5 | |||||||||||||||||||
| Income before income taxes | 169.9 | 179.2 | 294.4 | 333.7 | |||||||||||||||||||
| Provision for income taxes | 38.8 | 38.0 | 67.9 | 71.2 | |||||||||||||||||||
| Net income | 131.1 | 141.2 | 226.5 | 262.5 | |||||||||||||||||||
| Net loss attributable to noncontrolling interest | 0.5 | 0.1 | 0.6 | 0.2 | |||||||||||||||||||
| Net income attributable to IDEX | $ | 131.6 | $ | 141.3 | $ | 227.1 | $ | 262.7 | |||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||
| Basic earnings per common share attributable to IDEX | $ | 1.74 | $ | 1.86 | $ | 3.00 | $ | 3.46 | |||||||||||||||
| Diluted earnings per common share attributable to IDEX | $ | 1.74 | $ | 1.86 | $ | 3.00 | $ | 3.46 | |||||||||||||||
| Share data: | |||||||||||||||||||||||
| Basic weighted average common shares outstanding | 75.5 | 75.7 | 75.6 | 75.7 | |||||||||||||||||||
| Diluted weighted average common shares outstanding | 75.5 | 75.9 | 75.7 | 75.9 |
See Notes to Condensed Consolidated Financial Statements
IDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income | $ | 131.1 | $ | 141.2 | $ | 226.5 | $ | 262.5 | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Pension and other postretirement adjustments, net of tax | (0.2) | (0.2) | (0.4) | (0.3) | |||||||||||||||||||
| Cumulative translation adjustment | 125.6 | (6.0) | 179.5 | (70.3) | |||||||||||||||||||
| Other comprehensive income (loss), net of tax | 125.4 | (6.2) | 179.1 | (70.6) | |||||||||||||||||||
| Comprehensive income | 256.5 | 135.0 | 405.6 | 191.9 | |||||||||||||||||||
| Comprehensive loss attributable to noncontrolling interest | 0.5 | 0.1 | 0.6 | 0.2 | |||||||||||||||||||
| Comprehensive income attributable to IDEX | $ | 257.0 | $ | 135.1 | $ | 406.2 | $ | 192.1 |
See Notes to Condensed Consolidated Financial Statements
IDEX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per share amounts)
(unaudited)
| June 30, 2025 | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 568.2 | $ | 620.8 | |||||||
| Receivables – net | 476.1 | 465.9 | |||||||||
| Inventories – net | 487.8 | 429.7 | |||||||||
| Other current assets | 84.4 | 76.3 | |||||||||
| Total current assets | 1,616.5 | 1,592.7 | |||||||||
| Property, plant and equipment – net of accumulated depreciation of $639.7 and $589.9 at June 30, 2025 and December 31, 2024, respectively | 464.8 | 460.4 | |||||||||
| Goodwill | 3,368.6 | 3,251.7 | |||||||||
| Intangible assets – net | 1,269.4 | 1,284.8 | |||||||||
| Other noncurrent assets | 156.8 | 155.7 | |||||||||
| Total assets | $ | 6,876.1 | $ | 6,745.3 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Trade accounts payable | $ | 204.2 | $ | 197.8 | |||||||
| Accrued expenses | 271.3 | 278.7 | |||||||||
| Current portion of long-term borrowings | 0.8 | 100.7 | |||||||||
| Dividends payable | 53.5 | 52.5 | |||||||||
| Total current liabilities | 529.8 | 629.7 | |||||||||
| Long-term borrowings – net | 1,847.1 | 1,859.5 | |||||||||
| Deferred income taxes | 283.2 | 267.2 | |||||||||
| Other noncurrent liabilities | 205.6 | 194.8 | |||||||||
| Total liabilities | 2,865.7 | 2,951.2 | |||||||||
| Commitments and contingencies (Note 15) | |||||||||||
| Shareholders’ equity | |||||||||||
| Preferred stock: | |||||||||||
| Authorized: 5.0 million shares, $0.01 per share par value; Issued: None | — | — | |||||||||
| Common stock: | |||||||||||
| Authorized: 150.0 million shares, $0.01 per share par value | |||||||||||
| Issued: 90.1 million shares at both June 30, 2025 and December 31, 2024 | 0.9 | 0.9 | |||||||||
| Treasury stock at cost: 14.7 million shares at June 30, 2025 and 14.2 million shares at December 31, 2024 | (1,271.4) | (1,170.3) | |||||||||
| Additional paid-in capital | 883.6 | 864.8 | |||||||||
| Retained earnings | 4,350.3 | 4,230.2 | |||||||||
| Accumulated other comprehensive income (loss) | 48.2 | (130.9) | |||||||||
| Total shareholders’ equity | 4,011.6 | 3,794.7 | |||||||||
| Noncontrolling interest | (1.2) | (0.6) | |||||||||
| Total equity | 4,010.4 | 3,794.1 | |||||||||
| Total liabilities and equity | $ | 6,876.1 | $ | 6,745.3 |
See Notes to Condensed Consolidated Financial Statements
IDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In millions, except per share amounts)
(unaudited)
| Common Stock Shares | Common Stock and Additional Paid-In Capital | Treasury Stock Shares | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | 90.1 | $ | 879.3 | 14.4 | $ | (1,221.2) | $ | (77.2) | $ | 4,325.7 | $ | 3,906.6 | $ | (0.7) | $ | 3,905.9 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | 131.6 | 131.6 | (0.5) | 131.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (net of tax of $0.1) | — | — | — | — | 125.4 | — | 125.4 | — | 125.4 | ||||||||||||||||||||||||||||||||||||||||||||
| Net issuance of shares of treasury stock (net of tax of $—) | — | — | 0.1 | 0.3 | — | — | 0.3 | — | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock (including excise tax of $0.5) | — | — | 0.2 | (50.5) | — | — | (50.5) | — | (50.5) | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 5.2 | — | — | — | — | 5.2 | — | 5.2 | ||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared - $1.42 per common share | — | — | — | — | — | (107.0) | (107.0) | — | (107.0) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | 90.1 | $ | 884.5 | 14.7 | $ | (1,271.4) | $ | 48.2 | $ | 4,350.3 | $ | 4,011.6 | $ | (1.2) | $ | 4,010.4 | |||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 90.1 | $ | 865.7 | 14.2 | $ | (1,170.3) | $ | (130.9) | $ | 4,230.2 | $ | 3,794.7 | $ | (0.6) | $ | 3,794.1 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | 227.1 | 227.1 | (0.6) | 226.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (net of tax of $0.1) | — | — | — | — | 179.1 | — | 179.1 | — | 179.1 | ||||||||||||||||||||||||||||||||||||||||||||
| Net issuance of shares of treasury stock (net of tax of $2.7) | — | — | — | (0.2) | — | — | (0.2) | — | (0.2) | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchases of common stock (including excise tax of $0.9) | — | — | 0.5 | (100.9) | — | — | (100.9) | — | (100.9) | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 18.8 | — | — | — | — | 18.8 | — | 18.8 | ||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared - $1.42 per common share | — | — | — | — | — | (107.0) | (107.0) | — | (107.0) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | 90.1 | $ | 884.5 | 14.7 | $ | (1,271.4) | $ | 48.2 | $ | 4,350.3 | $ | 4,011.6 | $ | (1.2) | $ | 4,010.4 | |||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2024 | 90.1 | $ | 852.4 | 14.2 | $ | (1,179.3) | $ | (110.2) | $ | 4,055.7 | $ | 3,618.6 | $ | (0.3) | $ | 3,618.3 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | 141.3 | 141.3 | (0.1) | 141.2 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss (net of tax $0.1) | — | — | — | — | (6.2) | — | (6.2) | — | (6.2) | ||||||||||||||||||||||||||||||||||||||||||||
| Net issuance of shares of treasury stock (net of tax of $0.2) | — | — | — | 0.2 | — | 0.2 | — | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 4.4 | — | — | — | 4.4 | — | 4.4 | |||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared - $1.38 per common share | — | — | — | — | — | (104.5) | (104.5) | — | (104.5) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | 90.1 | $ | 856.8 | 14.2 | $ | (1,179.1) | $ | (116.4) | $ | 4,092.5 | $ | 3,653.8 | $ | (0.4) | $ | 3,653.4 | |||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | 90.1 | $ | 839.9 | 14.3 | $ | (1,187.0) | $ | (45.8) | $ | 3,934.3 | $ | 3,541.4 | $ | (0.2) | $ | 3,541.2 | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | 262.7 | 262.7 | (0.2) | 262.5 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss (net of tax of $0.1) | — | — | — | — | (70.6) | — | (70.6) | — | (70.6) | ||||||||||||||||||||||||||||||||||||||||||||
| Net issuance of shares of treasury stock (net of tax of $2.4) | — | — | (0.1) | 7.9 | — | — | 7.9 | — | 7.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | 16.9 | — | — | — | — | 16.9 | — | 16.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared - $1.38 per common share | — | — | — | — | — | (104.5) | (104.5) | — | (104.5) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | 90.1 | $ | 856.8 | 14.2 | $ | (1,179.1) | $ | (116.4) | $ | 4,092.5 | $ | 3,653.8 | $ | (0.4) | $ | 3,653.4 |
See Notes to Condensed Consolidated Financial Statements
IDEX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(unaudited)
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 226.5 | $ | 262.5 | |||||||
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
| Gain on sale of business | — | (4.6) | |||||||||
| Asset impairments | 0.6 | — | |||||||||
| Depreciation | 37.4 | 32.5 | |||||||||
| Amortization of intangible assets | 63.5 | 48.5 | |||||||||
| Share-based compensation expense | 18.8 | 16.9 | |||||||||
| Deferred income taxes | 1.6 | 0.4 | |||||||||
| Changes in (net of the effect from acquisitions/divestitures and foreign currency translation): | |||||||||||
| Receivables – net | 1.6 | (11.9) | |||||||||
| Inventories – net | (45.6) | (19.8) | |||||||||
| Other current assets | (21.8) | (12.2) | |||||||||
| Trade accounts payable | (0.7) | 0.3 | |||||||||
| Deferred revenue | 6.4 | 0.3 | |||||||||
| Accrued expenses | (22.4) | (21.9) | |||||||||
| Other – net | 1.5 | (0.8) | |||||||||
| Net cash flows provided by operating activities | 267.4 | 290.2 | |||||||||
| Cash flows from investing activities | |||||||||||
| Capital expenditures | (29.1) | (35.9) | |||||||||
| Acquisition of business, net of cash acquired | 4.2 | 1.6 | |||||||||
| Proceeds from sale of business, net of cash remitted | — | 45.5 | |||||||||
| Other – net | 0.4 | 0.5 | |||||||||
| Net cash flows (used in) provided by investing activities | (24.5) | 11.7 | |||||||||
| Cash flows from financing activities | |||||||||||
| Borrowings under revolving credit facilities | 50.0 | — | |||||||||
| Payment of long-term borrowings | (100.0) | (25.0) | |||||||||
| Payments under revolving credit facilities | (92.7) | — | |||||||||
| Cash dividends paid to shareholders | (105.9) | (100.7) | |||||||||
| (Payments) proceeds from share issuances, net of shares withheld for taxes | (0.2) | 7.9 | |||||||||
| Repurchases of common stock | (100.0) | — | |||||||||
| Other – net | (0.4) | (0.4) | |||||||||
| Net cash flows used in financing activities | (349.2) | (118.2) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 37.4 | (17.3) | |||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (68.9) | 166.4 | |||||||||
| Cash and cash equivalents and restricted cash at beginning of year(1) | 638.9 | 534.3 | |||||||||
| Cash and cash equivalents and restricted cash at end of period(1) | $ | 570.0 | $ | 700.7 | |||||||
| Supplemental cash flow information | |||||||||||
| Cash paid for: | |||||||||||
| Interest | $ | 36.7 | $ | 23.0 | |||||||
| Income taxes – net | 83.4 | 84.6 |
(1) Includes $1.8 million and $18.1 million of restricted cash at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, $1.4 million of the restricted cash has been included in Other current assets and $0.4 million has been included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. At December 31, 2024, $18.1 million was included in Other current assets in the Condensed Consolidated Balance Sheets. There was no restricted cash as of June 30, 2024 or December 31, 2023.
See Notes to Condensed Consolidated Financial Statements
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
1. Basis of Presentation and Significant Accounting Policies
The Condensed Consolidated Financial Statements of IDEX Corporation (“IDEX” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to interim financial information and the instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The statements are unaudited but include all adjustments, consisting only of recurring items, except as noted, that the Company considers necessary for a fair presentation of the information set forth herein. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the entire year.
The Condensed Consolidated Financial Statements set forth in this report should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Recently Issued Accounting Standards
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to disclose standard categories in the tax rate reconciliation, additional information for reconciling items that meet a quantitative threshold and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Adoption of this ASU should be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. Adoption of the standard is not expected to have a material impact on the Company’s Consolidated Financial Statements, but is expected to result in incremental income tax disclosures when adopted in the Company’s Annual Report on Form 10-K for the year ending December 31, 2025 and in periodic results thereafter.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires public entities to disclose, within the footnotes to the financial statements, disaggregated information about certain income statement expense captions, including disclosure of amounts for purchases of inventory, employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption. ASU 2024-03 is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU should be applied prospectively, but may be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on the Company’s financial statement disclosures and expects the standard will increase disclosures in the Company’s annual and interim reporting when adopted.
2. Acquisitions and Divestitures
All of the Company’s acquisitions of businesses have been accounted for under Accounting Standards Codification (“ASC”) 805, Business Combinations. Accordingly, the assets and liabilities of the acquired companies, after adjustments to reflect the fair values assigned to the assets and liabilities, have been included in the Condensed Consolidated Balance Sheets from their respective dates of acquisition. The results of operations of businesses acquired have been included in the Condensed Consolidated Statements of Income since their respective dates of acquisition. Supplemental pro forma information has not been provided as the acquisitions did not have a material impact on the Condensed Consolidated Financial Statements individually or in the aggregate.
The Company makes a preliminary allocation of the purchase price for each acquisition as of the acquisition date based on its understanding of the fair value of the acquired assets and assumed liabilities. These nonrecurring fair value measurements are classified as Level 3 in the fair value hierarchy. As the Company continues to obtain additional information, primarily related to the valuations of these assets and liabilities, and continues to integrate the newly acquired business, the Company will refine the estimates of fair value and more accurately allocate the purchase price through the completion of the measurement period, which is not to exceed one year from the date of acquisition. Only items that existed as of the acquisition date are considered for subsequent adjustment to the purchase price allocation. Goodwill recognized reflects the strategic fit, revenue and earnings growth potential of the acquired business and its synergies with existing IDEX businesses.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
2025 Acquisitions
Micro-LAM, Inc.
On July 29, 2025, the Company acquired Micro-LAM, Inc. (“Micro-LAM”) for cash consideration of $90.0 million, subject to customary adjustments, plus a potential earnout of up to $12.0 million of additional cash consideration based upon the achievement of certain financial performance metrics over a two-year period. The acquisition was funded using additional borrowings under the Company’s Revolving Facility in July 2025. Micro-LAM is an advanced optics manufacturer of laser-assisted machining, ultra-precision diamond tools and custom optics that is complementary to the Company’s Optics Technologies solutions. Micro-LAM will operate in the Company’s Health & Science Technologies segment.
2024 Acquisitions
Mott Corporation
On September 5, 2024, the Company acquired Mott Corporation and its subsidiaries (“Mott”) in a stock acquisition. Mott is a leading microfiltration business specializing in the design, customization and manufacturing of sintered porous metal components and engineered solutions used in fluidic applications. Headquartered in Farmington, Connecticut, Mott operates in the Scientific Fluidics & Optics reporting unit within the Company’s Health & Science Technologies segment. Mott was acquired for cash consideration of $982.0 million, net of cash acquired of $3.1 million. The purchase price was funded using a combination of cash on hand of $207.7 million, borrowings under the Company’s Revolving Facility of $279.3 million and net proceeds of $495.0 million from the issuance of the Company’s 4.950% Senior Notes (as defined in Note 8, “Borrowings”). Goodwill and intangible assets recognized as part of this transaction were $488.2 million and $412.8 million, respectively. The goodwill is expected to be primarily deductible for tax purposes.
As of June 30, 2025, the preliminary allocation of the purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, is as follows:
| Total | |||||
| Current assets, net of cash acquired | $ | 82.3 | |||
| Property, plant and equipment | 52.1 | ||||
| Goodwill | 488.2 | ||||
| Intangible assets | 412.8 | ||||
| Other noncurrent assets | 15.0 | ||||
| Total assets acquired | 1,050.4 | ||||
| Current liabilities | (49.6) | ||||
| Deferred income taxes | (7.6) | ||||
| Other noncurrent liabilities | (11.2) | ||||
| Net assets acquired(1) | $ | 982.0 |
(1) In January 2025, the Company finalized the purchase price of Mott, resulting in a reduction to the purchase price of $4.2 million. Funds were received by the Company in January 2025.
Acquired intangible assets consist of trade names, customer relationships and unpatented technology. The acquired intangible assets and weighted average amortization periods are as follows:
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
| Total | Weighted Average Life (in years) | ||||||||||
| Trade names | $ | 42.0 | 15 | ||||||||
| Customer relationships | 269.0 | 14 | |||||||||
| Unpatented technology | 101.8 | 13 | |||||||||
| Acquired intangible assets | $ | 412.8 |
Acquisition-Related Costs
The Company incurred acquisition-related costs of $1.6 million and $2.5 million during the three months ended June 30, 2025 and 2024, respectively, and $2.3 million and $3.8 million during the six months ended June 30, 2025 and 2024, respectively. These costs were recorded in Selling, general and administrative expenses and were related to completed, pending and potential transactions, including transactions that ultimately were not completed. There were no fair value inventory step-up charges recorded during the three and six months ended June 30, 2025 or the three months ended June 30, 2024. The Company recorded a $2.5 million fair value inventory step-up charge associated with the completed 2023 acquisition of STC Material Solutions in Cost of sales during the six months ended June 30, 2024.
Divestitures
The Company periodically reviews its businesses relative to its core business. As such, from time to time, the Company may sell various businesses or assets for a variety of reasons. Any resulting gain or loss recognized due to divestitures is recorded within Gain on sale of business in the Condensed Consolidated Statements of Income.
On June 3, 2024, the Company completed the sale of Alfa Valvole, Srl (“Alfa Valvole”) for proceeds of $45.5 million, net of cash remitted, resulting in an initial gain on the sale of $4.6 million, net of a release of cumulative foreign currency translation losses of $5.5 million. During the three months ended September 30, 2024, the gain on the sale of Alfa Valvole was finalized, resulting in a downward adjustment to the gain on sale of $0.6 million for a final gain on sale of $4.0 million and final net proceeds received of $45.1 million. There was no income tax impact associated with this transaction in the Condensed Consolidated Statements of Income due to the participation exemption of its consolidated group. The results of Alfa Valvole were reported in the Valves reporting unit within the Fluid & Metering Technologies segment through the date of disposition.
3. Business Segments
IDEX has three reportable business segments: Health & Science Technologies (“HST”), Fluid & Metering Technologies (“FMT”), and Fire & Safety/Diversified Products (“FSDP”).
The Company uses Adjusted EBITDA as its measure of segment performance. Intersegment sales are contracted with terms equivalent to those of an arm’s-length transaction. Information on the Company’s business segments is presented below.
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| HST | FMT | FSDP | Total Segments | Eliminations | IDEX | ||||||||||||||||||||||||||||||
| NET SALES | |||||||||||||||||||||||||||||||||||
| External customers | $ | 363.9 | $ | 310.5 | $ | 191.0 | $ | 865.4 | $ | — | $ | 865.4 | |||||||||||||||||||||||
| Intersegment sales | 1.4 | 0.4 | 0.5 | 2.3 | (2.3) | — | |||||||||||||||||||||||||||||
| Net sales | 365.3 | 310.9 | 191.5 | 867.7 | (2.3) | 865.4 | |||||||||||||||||||||||||||||
| Adjusted segment cost of sales(1) | (217.0) | (153.0) | (105.5) | (475.5) | 2.3 | (473.2) | |||||||||||||||||||||||||||||
| Other segment expenses(2) | (53.3) | (49.2) | (29.6) | (132.1) | |||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 95.0 | $ | 108.7 | $ | 56.4 | $ | 260.1 |
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
| HST | FMT | FSDP | Total Segments | Eliminations | IDEX | ||||||||||||||||||||||||||||||
| NET SALES | |||||||||||||||||||||||||||||||||||
| External customers | $ | 303.0 | $ | 318.9 | $ | 185.3 | $ | 807.2 | $ | — | $ | 807.2 | |||||||||||||||||||||||
| Intersegment sales | 0.8 | 0.5 | 0.1 | 1.4 | (1.4) | — | |||||||||||||||||||||||||||||
| Net sales | 303.8 | 319.4 | 185.4 | 808.6 | (1.4) | 807.2 | |||||||||||||||||||||||||||||
| Adjusted segment cost of sales(1) | (177.6) | (163.3) | (100.9) | (441.8) | 1.4 | (440.4) | |||||||||||||||||||||||||||||
| Other segment expenses(2) | (42.0) | (48.4) | (30.7) | (121.1) | |||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 84.2 | $ | 107.7 | $ | 53.8 | $ | 245.7 |
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| HST | FMT | FSDP | Total Segments | Eliminations | IDEX | ||||||||||||||||||||||||||||||
| NET SALES | |||||||||||||||||||||||||||||||||||
| External customers | $ | 704.0 | $ | 600.7 | $ | 375.0 | $ | 1,679.7 | $ | — | $ | 1,679.7 | |||||||||||||||||||||||
| Intersegment sales | 2.8 | 0.7 | 0.8 | 4.3 | (4.3) | — | |||||||||||||||||||||||||||||
| Net sales | 706.8 | 601.4 | 375.8 | 1,684.0 | (4.3) | 1,679.7 | |||||||||||||||||||||||||||||
| Adjusted segment cost of sales(1) | (418.2) | (299.3) | (205.4) | (922.9) | 4.3 | (918.6) | |||||||||||||||||||||||||||||
| Other segment expenses(2) | (106.2) | (98.1) | (59.8) | (264.1) | |||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 182.4 | $ | 204.0 | $ | 110.6 | $ | 497.0 |
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
| HST | FMT | FSDP | Total Segments | Eliminations | IDEX | ||||||||||||||||||||||||||||||
| NET SALES | |||||||||||||||||||||||||||||||||||
| External customers | $ | 612.4 | $ | 632.4 | $ | 362.9 | $ | 1,607.7 | $ | — | $ | 1,607.7 | |||||||||||||||||||||||
| Intersegment sales | 1.5 | 0.7 | 0.5 | 2.7 | (2.7) | — | |||||||||||||||||||||||||||||
| Net sales | 613.9 | 633.1 | 363.4 | 1,610.4 | (2.7) | 1,607.7 | |||||||||||||||||||||||||||||
| Adjusted segment cost of sales(1) | (361.9) | (323.3) | (198.5) | (883.7) | 2.7 | (881.0) | |||||||||||||||||||||||||||||
| Other segment expenses(2) | (86.4) | (96.7) | (59.7) | (242.8) | |||||||||||||||||||||||||||||||
| Segment Adjusted EBITDA | $ | 165.6 | $ | 213.1 | $ | 105.2 | $ | 483.9 |
(1) Adjusted segment cost of sales represents Cost of sales excluding fair value inventory step-up charges. There were no step-up charges recorded during the three or six months ended June 30, 2025 or the three months ended June 30, 2024. There were step-up charges of $2.5 million recorded within the HST segment during the six months ended June 30, 2024.
(2) Other segment expenses consists primarily of selling, general and administrative expenses.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| ADJUSTED EBITDA | |||||||||||||||||||||||
| Health & Science Technologies | $ | 95.0 | $ | 84.2 | $ | 182.4 | $ | 165.6 | |||||||||||||||
| Fluid & Metering Technologies | 108.7 | 107.7 | 204.0 | 213.1 | |||||||||||||||||||
| Fire & Safety/Diversified Products | 56.4 | 53.8 | 110.6 | 105.2 | |||||||||||||||||||
| Segment Adjusted EBITDA | 260.1 | 245.7 | 497.0 | 483.9 | |||||||||||||||||||
| Corporate and other(1) | (22.9) | (21.5) | (51.8) | (51.4) | |||||||||||||||||||
| Interest expense – net | (15.6) | (8.1) | (31.7) | (17.5) | |||||||||||||||||||
| Depreciation(2) | (19.0) | (16.3) | (37.4) | (32.5) | |||||||||||||||||||
| Amortization of intangible assets(2) | (32.0) | (23.9) | (63.5) | (48.5) | |||||||||||||||||||
| Fair value inventory step-up charges | — | — | — | (2.5) | |||||||||||||||||||
| Restructuring expenses and asset impairments | (0.7) | (1.3) | (18.2) | (2.4) | |||||||||||||||||||
| Gain on sale of business | — | 4.6 | — | 4.6 | |||||||||||||||||||
| Income before income taxes | $ | 169.9 | $ | 179.2 | $ | 294.4 | $ | 333.7 |
(1) Corporate expenses that can be identified with a segment have been included in determining segment results. The remainder are included in Corporate and other.
(2) Depreciation and amortization of intangible assets by segment for the three and six months ended June 30, 2025 and 2024 was:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| DEPRECIATION | |||||||||||||||||||||||
| Health & Science Technologies | $ | 11.9 | $ | 9.5 | $ | 23.6 | $ | 18.9 | |||||||||||||||
| Fluid & Metering Technologies | 4.4 | 4.3 | 8.8 | 8.6 | |||||||||||||||||||
| Fire & Safety/Diversified Products | 2.4 | 2.2 | 4.6 | 4.5 | |||||||||||||||||||
| Total Segments | 18.7 | 16.0 | 37.0 | 32.0 | |||||||||||||||||||
| Corporate and other | 0.3 | 0.3 | 0.4 | 0.5 | |||||||||||||||||||
| Total depreciation | $ | 19.0 | $ | 16.3 | $ | 37.4 | $ | 32.5 | |||||||||||||||
| AMORTIZATION OF INTANGIBLE ASSETS | |||||||||||||||||||||||
| Health & Science Technologies | $ | 25.4 | $ | 17.2 | $ | 50.0 | $ | 34.9 | |||||||||||||||
| Fluid & Metering Technologies | 5.4 | 5.2 | 10.7 | 10.5 | |||||||||||||||||||
| Fire & Safety/Diversified Products | 1.2 | 1.5 | 2.8 | 3.1 | |||||||||||||||||||
| Total amortization | $ | 32.0 | $ | 23.9 | $ | 63.5 | $ | 48.5 |
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
| June 30, 2025 | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Health & Science Technologies | $ | 4,254.5 | $ | 4,142.6 | |||||||
| Fluid & Metering Technologies | 1,669.8 | 1,609.4 | |||||||||
| Fire & Safety/Diversified Products | 826.3 | 794.1 | |||||||||
| Total Segments | 6,750.6 | 6,546.1 | |||||||||
| Corporate and other | 125.5 | 199.2 | |||||||||
| Total assets | $ | 6,876.1 | $ | 6,745.3 |
4. Revenue
Disaggregation of Revenue
The Company has a comprehensive offering of products, including technologies, built to customers’ specifications that are sold in niche markets throughout the world. The Company disaggregates revenue from contracts with customers by reporting unit and geographical region for each segment as the Company believes it best depicts how the amount, nature, timing and uncertainty of its revenue and cash flows are affected by economic factors. Revenue, presented as Net sales on the Condensed Consolidated Statements of Income, was attributed to geographical region based on the location of the customer. The following tables present revenue disaggregated by reporting unit and geographical region.
Revenue by reporting unit for the three and six months ended June 30, 2025 and 2024 was as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Scientific Fluidics & Optics | $ | 209.0 | $ | 157.6 | $ | 403.0 | $ | 320.3 | |||||||||||||||
| Performance Pneumatic Technologies | 65.1 | 59.3 | 124.1 | 116.8 | |||||||||||||||||||
| Sealing Solutions | 61.3 | 59.8 | 121.9 | 120.3 | |||||||||||||||||||
| Material Processing Technologies | 29.9 | 27.1 | 57.8 | 56.5 | |||||||||||||||||||
| Intersegment elimination | (1.4) | (0.8) | (2.8) | (1.5) | |||||||||||||||||||
| Health & Science Technologies | 363.9 | 303.0 | 704.0 | 612.4 | |||||||||||||||||||
| Pumps | 109.1 | 101.4 | 214.9 | 203.3 | |||||||||||||||||||
| Water | 85.8 | 88.9 | 168.7 | 171.9 | |||||||||||||||||||
| Energy | 55.4 | 57.7 | 102.3 | 110.3 | |||||||||||||||||||
| Agriculture | 37.1 | 38.6 | 69.1 | 78.3 | |||||||||||||||||||
| Valves | 23.5 | 32.8 | 46.4 | 69.3 | |||||||||||||||||||
| Intersegment elimination | (0.4) | (0.5) | (0.7) | (0.7) | |||||||||||||||||||
| Fluid & Metering Technologies | 310.5 | 318.9 | 600.7 | 632.4 | |||||||||||||||||||
| Fire & Safety | 123.6 | 111.7 | 234.6 | 216.8 | |||||||||||||||||||
| Dispensing | 37.3 | 45.1 | 80.9 | 86.6 | |||||||||||||||||||
| BAND-IT | 30.6 | 28.6 | 60.3 | 60.0 | |||||||||||||||||||
| Intersegment elimination | (0.5) | (0.1) | (0.8) | (0.5) | |||||||||||||||||||
| Fire & Safety/Diversified Products | 191.0 | 185.3 | 375.0 | 362.9 | |||||||||||||||||||
| Net sales | $ | 865.4 | $ | 807.2 | $ | 1,679.7 | $ | 1,607.7 |
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Revenue by geographical region for the three and six months ended June 30, 2025 and 2024 was as follows:
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||
| HST | FMT | FSDP | IDEX | ||||||||||||||||||||
| U.S. | $ | 166.3 | $ | 175.7 | $ | 93.8 | $ | 435.8 | |||||||||||||||
| North America, excluding U.S. | 5.2 | 18.4 | 7.9 | 31.5 | |||||||||||||||||||
| Europe | 116.1 | 51.6 | 52.4 | 220.1 | |||||||||||||||||||
| Asia | 69.9 | 41.7 | 29.5 | 141.1 | |||||||||||||||||||
| Other(1) | 7.8 | 23.5 | 7.9 | 39.2 | |||||||||||||||||||
| Intersegment elimination | (1.4) | (0.4) | (0.5) | (2.3) | |||||||||||||||||||
| Net sales | $ | 363.9 | $ | 310.5 | $ | 191.0 | $ | 865.4 |
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||
| HST | FMT | FSDP | IDEX | ||||||||||||||||||||
| U.S. | $ | 141.8 | $ | 181.2 | $ | 84.5 | $ | 407.5 | |||||||||||||||
| North America, excluding U.S. | 4.7 | 17.3 | 8.9 | 30.9 | |||||||||||||||||||
| Europe | 98.5 | 55.3 | 46.3 | 200.1 | |||||||||||||||||||
| Asia | 53.8 | 41.5 | 36.5 | 131.8 | |||||||||||||||||||
| Other(1) | 5.0 | 24.1 | 9.2 | 38.3 | |||||||||||||||||||
| Intersegment elimination | (0.8) | (0.5) | (0.1) | (1.4) | |||||||||||||||||||
| Net sales | $ | 303.0 | $ | 318.9 | $ | 185.3 | $ | 807.2 |
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||
| HST | FMT | FSDP | IDEX | ||||||||||||||||||||
| U.S. | $ | 321.4 | $ | 344.5 | $ | 189.3 | $ | 855.2 | |||||||||||||||
| North America, excluding U.S. | 9.9 | 34.4 | 16.0 | 60.3 | |||||||||||||||||||
| Europe | 218.2 | 100.0 | 94.9 | 413.1 | |||||||||||||||||||
| Asia | 141.2 | 76.1 | 60.5 | 277.8 | |||||||||||||||||||
| Other(1) | 16.1 | 46.4 | 15.1 | 77.6 | |||||||||||||||||||
| Intersegment elimination | (2.8) | (0.7) | (0.8) | (4.3) | |||||||||||||||||||
| Net sales | $ | 704.0 | $ | 600.7 | $ | 375.0 | $ | 1,679.7 |
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||
| HST | FMT | FSDP | IDEX | ||||||||||||||||||||
| U.S. | $ | 280.7 | $ | 353.8 | $ | 170.6 | $ | 805.1 | |||||||||||||||
| North America, excluding U.S. | 10.3 | 33.6 | 16.3 | 60.2 | |||||||||||||||||||
| Europe | 202.6 | 114.1 | 91.3 | 408.0 | |||||||||||||||||||
| Asia | 109.5 | 86.2 | 67.2 | 262.9 | |||||||||||||||||||
| Other(1) | 10.8 | 45.4 | 18.0 | 74.2 | |||||||||||||||||||
| Intersegment elimination | (1.5) | (0.7) | (0.5) | (2.7) | |||||||||||||||||||
| Net sales | $ | 612.4 | $ | 632.4 | $ | 362.9 | $ | 1,607.7 |
(1) Other includes: South America, Middle East, Australia and Africa.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Performance Obligations
The Company’s performance obligations are satisfied either at a point in time or over time as work progresses. Revenue from products and services transferred to customers at a point in time comprised approximately 95% of the Company’s revenue and over time comprised approximately 5% of the Company’s revenue in all periods presented.
Contract Assets and Liabilities
The timing of billings and cash collections can result in customer receivables, billings in excess of revenue recognized, advance payments or deposits. Customer receivables include both amounts billed and currently due from customers as well as unbilled amounts (contract assets) and are included in Receivables – net on the Condensed Consolidated Balance Sheets.
The composition of customer receivables was as follows:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Billed receivables | $ | 451.5 | $ | 443.2 | |||||||
| Unbilled receivables | 17.0 | 17.8 | |||||||||
| Total customer receivables | $ | 468.5 | $ | 461.0 |
Billings in excess of revenue recognized, advance payments and deposits represent contract liabilities and are included in deferred revenue which is classified as current or noncurrent based on when the Company expects to recognize the revenue. The current portion is included in Accrued expenses and the noncurrent portion is included in Other noncurrent liabilities on the Condensed Consolidated Balance Sheets.
The composition of deferred revenue was as follows:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Deferred revenue – current | $ | 53.0 | $ | 50.7 | |||||||
| Deferred revenue – noncurrent | 18.2 | 13.2 | |||||||||
| Total deferred revenue | $ | 71.2 | $ | 63.9 |
5. Earnings Per Common Share
Diluted earnings per common share (“EPS”) attributable to IDEX is computed by dividing Net income attributable to IDEX by the weighted average number of common shares outstanding (basic) plus common stock equivalents outstanding (diluted) for the period. Common stock equivalents consist of restricted stock, performance share units and stock options, which have been included in the calculation of weighted average common shares outstanding using the treasury stock method.
ASC 260, Earnings Per Share (“ASC 260”), concludes that all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends participate in undistributed earnings with common shareholders. If awards are considered participating securities, the Company is required to apply the two-class method of computing basic and diluted earnings per share. The Company has both participating and non-participating securities. Dividend rights for restricted stock awards issued under the IDEX Corporation 2024 Incentive Award Plan (the “2024 Incentive Award Plan”) are subject to the same vesting requirements as the underlying restricted stock awards, and therefore, these awards are not considered participating securities. Dividend rights for restricted stock awards issued prior to the adoption of the 2024 Incentive Award Plan are non-forfeitable and not subject to the same vesting requirements as the underlying restricted stock awards. As such, these awards have been determined to be participating securities. Accordingly, Diluted EPS attributable to IDEX was computed using the two-class method prescribed by ASC 260.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Basic weighted average common shares outstanding reconciles to diluted weighted average common shares outstanding as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Basic weighted average common shares outstanding | 75.5 | 75.7 | 75.6 | 75.7 | |||||||||||||||||||
| Dilutive effect of restricted stock, performance share units and stock options | — | 0.2 | 0.1 | 0.2 | |||||||||||||||||||
| Diluted weighted average common shares outstanding | 75.5 | 75.9 | 75.7 | 75.9 |
Share-based payment awards of approximately 0.9 million and 0.5 million shares of common stock for the three months ended June 30, 2025 and 2024, respectively, and 0.8 million and 0.5 million shares of common stock for the six months ended June 30, 2025 and 2024, respectively, were not included in the computation of Diluted EPS attributable to IDEX because the effect of their inclusion would have been antidilutive.
6. Balance Sheet Components
| June 30, 2025 | December 31, 2024 | ||||||||||
| RECEIVABLES – NET | |||||||||||
| Customers | $ | 468.5 | $ | 461.0 | |||||||
| Other | 17.4 | 14.7 | |||||||||
| Total | 485.9 | 475.7 | |||||||||
| Less: allowance for credit losses | 9.8 | 9.8 | |||||||||
| Receivables – net | $ | 476.1 | $ | 465.9 | |||||||
| INVENTORIES – NET | |||||||||||
| Raw materials and component parts | $ | 309.9 | $ | 285.5 | |||||||
| Work in process | 51.4 | 34.4 | |||||||||
| Finished goods | 126.5 | 109.8 | |||||||||
| Inventories – net | $ | 487.8 | $ | 429.7 | |||||||
| ACCRUED EXPENSES | |||||||||||
| Payroll and related items | $ | 93.6 | $ | 105.0 | |||||||
| Management incentive compensation | 15.1 | 14.6 | |||||||||
| Income taxes payable | 5.4 | 10.1 | |||||||||
| Warranty | 14.0 | 13.6 | |||||||||
| Deferred revenue | 53.0 | 50.7 | |||||||||
| Lease liability | 27.7 | 26.1 | |||||||||
| Restructuring | 7.8 | 0.9 | |||||||||
| Accrued interest | 11.6 | 12.7 | |||||||||
| Other | 43.1 | 45.0 | |||||||||
| Accrued expenses | $ | 271.3 | $ | 278.7 | |||||||
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
7. Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for the six months ended June 30, 2025, by reportable business segment, were as follows:
| HST | FMT | FSDP | IDEX | ||||||||||||||||||||
| Goodwill | $ | 2,276.5 | $ | 785.2 | $ | 390.6 | $ | 3,452.3 | |||||||||||||||
| Accumulated goodwill impairment losses | (149.8) | (20.7) | (30.1) | (200.6) | |||||||||||||||||||
| Balance at January 1, 2025 | 2,126.7 | 764.5 | 360.5 | 3,251.7 | |||||||||||||||||||
| Foreign currency translation | 80.6 | 15.8 | 15.9 | 112.3 | |||||||||||||||||||
| Measurement period adjustments | 4.6 | — | — | 4.6 | |||||||||||||||||||
| Balance at June 30, 2025 | $ | 2,211.9 | $ | 780.3 | $ | 376.4 | $ | 3,368.6 |
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset at June 30, 2025 and December 31, 2024:
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
| Amortized intangible assets: | |||||||||||||||||||||||||||||||||||
| Patents | $ | 2.6 | $ | (2.1) | $ | 0.5 | $ | 2.5 | $ | (2.0) | $ | 0.5 | |||||||||||||||||||||||
| Trade names | 210.8 | (69.6) | 141.2 | 201.4 | (60.0) | 141.4 | |||||||||||||||||||||||||||||
| Customer relationships | 1,125.6 | (336.5) | 789.1 | 1,078.8 | (278.7) | 800.1 | |||||||||||||||||||||||||||||
| Unpatented technology | 323.9 | (86.5) | 237.4 | 325.4 | (85.1) | 240.3 | |||||||||||||||||||||||||||||
| Software | 15.9 | (5.6) | 10.3 | 15.2 | (3.6) | 11.6 | |||||||||||||||||||||||||||||
| Total amortized intangible assets | 1,678.8 | (500.3) | 1,178.5 | 1,623.3 | (429.4) | 1,193.9 | |||||||||||||||||||||||||||||
| Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
| Banjo trade name | 62.1 | — | 62.1 | 62.1 | — | 62.1 | |||||||||||||||||||||||||||||
| Akron Brass trade name | 28.8 | — | 28.8 | 28.8 | — | 28.8 | |||||||||||||||||||||||||||||
| Total intangible assets | $ | 1,769.7 | $ | (500.3) | $ | 1,269.4 | $ | 1,714.2 | $ | (429.4) | $ | 1,284.8 |
The Company assesses goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events occur or circumstances change that indicate an asset may be impaired. The Company’s policy is to assess for impairment annually as of October 31. Based on the results of the Company’s most recent annual impairment test at October 31, 2024, all reporting units and indefinite-lived intangible assets had fair values in excess of their carrying values. There have been no events or circumstances since the last assessment date that would have required an interim impairment test.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Amortization of intangible assets was $32.0 million and $63.5 million for the three and six months ended June 30, 2025, respectively, and $23.9 million and $48.5 million for the three and six months ended June 30, 2024, respectively. Based on the intangible asset balances as of June 30, 2025, expected amortization expense for the remaining six months of 2025 and for the years 2026 through 2029 is as follows:
| Estimated Amortization | ||||||||
| Remainder of 2025 | $ | 64.9 | ||||||
| 2026 | 128.5 | |||||||
| 2027 | 125.0 | |||||||
| 2028 | 122.1 | |||||||
| 2029 | 112.1 |
8. Borrowings
Borrowings at June 30, 2025 and December 31, 2024 consisted of the following:
| June 30, 2025 | December 31, 2024 | ||||||||||
| 3.37% Senior Notes, due June 2025 (the “3.37% Senior Notes”)(1) | $ | — | $ | 100.0 | |||||||
| 5.13% Senior Notes, due June 2028 (the “5.13% Senior Notes”) | 100.0 | 100.0 | |||||||||
| 4.950% Senior Notes, due September 2029 (the “4.950% Senior Notes”) | 500.0 | 500.0 | |||||||||
| 3.00% Senior Notes, due May 2030 (the “3.00% Senior Notes”) | 500.0 | 500.0 | |||||||||
| 2.625% Senior Notes, due June 2031 (the “2.625% Senior Notes”) | 500.0 | 500.0 | |||||||||
| $800.0 million Revolving Facility, due November 2027 (the “Revolving Facility”)(1) | 256.6 | 269.8 | |||||||||
| Other borrowings | 1.3 | 1.5 | |||||||||
| Total borrowings | 1,857.9 | 1,971.3 | |||||||||
| Less: current portion | 0.8 | 100.7 | |||||||||
| Less: unamortized debt issuance costs and discount on debt | 10.0 | 11.1 | |||||||||
| Long-term borrowings | $ | 1,847.1 | $ | 1,859.5 |
(1) During June 2025, the Company drew down an aggregate amount of $50.0 million under the Revolving Facility. These funds and cash on hand were used to repay the 3.37% Senior Notes upon their maturity. The draw of $50.0 million under the Revolving Facility was repaid on June 30, 2025. At June 30, 2025, there was $256.6 million outstanding under the Revolving Facility and $2.8 million of outstanding letters of credit, resulting in a net available borrowing capacity under the Revolving Facility of approximately $540.6 million. The weighted-average interest rate for borrowings outstanding under the Revolving Facility was 3.24% and 3.48% for the three and six months ended June 30, 2025, respectively, and 4.46% for the year ended December 31, 2024.
At June 30, 2025, the Company was in compliance with the covenants contained in the credit agreement associated with the Revolving Facility as well as other long-term debt agreements.
9. Fair Value Measurements
The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy:
-
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.
-
Level 2: Inputs, other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.
-
Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
The following table summarizes the basis used to measure the Company’s financial assets (liabilities) at fair value on a recurring basis in the balance sheets at June 30, 2025 and December 31, 2024:
| Basis of Fair Value Measurements | |||||||||||
| June 30, 2025 | December 31, 2024 | ||||||||||
| Level 1 | Level 1 | ||||||||||
| Trading securities - mutual funds held in nonqualified SERP(1) | $ | 11.2 | $ | 10.6 | |||||||
(1) The Supplemental Executive Retirement Plan (“SERP”) investment assets are offset by a SERP liability which represents the Company’s obligation to distribute SERP funds to participants. The SERP investment assets and liability are included in Other noncurrent assets and Other noncurrent liabilities, respectively, on the Condensed Consolidated Balance Sheets.
There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the three and six months ended June 30, 2025 or the year ended December 31, 2024.
The carrying values of the Company’s other financial instruments (i.e., cash and cash equivalents, accounts receivable, accounts payable and accrued expenses) approximate fair value because of the short-term nature of these instruments.
Certain non-financial assets, primarily property, plant and equipment, goodwill and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at their carrying value. However, these assets are required to be assessed for impairment whenever events or circumstances indicate that their carrying value may not be fully recoverable, and at least annually for goodwill and indefinite-lived intangible assets. See Note 7, “Goodwill and Intangible Assets,” for additional information about these assets.
The following table provides the fair value of the outstanding indebtedness described in Note 8, “Borrowings,” which is based on quoted market prices and current market rates for debt with similar credit risk and maturity, as well as the carrying value. These fair value measurements are classified as Level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market, including interest rates on recent financing transactions to entities with a credit rating similar to the Company’s rating.
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Fair Value | Carrying Amount | Fair Value | Carrying Amount | ||||||||||||||||||||||||||||||||
| Total Borrowings, less unaccreted debt discount | $ | 1,777.4 | $ | 1,856.8 | $ | 1,855.0 | $ | 1,970.1 |
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
10. Restructuring Expenses and Asset Impairments
Restructuring expenses generally represent expenses incurred by the Company to facilitate long-term sustainable growth through cost reduction actions, consisting of employee reductions, facility rationalization and contract termination costs. These costs include severance costs, exit costs and asset impairments and are included in Restructuring expenses and asset impairments in the Condensed Consolidated Statements of Income. Severance costs primarily consist of severance benefits through payroll continuation, COBRA subsidies, outplacement services, conditional separation costs, employer tax liabilities and related legal costs, while exit costs primarily consist of lease exit and contract termination costs.
2025 Initiative
During the six months ended June 30, 2025, the Company primarily incurred severance costs related to organizational changes, designed with the focus of connecting scalable groups of businesses, which resulted in a reduction of headcount. Additionally, the Company eliminated certain management layers in select areas. These changes are expected to enable the Company to self-fund more growth resources, increase sourcing productivity, improve agility and speed of decision making and position the Company closer to the customer for maximum impact. The three and six months ended June 30, 2025 also included asset impairments of $0.6 million related to property, plant and equipment within the HST segment.
Pre-tax Restructuring expenses and asset impairments by segment for the three and six months ended June 30, 2025 were as follows:
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| Severance Costs | Exit Costs | Asset Impairments | Total | |||||||||||||||||||||||
| Health & Science Technologies | $ | — | $ | 0.1 | $ | 0.6 | $ | 0.7 | ||||||||||||||||||
| Fluid & Metering Technologies | — | — | — | — | ||||||||||||||||||||||
| Fire & Safety/Diversified Products | — | — | — | — | ||||||||||||||||||||||
| Corporate/Other | — | — | — | — | ||||||||||||||||||||||
| Total restructuring expenses and asset impairments | $ | — | $ | 0.1 | $ | 0.6 | $ | 0.7 |
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| Severance Costs | Exit Costs | Asset Impairments | Total | |||||||||||||||||||||||
| Health & Science Technologies | $ | 11.4 | $ | 0.1 | $ | 0.6 | $ | 12.1 | ||||||||||||||||||
| Fluid & Metering Technologies | 4.2 | — | — | 4.2 | ||||||||||||||||||||||
| Fire & Safety/Diversified Products | 1.6 | — | — | 1.6 | ||||||||||||||||||||||
| Corporate/Other | 0.3 | — | — | 0.3 | ||||||||||||||||||||||
| Total restructuring expenses and asset impairments | $ | 17.5 | $ | 0.1 | $ | 0.6 | $ | 18.2 |
The Company expects to incur additional restructuring charges of approximately $3 million to $7 million primarily related to severance related to these actions during the remainder of 2025.
2024 Initiative
During the three and six months ended June 30, 2024, the Company incurred severance costs related to employee reductions in conjunction with cost mitigation efforts as a result of market conditions. There were no exit costs or asset impairments incurred during the three and six months ended June 30, 2024.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Pre-tax restructuring expenses and asset impairments by segment for the three and six months ended June 30, 2024 were as follows:
| Severance Costs | ||||||||||||||
| Three Months Ended June 30, 2024 | Six Months Ended June 30, 2024 | |||||||||||||
| Health & Science Technologies | $ | 1.1 | $ | 1.6 | ||||||||||
| Fluid & Metering Technologies | 0.1 | 0.6 | ||||||||||||
| Fire & Safety/Diversified Products | 0.1 | 0.1 | ||||||||||||
| Corporate/Other | — | 0.1 | ||||||||||||
| Restructuring expenses and asset impairments | $ | 1.3 | $ | 2.4 |
Restructuring accruals reflected in Accrued expenses in the Condensed Consolidated Balance Sheets are as follows:
| Restructuring Initiatives | |||||
| Balance at January 1, 2025 | $ | 0.9 | |||
| Restructuring expenses(1) | 17.5 | ||||
| Payments, utilization and other | (10.6) | ||||
| Balance at June 30, 2025 | $ | 7.8 |
(1) Excludes $0.6 million of asset impairments related to property, plant and equipment and $0.1 million of exit costs.
11. Accumulated Other Comprehensive Income (Loss)
The components of Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2025 and 2024 are as follows:
| Cumulative Translation Adjustment | Pension and Other Postretirement Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||
| Balance, March 31, 2025(1) | $ | (83.6) | $ | 6.4 | $ | (77.2) | ||||||||||||||
| Other comprehensive income before reclassification adjustments | 125.6 | — | 125.6 | |||||||||||||||||
| Gain reclassified from Accumulated other comprehensive income (loss)(2)(3) | — | (0.3) | (0.3) | |||||||||||||||||
| Tax impact | — | 0.1 | 0.1 | |||||||||||||||||
| Net other comprehensive income (loss)(1) | 125.6 | (0.2) | 125.4 | |||||||||||||||||
| Balance, June 30, 2025(1) | $ | 42.0 | $ | 6.2 | $ | 48.2 | ||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||
| Balance, December 31, 2024(1) | $ | (137.5) | $ | 6.6 | $ | (130.9) | ||||||||||||||
| Other comprehensive income before reclassification adjustments | 179.5 | — | 179.5 | |||||||||||||||||
| Gain reclassified from Accumulated other comprehensive income (loss)(2)(3) | — | (0.5) | (0.5) | |||||||||||||||||
| Tax impact | — | 0.1 | 0.1 | |||||||||||||||||
| Net other comprehensive income (loss)(1) | 179.5 | (0.4) | 179.1 | |||||||||||||||||
| Balance, June 30, 2025(1) | $ | 42.0 | $ | 6.2 | $ | 48.2 |
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
| Cumulative Translation Adjustment | Pension and Other Postretirement Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||
| Balance, March 31, 2024(1) | $ | (113.6) | $ | 3.4 | $ | (110.2) | ||||||||||||||
| Other comprehensive loss before reclassification adjustments | (11.5) | — | (11.5) | |||||||||||||||||
| Gain reclassified from Accumulated other comprehensive loss(2)(3) | — | (0.3) | (0.3) | |||||||||||||||||
| Loss reclassified related to divestitures(4) | 5.5 | — | 5.5 | |||||||||||||||||
| Tax impact | — | 0.1 | 0.1 | |||||||||||||||||
| Net other comprehensive loss(1) | (6.0) | (0.2) | (6.2) | |||||||||||||||||
| Balance, June 30, 2024(1) | $ | (119.6) | $ | 3.2 | $ | (116.4) | ||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||
| Balance, December 31, 2023(1) | $ | (49.3) | $ | 3.5 | $ | (45.8) | ||||||||||||||
| Other comprehensive loss before reclassification adjustments | (75.8) | — | (75.8) | |||||||||||||||||
| Gain reclassified from Accumulated other comprehensive loss(2)(3) | — | (0.4) | (0.4) | |||||||||||||||||
| Loss reclassified related to divestitures(4) | 5.5 | — | 5.5 | |||||||||||||||||
| Tax impact | — | 0.1 | 0.1 | |||||||||||||||||
| Net other comprehensive loss(1) | (70.3) | (0.3) | (70.6) | |||||||||||||||||
| Balance, June 30, 2024(1) | $ | (119.6) | $ | 3.2 | $ | (116.4) |
(1) Amounts are presented net of tax.
(2) Included in the computation of net periodic cost. See Note 14, “Retirement Benefits.”
(3) Included in Other expense (income) – net in the Condensed Consolidated Statements of Income.
(4) In conjunction with the divestiture of Alfa Valvole, the Company released the associated cumulative foreign currency
translation losses and included the release as part of the gain on sale of business.
12. Share Repurchases
On March 17, 2020, the Company’s Board of Directors approved an increase of $500.0 million in the authorized level of repurchases of common stock. This approval is in addition to the prior repurchase authorization of the Board of Directors of $300.0 million on December 1, 2015. These authorizations have no expiration date. During the six months ended June 30, 2025, the Company repurchased a total of 0.5 million shares at a cost of $100.9 million (which includes excise taxes of $0.9 million which will be paid in 2026). There were no share repurchases during the six months ended June 30, 2024. As of June 30, 2025, the amount of share repurchase authorization remaining was $439.7 million, excluding fees, commissions, excise taxes and other expenses related to such common stock repurchases.
13. Share-Based Compensation
The Company typically grants equity awards annually at its regularly scheduled first quarter meeting of the Board of Directors based on the recommendation from the Compensation Committee.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Stock Options
Stock options granted under the Company’s plans are generally non-qualified and are granted with an exercise price equal to the market price of the Company’s stock on the date of grant. The fair value of each option grant in the periods presented was estimated on the date of the grant using the Black Scholes valuation model. Stock options generally vest ratably over four years, with vesting beginning one year from the date of grant, and generally expire 10 years from the date of grant. The service period for certain retiree eligible participants is accelerated. The assumptions used in determining the fair value of the stock options granted in the respective periods were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Weighted average fair value of grants | n/a | $62.41 | $46.74 | $63.72 | |||||||||||||||||||
| Dividend yield | n/a | 1.13% | 1.41% | 1.09% | |||||||||||||||||||
| Volatility | n/a | 26.43% | 23.06% | 26.67% | |||||||||||||||||||
| Risk-free interest rate | n/a | 4.42% | 4.28% | 4.31% | |||||||||||||||||||
| Expected life (in years) | n/a | 4.60 | 4.70 | 4.60 |
A summary of the Company’s stock option activity as of June 30, 2025 and changes during the six months ended June 30, 2025 are presented in the following table:
| Stock Options | Shares | Weighted Average Exercise Price | Weighted-Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | |||||||||||||||||||
| Outstanding at January 1, 2025 | 998,856 | $ | 191.96 | 6.63 | $ | 24.9 | |||||||||||||||||
| Granted | 82,470 | 196.07 | |||||||||||||||||||||
| Exercised | (18,376) | 139.06 | |||||||||||||||||||||
| Forfeited | (55,675) | 213.62 | |||||||||||||||||||||
| Outstanding at June 30, 2025 | 1,007,275 | $ | 192.07 | 6.35 | $ | 8.9 | |||||||||||||||||
| Vested and expected to vest as of June 30, 2025 | 992,870 | $ | 191.56 | 6.32 | $ | 8.9 | |||||||||||||||||
| Exercisable at June 30, 2025 | 696,076 | $ | 180.96 | 5.44 | $ | 8.9 |
As of June 30, 2025, there was $6.9 million of total unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 1.3 years.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Restricted Stock
Restricted stock awards generally cliff vest after three years for employees and generally cliff vest after one year for non-employee directors. The service period for certain retiree eligible participants is accelerated. Unvested restricted stock granted after the adoption of the 2024 Incentive Award Plan earn dividend equivalents for the award period, which will be paid to participants upon vesting of the underlying awards. Unvested restricted stock granted prior to the adoption of the 2024 Incentive Award Plan earn and are paid dividends. The fair value of restricted stock is equal to the market price of the Company’s stock at the date of the grant. A summary of the Company’s restricted stock activity as of June 30, 2025 and changes during the six months ended June 30, 2025 are presented in the following table:
| Restricted Stock | Shares | Weighted-Average Grant Date Fair Value | |||||||||
| Unvested at January 1, 2025 | 175,991 | $ | 201.27 | ||||||||
| Granted | 84,570 | 194.02 | |||||||||
| Vested | (27,327) | 197.18 | |||||||||
| Forfeited | (18,177) | 206.11 | |||||||||
| Unvested at June 30, 2025 | 215,057 | $ | 198.53 |
As of June 30, 2025, there was $18.5 million of total unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 1.1 years.
Cash-Settled Restricted Stock
The Company also maintains a cash-settled share-based compensation plan for certain employees. Cash-settled restricted stock awards generally cliff vest after three years. The service period for certain retiree eligible participants is accelerated. Cash-settled restricted stock awards are recorded at fair value on a quarterly basis using the market price of the Company’s stock on the last day of the quarter. At June 30, 2025 and December 31, 2024, the Company had accrued $3.1 million and $4.0 million, respectively, for cash-settled restricted stock in Accrued expenses in the Condensed Consolidated Balance Sheets and had accrued $1.6 million and $2.4 million, respectively, for cash-settled restricted stock in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets. These recurring fair value measurements are classified as Level 1 in the fair value hierarchy. Dividend equivalents are earned throughout the award period and paid upon vesting for certain cash-settled restricted stock awards granted after the adoption of the 2024 Incentive Award Plan. Dividend equivalents are paid on certain cash-settled restricted stock awards granted prior to the adoption of the 2024 Incentive Award Plan. A summary of the Company’s unvested cash-settled restricted stock activity as of June 30, 2025 and changes during the six months ended June 30, 2025 are presented in the following table:
| Cash-Settled Restricted Stock | Shares | Weighted-Average Fair Value | |||||||||
| Unvested at January 1, 2025 | 55,395 | $ | 209.29 | ||||||||
| Granted | 30,490 | 195.99 | |||||||||
| Vested | (15,020) | 192.90 | |||||||||
| Forfeited | (3,832) | 175.57 | |||||||||
| Unvested at June 30, 2025 | 67,033 | $ | 175.57 |
As of June 30, 2025, there was $5.4 million of total unrecognized compensation cost related to cash-settled restricted stock that is expected to be recognized over a weighted-average period of 1.2 years.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Performance Share Units
Performance share unit awards represent rights to receive shares of the Company’s common stock and will vest between 0% to 250% of the target share unit amount. Performance share units granted in 2025 are earned over a three-year performance period based on an internal income growth metric (a performance condition), weighted 25%, and the total shareholder return of IDEX common stock in relation to the total shareholder return of companies in the S&P 500 Index (a market condition), weighted 75%. Performance share unit awards granted prior to 2025 are earned solely based on the Company’s total shareholder return ranking in relation to the total shareholder return of companies in the S&P 500 Index over a three-year period following the date of grant.
The fair value of the performance condition portion of the 2025 awards is equal to the market price of the Company’s stock at the date of the grant, and the amount of expense recognized over the vesting period is subject to adjustment based on the expected attainment of the performance condition. The fair value of the market condition portion of the 2025 awards and all awards granted prior to 2025 is determined using a Monte Carlo simulation model, and the amount of expense recognized over the vesting period is not subject to change based on future market conditions. The assumptions used in the Monte Carlo simulation model to determine the fair value of the market condition portion of the performance share units granted in the respective periods were as follows:
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted average fair value of grants | $232.44 | $349.59 | |||||||||
| Dividend yield | —% | —% | |||||||||
| Volatility | 22.93% | 22.23% | |||||||||
| Risk-free interest rate | 4.23% | 4.45% | |||||||||
| Expected life (in years) | 2.94 | 2.94 |
A summary of the Company’s performance share unit activity as of June 30, 2025 and changes during the six months ended June 30, 2025 are presented in the following table:
| Performance Share Units | Shares | Weighted-Average Grant Date Fair Value | |||||||||
| Unvested at January 1, 2025 | 72,825 | $ | 299.87 | ||||||||
| Granted | 43,360 | 216.98 | |||||||||
| Vested | (15,530) | 234.23 | |||||||||
| Forfeited | (15,320) | 256.31 | |||||||||
| Unvested at June 30, 2025 | 85,335 | $ | 275.57 |
On January 31, 2025, 23,875 performance share units vested. Based on the Company’s relative total shareholder return rank during the three-year period ended January 31, 2025, the Company achieved a 65% payout factor and issued 15,530 common shares in February 2025 for awards that vested in 2025.
As of June 30, 2025, there was $4.6 million of total unrecognized compensation cost related to performance share units that is expected to be recognized over a weighted-average period of 1.1 years.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Summary of Share-Based Compensation Expense
The Company’s policy is to recognize compensation cost on a straight-line basis, assuming forfeitures, over the requisite service period for the entire award. Total compensation cost related to all share-based awards was as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Stock options expense | $ | 1.1 | $ | 1.5 | $ | 4.3 | $ | 6.9 | |||||||||||||||
| Restricted stock expense | 3.3 | 2.1 | 8.8 | 4.1 | |||||||||||||||||||
| Cash-settled restricted stock expense | 0.6 | (0.3) | 1.2 | 1.6 | |||||||||||||||||||
| Performance share units expense | 0.8 | 0.8 | 5.7 | 5.9 | |||||||||||||||||||
| Total pre-tax share-based compensation expense(1) | 5.8 | 4.1 | 20.0 | 18.5 | |||||||||||||||||||
| Income tax benefit | (1.2) | (0.7) | (2.4) | (1.6) | |||||||||||||||||||
| Total share-based compensation expense, net of income taxes | $ | 4.6 | $ | 3.4 | $ | 17.6 | $ | 16.9 |
(1) Pre-tax compensation cost is recognized in the Condensed Consolidated Statements of Income depending on the functional area of the underlying employees, as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Cost of sales | $ | 0.3 | $ | 0.2 | $ | 1.1 | $ | 1.0 | |||||||||||||||
| Selling, general and administrative expenses | 5.5 | 3.9 | 19.5 | 17.5 | |||||||||||||||||||
| Restructuring expenses and asset impairments(2) | — | — | (0.6) | — | |||||||||||||||||||
| Total pre-tax share-based compensation expense | $ | 5.8 | $ | 4.1 | $ | 20.0 | $ | 18.5 |
(2) During the six months ended June 30, 2025, a benefit of $0.6 million was recognized in Restructuring expenses and asset impairments in the Condensed Consolidated Statements of Income related to forfeitures of share-based compensation awards resulting from previously announced restructuring actions initiated during the first quarter.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
14. Retirement Benefits
The Company sponsors several qualified and nonqualified defined benefit and defined contribution pension plans as well as other postretirement plans for its employees. The following tables provide the components of net periodic cost for the Company’s major defined benefit plans and its other postretirement plans.
| Pension Benefits | |||||||||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||
| Service cost | $ | — | $ | 0.5 | $ | — | $ | 0.4 | |||||||||||||||
| Interest cost | 0.1 | 0.6 | 0.1 | 0.7 | |||||||||||||||||||
| Expected return on plan assets | — | (0.4) | — | (0.5) | |||||||||||||||||||
| Net amortization | 0.1 | (0.2) | 0.1 | (0.1) | |||||||||||||||||||
| Net periodic cost | $ | 0.2 | $ | 0.5 | $ | 0.2 | $ | 0.5 | |||||||||||||||
| Pension Benefits | |||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| U.S. | Non-U.S. | U.S. | Non-U.S. | ||||||||||||||||||||
| Service cost | $ | — | $ | 0.8 | $ | — | $ | 0.8 | |||||||||||||||
| Interest cost | 0.2 | 1.2 | 0.2 | 1.3 | |||||||||||||||||||
| Expected return on plan assets | — | (0.9) | (0.1) | (0.9) | |||||||||||||||||||
| Net amortization | 0.1 | (0.2) | 0.2 | (0.1) | |||||||||||||||||||
| Net periodic cost | $ | 0.3 | $ | 0.9 | $ | 0.3 | $ | 1.1 |
| Other Postretirement Benefits | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Service cost | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.2 | |||||||||||||||
| Interest cost | 0.2 | 0.2 | 0.4 | 0.4 | |||||||||||||||||||
| Net amortization | (0.2) | (0.3) | (0.4) | (0.5) | |||||||||||||||||||
| Net periodic cost | $ | 0.1 | $ | — | $ | 0.2 | $ | 0.1 |
The Company recognizes the service cost component in both Cost of sales and Selling, general and administrative expenses in the Condensed Consolidated Statements of Income depending on the functional area of the underlying employees and the interest cost, expected return on plan assets and net amortization components in Other expense (income) – net in the Condensed Consolidated Statements of Income.
The Company expects to contribute approximately $3.7 million to its defined benefit plans and $1.1 million to its other postretirement benefit plans in 2025. The Company contributed a total of $2.4 million to fund these plans during both the six months ended June 30, 2025 and 2024.
IDEX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
15. Commitments and Contingencies
The Company and certain of its subsidiaries are involved in pending and threatened legal, regulatory and other proceedings incidental to the operations of their businesses. These proceedings may pertain to matters such as product liability or contract disputes, and may also involve governmental inquiries, inspections, audits or investigations relating to issues such as tax matters, intellectual property, environmental, health and safety issues, governmental regulations, employment and other matters. Although the results of such legal proceedings cannot be predicted with certainty, the Company believes that the ultimate disposition of these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s business, financial condition, results of operations or cash flows.
16. Income Taxes
The Company’s provision for income taxes is based upon estimated annual tax rates for the year applied to federal income as well as state and foreign income in various jurisdictions, permanent differences between book and tax items, tax credits and the Company’s change in relative income in each jurisdiction. The provision for income taxes and the effective tax rates for the periods presented were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Income before income taxes | $ | 169.9 | $ | 179.2 | $ | 294.4 | $ | 333.7 | |||||||||||||||
| Provision for income taxes | 38.8 | 38.0 | 67.9 | 71.2 | |||||||||||||||||||
| Effective tax rate | 22.9 | % | 21.2 | % | 23.1 | % | 21.4 | % |
The effective tax rate for the three and six months ended June 30, 2025 reflects a discrete tax benefit related to the finalization of a prior year preferential rate with taxing authorities in a foreign jurisdiction. This discrete tax benefit was partially offset by the impact of state tax law changes enacted in June 2025, foreign tax differentials related to increased tax rates and the mix of earnings in higher tax rate jurisdictions.
The effective tax rate for the three and six months ended June 30, 2024 reflects the impact of the discrete benefits related to the finalization of prior years’ research and development tax incentives with taxing authorities in a foreign jurisdiction. The effective tax rate for the six months ended June 30, 2024 also reflects the discrete benefit related to the finalization of tax impacts of a previously recorded legal entity restructuring.
The One, Big, Beautiful Bill Act (the “OBBBA”) was signed into law on July 4, 2025. Key income tax related provisions of the OBBBA expected to impact the Company include the repeal of mandatory capitalization of research and development expenditures under Internal Revenue Code Section 174, extension of bonus depreciation, and revisions to international tax regimes. The Company is still evaluating the financial implications of the OBBBA but does not currently expect a material impact on the Company’s financial statements.
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