Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Condensed Consolidated Financial Statements and related notes in this quarterly report. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. The Company’s actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under Item 1A, “Risk Factors” in the Company’s most recent annual report on Form 10-K and under the heading “Cautionary Statement Under the Private Securities Litigation Reform Act” discussed elsewhere in this quarterly report.

This discussion includes certain non-GAAP financial measures that have been defined and reconciled to the most directly comparable financial measure prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) under the headings “Non-GAAP Disclosures” and “Free Cash Flow.” This discussion also includes Operating working capital, which has been defined under the heading “Liquidity and Capital Resources.” The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP. The financial results prepared in accordance with U.S. GAAP and the reconciliations from these results should be carefully evaluated.

Overview

IDEX is an applied solutions provider specializing in the manufacturing of health and science technologies, fluid and metering technologies, and fire, safety and other diversified products built to customers’ specifications. IDEX’s products are sold in niche markets across a wide range of industries throughout the world. Accordingly, IDEX’s businesses are affected by levels of industrial activity and economic conditions in the U.S. and in other countries where it does business, as well as by the relationship of the U.S. dollar to other currencies. Levels of capacity utilization and capital spending in certain markets and overall industrial activity are important factors that influence the demand for IDEX’s products.

Highlights

(All comparisons are against the same period in 2024 unless otherwise noted)

Three Months Ended June 30, 2025

Record reported Net sales of $865.4 million increased 7% overall and increased 1% organically*
Reported diluted earnings per common share (“EPS”) attributable to IDEX of $1.74 decreased 6%
Adjusted diluted EPS attributable to IDEX* of $2.07 was relatively flat

*These are non-GAAP measures. See the definitions of these non-GAAP measures and reconciliations to their most directly comparable GAAP financial measures under the heading “Non-GAAP Disclosures.”

During the second quarter of 2025, the Company delivered strong operating performance, despite persistent macroeconomic uncertainty. Strong price/cost execution helped mitigate the impact of volume pressure driven by ongoing tariff related uncertainty in the market. Operating results during the quarter also benefited from the acquisition of Mott Corporation and its subsidiaries (“Mott”). Diluted EPS declined year-over-year reflecting higher amortization expense and interest costs related to the financing of the acquisition of Mott during the third quarter of 2024. Adjusted diluted EPS was relatively flat compared to the same prior year period.

While overall order trends were favorable coming into the second quarter, industrial day rates declined late in the quarter and hesitation around larger order commitments increased, reflecting the continued macroeconomic uncertainty, with some customers ordering with greater caution and delaying larger commitments to improve their production capacity or capabilities. The Company has taken actions, such as increasing price, reducing costs and implementing supply chain strategies to mitigate the impact of tariffs and geopolitical uncertainty. However, the landscape continues to evolve. The Company will continue to take such actions and believes it is well positioned given the criticality of our solutions, which generally constitute a relatively small part of the bill of materials. IDEX businesses also generally operate locally with teams that are well equipped to adapt with agility. However, IDEX cannot be certain these strategies will entirely mitigate macroeconomic shifts, including if demand otherwise decreases. The Company remains focused on optimizing its business portfolio and expects its strong cash generation and balance sheet will continue to enable opportunistic capital deployment to generate shareholder value sustainably in the long run.

Results of Operations

The following is a discussion and analysis of the Company’s results of operations for the three and six months ended June 30, 2025 compared with the three and six months ended June 30, 2024.


	Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
(In millions, except per share amounts)	2025			2024			$		% / bps		2025			2024			$		% / bps
Domestic sales	$	435.8		$	407.5		$	28.3	7	%	$	855.2		$	805.1		$	50.1	6	%
International sales	429.6			399.7			29.9		7	%	824.5			802.6			21.9		3	%
Net sales	865.4			807.2			58.2		7	%	1,679.7			1,607.7			72.0		4	%
Cost of sales	473.2			440.4			32.8		7	%	918.6			883.5			35.1		4	%
Gross profit	392.2			366.8			25.4		7	%	761.1			724.2			36.9		5	%
Gross margin	45.3		%	45.4		%	n/a		(10) bps		45.3		%	45.0		%	n/a		30 bps
Selling, general and administrative expenses	203.6			182.8			20.8		11	%	413.0			377.9			35.1		9	%
Restructuring expenses and asset impairments	0.7			1.3			(0.6)		(46	%)	18.2			2.4			15.8		NM
Operating income	187.9			182.7			5.2		3	%	329.9			343.9			(14.0)		(4	%)
Gain on sale of business	—			(4.6)			4.6		(100	%)	—			(4.6)			4.6		(100	%)
Other expense (income) – net	2.4			—			2.4		NM		3.8			(2.7)			6.5		(241	%)
Interest expense – net	15.6			8.1			7.5		93	%	31.7			17.5			14.2		81	%
Income before income taxes	169.9			179.2			(9.3)		(5	%)	294.4			333.7			(39.3)		(12	%)
Provision for income taxes	38.8			38.0			0.8		2	%	67.9			71.2			(3.3)		(5	%)
Effective tax rate	22.9		%	21.2		%	n/a		170 bps		23.1		%	21.4		%	n/a		170 bps
Net income attributable to IDEX	$	131.6		$	141.3		$	(9.7)	(7	%)	$	227.1		$	262.7		$	(35.6)	(14	%)
Diluted earnings per common share attributable to IDEX	$	1.74		$	1.86		$	(0.12)	(6	%)	$	3.00		$	3.46		$	(0.46)	(13	%)
NM - Not Meaningful

Net Sales

Net sales for both the three and six months ended June 30, 2025 increased as compared to the same prior year periods as a result of contributions from the acquisition of Mott. Organic sales for the same periods increased 1% and were flat, respectively, which reflected positive price and targeted growth initiatives in the Company’s Health & Science Technologies and Fire & Safety/Diversified Products segments. These increases were partially and fully offset by lower volumes during the three and six months ended June 30, 2025, respectively, primarily within the Fluid & Metering Technologies segment.

Gross Profit and Gross Margin

Gross profit and Gross margin for both the three and six months ended June 30, 2025 were positively impacted by price/cost and operational productivity improvements, and were negatively impacted by volume deleverage and unfavorable mix. Platform optimization savings resulting from restructuring actions taken during 2025 mitigated increases in other employee-related costs. Gross profit for both the three and six months ended June 30, 2025 was also positively impacted by the Mott acquisition, net of divestitures, while Gross margin for both the three and six months ended June 30, 2025 was negatively impacted by the Mott acquisition, net of divestitures.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for both the three and six months ended June 30, 2025 increased by $16.9 million and $33.5 million from acquisitions, net of divestitures, including amortization, respectively, as well as higher employee-related costs and increased professional services spending as compared to the same prior year periods. These increases were partially offset by lower discretionary spending.

Restructuring Expenses and Asset Impairments

Restructuring expenses and asset impairments primarily relate to severance expense for restructuring actions taken during the respective periods presented. Severance costs during the six months ended June 30, 2025 were incurred in conjunction with organizational changes, primarily designed to connect scalable groups of businesses, which resulted in a reduction of headcount. Additionally, the Company eliminated certain management layers in select areas. For additional information regarding restructuring expenses and asset impairments, refer to Note 10, “Restructuring Expenses and Asset Impairments,” in the Notes to Condensed Consolidated Financial Statements.

Gain on Sale of Business

During the three and six months ended June 30, 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. For additional information regarding the divestiture of Alfa Valvole, refer to Note 2, “Acquisitions and Divestitures,” in the Notes to Condensed Consolidated Financial Statements.

Other Expense (Income) – Net

Other expense (income) – net during the three and six months ended June 30, 2025 primarily reflects the impact of foreign currency transactions.

Interest Expense – Net

Interest expense – net for the three and six months ended June 30, 2025 increased primarily due to the impact of higher debt outstanding used to finance the acquisition of Mott, partially offset by reductions in interest expense related to the payoff of the Company’s Term Facility in 2024.

Income Taxes

The effective tax rate was 22.9% and 23.1% for the three and six months ended June 30, 2025, respectively, as compared to 21.2% and 21.4% during the same periods in 2024, respectively. The increase in the effective tax rate for the three and six months ended June 30, 2025 was primarily due to a more favorable net impact of discrete one-time tax items in the prior year periods as compared to the current year periods. Additionally, the effective tax rate for the three and six months ended June 30, 2025 was unfavorably impacted by 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. For additional information, refer to Note 16, “Income Taxes”, in the Notes to Condensed Consolidated Financial Statements.

In October 2021, members of the Organization for Economic Co-operation and Development (“OECD”)and G20 Inclusive Framework on Base Erosion and Profit Shifting agreed to a two-pillar solution to address the tax challenges associated with the digitalization of the economy. In December 2021, the OECD released the Pillar Two Model Rules (“Pillar Two”), which define the global minimum tax and call for the taxation of large corporations at a minimum rate of 15%. While it is uncertain whether the United States will enact legislation to adopt Pillar Two, certain countries in which we operate have enacted legislation, and other countries are in the process of introducing draft legislation to implement the minimum tax directive. Many aspects of Pillar Two became effective January 1, 2025; however, nearly all of the jurisdictions in which IDEX operates have an effective tax rate above the 15% threshold. Therefore, the Company does not expect a material impact from the Pillar Two income tax rules. We are continuing to monitor legislative developments and evaluate financial results for changes in the expected impact.

Results of Reportable Business Segments

The Company has three reportable segments: Health & Science Technologies (“HST”), Fluid & Metering Technologies (“FMT”) and Fire & Safety/Diversified Products (“FSDP”). For a detailed description of the operations within each segment, refer to Note 13, “Business Segments and Geographic Information,” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Management’s measurements of segment performance are Net sales, adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA margin.

The table below illustrates the share of Net sales and Adjusted EBITDA contributed by each segment on the basis of total segments (not total Company) for the three and six months ended June 30, 2025.


	Three Months Ended June 30, 2025								Six Months Ended June 30, 2025
	HST		FMT		FSDP		Total		HST		FMT		FSDP		Total
Net sales as a percent of total	42	%	36	%	22	%	100	%	42	%	36	%	22	%	100	%
Adjusted EBITDA(1)	36	%	42	%	22	%	100	%	37	%	41	%	22	%	100	%

(1) Segment Adjusted EBITDA excludes the impact of unallocated corporate costs of $22.9 million and $51.8 million for the three and six months ended June 30, 2025, respectively.

Health & Science Technologies Segment



	Three Months Ended June 30,							Components of Change
(In millions)	2025			2024			Change	Organic	Acq/Div(1)	Foreign Currency	Total
Domestic sales	$	166.3		$	141.8		17%
International sales	199.0			162.0			23%
Net sales	$	365.3		$	303.8		20%	4%	15%	1%	20%
Adjusted EBITDA	95.0			84.2			13%	2%	9%	2%	13%
Adjusted EBITDA margin	26.0		%	27.7		%	(170) bps	(40) bps	(130) bps	—	(170) bps


	Six Months Ended June 30,							Components of Change
(In millions)	2025			2024			Change	Organic	Acq/Div(1)	Foreign Currency	Total
Domestic sales	$	321.4		$	280.7		14%
International sales	385.4			333.2			16%
Net sales	$	706.8		$	613.9		15%	1%	14%	—	15%
Adjusted EBITDA	182.4			165.6			10%	1%	9%	—	10%
Adjusted EBITDA margin	25.8		%	27.0		%	(120) bps	(10) bps	(110) bps	—	(120) bps

(1) Acquisitions include Mott, acquired in September 2024.

Organic sales for the three and six months ended June 30, 2025 were positively impacted by positive price, targeted growth initiatives and favorable volumes in the Company’s aerospace/defense businesses, and negatively impacted by lower volumes within the Company’s semiconductor, automotive and industrial businesses. Our pharmaceutical businesses delivered favorable volumes during the three months ended June 30, 2025, but were flat during the six months ended June 30, 2025.
Adjusted EBITDA margin for the three months ended June 30, 2025 decreased primarily due to the Mott acquisition and unfavorable mix. Operational productivity improvements and platform optimization savings offset increases in other employee-related costs, including higher variable compensation. Adjusted EBITDA margin for the six months ended June 30, 2025 decreased primarily due to the Mott acquisition. Volume deleverage was offset by net

productivity improvements. Operational productivity improvements and platform optimization savings more than offset increases in other employee-related costs, including higher variable compensation.

Fluid & Metering Technologies Segment



	Three Months Ended June 30,							Components of Change
(In millions)	2025			2024			Change	Organic	Acq/Div(1)	Foreign Currency	Total
Domestic sales	$	175.7		$	181.2		(3%)
International sales	135.2			138.2			(2%)
Net sales	$	310.9		$	319.4		(3%)	(2%)	(2%)	1%	(3%)
Adjusted EBITDA	108.7			107.7			1%	1%	(1%)	1%	1%
Adjusted EBITDA margin	35.0		%	33.7		%	130 bps	110 bps	20 bps	—	130 bps


	Six Months Ended June 30,							Components of Change
(In millions)	2025			2024			Change	Organic	Acq/Div(1)	Foreign Currency	Total
Domestic sales	$	344.5		$	353.8		(3%)
International sales	256.9			279.3			(8%)
Net sales	$	601.4		$	633.1		(5%)	(3%)	(2%)	—	(5%)
Adjusted EBITDA	204.0			213.1			(4%)	(3%)	(1%)	—	(4%)
Adjusted EBITDA margin	33.9		%	33.7		%	20 bps	—	20 bps	—	20 bps

(1) Divestitures included Alfa Valvole sold in June 2024.

Organic sales for the three and six months ended June 30, 2025 were negatively impacted by lower volumes in several end markets, including the Company’s chemical, water, energy, agriculture and semiconductor businesses, partially offset by positive price.
Adjusted EBITDA margin for the three and six months ended June 30, 2025 reflected positive price/cost and net productivity improvements, resulting from operational productivity improvements and platform optimization savings, which more than offset increases in other employee-related costs. The three and six months ended June 30, 2025 also reflected the accretive impact of the Alfa Valvole divestiture. These increases were partly and fully offset by volume deleverage during the three and six months ended June 30, 2025, respectively.

Fire & Safety/Diversified Products Segment



	Three Months Ended June 30,							Components of Change
(In millions)	2025			2024			Change	Organic	Acq/Div	Foreign Currency	Total
Domestic sales	$	93.8		$	84.5		11%
International sales	97.7			100.9			(3%)
Net sales	$	191.5		$	185.4		3%	2%	—	1%	3%
Adjusted EBITDA	56.4			53.8			5%	3%	—	2%	5%
Adjusted EBITDA margin	29.4		%	29.0		%	40 bps	40 bps	—	—	40 bps


	Six Months Ended June 30,							Components of Change
(In millions)	2025			2024			Change	Organic	Acq/Div	Foreign Currency	Total
Domestic sales	$	189.3		$	170.6		11%
International sales	186.5			192.8			(3%)
Net sales	$	375.8		$	363.4		3%	3%	—	—	3%
Adjusted EBITDA	110.6			105.2			5%	5%	—	—	5%
Adjusted EBITDA margin	29.4		%	28.9		%	50 bps	50 bps	—	—	50 bps

Organic sales for the three and six months ended June 30, 2025 increased as a result of positive price, strong North America Fire OEM demand and targeted growth initiatives in the Company’s Fire and Safety businesses, partially offset by lower volumes due to the timing of Dispensing projects in emerging markets.
Adjusted EBITDA margin increased for the three and six months ended June 30, 2025 primarily due to positive price/cost, which more than offset unfavorable productivity and mix. The three months ended June 30, 2025 also reflected volume deleverage, while the six months ended June 30, 2025 benefited from volume leverage.

Liquidity and Capital Resources

Liquidity

Based on management’s current expectations and currently available information, the Company believes current cash, cash from operations and cash available under the Revolving Facility will be sufficient to meet its cash requirements, including planned capital expenditures, interest and principal payments on all borrowings, pension and postretirement funding requirements, share repurchases and quarterly dividend payments to holders of the Company’s common stock for the foreseeable future. Additionally, in the event that suitable businesses are available for acquisition upon acceptable terms, the Company may obtain all or a portion of the financing for these acquisitions through the incurrence of additional borrowings. The Company believes that additional borrowings through various financing alternatives remain available, if required.

Select key liquidity metrics at June 30, 2025 are as follows:


(In millions)	June 30, 2025
Working capital	$	1,086.7
Current ratio	3.1 to 1
Cash and cash equivalents	$	568.2
Cash held outside of the United States	504.6
Revolving Facility capacity	$	800.0
Borrowings	256.6
Letters of credit	2.8
Revolving Facility availability	$	540.6

Operating Working Capital

Operating working capital, calculated as Receivables – net plus Inventories – net minus Trade accounts payable, is used by management as a measurement of operational results as well as the short-term liquidity of the Company. The following table details Operating working capital as of June 30, 2025 and December 31, 2024:


(In millions)	June 30, 2025		December 31, 2024		Change		Organic Change
Receivables – net	$	476.1	$	465.9	$	10.2	$	(1.6)
Inventories – net	487.8		429.7		58.1		45.6
Less: Trade accounts payable	204.2		197.8		6.4		(0.9)
Operating working capital	$	759.7	$	697.8	$	61.9	$	44.9

Acquisitions and foreign currency translation increased Operating working capital by $17.0 million during the six months ended June 30, 2025. Apart from these items, the primary driver of the change in operating working capital was inventories, which increased early in the year to support planned production.

Cash Flow Summary

The following table is derived from the Condensed Consolidated Statements of Cash Flows:


	Six Months Ended June 30,
(In millions)	2025		2024		Change
Net cash flows provided by (used in):
Operating activities	$	267.4	$	290.2	$	(22.8)
Investing activities	(24.5)		11.7		(36.2)
Financing activities	(349.2)		(118.2)		(231.0)

Operating Activities

Operating cash flows decreased $22.8 million in the six months ended June 30, 2025 as compared to the same prior year period primarily due to higher investments in operating working capital driven by higher inventory purchases early in the year to support planned production, higher severance payments made in conjunction with the organizational changes during 2025 and higher interest payments on the 4.950% Senior Notes borrowed during the third quarter of 2024 to fund the acquisition of Mott. The decreases were partly offset by higher sales.

Investing Activities

Investing cash flows decreased $36.2 million in the six months ended June 30, 2025 as compared to the prior year period driven by the absence of proceeds of $45.5 million received in the prior year from the sale of Alfa Valvole in June 2024. This decrease was partly offset by lower capital expenditures during the six months ended June 30, 2025, which decreased $6.8 million as compared to the prior year period and $4.2 million of funds received during the current year in connection with the finalization of the Mott purchase price, as compared to $1.6 million of funds received in connection with the finalization of the STC Material Solutions purchase price during the prior year.

Financing Activities

Financing cash flows decreased $231.0 million during the six months ended June 30, 2025 as compared to the prior year period primarily due to $100.0 million of share repurchases, an increase of $75.0 million in repayments on long-term borrowings and $42.7 million of higher net payments on the Revolving Facility. The six months ended June 30, 2025 also included lower proceeds from stock option exercises, net of shares withheld for taxes, which decreased $8.1 million, and higher dividends paid to shareholders, which increased $5.2 million, as compared to the prior year period.

Free Cash Flow

The Company believes free cash flow, a non-GAAP measure, is an important measure of performance because it provides a measurement of cash generated from operations that is available for payment obligations such as operating cash requirements, planned capital expenditures, interest and principal payments on all borrowings, pension and postretirement funding requirements and quarterly dividend payments to holders of the Company’s common stock as well as for funding acquisitions and share repurchases. Free cash flow is calculated as cash flows provided by operating activities less capital expenditures.

The following table reconciles cash flows provided by operating activities to free cash flow:


	Six Months Ended June 30,
(In millions)	2025		2024
Cash flows provided by operating activities	$	267.4	$	290.2
Less: capital expenditures	29.1		35.9
Free cash flow	$	238.3	$	254.3

Cash Requirements

Micro-LAM Acquisition

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.

Capital Expenditures

Capital expenditures generally include machinery and equipment that support growth and improved productivity, tooling, business system technology, replacement of equipment and investments in new facilities. The Company believes it has sufficient operating cash flows to continue to meet current obligations and invest in planned capital expenditures. Cash flows from operations were more than adequate to fund capital expenditures of $29.1 million and $35.9 million in the first six months of 2025 and 2024, respectively.

Share Repurchases

During the six months ended June 30, 2025, the Company repurchased 0.5 million shares at a cost of $100.0 million. 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. For additional information regarding the Company’s share repurchase program, refer to Note 12, “Share Repurchases,” in the Notes to Condensed Consolidated Financial Statements.

Dividends

Total dividend payments to common shareholders were $105.9 million during the six months ended June 30, 2025 compared with $100.7 million during the six months ended June 30, 2024.

Covenants

The key financial covenants that the Company is required to maintain in connection with the Revolving Facility and the 5.13% Senior Notes, are a minimum interest coverage ratio of 3.0 to 1 and a maximum leverage ratio of 3.50 to 1. At June 30, 2025, the Company was in compliance with these financial covenants, as the Company’s interest coverage ratio was 12.94 to 1 for covenant calculation purposes and the leverage ratio was 2.08 to 1. There are no financial covenants relating to the 2.625% Senior Notes, the 3.00% Senior Notes or the 4.950% Senior Notes; however, all are subject to cross-acceleration provisions.

Credit Ratings

The Company’s credit ratings, which were independently developed by the following credit agencies, are detailed below:

S&P Global Ratings reaffirmed the Company’s corporate credit rating of BBB (stable outlook) in September 2024.
Moody’s Investors Service affirmed the Company’s corporate credit rating of Baa2 (stable outlook) in August 2024.
Fitch Ratings reaffirmed the Company’s corporate credit rating of BBB+ (stable outlook) in June 2024.

Off-Balance Sheet Arrangements

The Company had $27.8 million of letters of credit as of June 30, 2025, primarily issued as security for insurance and other performance obligations. Of the $27.8 million of letters of credit, only $2.8 million reduced the Company’s borrowing capacity under the Revolving Facility as of June 30, 2025. The Company has restricted cash of $1.8 million as of June 30, 2025, which represents cash held as collateral for standby letters of credit issued by Mott and is required to keep the balance in a separate account for the duration of the letters of credit. During the second quarter of 2025, $16.3 million of the $18.1 million restricted cash at December 31, 2024 was released from restriction as the related standby letters of credit expired, $2.0 million of which

have been replaced during the second quarter of 2025 under other existing facilities that do not reduce the Company’s borrowing capacity.

Except as disclosed above, the Company has no off-balance sheet arrangements that currently have or are reasonably likely to have a material effect on the Company’s consolidated financial condition, changes in financial condition, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Estimates

There have been no changes to the Company’s critical accounting estimates described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Non-GAAP Disclosures

Set forth below are reconciliations of Organic sales, Adjusted gross profit, Adjusted gross margin, Adjusted net income attributable to IDEX, Adjusted diluted EPS attributable to IDEX, Consolidated Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) and Consolidated Adjusted EBITDA margin to their respective most directly comparable U.S. GAAP measure. Management uses these metrics to measure performance of the Company since they exclude items that are not reflective of ongoing operations, as identified in the reconciliations below. Management also supplements its U.S. GAAP financial statements with adjusted information to provide investors with greater insight, transparency and a more comprehensive understanding of the information used by management in its financial and operational decision making.

Management uses Adjusted EBITDA as its measure of segment performance, and believes it is a useful indicator of the strength and performance of the Company and its segments’ ongoing business operations, as well as a way for investors to evaluate and compare operating performance and value companies within the Company’s industry. Management believes that Adjusted EBITDA margin is useful for the same reason as Adjusted EBITDA. The definition of Adjusted EBITDA used here may differ from that used by other companies.

This report also references free cash flow. This non-GAAP measure is discussed and reconciled to its most directly comparable GAAP measure in the section above titled “Free Cash Flow.”

The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP. Due to rounding, numbers presented throughout this and other documents may not add up or recalculate precisely. The financial results prepared in accordance with U.S. GAAP and the reconciliations from these results should be carefully evaluated.


1. Reconciliations of the Change in Net Sales to Organic Sales

	HST		FMT		FSDP		IDEX
	Three Months Ended June 30, 2025
Change in net sales	20	%	(3	%)	3	%	7	%
Less:
Net impact from acquisitions/divestitures(1)	15	%	(2	%)	—	%	5	%
Impact from foreign currency(2)	1	%	1	%	1	%	1	%
Change in organic net sales	4	%	(2	%)	2	%	1	%

	Six Months Ended June 30, 2025
Change in net sales	15	%	(5	%)	3	%	4	%
Less:
Net impact from acquisitions/divestitures(1)	14	%	(2	%)	—	%	4	%
Impact from foreign currency(2)	—	%	—	%	—	%	—	%
Change in organic sales	1	%	(3	%)	3	%	—	%

(1) Represents the sales from acquired or divested businesses during the first 12 months of ownership or prior to divestiture.

(2) The portion of sales attributable to foreign currency translation is calculated as the difference between (a) the period-to-period change in organic sales, and (b) the period-to-period change in organic sales after applying prior period foreign exchange rates to the current year period.


2. Reconciliations of Reported-to-Adjusted Gross Profit and Gross Margin (in millions)

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Gross profit	$	392.2		$	366.8		$	761.1		$	724.2
Fair value inventory step-up charges	—			—			—			2.5
Adjusted gross profit	$	392.2		$	366.8		$	761.1		$	726.7

Net sales	$	865.4		$	807.2		$	1,679.7		$	1,607.7

Gross margin	45.3		%	45.4		%	45.3		%	45.0		%
Adjusted gross margin	45.3		%	45.4		%	45.3		%	45.2		%


3. Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, except for per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Reported net income attributable to IDEX	$	131.6	$	141.3	$	227.1	$	262.7
Fair value inventory step-up charges	—		—		—		2.5
Tax impact on fair value inventory step-up charges	—		—		—		(0.5)
Restructuring expenses and asset impairments(1)	0.4		1.3		17.9		2.4
Tax impact on restructuring expenses and asset impairments	(0.2)		(0.3)		(4.3)		(0.6)
Gain on sale of business	—		(4.6)		—		(4.6)
Tax impact on gain of sale of business	—		—		—		—
Acquisition-related intangible asset amortization	32.0		23.9		63.5		48.5
Tax impact on acquisition-related intangible asset amortization	(7.3)		(5.5)		(14.7)		(11.1)
Adjusted net income attributable to IDEX	$	156.5	$	156.1	$	289.5	$	299.3

Reported diluted EPS attributable to IDEX	$	1.74	$	1.86	$	3.00	$	3.46
Fair value inventory step-up charges	—		—		—		0.03
Tax impact on fair value inventory step-up charges	—		—		—		(0.01)
Restructuring expenses and asset impairments(1)	0.01		0.02		0.24		0.03
Tax impact on restructuring expenses and asset impairments	—		—		(0.06)		(0.01)
Gain on sale of business	—		(0.06)		—		(0.06)
Tax impact on gain of sale of business	—		—		—		—
Acquisition-related intangible asset amortization	0.42		0.31		0.83		0.64
Tax impact on acquisition-related intangible asset amortization	(0.10)		(0.07)		(0.19)		(0.14)
Adjusted diluted EPS attributable to IDEX	$	2.07	$	2.06	$	3.82	$	3.94

Diluted weighted average shares outstanding	75.5		75.9		75.7		75.9

(1) This adjustment represents the amount of Restructuring expenses and asset impairments attributable to IDEX. Restructuring expenses and asset impairments of $0.7 million and $18.2 million on the Condensed Consolidated Statements of Income during the three and six months ended June 30, 2025, respectively, included charges of $0.6 million recognized by the Company’s joint venture, $0.3 million of which was attributable to noncontrolling interest.


4. Reconciliations of Net Income to Adjusted EBITDA (in millions)

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Reported net income	$	131.1		$	141.2		$	226.5		$	262.5
Provision for income taxes	38.8			38.0			67.9			71.2
Interest expense – net	15.6			8.1			31.7			17.5
Gain on sale of business	—			(4.6)			—			(4.6)
Depreciation	19.0			16.3			37.4			32.5
Amortization	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
Adjusted EBITDA	$	237.2		$	224.2		$	445.2		$	432.5

Adjusted EBITDA Components
HST	$	95.0		$	84.2		$	182.4		$	165.6
FMT	108.7			107.7			204.0			213.1
FSDP	56.4			53.8			110.6			105.2
Corporate and other	(22.9)			(21.5)			(51.8)			(51.4)
Total Adjusted EBITDA	$	237.2		$	224.2		$	445.2		$	432.5

Net sales	$	865.4		$	807.2		$	1,679.7		$	1,607.7

Net income margin	15.1		%	17.5		%	13.5		%	16.3		%
Adjusted EBITDA margin	27.4		%	27.8		%	26.5		%	26.9		%

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