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 Company’s 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 2025 unless otherwise noted)

Three Months Ended March 31, 2026

• Reported Net sales of $886.9 million increased 9% overall and increased 5% organically*

• Reported diluted earnings per common share (“EPS”) attributable to IDEX of $1.61 increased 28%

• Adjusted diluted EPS attributable to IDEX* of $2.00 increased 14%

• Returned capital to shareholders in the form of $76.3 million of share repurchases and $52.8 million of dividends

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

During the first quarter of 2026, the Company delivered strong results driven by higher than anticipated volumes in targeted advantaged markets, including data centers, semiconductor and space and defense, within the Health & Science Technologies (“HST”) segment along with positive price across the Company’s segments. The quarter’s results also reflect net operational productivity gains and favorable translation, partly offset by unfavorable mix.

Recent Developments

On February 20, 2026, the U. S. Supreme Court issued a decision invalidating the broad-based tariffs imposed under the International Emergency Economic Powers Act. In response to the U.S. Supreme Court ruling, the administration implemented new tariffs under alternative statutory authority. The tariffs enacted in 2025 and in the first quarter of 2026 did not have a material impact on the Company’s business or financial statements in the periods presented. The Company will continue to monitor the situation, including the timing and amount of any refunds of such tariffs, and expects it will be able to continue to mitigate the potential unfavorable impact of tariffs.

Results of Operations

The following is a discussion and analysis of the Company’s results of operations for the three months ended March 31, 2026 compared with the three months ended March 31, 2025.

															Three Months Ended March 31,												Change
(In millions, except per share amounts)																											2026						2025						$						% / bps
Domestic sales																											$	457.1					$	419.4					$	37.7					9		%
International sales																											429.8						394.9						34.9						9		%
Net sales																											886.9						814.3						72.6						9		%
Cost of sales																											488.8						445.4						43.4						10		%
Gross profit																											398.1						368.9						29.2						8		%
Gross margin																											44.9		%				45.3		%				n/a						(40) bps
Selling, general and administrative expenses																											218.3						209.4						8.9						4		%
Restructuring expenses and asset impairments																											7.4						17.5						(10.1)						(58		%)
Operating income																											172.4						142.0						30.4						21		%
Other (income) expense – net																											(0.6)						1.4						(2.0)						(143		%)
Interest expense – net																											16.0						16.1						(0.1)						(1		%)
Income before income taxes																											157.0						124.5						32.5						26		%
Provision for income taxes																											37.1						29.1						8.0						27		%
Effective tax rate																											23.6		%				23.4		%				n/a						20 bps
Net income attributable to IDEX																											$	120.0					$	95.5					$	24.5					26		%
Diluted earnings per common share attributable to IDEX																											$	1.61					$	1.26					$	0.35					28		%

Net Sales

Net sales for the three months ended March 31, 2026 increased as compared to the same prior year period as a result of increased organic sales, favorable impacts from foreign currency and contributions from acquisitions. Organic sales for the same period increased 5% primarily driven by higher volumes in the HST segment, which were slightly offset by lower volumes in the Company’s Fire & Safety/Diversified Products (“FSDP”) and Fluid Metering Technologies (“FMT”) segments. The increase also reflects positive price across all segments.

Gross Profit and Gross Margin

Gross profit and Gross margin for the three months ended March 31, 2026 were positively impacted by volume leverage and net operational productivity improvements, and while gross profit further benefited from positive price/cost, gross margin was pressured by price/cost. Both were negatively impacted by unfavorable mix. Gross profit also reflected favorable impacts from foreign currency.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased for the three months ended March 31, 2026, reflecting a $2.7 million increase from acquisitions, including amortization, as well as higher employee-related costs and increased professional services spending, partially offset by proceeds received related to a legal settlement, as compared to the same prior year period.

Restructuring Expenses and Asset Impairments

Restructuring expenses and asset impairments for the three months ended March 31, 2026 primarily relate to asset impairments of $4.8 million related to intangible assets and property, plant and equipment within the Company’s FMT segment. The three months ended March 31, 2026 also includes severance costs that were incurred as a result of employee reductions. Restructuring expenses and asset impairments for the three months ended March 31, 2025 primarily relate to severance costs that were incurred in conjunction with organizational changes.

Other (Income) Expense – Net

Other (income) expense – net during the three months ended March 31, 2026 reflects the impact of foreign currency gains, while the three months ended March 31, 2025 reflects the impact of foreign currency transaction losses.

Interest Expense – Net

Interest expense – net for the three months ended March 31, 2026 was consistent with the prior year period.

Income Taxes

The effective tax rate was 23.6% for the three months ended March 31, 2026, reasonably consistent with 23.4% during the same period in 2025. For additional information, refer to Note 15, “Income Taxes”, in the Notes to Condensed Consolidated Financial Statements.

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, 2025. 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 months ended March 31, 2026.

									Three Months Ended March 31, 2026
																											HST						FMT						FSDP						Total
Net sales as a percent of total																											45		%				34		%				21		%				100		%
Adjusted EBITDA(1)																											41		%				38		%				21		%				100		%

(1) Segment Adjusted EBITDA excludes the impact of unallocated corporate costs of $30.1 million for the three months ended March 31, 2026.

Health & Science Technologies Segment

			Three Months Ended March 31,																		Components of Change
(In millions)			2026						2025						Change						Organic						Acq/Div**(1)**						Foreign Currency						Total
Domestic sales			$	185.7					$	155.1					20%
International sales			212.7						186.4						14%
Net sales			$	398.4					$	341.5					17%						11%						3%						3%						17%
Adjusted EBITDA			106.0						87.4						21%						18%						—%						3%						21%
Adjusted EBITDA margin			26.6		%				25.6		%				100 bps						150 bps						(50) bps						— bps						100 bps

(1) Acquisitions include Micro-LAM, Inc. acquired in July 2025.

• Organic sales for the three months ended March 31, 2026 reflect higher volumes primarily due to AI-driven demand for data center power and semiconductor markets, as well as strength in space and defense, partially offset by lower volumes in the Company’s life sciences businesses. Net sales also reflect positive price across the segment.

• Adjusted EBITDA margin for the three months ended March 31, 2026 increased primarily due to volume leverage and favorable price/cost, partially offset by unfavorable mix and the impact of acquisitions.

Fluid & Metering Technologies Segment

			Three Months Ended March 31,																		Components of Change
(In millions)			2026						2025						Change						Organic						Acq/Div						Foreign Currency						Total
Domestic sales			$	175.7					$	168.8					4%
International sales			125.8						121.7						3%
Net sales			$	301.5					$	290.5					4%						2%						—%						2%						4%
Adjusted EBITDA			98.7						95.3						4%						2%						—%						2%						4%
Adjusted EBITDA margin			32.7		%				32.8		%				(10) bps						(10) bps						— bps						— bps						(10) bps

• Organic sales for the three months ended March 31, 2026 reflect positive price. Higher volumes in the Company’s businesses serving municipal water, semiconductor and mining markets were more than offset by lower volumes in the Company’s chemical and industrial businesses.

• Adjusted EBITDA margin for the three months ended March 31, 2026 decreased due to unfavorable mix and volume deleverage, mostly mitigated by net productivity improvements.

Fire & Safety/Diversified Products Segment

			Three Months Ended March 31,																		Components of Change
(In millions)			2026						2025						Change						Organic						Acq/Div						Foreign Currency						Total
Domestic sales			$	95.7					$	95.5					—%
International sales			92.6						88.8						4%
Net sales			$	188.3					$	184.3					2%						(1%)						—						3%						2%
Adjusted EBITDA			55.8						54.2						3%						—%						—						3%						3%
Adjusted EBITDA margin			29.7		%				29.4		%				30 bps						30 bps						— bps						— bps						30 bps

• Organic sales for the three months ended March 31, 2026 reflect higher volumes in the Company’s Fire & Safety businesses and positive price, which were more than offset by lower volumes within the Company’s Dispensing businesses driven by timing of projects.

• Adjusted EBITDA margin increased for the three months ended March 31, 2026 primarily due to net productivity improvements, partially offset by unfavorable mix and volume deleverage.

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 funding of working capital, 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 March 31, 2026 are as follows:

(In millions)						March 31, 2026
Working capital						$	1,210.7
Current ratio						3.4 to 1
Cash and cash equivalents						$	586.2
Cash held outside of the United States						514.2
Revolving Facility capacity						$	800.0
Borrowings						280.1
Letters of credit						2.7
Revolving Facility availability						$	517.2

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 March 31, 2026 and December 31, 2025:

(In millions)						March 31, 2026						December 31, 2025						Change						Organic Change
Receivables – net						$	553.0					$	521.7					$	31.3					$	35.4
Inventories – net						501.0						479.4						21.6						25.5
Less: Trade accounts payable						224.8						224.7						0.1						1.9
Operating working capital						$	829.2					$	776.4					$	52.8					$	59.0

Foreign currency translation decreased Operating working capital by $6.2 million during the three months ended March 31, 2026. Apart from the translation impact, the primary drivers of the change in Operating working capital were higher receivables, which increased due to higher sales volumes and positive price, and higher inventories, which increased to support planned production.

Cash Flow Summary

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

						Three Months Ended March 31,
(In millions)						2026						2025						Change
Net cash flows provided by (used in):
Operating activities						$	103.7					$	105.7					$	(2.0)
Investing activities						(20.4)						(10.0)						(10.4)
Financing activities						(68.8)						(133.3)						64.5

Operating Activities

Cash provided by operating activities decreased $2.0 million in the three months ended March 31, 2026 as compared to the prior year period. Improved operational results were offset by increased receivable balances, driven by timing of customer payments.

Investing Activities

Cash used in investing activities increased $10.4 million in the three months ended March 31, 2026 as compared to the prior year period reflecting the absence of $4.2 million of funds received in connection with the finalization of the Mott purchase price in the prior year period and a $3.4 million increase in capital expenditures.

Financing Activities

Cash used in financing activities decreased $64.5 million in the three months ended March 31, 2026 as compared to the prior year period. The three months ended March 31, 2026 included $84.9 million of higher net draws under the Revolving Facility and $6.3 million of higher proceeds from stock option exercises, net of shares withheld for taxes, partially offset by $26.3 million of higher share repurchases.

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:

						Three Months Ended March 31,
(In millions)						2026						2025
Cash flows provided by operating activities						$	103.7					$	105.7
Less: capital expenditures						17.7						14.3
Free cash flow						$	86.0					$	91.4

Cash Requirements

Subsequent Share Repurchases

Subsequent to March 31, 2026, the Company repurchased 0.1 million shares at a cost of $21.8 million.

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 $17.7 million and $14.3 million in the first three months of 2026 and 2025, respectively.

Share Repurchases

During the three months ended March 31, 2026, the Company repurchased a total of 0.4 million shares at a cost of $75.6 million (including estimated excise taxes of $0.6 million, which will be paid in 2027), of which $0.9 million was settled in April 2026. During the three months ended March 31, 2025, the Company repurchased a total of 0.3 million shares at a cost of $50.4 million (including estimated excise taxes of $0.4 million). As of March 31, 2026, the amount of share repurchase authorization remaining was $849.7 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 11, “Share Repurchases,” in the Notes to Condensed Consolidated Financial Statements.

Dividends

Total dividend payments to common shareholders were $52.8 million during the three months ended March 31, 2026 compared with $52.4 million during the three months ended March 31, 2025.

Covenants

At March 31, 2026, 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. 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 March 31, 2026, the Company’s interest coverage ratio was 13.85 to 1 for covenant calculation purposes and the leverage ratio was 1.93 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 February 2026.

Off-Balance Sheet Arrangements

The Company had $19.3 million of letters of credit as of March 31, 2026, primarily issued as security for insurance and other performance obligations. Of the $19.3 million of letters of credit, only $2.7 million reduced the Company’s borrowing capacity under the Revolving Facility as of March 31, 2026.

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, 2025.

Non-GAAP Disclosures

Set forth below are reconciliations of Organic sales, 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. There were no non-GAAP adjustments to Gross profit or Gross margin during either the three months ended March 31, 2026 nor 2025. 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 U.S. 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 March 31, 2026
Change in net sales			17		%				4		%				2		%				9		%
Less:
Net impact from acquisitions/divestitures(1)			3		%				—		%				—		%				1		%
Impact from foreign currency(2)			3		%				2		%				3		%				3		%
Change in organic sales			11		%				2		%				(1		%)				5		%

(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 Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, except for per share amounts)
									Three Months Ended March 31,
															2026						2025
Reported net income attributable to IDEX															$	120.0					$	95.5
Restructuring expenses and asset impairments															7.4						17.5
Tax impact on restructuring expenses and asset impairments															(1.7)						(4.1)
Gain on legal settlement(1)															(3.7)						—
Tax impact on gain on legal settlement															0.8						—
Acquisition-related intangible asset amortization															33.8						31.5
Tax impact on acquisition-related intangible asset amortization															(8.0)						(7.4)
Adjusted net income attributable to IDEX															$	148.6					$	133.0
Reported diluted EPS attributable to IDEX															$	1.61					$	1.26
Restructuring expenses and asset impairments															0.10						0.23
Tax impact on restructuring expenses and asset impairments															(0.02)						(0.05)
Gain on legal settlement(1)															(0.05)						—
Tax impact on gain on legal settlement															0.01						—
Acquisition-related intangible asset amortization															0.46						0.41
Tax impact on acquisition-related intangible asset amortization															(0.11)						(0.10)
Adjusted diluted EPS attributable to IDEX															$	2.00					$	1.75
Diluted weighted average shares outstanding															74.4						75.8

(1) Gain on legal settlement represents settlement funds received in excess of legal costs incurred related to a patent infringement lawsuit within the FMT segment.

3. Reconciliations of Net Income to Adjusted EBITDA (in millions)
									Three Months Ended March 31,
															2026						2025
Reported net income															$	119.9					$	95.4
Provision for income taxes															37.1						29.1
Interest expense – net															16.0						16.1
Depreciation															19.9						18.4
Amortization															33.8						31.5
Restructuring expenses and asset impairments															7.4						17.5
Gain on legal settlement(1)															(3.7)						—
Adjusted EBITDA															$	230.4					$	208.0
Adjusted EBITDA Components
HST															$	106.0					$	87.4
FMT															98.7						95.3
FSDP															55.8						54.2
Corporate and other															(30.1)						(28.9)
Total Adjusted EBITDA															$	230.4					$	208.0
Net sales															$	886.9					$	814.3
Net income margin															13.5		%				11.7		%
Adjusted EBITDA margin															26.0		%				25.5		%

(1) Gain on legal settlement represents settlement funds received in excess of legal costs incurred related to a patent infringement lawsuit within the FMT segment.