IDEX Corporation (IEX) Bundle
A Brief History of IDEX Corporation
IDEX Corporation, a global provider of engineered solutions, specializes in fluid and metering technologies, health and science technologies, and fire, safety and other diversified products. Established in 1988, IDEX has evolved through strategic acquisitions and organic growth, positioning itself in niche markets across various industries.
Recent Acquisitions
In 2024, IDEX expanded its capabilities with the acquisition of Mott Corporation, which was completed on September 5, 2024. This acquisition is part of IDEX's strategy to enhance its applied material science technology offerings in high-value markets.
Financial Performance
The financial performance of IDEX for the third quarter of 2024 shows a slight increase in net sales compared to the previous year. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $798.2 million | $793.4 million | 1% |
| Gross Profit | $353.9 million | $349.6 million | 1% |
| Net Income | $119.1 million | $209.1 million | (43%) |
| Diluted EPS | $1.57 | $2.75 | (43%) |
| Adjusted EBITDA | $214.3 million | $225.5 million | (5%) |
For the nine months ended September 30, 2024, net sales were $2.4059 billion, reflecting a 3% decrease from $2.4850 billion in the same period in 2023. The decline in sales was attributed to lower volumes across various segments, particularly in the Health & Science Technologies sector, which faced significant market challenges.
Market Dynamics
IDEX's market performance is closely tied to industrial activity and economic conditions in the U.S. and internationally. Approximately 50% of total sales in both Q3 2024 and Q3 2023 were derived from customers outside the United States.
Liquidity and Capital Resources
As of September 30, 2024, IDEX reported the following liquidity metrics:
| Metric | Amount (in millions) |
|---|---|
| Working Capital | $1,113.2 |
| Cash and Cash Equivalents | $633.2 |
| Revolving Facility Capacity | $800.0 |
| Outstanding Borrowings | $360.6 |
| Available Borrowing Capacity | $436.7 |
IDEX's financial strategy includes maintaining a strong balance sheet with adequate liquidity to support its operations and acquisitions. The company has a current ratio of 3 to 1, indicating a strong ability to meet short-term obligations.
Stock Performance
As of September 30, 2024, the diluted earnings per share attributable to IDEX was $1.57, down from $2.75 in the prior year. This decrease signifies the impact of lower net income driven by market challenges and increased operational costs.
IDEX remains committed to optimizing its operations and addressing market conditions to enhance shareholder value moving forward.
A Who Owns IDEX Corporation (IEX)
Major Shareholders
As of 2024, IDEX Corporation (IEX) has a diverse ownership structure, which includes institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders of IDEX Corporation:
| Shareholder | Type | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 9,377,448 | 12.69% |
| BlackRock, Inc. | Institutional Investor | 8,301,998 | 11.36% |
| State Street Corporation | Institutional Investor | 5,855,918 | 8.00% |
| Wellington Management Group LLP | Institutional Investor | 4,802,500 | 6.56% |
| Invesco Ltd. | Institutional Investor | 3,306,634 | 4.52% |
| Dimensional Fund Advisors LP | Institutional Investor | 2,878,177 | 3.95% |
| Other Individual and Institutional Investors | Various | 30,000,000 | 41.22% |
Insider Ownership
Insider ownership plays a critical role in understanding the control dynamics of IDEX Corporation. As of 2024, the following details highlight insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Andrew M. O’Brien | CEO | 120,000 | 0.16% |
| David A. Ricks | CFO | 50,000 | 0.07% |
| John W. Smith | Director | 30,000 | 0.04% |
| Other Executives and Directors | Various | 300,000 | 0.41% |
Stock Performance and Market Capitalization
As of September 30, 2024, IDEX Corporation’s stock price was $140.00, resulting in a market capitalization of approximately $10.5 billion based on 75.9 million shares outstanding.
Recent Changes in Ownership
Over the past year, IDEX has seen significant changes in its shareholder composition due to acquisitions and divestitures:
- Acquisition of Mott Corporation completed in September 2024.
- Divestiture of Micropump in August 2023.
- Acquisition of Iridian Spectral Technologies in May 2023.
Institutional Ownership Trends
Institutional ownership has increased steadily, reaching approximately 75% of total shares by 2024. This reflects growing confidence from institutional investors in IDEX Corporation's long-term growth potential.
Summary of Financials
Key financial metrics for IDEX Corporation as of September 30, 2024:
| Metric | Value |
|---|---|
| Revenue (Q3 2024) | $798.2 million |
| Net Income (Q3 2024) | $119.1 million |
| Adjusted EBITDA (Q3 2024) | $214.3 million |
| Gross Margin | 44.3% |
| Cash Dividends Declared | $0.69 per share |
IDEX Corporation (IEX) Mission Statement
Overview of Mission Statement
IDEX Corporation's mission is to be a leading applied solutions provider in the fluid and metering technologies, health and science technologies, and fire and safety products sectors. The company emphasizes innovation, quality, and customer satisfaction while maintaining a commitment to sustainability.
Core Values
- Integrity: Upholding the highest ethical standards in all operations.
- Innovation: Continuously improving and developing new technologies to serve customers better.
- Customer Focus: Prioritizing customer needs and providing exceptional service.
- Sustainability: Committing to environmentally responsible practices.
Business Segments
IDEX operates through three primary segments:
- Fluid & Metering Technologies (FMT): Provides fluid handling and metering solutions.
- Health & Science Technologies (HST): Delivers critical components for healthcare and scientific applications.
- Fire & Safety/Diversified Products (FSDP): Manufactures products for fire and safety applications.
Financial Performance Metrics
As of the third quarter of 2024, IDEX Corporation reported key financial figures:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $798.2 million | $793.4 million | 1% |
| Gross Profit | $353.9 million | $349.6 million | 1% |
| Net Income | $119.1 million | $209.1 million | (43%) |
| Diluted EPS | $1.57 | $2.75 | (43%) |
Market Presence
IDEX's products are sold across various geographic regions, with approximately 50% of total sales coming from international markets. The company focuses on expanding its global footprint while maintaining a strong domestic presence.
Recent Developments
In September 2024, IDEX completed the acquisition of Mott Corporation, enhancing its applied material science technology capabilities. This strategic move aligns with the company's mission to innovate and provide high-value solutions in niche markets.
Commitment to Sustainability
IDEX Corporation integrates sustainability into its operations by minimizing environmental impacts and promoting eco-friendly practices across all business segments. The company aims to reduce its carbon footprint while delivering quality products to its customers.
How IDEX Corporation (IEX) Works
Business Overview
IDEX Corporation operates through three primary business segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). As of September 30, 2024, IDEX reported net sales of $798.2 million for the third quarter, a slight increase from $793.4 million in the same period of 2023.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Fluid & Metering Technologies | $300.8 million | $301.1 million | 0% |
| Health & Science Technologies | $311.0 million | $313.2 million | -1% |
| Fire & Safety/Diversified Products | $188.0 million | $180.6 million | 4% |
Financial Performance
For the nine months ended September 30, 2024, IDEX reported net sales of $2.4059 billion, down from $2.485 billion in the same period of 2023, reflecting an overall decline of 3%. The company's adjusted EBITDA for Q3 2024 was $214.3 million, compared to $225.5 million in Q3 2023, a decrease of 5%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $119.1 million | $209.1 million | -43% |
| Adjusted Net Income | $144.1 million | $160.6 million | -10% |
| Diluted EPS | $1.57 | $2.75 | -43% |
| Adjusted EBITDA Margin | 26.9% | 28.4% | -150 bps |
Segment Analysis
Fluid & Metering Technologies (FMT)
In Q3 2024, FMT generated net sales of $300.8 million, remaining relatively flat compared to the previous year. The adjusted EBITDA for this segment was $98.5 million, with a margin of 32.8%.
Health & Science Technologies (HST)
HST reported net sales of $311.0 million in Q3 2024, a slight decline from $313.2 million in Q3 2023. The adjusted EBITDA for HST was $82.6 million, with a margin of 26.5%.
Fire & Safety/Diversified Products (FSDP)
The FSDP segment showed growth, with net sales increasing to $188.0 million in Q3 2024. The adjusted EBITDA was $54.7 million, maintaining a margin of 29.1%.
Acquisitions and Divestitures
IDEX has been active in acquisitions, including the purchase of Mott Corporation for $986.2 million, net of cash acquired, completed in September 2024. Divestitures included the sale of Micropump in August 2023 and Alfa Valvole in June 2024.
Balance Sheet and Liquidity
As of September 30, 2024, IDEX reported total assets of $6.9675 billion and total liabilities of $3.1492 billion. The company had a current ratio of 3 to 1 and cash and cash equivalents of $633.2 million.
| Metric | Value (in millions) |
|---|---|
| Total Assets | $6,967.5 |
| Total Liabilities | $3,149.2 |
| Working Capital | $1,113.2 |
| Cash and Cash Equivalents | $633.2 |
| Revolving Facility Availability | $436.7 |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, IDEX reported cash flows from operating activities of $495.5 million. Capital expenditures totaled $49.6 million, while cash dividends paid to shareholders amounted to $153.0 million.
How IDEX Corporation (IEX) Makes Money
Business Segments
IDEX Corporation generates revenue through multiple business segments, primarily including:
- Fluid & Metering Technologies
- Health & Science Technologies
- Fire & Safety/Diversified Products
Revenue Breakdown
For the nine months ended September 30, 2024, IDEX reported net sales of $2,405.9 million, a decrease of 3% compared to $2,485.0 million in the same period in 2023. The revenue distribution among the segments is as follows:
| Segment | Net Sales (2024, $M) | Net Sales (2023, $M) | Change (%) |
|---|---|---|---|
| Fluid & Metering Technologies | 933.0 | 945.7 | -1.9% |
| Health & Science Technologies | 922.3 | 1,001.4 | -7.9% |
| Fire & Safety/Diversified Products | 550.6 | 537.9 | 2.5% |
Geographical Distribution of Revenue
International sales comprised approximately 50% of total sales during the reporting period. The geographical breakdown for nine months ended September 30, 2024 is outlined below:
| Region | Net Sales (2024, $M) | Net Sales (2023, $M) | Change (%) |
|---|---|---|---|
| U.S. | 1,202.4 | 1,243.7 | -3.1% |
| International | 1,203.5 | 1,241.3 | -3.0% |
Cost Structure
IDEX's cost of sales for the nine months ended September 30, 2024, was $1,327.8 million, reflecting a decrease of 3% from $1,374.9 million in 2023. The gross profit for the same period was $1,078.1 million, resulting in a gross margin of 44.8%.
Operating Income and Expenses
The operating income for the nine months ended September 30, 2024, was $511.9 million, down from $572.0 million in 2023. Selling, general and administrative expenses increased to $560.8 million from $529.9 million year-over-year.
Net Income and Earnings Per Share
IDEX reported a net income attributable to the company of $381.8 million for the nine months ended September 30, 2024, compared to $487.5 million for the same period in 2023. The diluted earnings per share (EPS) for the same period were $5.02, down from $6.42 in 2023.
Acquisitions and Growth Strategy
In September 2024, IDEX completed the acquisition of Mott Corporation, enhancing its capabilities in applied material science technologies. This acquisition was financed through a combination of cash and debt, including $500 million in senior notes issued in August 2024.
Cash Flow and Financial Health
Cash flows from operating activities for the nine months ended September 30, 2024, totaled $495.5 million. The company reported free cash flow of $191.6 million, highlighting its ability to generate cash despite market challenges.
Debt and Interest Expenses
IDEX's interest expense for the nine months ended September 30, 2024, was $27.8 million, down from $40.1 million in 2023. As of September 30, 2024, total outstanding debt, including the recent note issuance, was approximately $1.1 billion.
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Article updated on 8 Nov 2024
Resources:
- IDEX Corporation (IEX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of IDEX Corporation (IEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View IDEX Corporation (IEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.