IDEX’s first quarter results were well received by the market, with both revenue and adjusted earnings surpassing Wall Street expectations. Management credited this performance to resilient demand across core end markets such as space, defense, municipal water, and fire and safety, alongside steady order rates and backlog growth. CEO Eric Ashleman highlighted the company’s ongoing efficiency initiatives, including platform optimization and organizational delayering, which helped offset volume-related margin pressures. The company also pointed to a record order book and the successful integration of its recent Mott acquisition as contributors to the quarter’s results.
Is now the time to buy IEX? Find out in our full research report (it’s free).
IDEX (IEX) Q1 CY2025 Highlights:
- Revenue: $814.3 million vs analyst estimates of $805.4 million (1.7% year-on-year growth, 1.1% beat)
- Adjusted EPS: $1.75 vs analyst estimates of $1.64 (6.7% beat)
- Adjusted EBITDA: $208 million vs analyst estimates of $195.5 million (25.5% margin, 6.4% beat)
- Management reiterated its full-year Adjusted EPS guidance of $8.27 at the midpoint
- Operating Margin: 17.4%, down from 20.1% in the same quarter last year
- Organic Revenue was flat year on year (-6% in the same quarter last year)
- Market Capitalization: $13.18 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions IDEX’s Q1 Earnings Call
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Mike Halloran (Baird) asked about the flexibility within guidance assumptions and how cost savings can offset potential volume declines. CFO Abhi Khandelwal explained that incremental cost actions could absorb up to a 3-4% back half volume decline.
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Nathan Jones (Stifel) pressed for detail on the timing and customer impact of tariff-related price increases. Khandelwal clarified that most tariff costs and price adjustments would manifest in Q3 and Q4, with limited pull-forward demand observed so far.
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Vlad Bystricky (Citigroup) inquired about the scalability of the Mott wastewater filtration win and whether similar projects are likely. CEO Eric Ashleman described the contract as an important reference case, supporting further market expansion for Mott’s advanced filtration solutions.
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Joe Giordano (Cowen) questioned the outlook for semiconductor-related businesses amid broader industry weakness. Ashleman acknowledged pressure on large tool orders but noted that Mott’s consumables and recurring revenue from existing platforms partially offset softness.
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Deane Dray (RBC Capital Markets) sought more color on municipal water demand and the defensiveness of this vertical. Ashleman emphasized the sector’s resilience due to ongoing regulatory drivers and multiyear funding cycles.
Catalysts in Upcoming Quarters
In coming quarters, our analysts will be tracking (1) the pace at which tariff-related price increases are accepted in the market, (2) progress on Mott’s wastewater filtration project and its impact on second-half revenue, and (3) continued order strength in advantaged sectors like municipal water, space, and defense. Additional signals will come from margin stabilization efforts and the company’s ability to deliver further productivity gains.
IDEX currently trades at $174.50, in line with $173.67 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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