Idex (IEX) Down 3.6% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Idex (IEX). Shares have lost about 3.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Idex due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

IDEX Beats Q1 Earnings Estimates on HST Momentum, Raises View

IDEX delivered first-quarter 2026 adjusted earnings of $2.00 per share, topping the Zacks Consensus Estimate of $1.78 by 12.4%. The metric rose 14.3% year over year. Net sales of $886.9 million beat the consensus mark of $835 million by 6.2% and increased 8.9% from the year-ago quarter.

Results were driven by solid traction in the Health & Science Technologies segment, where higher volumes in AI-linked data center power and semiconductor end markets, along with strength in space and defense, supported growth. IDEX also posted record orders, signaling improving demand early in 2026.

Organic sales increased 5% year over year. While acquisitions/divestitures had a positive impact on sales of 1%, foreign currency translation had a positive impact of 3% on sales.

Segmental Details

Net sales from the Fluid & Metering Technologies segment totaled $301.5 million, up 4% year over year. Our estimate for segmental net sales was $297.3 million. Organic sales increased 2% year over year. Foreign currency translation had a positive impact of 2% on sales.

Net sales from the Health & Science Technologies segment totaled $398.4 million, up 17% year over year. Organic sales increased 11% year over year. Acquisitions/divestitures and foreign currency translation had a positive impact of 3% each on sales.

Net sales from the Fire & Safety/Diversified Products segment totaled $188.3 million, which increased 2% year over year. Our estimate for segmental net sales was $182 million. Organic sales decreased 1% on a year-over-year basis, while foreign currency translation had a favorable impact of 3% on sales.

Orders Signal Broad-Based Demand

Orders increased 13% year over year to $988.3 million, with organic orders up 10%. Management pointed to momentum and backlog building in businesses tied to several end markets, particularly AI-driven areas, pharma and space and defense.

IDEX’s Margin Profile

IDEX’s cost of sales increased 9.7% year over year to $488.8 million. The adjusted gross margin was 44.9%, down 40 basis points year over year, reflecting unfavorable mix and higher costs, partially offset by productivity improvements and volume leverage. Selling, general and administrative expenses increased to $218.3 million from $209.4 million in the prior-year period.

Adjusted EBITDA rose 10.8% to $230.4 million and the adjusted EBITDA margin improved 50 basis points to 26%. Operating income increased 21.4% to $172.4 million, aided by stronger operating performance and a lower restructuring and asset impairment burden compared to the prior year period. The operating margin was 19.4%, up 200 bps year over year. Interest expenses (net) were relatively stable year over year at $16 million.

Cash Uses Highlight Shareholder Returns

Cash flows from operating activities were $103.7 million compared with $105.7 million a year ago, as increased earnings were offset by customer payment timing. Free cash flow declined 5.9% to $86 million, reflecting both working-capital timing and higher capital expenditures of $17.7 million.

The company continued to return capital, repurchasing $76.3 million of stock and paying $52.8 million in dividends during the quarter. On the balance sheet, cash and cash equivalents were $586.2 million exiting the first quarter, while long-term borrowings (net) stood at $1.87 billion.

IDEX’s Raised 2026 Outlook Reflects Confidence

Management raised full-year 2026 guidance, projecting organic sales growth of 3-4% compared with prior expectations of 1-2%. The company also lifted its full-year adjusted earnings outlook to $8.35-$8.55 per share from $8.15-$8.35 previously.

For the second quarter of 2026, IDEX expects organic sales to increase 3-4% from the year-ago period and expects adjusted earnings in the range of $2.07-$2.12.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Idex has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Idex has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Idex belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, Applied Industrial Technologies (AIT), has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Applied Industrial Technologies reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $2.65 for the same period compares with $2.57 a year ago.

Applied Industrial Technologies is expected to post earnings of $2.91 per share for the current quarter, representing a year-over-year change of +3.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Applied Industrial Technologies. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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