IDEX Corporation’s IEX fourth-quarter 2024 adjusted earnings of $2.04 per share surpassed the Zacks Consensus Estimate of $2.03. The bottom line increased 11% from the year-ago quarter’s earnings of $1.83 per share. The management projected adjusted earnings to be in the band of $2.01-$2.06 per share in the quarter.

For the year, the company’s adjusted earnings were $7.89 per share, down 4% year over year.

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IEX’s Revenue Details

IDEX’s net sales of $863 million missed the Zacks Consensus Estimate of $865 million. The top line increased 9% year over year. Organic sales increased 3% year over year. Acquisitions/divestitures had a positive impact on sales of 6%.

For 2024, IEX reported net revenues of $3.3 billion, flat year over year.

IEX reports net sales under three business segments, the results of which are discussed below:

Net sales from the Fluid & Metering Technologies segment totaled $299.3 million, flat year over year. Our estimate for segmental net sales was $334.1 million. Organic sales increased 3% year over year. Acquisition/divestitures impacted sales by 2%, while foreign currency translation had a negative impact of 1% on sales.

Net sales from the Health & Science Technologies segment totaled $373.2 million, up 19% year over year. Our estimate for segmental net sales was $337.7 million. Organic sales were flat year over year.

Net sales from the Fire & Safety/Diversified Products segment totaled $192.9 million, which increased 8% year over year. Our estimate for segmental net sales was $198.7 million. Organic sales increased 8% on a year-over-year basis.

IDEX’s Margin Profile

IDEX’s cost of sales increased 9.7% year over year to $495.8 million. The gross profit was $367.1 million, up 9% year over year. The gross margin was 42.5% compared with 42.7% in the year-ago quarter.

Selling, general and administrative expenses increased 10.3% year over year to $197.9 million. Adjusted EBITDA increased 11.7% year over year to $227.5 million. The adjusted EBITDA margin increased 60 bps year over year to 26.4%.

The operating income was $165.3 million, up 3% year over year. The operating margin was 19.2%, down 110 bps year over year. Interest expenses (net) increased 44% year over year to $16.7 million.

Balance Sheet and Cash Flow of IDEX

While exiting the fourth quarter, IDEX’s cash and cash equivalents were $620.8 million compared with $534.3 million at the end of fourth-quarter 2023. Long-term borrowings (net) were $1.9 billion compared with $1.33 billion at the end of fourth-quarter 2023.

In 2024, IDEX generated net cash of $668.1 million from operating activities, down 6.8% from the year-ago period. Capital expenditures were $65.1 million compared with $89.9 million in 2024. In the same period, free cash flow was $603 million, down 3.8% year over year.

IDEX paid out dividends totaling $205.3 million in 2024, up 7.7% year over year.

IDEX’s Outlook

For the first quarter, IDEX anticipates adjusted earnings to be in the band of $1.18-$1.24 per share.

On a GAAP basis, IEX predicts earnings to be in the range of $1.18-$1.24 per share. It expects organic sales to decrease in the range of 3-4% from the year-ago reading.

For 2025, IDEX anticipates adjusted earnings to be in the band of $8.10-$8.45 per share. The figure indicates an increase from earnings of $7.89 per share reported in 2024. On a GAAP basis, earnings are predicted to be in the band of $6.56-$6.96 per share.

Organic sales are predicted to increase in the band of 1-3%.

IEX’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industrial Companies

Tetra Tech, Inc. TTEK reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.

Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.

Waste Management, Inc. WM reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.

WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.

Packaging Corporation of America PKG reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.

Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.

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