AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Intellectual property and specialized products establish differentiation, but their protection against functional substitutes and their economic significance are not demonstrated.
durability · — · No patent duration, sustained protected share or customer replacement economics establishes how long an advantage would persist.
customer dependency · — · Customized systems and formulation requirements suggest possible dependency. Historical order stability does not establish supplier switching friction, and a customized application was discontinued.
erosion resilience · — · Pricing capture and operating improvement show resilience, but do not establish that a structural advantage resisted substitution or competitive entry.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · 3/4 · Reported net price capture in 2024, positive pricing across all segments in 2025 and first-quarter 2026 demonstrate repeated realization. Price magnitudes and competitive premiums are undisclosed; second-quarter tariff refunds are not counted as price increases.
retention · 2/4 · Indirect evidence is mixed: historically insignificant cancellations and subsequent organic growth support demand continuity, while destocking, lower volumes in two segments during 2025 and a discontinued customer application limit the inference. No retention rate is inferred.
margin resilience · 2/4 · Pricing and productivity supported 2025 margin expansion, but first-quarter 2026 price/cost pressured gross margin. Second-quarter positive price/cost depended on tariff refunds that more than offset a difficult comparison. This demonstrates mixed resilience rather than unrestricted pass-through.
contractual freedom · — · The passages do not establish contractual price-setting, escalation, renegotiation or termination rights. Actual price capture supports realized pricing but cannot establish contractual freedom.
Predictability93
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 5.70
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 1.27
Financial strength78
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 72.11
- netDebtEbitGrade
- 64.51
- interestCoverageGrade
- 76.58
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 2.95
- Net debt / operating income (x)
- 1.77
- Current ratio (x)
- 2.86
- cashInterestPaid
- 72.20
- cashInterestCoverage
- 9.42
Capital allocation90
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 15.06
- 3-year average dilution (%)
- -0.18
- 3-year average SBC / revenue (%)
- 0.75
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half 2026 operating cash flow of $303.7 million covered $40.7 million of capital expenditure, and weighted average shares declined. These positives are balanced by acquisition financing, higher revolving draws alongside higher repurchases, working-capital absorption and tariff-assisted cash generation. Acquisition returns and repurchase value creation are unproven.
incentive alignment · 3/4 · Actual incentive outcomes include a 99% short-term payout and a 65% payout on the 2022 PSU award, with financial and relative shareholder-return metrics. Post-vesting holding requirements and hedging restrictions strengthen alignment. Retirement acceleration, including CEO eligibility, limits retention-related alignment; beneficial ownership amounts are unavailable.
execution · 2/4 · Realized productivity savings, pricing capture and second-quarter 2026 organic sales and EPS growth support execution, partly through indirect operating evidence. Declining net income over 2023–2025, 2026 impairments and tariff-assisted improvement make the overall record mixed. Announced strategy and acquisition potential are not counted as achieved outcomes.
governance · 3/4 · Independent standing committees, a Non-Executive Chair, demonstrated director attendance and an independent auditor's effective-control opinion support strong governance practices. A classified board with three-year terms qualifies shareholder accountability; these disclosures do not establish exceptional governance durability.
Evidence
The Company owns patents, trademarks, licenses and other forms of intellectual property related to its products and continuously invests in research and development that may result in technological innovations and general intellectual property rights.
Item 1A, intellectual property ownership and research investment · Filed 19/02/2026
Microfluidics is the exclusive producer of the Microfluidizer family of high shear fluid processors for uniform nano-emulsion formation, lipid nanoparticle creation, robust cell disruption and particle size reduction.
Business, Microfluidics product family · Filed 19/02/2026
Matcon’s innovative products consist of the original cone valve powder discharge system and filling, mixing and packaging systems, all of which support its customers’ automation and process requirements.
Business, Matcon processing systems · Filed 19/02/2026
The Company’s competitors may develop products that are superior, may develop methods of more efficiently and effectively providing products and services or may adapt quicker to new technologies or evolving customer requirements.
Item 1A, potential competitor innovation · Filed 19/02/2026
Further, if intellectual property is infringed, challenged, invalidated or circumvented, this could reduce barriers to entry into the Company’s existing lines of business and may result in a loss of market share and adversely impact the Company’s competitive position.
Item 1A, intellectual property erosion and barriers to entry · Filed 19/02/2026
Pricing pressures may require the Company to adjust the prices of products to stay competitive.
Item 1A, potential competitive pricing pressure · Filed 19/02/2026
Fitzpatrick designs and manufactures customized size reduction and roll compaction systems to support their customers’ product development and manufacturing processes.
Business, customized Fitzpatrick systems · Filed 19/02/2026
These products are critical to its customers’ need to maintain clean, reliable and repeatable formulations of prepackaged foods and pharmaceuticals while helping them achieve lean and agile manufacturing.
Business, formulation reliability and customer processes · Filed 19/02/2026
Further, the Company has not historically experienced significant order cancellations and does not expect significant order cancellations in the future.
Business, historical order cancellations and expectations · Filed 19/02/2026
During 2025, the Company delivered organic sales growth and margin expansion as positive price across all segments more than offset lower volumes in the Fluid & Metering Technologies (FMT) and Fire & Safety / Diversified Technologies (FSDP) segments.
Executive compensation, 2025 operating and pricing results · Filed 26/03/2026
The increase also reflects positive price across all segments.
MD&A, first-quarter 2026 pricing across segments · Filed 29/04/2026
The Company is primarily a short cycle business and backlog is not generally considered a significant factor as relatively short delivery periods and rapid inventory turnover are characteristic of most of the Company’s products.
Business, short-cycle orders and backlog · Filed 19/02/2026
While backlog was elevated in recent years due to global supply chain constraints, which extended lead times, shifted customer order patterns and resulted in increased inventory to support production, customer destocking efforts beginning in 2023 have resulted in orders stabilizing with backlog and lead times returning to more normalized levels in 2025.
Business, customer destocking and normalized lead times · Filed 19/02/2026
In the third quarter of 2022, the Company was informed by the customer of its decision to discontinue further investment in commercializing its COVID-19 testing application.
Restructuring disclosure, customer discontinuation of testing application · Filed 20/02/2025
Despite market choppiness, our businesses achieved strong productivity through both net price capture and operational excellence and delivered reported and adjusted diluted earnings per share of $6.64 and $7.89, respectively.
MD&A, 2024 net price capture and operating performance · Filed 20/02/2025
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.
MD&A, first-quarter 2026 gross profit and price/cost pressure · Filed 29/04/2026
Positive price/cost was driven by the net benefit of IEEPA tariff refunds of $7.3 million, which benefited Gross margin for the three and six months ended June 30, 2026 by 150 basis points and 70 basis points, respectively, and more than offset a challenging prior year price/cost comparison.
MD&A, tariff refund contribution to gross margin and price/cost · Filed 29/07/2026
Highlights (All comparisons are against the same period in 2025 unless otherwise noted) Three Months Ended June 30, 2026 •Reported Net sales of $920.6 million increased 6% overall and increased 5% organically* •Reported diluted earnings per common share (“EPS”) attributable to IDEX of $1.93 increased 11% •Adjusted diluted EPS attributable to IDEX* of $2.32 increased 12% •Returned capital to shareholders in the form of $77.1 million of share repurchases and $53.9 million of dividends *These are non-GAAP measures.
MD&A, second-quarter 2026 sales and earnings results · Filed 29/07/2026
The following table reconciles cash flows provided by operating activities to free cash flow: Six Months Ended June 30, (In millions) 2026 2025 Cash flows provided by operating activities $ 303.7 $ 267.4 Less: capital expenditures 40.7 29.1 Free cash flow $ 263.0 $ 238.3 Cash Requirements Subsequent Share Repurchases Subsequent to June 30, 2026, the Company repurchased 0.1 million shares at a cost of $21.7 million.
Liquidity, operating cash flow and capital expenditure reconciliation · Filed 29/07/2026
Improved operational results and cash received for IEEPA tariff refunds of $21.1 million was partially offset by higher operating working capital discussed above.
Liquidity, tariff refund cash receipts and working capital · Filed 29/07/2026
The six months ended June 30, 2026 included $84.4 million of higher net draws under the Revolving Facility and $10.8 million of higher proceeds from stock option exercises, net of shares withheld for taxes, partially offset by $53.4 million of higher share repurchases.
Liquidity, revolving facility draws and repurchases · Filed 29/07/2026
13 Table of Contents IDEX CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In millions, except per share amounts) (unaudited) Basic weighted average common shares outstanding reconciles to diluted weighted average common shares outstanding as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Basic weighted average common shares outstanding 74.0 75.5 74.2 75.6 Dilutive effect of restricted stock, performance share units and stock options 0.2 — 0.1 0.1 Diluted weighted average common shares outstanding 74.2 75.5 74.3 75.7 Share-based payment awards of approximately 0.4 million and 0.9 million shares of common stock for the three months ended June 30, 2026 and 2025, respectively, and 0.5 million and 0.8 million shares of common stock for the six months ended June 30, 2026 and 2025, respectively, were not included in the computation of Diluted EPS attributable to IDEX because the effect of their inclusion would have been antidilutive.
Note 5, weighted average shares and dilution · Filed 29/07/2026
Cash flows provided by financing activities increased $810.6 million in 2024 primarily due to $774.3 million of net proceeds in connection with the financing of the acquisition of Mott in 2024, as compared with $100.0 million of net proceeds from borrowings in 2023.
Liquidity, acquisition financing in 2024 · Filed 20/02/2025
Key 2025 Performance Objectives Incentives Support Performance Objectives 2025 Incentive Plan Result* Profitable growth and operational excellence Customer commitments and price capture Strong cash flow management Growth in shareholder value and quarterly dividends Commitment to our culture, people and environmental stewardship Management Incentive Compensation Plan Adjusted EBITDA (40%) Organic Sales Growth (40%) Cash Flow Conversion (20%) Management Incentive Compensation Plan Payout of 99% of Target Adjusted EBITDA of $906.7M Organic sales growth of 1.4% Cash flow conversion of 103% Disciplined capital deployment Long-Term Incentive Plan PSUs (50%) Stock Options (25%) Restricted Shares / RSUs (25%) 2022 PSU Payout of 65% of Target 12% three-year TSR 41st percentile versus S&P 500 Share settled in February 2025 * A reconciliation from GAAP to non-GAAP financial measures and other related information is included in Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Executive compensation, incentive metrics and actual payout results · Filed 26/03/2026
In addition, a one-year post-vest holding requirement was first instituted with the 2020 PSU grant, which we believe further aligns our executives’ interests with those of our stockholders.
Executive compensation, PSU post-vesting holding requirement · Filed 26/03/2026
Hedging and Pledging: Our insider trading policy prohibits all employees (including officers) and directors from hedging or pledging their economic interest in the Common Stock they hold.
Executive compensation, hedging and pledging prohibition · Filed 26/03/2026
The award agreements for stock options and restricted stock/unit awards provide that if the grantee’s service is terminated by reason of death, disability or retirement, the award will become fully vested and exercisable.
Termination provisions, accelerated option and restricted award vesting · Filed 26/03/2026
Mr. Ashleman satisfied the retirement vesting conditions as of December 31, 2025.
Termination provisions, CEO retirement vesting eligibility · Filed 26/03/2026
All standing Board committees are, and throughout fiscal year 2025 were, composed entirely of independent directors.
Corporate governance, standing committee independence · Filed 26/03/2026
On October 1, 2022, Ms. Helmkamp became Non-Executive Chair of the Board.
Corporate governance, appointment of Non-Executive Chair · Filed 26/03/2026
During 2025, each director holding office in 2025 attended more than 75% of the aggregate number of meetings of the Board and of committees of the Board of which he or she was a member, during the period for which each such director served.
Corporate governance, actual director attendance in 2025 · Filed 26/03/2026
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Independent auditor report, effective internal control opinion · Filed 19/02/2026
Election of the four Class I members of the IDEX Board of Directors named in this proxy statement, each for a term of three years 2.
Annual meeting agenda, classified board and three-year director terms · Filed 26/03/2026
Improved operational results included productivity improvements together with platform optimization savings resulting from restructuring and other cost containment actions taken during 2025.
Executive compensation, realized productivity and optimization savings · Filed 26/03/2026
38 Table of Contents IDEX CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) For the Year Ended December 31, 2025 2024 2023 Net sales $ 3,457.5 $ 3,268.8 $ 3,273.9 Cost of sales 1,918.7 1,823.6 1,827.0 Gross profit 1,538.8 1,445.2 1,446.9 Selling, general and administrative expenses 818.8 758.7 703.5 Restructuring expenses and asset impairments 20.7 9.3 10.9 Operating income 699.3 677.2 732.5 Gain on sale of businesses – net — (4.0) (84.7) Other expense (income) – net 2.3 (2.6) 5.2 Interest expense – net 64.4 44.5 51.7 Income before income taxes 632.6 639.3 760.3 Provision for income taxes 150.1 134.7 164.7 Net income 482.5 504.6 595.6 Net loss attributable to noncontrolling interest 0.7 0.4 0.5 Net income attributable to IDEX $ 483.2 $ 505.0 $ 596.1 Earnings per common share: Basic earnings per common share attributable to IDEX $ 6.41 $ 6.66 $ 7.87 Diluted earnings per common share attributable to IDEX $ 6.41 $ 6.64 $ 7.85 Share data: Basic weighted average common shares outstanding 75.3 75.7 75.6 Diluted weighted average common shares outstanding 75.3 75.9 75.9 See Notes to Consolidated Financial Statements.
Consolidated statements of income, 2023–2025 results · Filed 19/02/2026
The six months ended June 30, 2026 also include asset impairments of $4.8 million related to intangible assets and property, plant and equipment within the Company’s FMT segment.
MD&A, 2026 FMT asset impairments · Filed 29/07/2026
