Citi analyst Vladimir Bystricky has increased the price target for Idex Corp. (IEX, Financial) from $208 to $216, maintaining a Buy rating on the stock. This adjustment is part of a broader review of the industrial conglomerate sector ahead of the second quarter earnings announcement. The firm anticipates that most companies in this sector will showcase solid financial results and slightly enhance their earnings projections for 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for IDEX Corp (IEX, Financial) is $209.12 with a high estimate of $225.00 and a low estimate of $180.00. The average target implies an upside of 15.24% from the current price of $181.47. More detailed estimate data can be found on the IDEX Corp (IEX) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, IDEX Corp's (IEX, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for IDEX Corp (IEX, Financial) in one year is $232.79, suggesting a upside of 28.28% from the current price of $181.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the IDEX Corp (IEX) Summary page.
IEX Key Business Developments
Release Date: May 01, 2025
- Revenue: Slightly above plan across all business segments.
- Orders: Increased sequentially and year-over-year to record levels; fourth consecutive quarter of positive year-over-year organic growth.
- Organic Sales: Declined 1% due to difficult comps in semiconductor, agriculture, chemical, and energy businesses.
- Adjusted EBITDA Margin: Declined 50 basis points to 25.5% due to volume deleverage and margin dilution from Mott acquisition.
- Adjusted EPS: $1.75, $0.10 better than the high end of the guided range.
- Free Cash Flow: $91 million, including short-term investments in working capital.
- Share Repurchase: $50 million deployed in the first quarter; $490 million remaining under current authorization.
- Segment Performance - HST: Organic sales declined 1%; organic orders increased 3%; adjusted EBITDA margin at 25.6%.
- Segment Performance - FMT: Organic sales declined 4%; organic orders declined 3%; adjusted EBITDA margin at 32.8%.
- Segment Performance - FSD: Organic sales increased 5%; organic orders up 2%; adjusted EBITDA margin at 29.4%.
- Full Year Guidance: Maintaining organic growth guidance of 1% to 3% and adjusted EPS of $8.10 to $8.45.
- Tariff Impact: Expected $100 million annualized impact; 5% to 6% inflation to cost of goods sold, offset by 3% to 4% price increases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- IDEX Corp (IEX, Financial) delivered better-than-expected results in the first quarter of 2025, with revenue and profitability slightly above plan across all business segments.
- Orders increased both sequentially and year-over-year to record levels, marking the fourth consecutive quarter of positive organic growth in the order book.
- The company identified $20 million in additional savings for 2025, contributing to a cumulative $80 million in savings when combined with previous initiatives.
- IDEX Corp (IEX) is seeing momentum in businesses serving space, defense, energy transition, municipal water, and North American Fire & Safety.
- The recent acquisition of Mott is performing well, with a significant $40 million multiyear agreement for a custom wastewater filtration solution.
Negative Points
- Organic sales declined by 1% in the first quarter due to difficult comparisons in semiconductor, agriculture, chemical, and energy businesses.
- Adjusted EBITDA margin declined by 50 basis points to 25.5% due to volume deleverage and near-term margin dilution from the Mott acquisition.
- There are headwinds in businesses serving agriculture and automotive industries, as well as inventory adjustments with a large semiconductor wafer fab customer.
- The geopolitical and trade environment remains fluid, with potential impacts on global demand still unknown.
- There is hesitancy among customers to commit to larger projects, matching recent experiences and impacting assumptions within the 2025 annual guidance.
