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FY2026 Q2
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IDEX Corporation earnings call
Buzzberg read
HST orders surged 47% on AI-driven demand
IDEX delivered a strong Q2 with organic sales up 5%, adjusted EPS of $2.32, and orders up 28% organically, led by HST with 47% order growth. Management raised full-year guidance, noting robust demand in data center, semiconductor, and space & defense markets, while seeing initial signs of broader industrial recovery. HST order growth of 47% driven by data center, semiconductor, and space/defense markets, which now represent over a third of HST revenue.
Buzzberg read HST orders surged 47% on AI-driven demand IDEX delivered a strong Q2 with organic sales up 5%, adjusted EPS of $2.32, and orders up 28% organically, led by HST with 47% order growth. Management raised full-year guidance, noting robust demand in data center, semiconductor, and space & defense markets, while seeing initial signs of broader industrial recovery. HST order growth of 47% driven by data center, semiconductor, and space/defense markets, which now represent over a third of HST revenue. Read full analysisCollapse analysis
IDEX delivered a strong Q2 with organic sales up 5%, adjusted EPS of $2.32, and orders up 28% organically, led by HST with 47% order growth. Management raised full-year guidance, noting robust demand in data center, semiconductor, and space & defense markets, while seeing initial signs of broader industrial recovery. HST order growth of 47% driven by data center, semiconductor, and space/defense markets, which now represent over a third of HST revenue.
- FMT orders up 11% with strength in water and mining; FSDP orders up 19% on aerospace and fire & safety.
- Management raised full-year 2026 organic growth guidance to 5-6%, adjusted EBITDA margin to 27-27.3%, and adjusted EPS to $8.70-$8.85.
- IEPA tariff refunds provided a net $0.08 EPS benefit in Q2, which management expects to be confined to this quarter.
Revenue$0.9206B+4% QoQ
EPS$2.32+16% QoQ
Gross margin46.36%Reported
Operating margin21.71%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
Backlog doubles for next year, supporting growth
Capex
Capex raised to $110M for capacity expansion
Show 3 more callouts
Margins
Mott filtration drives 50% recurring revenue in HST semicon
Margins
IEPA refunds create one-time margin benefit
Demand
Orders show broad-based growth across all segments
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $0.9206B | +4% QoQ |
| EPS | $2.32 | +16% QoQ |
| Gross margin | 46.36% | Reported |
| Operating margin | 21.71% | Reported |
| Free cash flow | $0.177B | Reported |
| Capex | $0.023B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $110M | $110M | Raised |
| EPS | FY2026 | $8.70–$8.85 | $8.77 | Raised |
| EPS | FY2026 Q3 | $2.20–$2.25 | $2.23 | Guided |
| Operating margin | FY2026 Q3 | 27%–27.5% | 27.25% | Guided |
| Operating margin | FY2026 | 27%–27.3% | 27.15% | Raised |
| Revenue | FY2026 Q3 | 5%–7% | 6% | Guided |
| Revenue | FY2026 | 5%–6% | 5.5% | Raised |
AI, capex & demand read
Management read
Confident
Management expressed confidence in raised guidance, strong order momentum, and growing backlog, citing sustained demand across multiple end markets.
Management AI read
Management highlighted significant growth driven by AI-related demand, particularly in data center power generation, semiconductor, and optical switching markets, with strong order growth and increased visibility into 2027.
Investment and capacity
IDEX is raising its capital expenditures forecast from $90 million to approximately $110 million to support capacity expansions in high-growth areas, mainly within HST, to meet anticipated demand in 2027 and 2028.
External signals
Supply-chain alpha · 4returns since call
Within HST, approximately 50% of the semiconductor portfolio revenue is now recurring, driven by Mott’s filtration business growth.
Evidence
“Additionally, with the rapid growth of Mott's filtration business, we now have approximately 50% recurring revenues within HST's Semicon portfolio.”
A large data center order was received in Q2 for pneumatics, with volumes positioned for 2027, indicating forward capacity commitments from data center customers extend well beyond the current year.
Evidence
“the one exception there on the positive side is we did receive in Q2 a big chunk of data center business in the pneumatics world that's clearly positioned for 2027.”
IDEX is increasing its capex forecast by $20 million to $110 million for 2026 to support capacity expansions for the fastest-growing, high-return businesses, particularly in HST.
Evidence
“Additionally, we are increasing our capital expenditures forecast from $90 million to approximately $110 million as we make select investments and capacity expansions to support our highest growth and high return businesses.”
IEPA tariff refunds benefited the quarter by $0.08 adjusted EPS, but management expects this to be confined to Q2; however, customer rebates tied to the refunds reduced organic growth by 2% in the quarter.
Evidence
“The net impact of all this in the quarter was a benefit of 8 cents, which is included in our reported adjusted EPS of $2.32.”
Methodology & coverage
Management-only analysis. All 0 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.