IDEX grew Q2 2026 sales 6.4% to $920.6M, led by semiconductor and data-center demand in Health & Science, and orders hit a record $1.07B (+29%). Adjusted EPS rose 12% to $2.32 and guidance was raised, but the margin gain came from a one-time tariff refund.
Revenue
$921M
+6.4% YoY
Net income
$143M
+9.0% YoY
Diluted EPS
$1.93
+10.9% YoY
Operating margin
21.7%
Overview
IDEX makes pumps, flow meters, valves, precision optical and fluidic components, fire-rescue tools and other engineered parts that go inside other companies' equipment. In the second quarter of 2026 (April–June) its sales rose 6.4% to $920.6 million and diluted earnings per share rose 11% to $1.93. The standout number was orders, meaning the value of new business customers committed to. Orders hit a record $1,071.6 million, up 29% (28% organically, meaning excluding acquisitions and currency swings).
Sales growth came almost entirely from one of IDEX's three segments. Health & Science Technologies, which sells into semiconductor equipment, data-center power, and space and defense, grew organic sales 12%. The other two segments were roughly flat to down. The headline margin improvement also depends on a one-off: refunds of tariffs that the U.S. Supreme Court struck down in February 2026.
Key metrics
Metric
Q2 2026
Q2 2025
YoY Change
Net sales
$920.6M
$865.4M
+6.4%
Organic sales growth
+5%
—
—
Orders
$1,071.6M
$829.8M
+29% (28% organic)
Book-to-bill (orders ÷ sales)
1.16
0.96
+0.20
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Operating margin is the share of sales left after running the business, before interest and tax.
Adjusted EBITDA is IDEX's preferred profit measure. It is earnings before interest, tax, depreciation and amortization, with restructuring and legal-settlement items also excluded.
Adjusted EPS also removes amortization of acquired intangible assets, which was $0.45 per share before tax this quarter.
Book-to-bill is our calculation from the reported orders and sales. Above 1.0 means new orders came in faster than the company shipped.
The tariff refund: a one-off that flatters the margins
In February 2026 the Supreme Court struck down the broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA). IDEX collected substantially all of its refunds of those tariffs in Q2. The 10-Q breaks out the accounting:
Cost of sales fell $22.0 million because the refunded tariffs had previously been expensed.
Net sales fell $14.7 million because IDEX expects to pass part of the refunds back to customers as rebates. This cut organic growth by about 2 percentage points.
The net result was a $7.3 million gain to gross profit and adjusted EBITDA. That was worth 150 basis points (1.5 percentage points) of gross margin, 130 bps of adjusted EBITDA margin and $0.08 of EPS. Another $0.6 million came in as interest income on the refunds.
Taking the refund out changes the picture. By our calculation:
Adjusted EBITDA margin would have been about 26.8%, below last year's 27.4%.
Adjusted EPS growth would have been about 8% ($2.24 vs. $2.07) rather than 12%.
Operating margin, flat as reported, would have been roughly a point lower.
Management says the refund "more than offset a challenging prior year price/cost comparison." In other words, without the refund, price increases would not have fully covered higher costs compared with Q2 2025.
Costs also held the reported margin back:
Selling, general and administrative costs rose $20.5 million (10%), faster than sales. The 10-Q attributes this to acquisitions ($2.8 million including amortization), higher employee costs including bonus accruals ("variable compensation") and more professional-services spending. Legal-settlement proceeds partly offset these costs.
Unallocated corporate costs rose to $26.2 million from $22.9 million.
Segment performance
Segment
Q2 2026 sales
Reported growth
Organic growth
Adj. EBITDA margin
Q2 2025 margin
Tariff-refund benefit to margin
Health & Science Technologies (HST)
$415.0M
+14%
+12%
28.7%
26.0%
+90 bps
Fluid & Metering Technologies (FMT)
$317.1M
+2%
+1%
34.8%
35.0%
+180 bps
Fire & Safety/Diversified Products (FSDP)
$189.9M
−1%
−1%
28.9%
29.4%
+120 bps
HST drove the quarter's growth. Organic sales rose 12% even after a 2-point drag from tariff rebates. The company says growth was "driven by higher volumes primarily due to AI-driven demand for data center power and semiconductor markets, as well as strength in space and defense and positive price."
Adjusted EBITDA rose $24.3 million to $119.3 million, and the margin gained 270 bps on volume leverage: more sales spread over largely fixed costs.
HST is the only segment whose margin still improved with the refund removed (about 27.8% vs. 26.0%, our calculation).
The July 2025 acquisition of Micro-LAM added about 2 points of reported growth.
FMT is IDEX's highest-margin business, but its volumes were flat. The 1% organic growth came from price. The company says higher volumes in municipal water, semiconductor and mining were "largely offset by lower volumes in our businesses serving energy, agriculture and chemical markets."
The margin slipped 20 bps because of unfavorable mix (lower-margin products made up more of sales) and higher variable compensation.
Without the 180 bps refund benefit, the underlying margin fell about 2 points.
FSDP shrank. The company cites lower volumes in Fire & Safety, "driven by lower European rescue demand," and in Dispensing. Those declines more than offset growth at BAND-IT (clamping and banding products) and higher prices.
The margin fell 50 bps on unfavorable mix and volume deleverage (fixed costs spread over fewer sales).
Without the refund, the margin fell about 1.7 points.
First half and cash
For the first six months of 2026:
Sales rose 8% to $1,807.5 million. Organic growth was 5%, and currency added 2 points.
Adjusted diluted EPS rose 13% to $4.32.
Diluted EPS rose 18% to $3.54. It grew faster than adjusted EPS partly because H1 2025 carried $18.2 million of restructuring charges, against $10.2 million this year.
For Q2 cash flow and the balance sheet:
Operating cash flow was $200.0 million, up from $161.7 million. That included $21.1 million of tariff-refund cash.
Capital expenditures rose to $23.0 million from $14.8 million.
Free cash flow (operating cash flow minus capital spending) was $177.0 million.
Shareholder returns: IDEX spent $77.1 million on buybacks and $53.9 million on dividends. It repurchased another $21.7 million of stock after quarter-end.
Share count: diluted shares fell to 74.2 million from 75.5 million, which added to EPS growth.
Debt: long-term borrowings were $1,858.5 million at June 30, against $621.3 million of cash. $266.3 million was drawn on the revolving credit line. In September 2026 IDEX extended that $800 million credit facility to 2031, according to an 8-K.
Takeaway: The record order book is the real news. Orders ran 16% ahead of shipments, which points to a stronger second half. The margin expansion is weaker than it looks. Without the one-time tariff refund, adjusted EBITDA margin fell about 60 bps, and FMT and FSDP both lost ground. Sales growth now comes almost entirely from HST's semiconductor, data-center and defense customers.
Outlook
Management raised full-year 2026 guidance:
Organic sales growth: 5% to 6% (previously 3% to 4%)
Adjusted diluted EPS: $8.70 to $8.85, about 10% growth at the midpoint (previously $8.35 to $8.55)
Q3 2026: organic sales growth of 5% to 7% and adjusted diluted EPS of $2.20 to $2.25
The full-year range includes first-half results, which contain the $0.08 refund benefit. IDEX earned $4.32 in the first half, so the full-year range implies $4.38 to $4.53 for the second half. After Q3 guidance, that leaves roughly $2.18 to $2.28 for Q4 (our arithmetic). The company points to "elevated demand across the advantaged markets" and "improved visibility in the second half" to justify the raise. The 28% organic order growth supports that.
Our view: the order book supports second-half sales growth, but that growth depends heavily on HST's AI and semiconductor customers. Things to watch:
Whether FMT's energy, agriculture and chemical volumes stabilize.
Whether FSDP's weakness in European fire-rescue demand continues.
Whether margins keep growing without the refund. Q3's margin will be compared with Q2's refund-boosted 28.1%, which will make it look weaker.
Source: IDEX Form 10-Q for the quarter ended June 30, 2026, filed July 29, 2026. Orders, segment figures, non-GAAP figures and guidance come from the same-day earnings release (Form 8-K, Exhibit 99.1).