One of the world's largest diversified industrials, IDEX builds precision pumps, fluidics, valves, flow meters, firefighting pumps and rescue tools, and BAND-IT stainless-steel clamping systems used by factories, farms, and first responders. The company was founded in 1988, when its parent acquired six businesses from the Houdaille conglomerate, and its name stands for Innovation, Diversity, and Excellence.
Health & Science Technologies organic sales rose 12%, the fastest growth in over three years, as AI-driven data center and semiconductor demand accelerated.
Health & Science Technologies rose 12%, the fastest quarterly growth in over three years. increased 6.4% to $920.6 million and expanded 1.0 point to 46.4%, driven by that 's demand and a 150-basis-point benefit from tariff refunds. The core industrial engine is accelerating, but a one-time tariff refund flattered the margin.
Key takeaways
Health & Science Technologies sales grew 14% overall and 12% organically, driven by AI-related demand for data center power and semiconductors, marking the third consecutive quarter of double-digit for the segment.
expanded 1.0 point to 46.4%, as volume , net productivity, and a 150-basis-point net benefit from tariff refunds more than offset a challenging prior-year price/cost comparison.
rose 6.4% to $199.9 million, and increased 10.9% to $1.93; rose 12% to $2.32, including an $0.08 benefit from the net impact of the tariff refunds.
Section summaries
Management's Discussion and Analysis
IDEX Q2 FY2026 sales rose 6% to $920.6M with 5% organic growth, driven by HST segment demand in data centers and semiconductors.
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Consolidated increased 6% to $920.6 million, with up 5% driven by higher volumes in the Health & Science Technologies (HST) , partially offset by lower volumes in Fire & Safety/Diversified Products (FSDP).
rose 20.5% to $177.0 million for the quarter, recovering from a low of $86.0 million in Q1 2026, as investment eased.
Fire & Safety/Diversified Products declined 1%, pressured by lower European rescue demand and weaker Dispensing business volumes.
The company repurchased $153.4 million in shares and paid $106.7 million in dividends during the first six months, ending the quarter with $621.3 million in cash.
What changed
The Q1 2026 watch item on whether HST would sustain a double-digit rate in Q2 was resolved: organic growth accelerated to 12% from 11% in Q1, confirming the AI-driven demand trend has not yet peaked.
The Q1 2026 concern about pressure reversed: gross margin expanded 1.5 points sequentially to 46.4%, though 1.5 points of that expansion came from a one-time tariff refund rather than underlying operations.
recovered to $177.0 million from Q1's $86.0 million low, as the investment that pressured Q1 eased, settling the watch item on whether cash conversion would improve.
The pace accelerated to $153.4 million in the first six months, already exceeding half of the full-year 2025 total of $248 million, indicating a shift in capital deployment toward buybacks.
What to watch
Whether HST sustains a double-digit rate in Q3 2026, or whether the 12% pace represents a peak as the AI-driven data center and semiconductor demand normalizes.
The trajectory of underlying excluding the 150-basis-point tariff refund benefit — whether the 44.9% level from Q1 2026 represents the base from which organic improvement must be measured.
Whether the FSDP 's 1% organic decline stabilizes or deepens, given management's prior flag of persistent near-term headwinds in Fire & Safety and Dispensing for 2026.
The level of conversion for the full year after the first-half recovery to $263.0 million, and whether the elevated pace of $153.4 million is sustained alongside $106.7 million in dividends.
expanded 100 to 46.3%, benefiting from volume , net productivity, and a 150 bps net benefit from IEEPA tariff refunds that more than offset a challenging prior year price/cost comparison.
HST sales grew 14% (12% organic) on AI-driven demand for data center power and semiconductors, while FSDP sales declined 1% organically due to lower European rescue demand and weaker Dispensing business volumes.
rose 12% to $2.32, reflecting strong operational performance and an $0.08 benefit from the net impact of IEEPA tariff refunds.
was $303.7 million for the first six months, and reached $263.0 million, supporting $153.4 million in share repurchases and $106.7 million in dividends.
The company repurchased an additional 0.1 million shares for $21.7 million after the quarter and maintained strong liquidity with $621.3 million in cash and $529.6 million available under its Revolving Facility.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes with respect to market risks disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes with respect to market risks disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
The Company faces routine legal proceedings and asbestos-related personal injury claims, none currently expected to be material.
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The Company is party to legal proceedings incidental to its operations, as detailed in Note 14 of the financial statements.
The disclosure threshold for material environmental proceedings involving a government authority and potential monetary sanctions is $1.0 million.
The Company and eight subsidiaries are named in lawsuits alleging asbestos-related personal injuries from products containing third-party components.
Most asbestos claims have been dismissed without payment, and the balance settled for immaterial amounts; only one case went to trial, resulting in a verdict for the Company.
Insurance has covered the majority of settlements and legal costs, but future insurance availability and insurer responses remain uncertain.
No has been made for asbestos claims beyond ordinary insurance deductibles, and the Company does not believe they will have a material adverse effect.
There have been no material changes with respect to risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes with respect to risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.