Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 29, 2026 · Beat 7 of last 7 quarters
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IDEX's strong order growth, particularly in HST, underscores the accelerating demand for AI infrastructure components such as data center power generation, liquid cooling, and semiconductor manufacturing solutions. The company's raised guidance and capacity investments signal sustained buildout momentum into 2027, which could benefit the broader AI infrastructure supply chain.
IDEX delivered strong Q2 results with organic sales up 5% and adjusted EPS of $2.32, beating guidance. Orders surged 28% organically, led by HST's 47% growth, driven by data center, semiconductor, and space/defense demand. HST revenue grew 12% organically, with these three application sets now representing over one-third of segment revenue. FMT orders grew 11% with record orders over $1 billion, while FSDP orders grew 19% on aerospace and fire/safety strength. The company received IEEPA tariff refunds which provided a net $0.08 benefit to EPS and 130 bps to EBITDA margin, but even excluding this, results exceeded guidance.
Management raised full-year 2026 guidance: organic growth now 5-6% (up from 3-4%), adjusted EBITDA margin 27-27.3% (up from 26.5-27%), and adjusted EPS $8.70-$8.85 (up from $8.35-$8.55). Q3 guidance calls for 5-7% organic growth, adjusted EBITDA margin 27-27.5%, and adjusted EPS $2.20-$2.25. CapEx forecast increased to ~$110 million to support capacity expansions in high-growth HST businesses. Management expressed confidence in sustained momentum into 2027, citing growing backlog, prebooking of capacity by fastest-growing customers, and early signs of broad industrial demand improvement. They also noted the IEEPA tariff refund impact is largely confined to Q2.
“We experienced double-digit year-over-year order growth across all 3 segments with our Health & Science Technologies segment, or HST, once again leading the way with organic order growth of 47%.”
on Order growth
“Our fastest-growing customers are increasingly submitting orders with request dates further into the future, primarily to prebook capacity.”
on Demand visibility
“We are raising adjusted EPS guidance for 2026 from a range of $8.35 to $8.55 to a range of $8.70 to $8.85, representing high single-digit to low double-digit growth year-over-year.”
on Guidance raise
On the short-cycle side, you're seeing sequential improvement in traditional avenues. Can you talk to what you're seeing there and how much of those are good leading indicators for lagging markets like chemicals?
Eric noted that in Q2, longer lead-time items were more pronounced, driven by direct OEM relationships in water, mining, and data center support. However, towards the end of Q2 and into July, they saw more typical small-order flow through distribution channels, indicating broader industrial improvement. He said both sides are now firing, which is encouraging.
Can you provide insight into the order pattern and what it tells you about short-cycle dynamics?
Eric explained that the classic small-order flow through distribution strengthened in June and continued into July, which is a good indicator of the industrial economy. However, in Q2, the strength was dominated by secular areas like BAND-IT's aerospace blanket order. He sees both elements forming now, which is a positive sign.
Can you offer finer points on how FMT orders progressed through Q2 and into Q3, and whether you expect the convergence of orders and sales to read through in the back half?
Eric said they saw movement in the more fragmented, broadly exposed order pattern at the end of Q2 and into July, which is encouraging. He noted there is still uncertainty in industrial markets, but the combination of longer lead-time commitments and classic mixed business strength is positive. He will monitor both through the quarter.