EX-99.2 3 iex-20230630xex992.htm EX-99.2 iex-20230630xex992
1 Second Quarter 2023 Earnings July 27, 2023


 
2IDEX Proprietary & Confidential Agenda IDEX Business Update Q2 2023 Financial Performance Segment Performance 2023 Guidance Summary Closing Remarks Q&A


 
3IDEX Proprietary & Confidential Replay Information • Dial toll–free: 877.660.6853 • International: 201.612.7415 • Conference ID: #13734463 • Log on to: www.idexcorp.com


 
4IDEX Proprietary & Confidential Cautionary Statement Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company’s third quarter 2023 and full year 2023 outlook including expected organic sales projections, expected earnings per share and adjusted earnings per share, and the assumptions underlying these expectations, anticipated future acquisition behavior, availability of cash and financing alternatives and the anticipated benefits of the Company’s recent acquisitions, including the acquisitions of Nexsight, LLC and its businesses Envirosight, WinCan, MyTana and Pipeline Renewal Technologies (“Nexsight”), KZ CO. ("KZValve"), Muon B.V. and its subsidiaries ("Muon Group") and Iridian Spectral Technologies ("Iridian"), and are indicated by words or phrases such as “anticipates,” “estimates,” “plans,” “guidance,” “expects,” “projects,” “forecasts,” “should,” “could,” “will,” “management believes,” “the Company believes,” “the Company intends” and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this presentation. The risks and uncertainties include, but are not limited to, the following: levels of industrial activity and economic conditions in the U.S. and other countries around the world, including uncertainties in the financial markets and adverse developments affecting the financial services industry; pricing pressures, including inflation and rising interest rates, and other competitive factors and levels of capital spending in certain industries, all of which could have a material impact on order rates and the Company’s results; the impact of health epidemics and pandemics and terrorist attacks and wars, which could have an adverse impact on the Company's business by creating disruptions in the global supply chain and by potentially having an adverse impact on the global economy; the Company’s ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in foreign countries in which the Company operates; developments with respect to trade policy and tariffs; capacity utilization and the effect this has on costs; labor markets; supply chain conditions; market conditions and material costs; risks related to environmental, social and corporate governance issues, including those related to climate change and sustainability; and developments with respect to contingencies, such as litigation and environmental matters. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included in the Company’s most recent annual report on Form 10-K and the Company’s subsequent quarterly reports filed with the Securities and Exchange Commission (“SEC”) and the other risks discussed in the Company’s filings with the SEC. The forward-looking statements included here are only made as of the date of this presentation, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here. This presentation contains non-GAAP financial information. Reconciliations of non-GAAP measures are included either in this presentation or our earnings release for the three-month period ending June 30, 2023, which is available on our website.


 
5IDEX Proprietary & Confidential Business Update


 
6IDEX Proprietary & Confidential IDEX Overview Second Quarter Results: • Record sales and Adjusted EPS • Growth across FMT/FSD; HST markets remain challenged • Completed acquisition of Iridian Spectral Technologies Looking Ahead: • Industrial downturn and softening HST key markets • Revised full year adjusted EPS guidance to $7.90-$8.00 per share • Focus on customers, our people, capital deployment


 
7IDEX Proprietary & Confidential Financials


 
8IDEX Proprietary & Confidential $97 $120 Q2'22 Q2'23 IDEX Q2 2023 Financial Performance Strong Revenue, Earnings, and Free Cash Flow (Dollars in millions, excl. EPS) *This presentation contains non‐GAAP financial information. Reconciliations of non‐GAAP measures are included either in this presentation or in our Q2 ‘23 earnings release. Sales Adjusted Earnings per Share* Adjusted EBITDA Margin* Free Cash Flow* 3% Organic* 8% Increase +90 bps 24% $796 $846 Q2'22 Q2'23 $2.02 $2.18 Q2'22 Q2'23 27.5% 28.4% Q2'22 Q2'23


 
9IDEX Proprietary & Confidential Q2 2023 Adjusted EBITDA Walk Strong price/cost and variable compensation more than offset volume headwinds (Dollars in millions) *This presentation contains non‐GAAP financial information. Reconciliations of non‐GAAP measures are included either in this presentation or in our Q2 ‘23 earnings release. * *


 
10 Organic Orders V%* 2% Organic Sales V%* 8% Adj EBITDA Margin vbps* +300 Organic Orders V%* (27%) Organic Sales V%* (6%) Adj EBITDA Margin vbps* (420) Organic Orders V%* (4%) Organic Sales V%* 10% Adj EBITDA Margin vbps* +340 Fluid & Metering Technology Health & Science Technology Fire & Safety / Diversified Q2 Revenue $325M / 38% of Total  Q2 Revenue $340M / 40% of Total  Q2 Revenue $185M / 22% of Total  • Slowing Industrial Orders • Strong water, energy, chemical • Mixed agriculture • Pressure across AI/Life Sciences • Soft Semiconductor • Weak Pharma/Biopharma/Food • Strong Fire and Rescue • Band-IT continued share gain • Dispensing N America growth *Metrics presented versus 2Q 2022. This presentation contains non‐GAAP financial information. Reconciliations of non‐GAAP measures are  included either in this presentation or our Q2 '23 earnings release. IDEX 2Q 2023 Segment Performance


 
11IDEX Proprietary & Confidential Third Quarter Full Year Current Guidance Prior Guidance Current Guidance Revenue% vs. Prior Year Organic* (8%) - (7%) 0-3% (2%) - (1%) Adjusted EBITDA%* ~27% 27.5% - 27.9% ~27% Earnings per Share Reported $1.60 - $1.65 $7.30 - $7.60 $6.80 - $6.90 Adjusted* $1.84 - $1.89 $8.25 - $8.55 $7.90 - $8.00 Other Modeling Items: FX Impact on Sales 1% -a) 0% -b) 0% -a) Acquisition/Divestiture impact on Sales 4% 5% 5% Tax Rate 22.4% 22.4% 22.4% Capital Expenditures $70+ million $70+ million Free Cash Flow % of Adjusted Net Income 100%+ 100%+ Corporate Costs ~$19 million ~$86 million ~$86 million (a - Based on 6/30/2023 FX rate (b - Based on 3/31/2023 FX rate 2023 Guidance Summary *This presentation contains non‐GAAP financial information. Reconciliations of non‐GAAP measures are included either in this presentation or in our Q2 ‘23 earnings release.


 
IDEX PROPRIETARY & CONFIDENTIAL IDEX Portfolio Positioned for Growth 12 Sustainable Growth Outperformance Best Organic Opportunities 8020 Dynamic Resourcing Complementary M&A DEMOGRAPHIC SHIFTS INDUSTRY 4.0 & DIGITIZATION SUSTAINABILITY EVOLVING GLOBAL DYNAMICS TOP  ORGANIC  GROWTH  BETS + + 12


 
13IDEX Proprietary & Confidential Appendix


 
14IDEX Proprietary & Confidential Fluid & Metering Technologies Q2 Highlights:  Slowing Industrial Orders  Strong Water, Energy, and Chemical performance  Mixed Agriculture on high inventory levels and delayed planting season  Strong price-cost and volume leverage driving margin expansion Strong growth and margin expansion (Dollars in millions) Q2 Sales Mix: Organic 10% Acquisition/Divestiture (1%) FX (1%) Reported Sales 8% *This presentation contains non‐GAAP financial information. Reconciliations of non‐GAAP measures are included either in this presentation or in our Q2 ‘23 earnings release. 31.7% 35.1% Q2'22 Q2'23 Orders Sales Adjusted EBITDA Margin* $319 $303 Q2'22 Q2'23 +340 bps* $300 $325 Q2'22 Q2'23 -4% Organic* 10% Organic*


 
15IDEX Proprietary & Confidential Health & Science Technologies Q2 Sales Mix: Organic (6%) Acquisition 10% FX 0% Reported Sales 4% Q2 Highlights:  Pressure across Analytical Instrumentation and Life Science Markets  Soft Semiconductor, Weak Pharma, Biopharma, Food  Unfavorable volume leverage, mix and higher employee related costs are partially offset by price/cost. Life Science, AI, Semiconductor, Biopharma markets challenged (Dollars in millions) *This presentation contains non‐GAAP financial information. Reconciliations of non‐GAAP measures are included either in this presentation or in our Q2 ‘23 earnings release. 31.8% 27.6% Q2'22 Q2'23 Orders Sales Adjusted EBITDA Margin* $343 $285 Q2'22 Q2'23 -420 bps* $326 $340 Q2'22 Q2'23 -27% Organic* -6% Organic*


 
16IDEX Proprietary & Confidential Fire & Safety / Diversified Products Strong revenue growth and margin expansion Q2 Sales Mix: Organic 8% FX 0% Reported Sales 8% (Dollars in millions) *This presentation contains non‐GAAP financial information. Reconciliations of non‐GAAP measures are included either in this presentation or in our Q2 ‘23 earnings release. 26.4% 29.4% Q2'22 Q2'23 Orders Sales Adjusted EBITDA Margin* $177 $179 Q2'22 Q2'23 +300 bps* $171 $185 Q2'22 Q2'23 2% Organic* 8% Organic* Q2 Highlights:  Strong Fire and Rescue  Mixed global paint market with strong North America performance  Continued BAND-IT Automotive share gain  Favorable volume leverage, productivity, mix, and price-cost.


 
17IDEX Proprietary & Confidential Non-GAAP Reconciliations


 
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