IDEX Corporation

Hello, everyone. Thank you for joining us and welcome to the IDEX Corporation second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Jim Giannakouros, VP Investor Relations. Jim, please go ahead.

Good morning everyone and welcome to IDEX's second quarter 2026 earnings conference call. We released our second quarter financial results earlier this morning and you can find both our press release and earnings call slide presentation in the investors section of our website, idexcorp.com. On the call with me today are Eric Ashleman, President and Chief Executive Officer of IDEX and Sean Gillen, our Chief Financial Officer. Today's call will begin with Eric providing highlights of our second quarter results and an update on our business outlook and strategies. Then Sean will discuss additional financial details and our updated outlook for 2026. Following our prepared remarks, we will open the line for questions. But before we begin, please refer to slide two of our presentation where we note that comments today will include forward-looking statements based on current expectations. Actual results could differ materially from these statements due to a number of risks and uncertainties which are discussed in our press release and SEC filings. As IDEX provides non-GAAP financial information, we provided reconciliations between GAAP and non-GAAP measures in our press release and in the appendix of our presentation materials, which are available on our website. With that, I will turn the call over to Eric.

Thanks, Jim. Good morning, everyone, and thank you for joining us today. I'm on slide three. Continuing the momentum established coming into the year and in the first quarter, IDEX delivered strong second quarter results. Organic sales grew 5%, adjusted EBITDA margin expanded 70 basis points year-over-year to 28.1%, and adjusted EPS grew 12% to $2.32. These results exceeded our expectations, driven most significantly by higher volumes from our growth platform supported by outstanding operational execution. Our results this quarter were modestly impacted by IEPA tariff refunds, which reduced organic growth a bit and provided slight favorability to margins and earnings. Sean will walk through those details later in the call. In addition to the strong sales and earnings performance, orders came in better than expected, growing 28% organically for IDEX overall. We experienced double digit year over year order growth across all three segments with our health and science technology segment, or HST, once again leading the way with organic order growth of 47%. Please turn to slide four. To provide some additional context on key drivers The HST order growth is predominantly coming from growing demand in three areas, data center, semiconductor, and space and defense markets. Year to date, these application sets collectively have grown to represent over a third of HST revenue. Our performance pneumatics group continues to win as we support primary and standby power generation applications currently fueled by rapid data center build outs, as well as liquid cooling flow control solutions that deploy within the data center infrastructure. Within semiconductor, our materials science expertise helps us engineer high-purity gas filtration, sealing, optical detection, and thermal management solutions that support process tools, inspection systems, metrology equipment, and many other applications. Our critical components in this area follow the classic IDEXX business formula. We provide maximum solutions impact as a small percentage of overall systems cost, while retaining flexibility to move laterally across markets to exploit the widest set of commercial opportunities. Additionally, with the rapid growth of Mott's filtration business, we now have approximately 50% recurring revenues within HST's Semicon portfolio. Finally, in space and defense, we provide highly engineered components that support demanding applications in these rapidly growing end markets. The pace of collaborative innovation within this sector is amazing as our teams race to set foundational specification points that define how an emerging technical job will be done today and in the future. Claiming this territory for IDEX launches strong annuity streams to fuel customer beneficial investments and shareholder value creation for decades to come. Within the fluid metering and technology segment, or FMT, we saw double digit growth from our water platform. IDEX Intelligent Water provides critical insights for municipal wastewater management Delivering analytics with speed, precision, and actionable data. Also, our ultra-high purity pumps, heater, and fluid management solutions provide differentiated environmentally sustainable support for semiconductor fabrication facilities. The strength in these areas, alongside other pockets of improving demand within the portfolio, collectively drove record orders of over $1 billion. We are managing and investing to meet our customers' needs, including investments in throughput improvements, supply chain readiness, higher staffing, and select capacity expansions. Also, 80-20 is a critical tool to effectively allocate resources toward these highest value opportunities. ORDIS' performance year to date not only gives us greater confidence in our 2026 outlook, but also provides greater visibility to sustain this momentum into next year. Our fastest growing customers are increasingly submitting orders with request dates further into the future, Our more traditional rapid replenishment customers, on the whole, are also running slightly better than we expected earlier in the year. Taken together, our growing backlog gives us the confidence to raise our full-year 2026 financial outlook. Sean will provide greater detail later in the call. In addition to the strong order growth, our teams are executing very well to drive margin expansion as they deliver more revenue. Our teams in HST drove year over year margin flow through of approximately 40% excluding tariff refunds in the second quarter. We expect additional healthy volume leverage through the second half of this year. Finally, we continue to meaningfully implement 80-20 with a focus on newly acquired businesses, many of them producing the highest growth rates in the company to set up greater margin expansion potential into 2027 and beyond. With that, I'll turn it over to Sean to walk through the quarter in more detail including segment performance in our updated outlook.