IEX - Earnings call transcript Q4 2021

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Operator

Greetings and welcome to IDEX Corporation, Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require Operator assistance during the conference, please [Operator Instructions].

As a reminder, this conference is being recorded. pleasure Chief your Accounting my Vice Allison now and President Officer. is to host, introduce Lausas, It Thank you.

You may begin.

Allison Lausas

the joining year press Corporation. and Good morning, Chief you our of IDEX and release highlights. Fourth performance XXXX Quarter for night be Vice with and company's Lausas, release months our and for The the Thank XXXX. Full IDEX everyone. financial This Accounting can we operating slides used is Officer ending our company issued be Allison XX, outlining three press us December webcast, discussion for financial Year idexcorp.com. President to Last for during presentation along the website today's at on accessed a

Executive our call Bill Officer and Joining today as me President, Chief for our Officer. Chief Grogan, The today format is follows. is Eric our Financial and Ashleman,

an begin then with full-year recent 's results, recap conclude our including with a full-year Eric will and quarter the XXXX. XXXX XXXX outlook We Bill and of our providing IDEX of quarter first will the and business, our fourth and outlook. our state of financial overview for performance discuss will

areas Lastly, comments with will our XXXX. around Eric focus close for

the call Following our remarks, your we will questions. prepared for open

XXXXXXXX, dialing to by for simply the replay may log access toll-free replay. beginning for If XXX-XXX-XXXX exit a or the the you concludes Company any homepage number should entering complete the on after approximately need call reason, ID conference call webcast you to two our and hours

and I'll over turn to This With last language the and with statements begin, certain are CEO, Ashleman. brief night's in subject to now forward-looking that, the filings in reminder. Eric Commission. we Securities contain harbor call may IDEX's Exchange a this our Before press release call safe that

Eric Ashleman

highs This our maintained momentum and previous strong expanded differentiated to on highly Demand our our Slide combined remains was our strong. our initiatives discretionary historic our XXXX. most We growth to for remained sales year positive fourth IDEX. made and I'm a on backlog achieved for albeit another in XX/XX cost position price underlying and price used versus we orders promising We level our investments well ability record levels. hit beyond opportunities. inflationary technology Allison. enter drove most metrics. we rebound compressed to the very for quarter, position in spend performance. capture we as of year and XXXX allocate a our We is record an portfolio, principles on X. revenue We to margins all-time expansion strong Across of the you, Thank key our levered a -pandemic controlling optimize targeted We in saw executed productivity In we environment. funnel. from and most XXXX. resources pre at cost, our a diligent our with

strategic in Our strong operating and in company connected flow collaborative a Airtech and acquired record Pumps technology driving deploy products. a made and to We cash capital. enabled us focus, investment ABEL advancements purposeful resourcing,

We productivity. and energy our delivered on and segment across the our consolidation businesses & technology projects Italy growth support Fluid optimized segment. our Metering to our portfolio a operational and position the across of invested facilities cost also productivity We within through

cycle, built labor exacerbated very chain COVID-XX We find a in scarcity to through this year in said capital margins, the by a of the sales throughout All of and outperform orders, and year one, and characterized past IDEX deployment. variants. drove continue disruptions emergence to a we record we by new earnings, the in challenging that supply ourselves

environment rather is persist. supply and don't chain we gradients bad, the continues see numerous view Our that tough to very be of challenges

tend of new obstacles. they improve, to replaced As by issues be pockets

to like job of disruption. navigating excellent And period almost our to perseverance around I'd been to thank prolonged and a new the this take globe every adjusting issues The be done teams Our of outstanding. and their IDEX an continues throughout for day-to-day day has issues. dedication moment agility have employees our these teams, operational to

did suppliers forward ability look chain and diminishing In significant see any remains pockets COVID-XX we impact for supply to have customers ramp not and As XXXX, disruption near-term of efficiently production will have highly these of our created we term, as the headwinds, impact well. signs variable. short the and and of related our conditions to

these remain our focused what half challenges, highly to deploy products the demand long-term order The growth continue to the at will mission-critical in strong, in will remains first overall least on of that capitalize through applications, a strategy the challenges drive used high horizon. IDEX engineered, a level, IDEX of capital XXXX. expect near-term for core We on remains of organic success the at Regardless in robust necessary driver specialized environment. invest to resources a and makes solid

driving of is capacity larger to to we execute new capacity demand. sentiment, this offense XXXX that strength And play end, capabilities business will the have the with later growth towards to as businesses expected projects and turn farmer With Fluid ample to nicely our M&A. quarter. that in crop day of customers high term, continue to our segments of balance perform to page our lag complement half short Agriculture a and continue upgrades & we to the equipment close I'll To projects expect anticipate in water within our for to latter large outlook limited seven. technologies larger the that, return In of prices, we strong The FMT. in has segment, Metering leverage Technology due Site Our Next our will rate well expansions. on segments our aftermarket or their platform limited industrial within on sheet and availability acquisition year.

stable. municipal is planning improved We the Our and in project activities optimism see market water business increasing.

on. in completed prices, market position outpacing North domestic opportunity is drive American pipelines year FMT productivity operational American oil due improving a quote expect discretionary will spending home strong investment resource to be Likewise, market modest, reporting in we We budgets to position truck activity are strong XXXX. expecting XXXX, and in XXXX. for the strong markets. mobile well-positioned yield increase and heating price in demand, We an The uptick the are we segment. an a by see projects as international margins to optimize energy tempered rebound our improved this construction continued chemical and new and the to to are capital to continues last well and we realize capitalize a in oil gas North as cost projects in flow-through

Health segment. Science to & Technology the Moving

Instrument anticipate partly Food by strongest our end Analytical -- and the improvement major plan volume Pharma, their segments, Life in all in largest markets; HST all Instrumentation, these of well. growth Sciences that the resource and continues expect offset HST support investments parts have additions. We Semiconductor, perform leverage, we expected by are all and growth. We resource across to three demand -- to driven robust to margin HST make to

Next-gen research sequencing with instrument COVID and demand outpacing is and detection applications growing surveillance. clinical

and us environment the continues execute to competition our from distinguish in our position. improve ability current share to Our

chain broadband to remains imp favorable issues we continue market industrial chain our segment faced to FMT. especially generated semiconductors customers, our and we a results side, issues around mute ease. supply within capitalize similar Semiconductor and expect at In global auto, demand trends rove the satellite from our tailwinds growth. communication the supply trends. The On on Underlying to businesses

availability, American Finally, North year. we expect are OEMS that In Safety, supply constraints limits will which Products significant our Safety challenge most production. segment Fire Diversified around chain and and next Fire their component & be chassis our experiencing

the business easing business, and to XXXX. demand. key policies of side, recovery HST, in chain the In Despite are pressure, of tenders supply these to issues current part not conditions outperform broader auto will our On our see that potential models. China this content our driving by for near-term due banded we see we that We the the on compounded delays. like rescue continues anticipate do vehicle market dampening larger towards anticipate latter lag localization

customer our investments expect business as are dispensing in XXXX. in capital momentum near deployed Lastly, term, the early we within continued

this However, as last cycle reach year the see as our some that make see as annual position tempered the year. a current anticipate as see cost by contracts We will projects markets. end across bit North of we majority America this rebound we year, last end year improvement we of price dispensing some replenishment of the are will we pressure experienced we mix We to To pricing. for renewed unfavorable summarize, a favorable conditions and at year, reduced, targeted composed volumes the this non-repeat the investments.

conditions are COVID highly the and rolling that, related can customers and With our facilities variable. to potential continue the be to as to optimistic We'll monitor potential about our degree chain our results. we markets. as I'd turn financial the supply our prepared to for short-term end impacted to over remains be discuss disruptions like Despite and we However, interruptions. which be of growth by and will Bill our headwinds, trajectory

Bill Grogan

across start quarter orders up each XX% segments. orders million Organic our our on Fourth Thanks, were of increased organically. of Eric. with X. up I'll results financial consolidated $XXX XX% Slide and overall,

up up and sales year results production of XXXX, our backlog strong our up Relative a sales points each XX% full We organic year $XXX XX and were million XXXX, $XXX in Full were COVID were with experienced a year XX% segments chain We up XX%. from totaling steadily to saw up across segments, overall, XXXX up favorable up limitations. year. organically. X%. QX to by billion rebound our our orders results orders year, expanded the XXXX all relative strong of demand were built and strong and Fourth-quarter all quarter million for For experienced of supply our but basis XX% XX% organically. again, full overall, gross We demand organic XX%. and for products and overall, $X.X organically. rebound tempered in XX% XX% performance were sales across margins up the to

XX%, gross up of prior margin was of XX.X%, basis the the basis discretionary leverage. to margin in was to driven the adjusted XX.X%, a investments, compared For targeted QX up margins basis I'll expanded year. volume XXX slide. basis adjusted and offset prior volume margins resource prior rebound XX operating operating XX the primarily Adjusted points by driven points spending, declined XX discuss margin on acquisition-related Adjusted to by operating operating points was basis basis by to year. points XX year. operating intangible and income expanded XX.X%, points strong gross leverage. up compared XX dilutive the year, Full-year compared margin full next amortization, points drivers impact partially

ETR flat rate relatively to prior fourth-quarter the XX.X% compared Our tax was effective XX.X%. year of

adjusted resulting in lower drives tax XXXX compensation $X.XX. million, had in Said to EPS expanded or was prior in $XXX EPS. adjusted XXXX. XX.X% taxed EPS. net million, income XX% EPS associated a a $X.XX. was associated the EPS which million Our regulations Full-year global $X.XX tax which $XXX in $X.XX, was movement the non-repeat the was of of of $X.XX resulted have benefits million, rate. with as rate QX a compared Adjusted net EPS adjusted the with the in prior resulted effective Adjusted was also income executive tax prior differential year. over net benefits finalization $X.XX XXXX with tax $X.XX prior due I year was rate EPS income which at would XX.X% in to or XX% $XXX full-year year adjusted low-income been $XXX or compared EPS to a mentioned year XX of by our the an differently, $X.XX up up intangible over and net The income of a

for income. Finally, free $XXX cash adjusted flow of the million, XXX% was quarter net

XXXX. net For offset projects down XXX% increase $XXX capital by year, year, X% flow on versus was working earnings. impacted free We last million an build spent was million the adjusted over cash result income. This over and $XX was by and a our CapEx, of volume-driven higher year $XX versus million, this of partially capital higher

Moving drivers million the $XXX of income operating operating Slide which details the increased income. Adjusted XX, our on to compared to adjusted year for XXXX.

We profit growth contributed in through supply productivity we million associated drove to team's organic approximately increase volume help increased prior XX% chain mitigate Our rate. at $XXX the flowing well the margin operational inefficiencies. in gross headwinds experienced and our this levered from costs year our

targeted higher solid reported impacted in pre Despite the I'd XX% a dilutive acquisitions continues to variable resources rebound on rate With pre spread achieved a to I'm our inflation into price have partial of by the a form cost our our we us the The year. on the XX%. and to negative supply levels, to that versus normalizing discretionary saw challenging -pandemic compressed $XX positive Although percentages. levels, mix we positive spending flow-through this maintained provide on cost to the compensation that, year. last incremental impact year, growth. is like business drive impact spend businesses, XX. reinvestment of organic Slide for to back FX, and Flow-through reinvested pressured is of which we result results flow-through historic a mix -pandemic an full-year expenses, million and chain getting had then for portfolio quarter negatively flow-through and and our price the in environment, and first XXXX. primarily in levels ramp the of taking outlook for We up-margin update

will be results. EPS for forward, As a our amortization reminder, guidance adjusting and acquisition-related going both intangible we in

adjusted while to and would definition $X.XX have $X.XX $X.XX. share. are been adjusted share, XXXX XXXX, EPS would quarter of of this GAAP from projecting adjusted the $X.XX range our per to to have Under per definition EPS $X.XX we fourth-quarter for first been EPS under full-year EPS $X.XX this Our new

We operating headwinds cooperate revenue driven quarter growth constraints. expect and the from and in arising absenteeism XX% of production COVID for expected QX of XX%. approximately organic first chain supply results margin

XX.X%. quarter to be first rate The tax is expected effective approximately

be We million. and quarter X% around unfavorable our costs expect to to top the FX X% $XX Corporate to line first provide to a by expected in acquisitions benefit. be

full to to $X.XX. EPS $X.XX Turning EPS and project GAAP year XXXX, adjusted range from to of $X.XX the we to $X

organic margins revenue X% We expect and to to full-year growth X% of operating around be XX%.

is XXXX unfavorable to approximately over businesses. provide anticipated XX.X%. approximately topline core Free and million, to to are continue be We be year flow an around $XX to rate be expected $XX as in income for X% is our opportunities tax net benefit. around The are costs acquisitions adjusted cash our to X% of year. expenditures expect to corporate be effective XXX% by identify million we to Capital and FX increase the be reinvest to to expected expected full a

excludes charges. from guidance impacts and earnings restructuring acquisitions Our future future any

Nextsite above, yet the is figures close. to has the excluded from as transaction

EPS year. an demand the I'm X% to the output details constraints strong year, assumes basis, revenue improving we also to the This Next, the we are price environment. on first otherwise will results. which range our additional some expect I Therefore, provide the Slide organic regarding on projecting to XX. $X.XX X%, to for On year of muting XXXX $X.XX chain our for to for an guidance of an operational cost. full up depending supply half translates impact topline be mitigate

favorability This across to productivity our We expect $X.XX continue to portfolio operational and $X.XX from to drive of restructuring see XXXX actions. the benefits next drive will year.

These by gains $X.XX year-end mentioned investments productivity $X.XX in and I beyond. and to are the also resources We reduce current will to continue required in grow by to funded invest previously. the the EPS

spend I will revenues. and XXXX. has note - with guidance. inorganic Airtech in quarters partial our -pandemic to results partially ramping recovered unfavorability fully in we $X.XX. to that pre levels, this XX% Our spending X spend quarter end be has recovered levels by we're to X EPS included XXXX impacts discretionary expect higher and but ABEL of The XX by the pre-pandemic

and contribute EPS. these acquisitions an additional amortization will in we $X.XX $X.XX to XXXX and versus of to expect largely We EPS. related $XX XXXX of is provide see revenue incremental that The of million acquisitions

non-operational look a a couple take let's of items. at Now

assumes flat year-over-year. are is impact guide guided rate no from First, taxes our

$X.XX from headwind FX, providing Second, we expect X% EPS pressure. of a

to throw final guidance the So to revenue growth our the some year. Adjusted mid and that, year-over-year $X.XX, on are of end. XX% organic EPS in projecting flow-through for XXs a expectations to it the on implied for $X.XX I'll high growth in we is summary, back the to X% of over low-end X% on range With XXXX XX% to high thoughts. Eric X%

Eric Ashleman

Thanks, slide, final XX. Bill. Slide I'm on the

summary wrap I'd uncertainty with company. not as disruption, our an lose by to Before up most important areas. are we In environment a and up like the XXXX to critical characterized focus sight of who a questions, call for open we of it's

on portfolio the great simpler but be. to In focused short-term foremost, more to take remain to to efficient, we to focus obsessive as and an are that the our us. XXXX with of the the First the We're serve XXXX longer poised the are will in customers. to so world We needed potential are, of businesses difference. this a utilize IDEX of with continue level create must We refer simple investing growth remain front challenges model a successful term. navigating in leverage committed landscape, variability, you to our value-creating our the businesses. committed resources toolkits the of innovative, advantage We of businesses you that

a are of to continue focus, to Diversity, an as and environments part every of their where be company an top-performing feel core belong to to teams equity, true company and bringing work comfortable values We inspiring are continues creating we'll develop people and its committed selves area day. culture. they inclusion

opportunities and sheet to capital a already identified to flow work, to and that our strong return will us XXXX push CapEx position continue levels. operating past we've Our across put high several put us the great organic in investment record company cash balance

across to expand invested and superior expand wallet. focus We automation for and that industrial efforts our in supporting digitalization efficiency positions We're improve our of base are solidify share have capacity new growth. will installed

the. across expansions capacities in support are effectively well India and China underway, facility growth Our to future doubling

let we to to your capital to over new the IDEX opportunity in welcoming businesses the that, it strong, continues for M&A pause forward and questions. operator look deploying and additional family. to turn With XXXX, me pipeline our Lastly, be

Operator

Thank line will Ladies in question gentlemen, question-and-answer your time, the at queue. [Operator a tone and session. will is Instructions]. we docking confirmation you. this begin indicate A Instructions]. [Operator

line Our first from Allison comes of question. Poliniak proceed the with your Fargo. question with Please Wells

Allison Poliniak

thoughts FMT. half morning. your at the risks conversations? -- talked projects point, they getting you gets that of projects had going? delayed in any first give around sort the these about in of urgency this Could good around customer us the that? Are this Eric, terms in indefinitely Hey, of the maybe Just lagging just color some you

Eric Ashleman

to Good talk yeah. Yeah, Allison.

really So I while support seen theme plenty done. as, confidence a demand do complex there's resources, It that really to to the up continuation bit -- you end. from need that. things bring the for difficult things lots of to project just there of it of there's mean, to of up a together that a now frankly material, we've it's take and like a out take lining to all resources that is beginning get Lining

to we the and really to as we're critical we're versions are it's going that doing go. you things that. So projects people to big own bit they for let you that then of what business smaller in of give can mean, place over frankly, hard larger were slightly quite then X% medium-sized expansions, starting we about running And do same those scale couple talk kind I to on that incremental the put together. through the deployed aspects, we've fly. got projects a of Slight little our output X% that honestly, of are of we're, those that. while all see, And staging as we've things are continued thing that

further further positive really was going ahead markets depending larger So I'd are out involve bit they're it. course, it little summarize it a it, that more inherently the it of infrastructure. even of I to just that's because chunks way. I'd that But describe of I lagging And on of are some -- put varies certain think nature

Allison Poliniak

flow That's helpful. cash And then just -- guidance. the free

guys working a 'XX, You color given talked the you to there, we similar in get -- some spend sense. at the increased and 'XX. are about just on CapEx showed expect level I trying know you which challenges facing? makes increases Should ongoing that Just capital some

Bill Grogan

it's Allison, Bill.

as a obviously, to the load, it'll bit, little a a support progressed year. little down here we but tapered as it I as experienced build bit through think of inventory the last build and of think big we revenue higher don't year, I be

vendor increased efficiency that Our some to across inventory base. a bit, metrics related but down times buffer that's just to of we are lead extended little have our

Allison Poliniak

your still to and are with that Got processes question. along some guys the to you at such shocks have probably with of but we these kind a I through go message, it not fair But guys revisiting of you that, it's guess of are deal time-to-time. in on some

that. on thoughts any Just

Eric Ashleman

about supply chain Allison, the shocks you're in asking general?

Allison Poliniak

going chain differently stuff kind I think to to of some this The shock, just the mean, are guys supply [Indiscernible]. forward things you of avert trying if at

Eric Ashleman

we a well. think mean, something we're this. go I of mean, question, there, high continuously with people -- a very relationships, we positioned I local close through on of -- we proximity it's time. collaborative. a I great from really, revisited we've that I we're long are as a Deep trust really level, lot lot supply, we've mean, known for a do

So think it we now is any topology. I farther that change move because I to don't And any, it or constricted. difficult right everybody's try change bandwidth away. would frankly, like

why. comments do kind mentioned of I is at got of in the one say lot We sharpest at just spending couple allocated working the time thing I on. a a simplification. have opening of we're the resources to reason something we that, looking we're So, will and we've -- places it's And there. different

see of the You there, done can it. having are the generally businesses time have that frankly are most easiest

We customized the highly company. a model have at

for And inherent always an challenge us. so that's

pretty a reproduce find that forward. the we easier that's do things stay to there probably one to against I gone simpler supply as way learned think we've a a to go just we've as here, at simpler given base trying more it we've along, is So will way modular, say, gotten for and of to better similar design us

Allison Poliniak

pass so it. much. Got Thanks along. it will I

Operator

W. Baird. question. Please your the from Robert with Our of proceed Mike Halloran next comes with question line

Mike Halloran

about to of or everyone. early question Good onto of you the just risk because tack 's the some decisions on could seeing in of of CapEx put Allison you longer some How first to think to When that degradation of also into [Indiscernible] pipeline Kind these it. degradation context related you of of do the thinking. morning related those all about moving seeming linger demand supply people materialize little chain pieces? than or think least to a challenges everything bit were the bandwidth at

Eric Ashleman

a Well, to along could I you more mean, any inherently extend externality into there's way. decisions than jump bit always out other little as things risk start the mix inflect and the

tell to think to of the most somebody struggling as keep a consider can when And in I extending, you we've we've we've going talked we there these feel love you capacity But just certain is we're probably it, they about having impact a it the ultimately where slightly there's more active. lot the here, you thought upon themselves lot that's think to shocks, and certainly run, I in technology, do there's when that labor that And seeing of category. I there's and honestly, call, and tried it's lot the enough on conditions it's if working originally assured not food cycle, of were a launch, to it across From it's see deployed those that's that's the put could. while you dependent a there. to I of data going a and at here we in if as first The with variable a we're transfer susceptible the were more projects just before into this sort can a there's would documents can are be before delayed that stay market, pandemic. we're so condition, recognizing go about little still that demand bit away honestly levels conversations that in recover. you a going new more the let's to see things category. essentially project or now, be over meet seen, pretty just or know the above be say that a in ones of long put So long-term aren't that they think the mean, The everybody projects to now challenges, -- we things there, a on, not the different long-term long-term. things

Mike Halloran

with pieces out challenges and super year. have in price context of And then first-quarter That's Obviously, curve moving thinking for everything. how the with the guidance about the and how and everything helpful. cost and sticking these and itself then absenteeism works year concept you're through you the the that else,

margin to a sequential think on but to the think or what well you of guidance understanding sloped about when to more the and versus not a normalized look the normal? both about you it Is So year? better And profitability smoothness, of necessarily at repeatable best can side, something specifically, the curve how getting the back it a would little side start as levels guess on as saying revenue through 'XX call normal for or like? when bit you can think more process you least

Bill Grogan

year towards out latter to couple in plays first obviously of the progress of through but the guidance more for in our quarter year the look implied if year. the balance it's versus kind some it's will the second as but quarter, how output be it and ramp there and you hold Mike, at the percent of you a is, [Indiscernible] are has what's -- year. from to weighted Hey ramp determined the that's we It of is a

we XXXX some the do the in built just have we're here quarter, where of discretionary as and year. there sequentially for volume that are our in the our lever incremental quarter. we on that to the will expand second margin progress continue we were think costs through relative profile through resolved. those have to So rate at costs; ramp first I current you'll We see the challenges is And as that have run those an assumption

Mike Halloran

things point, that right? and a sequentials little massive through that normal assumption on there's that, not [Indiscernible] [Indiscernible] because there's But wait-and-see more it's step-up the year. normalize some beyond from the normalization bit a So is XQ XQ identifiable [Indiscernible], that, pretty Bill, There's a there's out.

Bill Grogan

Yes, to huge needs as I said switch there's not be some flipped. that

here I the ramp with that think we're short-term. in see the we comfortable

second The of top quarter then get, something unless be it's, I just to created headwind of we'll position. a that and up got some on output us, seasonally always so reasonable think should for in decelerate, goes we've relief, the we some

Mike Halloran

Appreciate it, Thanks Eric. Bill.

Eric Ashleman

Mike. Thanks

Operator

your question next the with Dray Deane Our please question. of from comes RBC, with line proceed

Deane Dray

you. Good morning, Thank everyone.

Eric Ashleman

Dean. Hi,

Deane Dray

investment, spotlight the I'd like if put spending on could. we reinvestment, pockets to these of growth discretionary

we're how So up. you kind level ten, million that slide much went or that the was fourth-quarter of was any did of What year? into spending fourth-quarter? $XX of that the front-load trued that the throughout just on so -- So into

Bill Grogan

ramped issues year, and call No. of of QX We extremely the one year, the from think Deane, lot I throughout X, a then X, last That's we increase the marginal X. in a about were QX heck then to diligent QX. moved There's in QX. fourth-quarter. things that first whole have ramped just the quarter, spend and is we QX with still that talked and it some had and

QX not from bit QX, So of we but it's to ramp overly progress here there's little material. a as

Deane Dray

mean, by it your for XX the feel Slide throughout year? some on collectively investments? then get in two in both little $X.XX I expected and what discretionary on contingency how Thanks. and spend that And you've got bridge, a growth being year the would you Is to Is the bit would returns buckets it. that right? Got of rebound. investments, they that any that targeted? $X.XX growth guide, Where way? discretionary be 'XX definition, is these And level

Eric Ashleman

Sure.

to let's there. we're before. learned of a actually versus was Travel differences. years the in three nature we've ways general, Certainly, are customers, efficient as of more going be ago, So marketing enjoy some to today productivity we've there much work kind out how seen get this some say high different where There's spend, it ever as it things of couple in One, was. as all to digital, and ways. messages than that won't to

technology level a we dollars people were frankly, with most of the the the that's it's wind their the targeted that basically think the business with it's ramp investments, And the three the side business Company. we're we XXX of of on Company one is they more are ago end reasons, that of in. sales here the in years up, in our the so parts backs the terms of increases have slight sitting of a in our markets tied towards the at and lot and front-end to in of favorable it's at people, What even positioning million

learn ago. ebbs list of to XX company, are start point, the things, start we to at people kind And you the hey, but resources with got from play X/X about then We're holds it learn talked got a to driving let and In real the they've that IDEX, before last really got across in, many So year-and-a-half here, that, some they're constant. about they've some but flows identified some to We careful of of year, add they've the markets see ways out. we've year-to-year, here. momentum investments, top value. the bets the some to of that year the got get and nature

is strong. the forward. So supporting organic we we're it I dependent. pretty go often in when do as easy it's really careful also it you as be that of type with anything people It to because think On growth, makes investments return, is

start as we us towards expected. we comes people we to if with things do all So something said, can can deployed the take can mix it By none that of of across less, IDEX. ask there's a areas off, into Bill more sudden we nature, a other that we that turn hold see or

of as have the of you here too. people, would a to everybody little the and onboard find So to have its that mix part be even year. last bring it's a of bit a and When seeing is you through you're liked we them, you more what more want of probably you lot I to when I an because careful on sure board can. find. hard year make Again, think think That's knows, them ramp

Deane Dray

have calibrated can That's way could be have or backlog, hand the and not customers been? how did you many just but of -- the goods, I missed shipped, then of on context real either that in helpful. you I didn't products the got revenues this, what have ready, finished in weren't you you would And apologize, calibrate you building have might so

Bill Grogan

fourth-quarter Yeah, the labor. organic have could that we of availability delivered X% what to it's in parts But haven't. we to X% had we probably had incrementally if we and full

Deane Dray

to It of And really Nextsite? really That's helpful. given have like sounds water it. interesting you quick business. addition a the your overview Got

Eric Ashleman

there. been it's with mean, for for we've sewer long and a time, years. we've business a Frankly, there over known with a partner to customer closer our them franchise predominant robots of They've and I the kind partnered long, us. are the Yeah. partner

predominantly. technology products here essentially America few that in used that's with They in us. they're things And There's some opening of a space a in area. answered interested we North the around interesting software think inspection, and of we that that are embedded that lot nascent appropriation that other have do launched sewer potentially in tremendous within for that. door they've elsewhere has So water capability business couple to market extensions other a going go also abilities a

long time. IDEX it So known them family. a for for is fit And time into bring it's to just really that the we've the partner a was nice right a

Deane Dray

it, municipalities as address regulatory We're on of such and imposed will investment. Thank you. pressures hot municipalities now lots to they loss there's fines and area that lots Great. and right a be hearing that so there's focus and on water see just that storm need from well don't nice

Eric Ashleman

our for that Compliance a space. businesses driver in Yes. is

Deane Dray

you. Thank

Eric Ashleman

Deane. Thanks

Operator

of with the Rob next Please question with question. proceed line from Wertheimer Melius comes your Our Research.

Rob Wertheimer

everyone. morning, Good Thanks.

is a question one. pretty So my simple

any pricing and of dynamics on segments, just to Fire there, positive due and how you obvious inherent If in distinctions helpful the of negative price what flow differentials, do some if You power maybe talk walk had too, all but through are changes. maybe pace of you there's things cost that, pricing be two the Safety, it's you. that'd through there. the through Thank kind in but just could

Bill Grogan

Sure.

to businesses. of their between So the goes of obviously, Holistically, business a are our favorable. the channel they cost and at have FMT's price across price is through strongest to inflation they've more offset it the ability lot the to exposure through heavy price cost dynamics segments the HSPs varies is casting move relative portfolio power focused. there to but metal, which Obviously, motor got were OEM

there's but the it, FMT, stuff the in the our side of Rescue and it. like So OEM the we annual that XX parts and excess dynamics. We XX it, of similar on months an been challenge, on, we've that has of industrial FSD Fire flare and that on on basis opportunities challenges months. businesses. able looks talked more about backlogs to re-price And what haven't priced large sitting been the in to the that primarily they're

lower-margin that out So the likely back price have. of continue on on through of year. here to half work annual year They've that the and with they contracts the half we any recently this first most through the profile of through increases significant gone the

relative well. automotive margin first base, their Dispensing year, a improvement for but this exposure steel as poised challenged the customer strong half. to and and in large [Indiscernible] their and they as fairly recovery were progress aerospace are through the they So challenged we still

And price from positioned organization, rest are think stand a of through here under year. we but much lot down significantly the good the effort to as of on the the teams were better they overall today So manage cost, progress to the I weighing through it.

Rob Wertheimer

one see requested is February, the structural that there. sick And those Thank And long maybe there one to lead times or you the XQ on continued think about of quick how which backlogs next expos you. helpful. you're and January, and sort until just Is Macron, you on universal then more stop so that's how you outs, risk mentioned changing XQ. on anything, is Okay I'll that savings all in wave you price?

Eric Ashleman

Yes, Rob.

I the So are think the else the that that finding we got and at pricing, has will opportunities we've done along I been everybody make way. of are pricing nature more long-term sure to ways for mean, historical ways I investment say and looking

to terms you of probably suspect just and volume while, going but that given that different in is handle it. in to in and space As that's mix the pressure a the that of ways innovation take nature that it's the

come increasing we've say seen in and that the but a such any still right than one, such in anywhere we've slight topography I'd so it area the plateaued -- across. episodes at and On not another virus, up it's decrease, that is, a got one decreases higher we're of I'd a global other but we're have say level comes rate now

Rob Wertheimer

you Thank

Eric Ashleman

Thanks, Rob.

Operator

with the Stifel. Please question Jones comes next your from with question. Our Nathan of proceed line

Nathan Jones

morning Good everyone.

Eric Ashleman

Hi, Nathan.

Nathan Jones

are Wanted the growth expect that rebound. following the incremental line IDEX. discretionary in questions on to spend really of dragging normally Deane's two start from with a down level XXXX large Those up couple buckets we the on would are in from that the

investments Specifically, you mean XXXX investor should does spend are normal it's the more to the be ramp XXXX? been end back is assume of incremental anticipated in always IDEX has you growth levels up? big that to think discretionary those in you a able to better? investment I one-year do investments million on a growth, potentially And guys revenue, said rebounded And leverage that more to $XXX expect back levels, that XXXX your we or growth probably by

Eric Ashleman

we think of do pretty this that a way It's of consistent of productivity next not this. base way. super company best aligned all let's Yeah. terms the spend the the the to highly highly more lot we're and else, a of We upper of you also to company the people targeted our These talking endlessly around do can the investments really growth say businesses kind chapter because targeted bandwidth some sort that a on do honest, fuel And and the rebuilding to it I don't than and along to that in to that profiling model super, need just These run where are actually for it company. there's investments of we that nature in mean, the that. more side better. of people. basic I so everything kind works and leverage again, a the those of about. level, lines of pull usually then there of are in be I those mean, limit of support governed what are a

Nathan Jones

single-digit, under investment get incremental has long-term getting you structurally mid-to-high outlook nothing wages to organic you when about So over talked new margins, period if period boast XX% growth guys were single-digit in bringing low the COVID. there at long-term up investments back of have I changed you by always that think of a in maybe on you XX% got a

Bill Grogan

being the Is increases of last discretionary. as then Exactly. you're somewhat that on said, that pointing to be And investment forward. fall it's as that will Nathan, will there years Eric normal profile. nominal two off, I our we going think here through a progress catch-up

normalize mid-XXs our the you for if flow-through. discretionary So traditional ramp, of at we're type

Nathan Jones

as in Okay, acquisitions. just spending in would to get record there under-levered structure. the of go but that few whatever sheet amount wanted next there we record robust enough And look and you balance deploy problems pipeline opportunities on sheet. of at for years there Is spending are to on XXXX, capital capital in enough paper a have -- for over acquisition of right years of into level similar balance to it more optimal still prices reached you take out deployment the capital level the you 'XX several

Eric Ashleman

I on Yeah, mean, that's exactly know talked, intentionality the the this. about Nathan. we the the here. for several last we've expectation quarters, I and mean, I target put

the hold to 'XX resources manage resource high-quality. I always it. that for focused go of we minimum the this high, that of the plenty begin here than level are load and the be high, we We'll think change helps board, talked higher as in at time. at going the you all of more at area we If and particular we a on because actually I Some way consider have We're evaluations this we they is was company. as fact can competition ideal will in efficiently, that build same do result But make in in be. looking the we're a the looked work. in lever thinking investments to discipline that direct they're ones forward. brought fierce, it that have the get vast expand spot of lot can a more get we uniform that's to it basis sure deployment at we be we companies the and and achievements will to the our those you to assure our The across to do potential would made

it a an is definitely So intentional travel to level? higher Yes.

Nathan Jones

for much very my Thanks questions. taking

Eric Ashleman

Nathan. Thanks,

Operator

Davidson, from of line please comes question the D.A. with proceed your Matt Next Summerville with question

Matt Summerville

Thanks.

margins little some incremental full-year through minuses the year respect we about Given and Can give you level relative color the we guidance high-end, margin low-end. more segment the of there? about, the across the to pluses you you as progress thinking at with about should be at the the to talked the segments, how a Bill, range talked

Bill Grogan

full ramp, think strong extremely incremental to they reduction year, basis to we FSD the earlier business Obviously, with recovering then And the of the that. the that but the within probably throughout our going side year the first to volume -- I consolidations a perspective, the improve fourth-quarter. we're side for their progress, our question. margin improvement lot I as With are as Rob's had more going still business the costs fairly that FMD just the We say, as relative to on making levers price in well I FMT, extremely had in margin highest significantly similar you're site and first on like pressure with cost would associated point see look here several on quarter mentioned profile margin then a with And the of this so half lower perspective. primary well, then with margins building being obviously, FMT a being investments and CapEx from of the improvement a challenges HST driver house. is moderated year

Matt Summerville

anticipate maybe clear. follow-up, price achieved you. much just as then you 'XX? a versus what you just Thank 'XX to in And be in achieving How

Bill Grogan

will XXX of in excess more, here about last I basis XXXX. year were mean we So points that be in and we

Matt Summerville

it. Thank you. Got

Bill Grogan

Sure

Operator

the from with comes question. please of Buscaglia Birenberg, your next line Our proceed with question Andrew

Andrew Buscaglia

that little guys. HSD growth segment. into guidance some imply Good comps bit really year. More your In decent more pretty morning, despite does your -- into tough this

I of sounds lapping, life semis left. source juice that there just areas in really there's wondering a think in upside, what and it be in I'm So of where sciences recovered there could are we that [Indiscernible] mean, comps like are exactly other tough I really haven't lot but

Eric Ashleman

in just we which something the -- folks sectors seen the don't it's honestly to and really know that. going 'XX. it's I dynamics to inherently 'XX good it I or drive like market in map off it's that is coming think that these strong are good one are that continue, we've going mean, ramping story are where pandemic that

space didn't is So that a space. Pharma the good mention, really you which

there, we make more participate Now we vaccines effective.

you that's seeing projects. well. going we're medium a lot projects where capital imagine, there. some out really expansion get That's ones, we're to sometimes that. an these It's can As of not medium-term seeing the to where focus, of That's the biggest but area smaller

really middle of and And down that Our broadband the optical us. are from applications technologies and I access fairway things space businesses are would say just some the is well-positioned and right for coming out really there. then for stuff down good really great

variant that's surveillance honest, as it they always but, that's be space aspects, of Next-gen this COVID that and world. of sequencing, the part growth all of course, across identification, the doing the year there's were there let's all

businesses of strong ever, more are than be there we spirit think it's question the is well-positioned continue. always I way it, any it and what a is going remind continuation think recovery more again, markets might in a of I just who I the but aspects, is for -- is this industrial have mean, So needed heart in that more a this continue to than there's that -- to theme in they story aspect. -like some of the the is, FMT people

Andrew Buscaglia

even exposure, think indirect be it's though, in FMT topical. of probably it coming question Very impact, which though direct may seems by more to -- of back similar have it somewhat it this seem kind we now be energy a think. and be I a And to Okay. kind not seemed influenced IDEX that EBITDA, that

what maybe are expectations. So helping you exceed your that about sent maybe FMT business within thoughts in your in there? What energy recovery

Eric Ashleman

impacts our I exposure mean, Well, because localized years of recovering so couple off of Energy it ago, there that other up that'll the FMT. of street little some is throughout a are also than it's things and commodity it's of I help. in X is it's just largely was but a general, sector mean pricing different No loss. pandemic no X, industrial just down always terms story but that a and and positive doubt That to the right, in It's and of in doubt you're single-digit there FMT. identify, And businesses things. investments. delayed are of hard derivative

have we any think extent do factored we in So the that of area That's upside. that we'd see to over mix, the but the that achieved.

Andrew Buscaglia

Thank it. Got Okay. you.

Operator

your Stanley, proceed with please Morgan Lynagh Our question. next with the from question of comes Connor line

Connor Lynagh

I if allocation do right end specific framework? the and on you markets there you're if are could step-up thank cycles wondering that that Yeah, was now, as wondering underweight? the you. particularly at frame -- look that I'm a allocation end capital you the markets couple any over overlay targeting you next we M&A can years. to to question in pipeline see return you're the and of where How overweight, view you

Eric Ashleman

applications that as markets after, It they the you we might probably defined about by because when we're think are mean, doesn't map imagine, sets. as going often cleanly niche I

that think and other And Pumps, in three it support lot in seen think spaces and great technology In we focus, sitting kind done far water just not examples tied would like of that. you But are of HST in a might they mining there you as industrial a they've our business, exactly of that alternative 'XX some the going which of or just actually as to be make you lots in industrial segments, into a certain those fundamental growth spaces now, franchises some examples places strike alternative targeting looking and might job markets. we're core to Lots for of that because actually as world, obviously as at would. have too, of are so great The behind where lot attractive can tailwinds focus some intuitive. we've see in here, look areas them, ways really counter you have blower it from of energy looks any on general, one so that's more of even Apple business of example, think. you all one great like and of very that. the otherwise that application Then two its away well. are just That's sense applications yet to applications. nicely energy an mining in Airtech, tuned compression in

that kind be we're of really up very at And high-level into of that kind that the quickly bring a done. that could macro environments trend, well and one segments. any with specific out kind niche does, then across it we but that work see So comfortable it of to overall of often plays to we our how lines down

Connor Lynagh

XXXX is I bit thinking in increases through are How you the targeting curious, outright increase as you the costs some of is are or gears saying Got you're here? am a Maybe just move labor issue? being switching a in that we mentioned here, to just you little about more it. wages, availability constraint. related

Eric Ashleman

to probably in we a or honest, not terms always today. premium make terms disruptive but costs It's here more scrambling a of see year. doing I in it things We're bit driver P&L on said, of I inflation be that our So little intensity To we things and things have everybody with existing here people Saturdays this important, huge is to pretty expects think more we're I a couple the of well labor. it's mean, wage try a that manner, tangibly basis. Fridays in being of there have a light in we remind

so us as businesses the comes matters it's of driver is So supply not P&L. dimension that course driver, but it on is for to components it a where same it massive It a applying outside. in and

price to So acted and the with of it's pricing, kind certainly way. We it. manage it top on capture immune that not were

Connor Lynagh

Understood. color. Thanks for the

Eric Ashleman

You bet.

Operator

with next your question question. with Sprague of Our the please from comes Research, Jeff proceed line Vertical

Jeff Sprague

Thank everyone. you. Good morning,

Eric Ashleman

Morning.

Jeff Sprague

Couple me I could. if from

first color was MD, headwind headwind the it FMT. Just segment in QX stabilized? that at you on the Flow also in appendix business annual The provided or from is now

Bill Grogan

we the QX, progression -- progress as rate Yes. out of quarter in think over see I next neutral now bottomed their go and It's current third we fairly run we couple quarters. as the in

Jeff Sprague

the expected then a expect And Nextsite, just on on could equation on what little guidance a should EPS of you the the amortization as comes just on adjusted bit result. a that provide and accretion, also color little we into modeling

Bill Grogan

Jeff, the guide. we'll to once we that close add

$XX bit this revised it's in our business EBITDA said to for you, in frame and then a once we later guidance include with million April. down we'll little have margins, about XX% out nail close We it it a it quarter and

Jeff Sprague

as Appreciate COGS? color. back it The a of of Could additional Great. you though, And just percent size to finally, that labor. just labor. just roughly then cost

Bill Grogan

product our labor, associated X% X%. prefers about direct the Eric directly And things or so with builds

Jeff Sprague

Right, it. thanks for the caller. appreciate I

Bill Grogan

bet. You

Operator

Vlad comes the next Citigroup, your with of question. with line proceed from please Our Bystricky question

Vlad Bystricky

my Thanks taking Good morning, for call. everyone.

I to go -- your just capacity So times. wanted just and lead on back to comments constraints

give but you during the key us XQ times, the think you said others across you you're lead competitively more well-positioned any versus you some and an whether you Can businesses versus specific peers? how there's think you or comment on update pretty performing where you're just I portfolio, that also talked challenged felt think versus in industry. competitors about extended were

Eric Ashleman

one-by-one. every this something you business the mean, appreciate is kind of to I I single gauge have question.

specific designed go is we're when our mean, on that be we've inherently the supply and customized, hard probably it's any more local that all just from get else spun most and always things commodity most different. to everybody Things where everybody more a electronics we're places those is where talked that there. about performance very we do here. model we them constraining boards probably quicker challenged have are say That's with single So when than reactive generally and talking I we're and almost just things. we scramble dependent would is competitor I something why that are and to out like we perspective, like have. that those

do. they've Now, same the against, got content electronic the people that we're competing we

are I It's time. example electronic done disadvantage. space There they So intensive back we very largely as strong that have don't of I did job really, we the there the company push. a net because the over job simplifying most entire our products see a half architecture some great great where that phenomenal local dispensing competitive know a and is a frankly their in it's had business in that suppliers really outperformed

conversion that down So they to many places beating where folks list, pointing don't us. too see the suppliers are are and go

of part For do of it. solution, but nature, There's long I customized and still lot defense we're of very, it's performed IDEX think now, a natural well-positioned an super we think goes it. a very what into history of that's a frustrating We're dimensions, well. the couple of kind I a in It's right spot. good

Vlad Bystricky

Okay. maybe more really from then me. helpful That's color. And one just

you again reflective capital, of about like some sustainable in expecting things, opportunities where more areas this you're should best ramp? is a here not talk for mainly deploy Just time? of going seeing chunkier about this 'XX. this back level Can automation or in the CapEx we Is it that the ramp to to how it onetime productivity then is think and you're

Eric Ashleman

that's cost-effective things Well, becomes that supporting some people there do that all from that there to there's have there we're piece I not will places can interesting are some to have definitely like companies CapEx stepped a we production it and is in about the emerging too it's digitalization time. here in growth have ways, great effectively automate industrial There others. we ago, at of expansion though growth chapter away environment, all doubling for more been in up There's more say where it you years deploy like is mean, doing over is go related the it now. many nature there we to that XX or it something capacity but quite and simultaneously facility a us chapter markets. on standing before. support wouldn't in technology, we're than as Asia, a a that costs as our for years bit our automation because wouldn't a in little to I of it's for a ago related XX chunky are, talked important

but project of certainly are I expect in the last capacity So a a onetime-related that growth ones to I year we have forward. mix become in given extra think of go couple sort the but the as typical there. profile, we these the One future, part other think to and fairly you'd it's reasonable we had facility, there chapters will expansion, of

Vlad Bystricky

that's helpful thanks. really Great,

Operator

from Our Brett line of with comes question. the question America. next Please Linzey Mizuho with your proceed

Brett Linzey

outside you too. And of Science quantification I in with Life this could or wins And the forthcoming within capacity put that might finer be come the Semiconductor. wins a was how Sciences Any morning, Semiconductor. and you Thanks. out build-out hoping everyone. some to IDEX good great something spectrum? to Life called wanted be back Are COVID positioned I -related on point

Eric Ashleman

well, things a there. few Okay,

long the healthcare. even majority the are to by trends the but and mix, We predominant COVID, as not driver comes wouldn't important get a broader focused surveillance science from that's certainly it's I Sequencing on talked it's It nature and a So detection, of the still perspective, any about medicine. been means. say but in I cancer Next-Gen life back variance more mean, more of quick we it, it's anywhere. that point-of-care part have lingering important

and don't in has broad-based think So pandemic significant that as a being This is current we for space. I see us really the really to lot room driver. a run

On interesting. two the infrastructure I there in classic participate side, places the we actually Semi mean, in build-out. that's

the we from do perspective. attack ceiling and -- we're it that So

on then the more And and of on of process. that side of the side, optical metrology it part we're it. things, manufacturing after-production do quality we actually, So

we've to still that see that being be to to needs it terms things sector. run way suspect capacity it here, two all now from a go long we're us. in And might all just you are announced for we for its There's that of until of exciting as comes got seeing So particular angles. where out,

we located quite So for HST continue of exposure. our segment, in think our that's most going to a it while and is

Brett Linzey

on to other really year and for and strong XX. other Thanks that orders and question finish

teams Just are spot as color the ordering businesses Any drill in try of line. pull-forward are would down curious, on book, order double a customers in your any signs secure the as great. any to of there be

Eric Ashleman

make. kind on come risky may a -- think a of product it's attack in mainly of again That's not I the that of your Yeah, because and of [Indiscernible] have. that structure around capacity because everybody of bet that highly what nature small way percentage it of the is products we customized kind just with or we the the we may kind

high not So it's typically it's days. barely level, a most anything

could I think at a levels. we've pointed current it the be point to percentage

depend on. There's little bit majority things going high-volume people for There's here. pretty I but the probably of that, do not that think been. never what It has it's that's a we consistent. of

Brett Linzey

Appreciate it. Okay. Great.

Eric Ashleman

Thanks.

Operator

line Please with proceed Markets. your Capital next Graham comes the Scott with from of Our question. Loop question

Scott Graham

Good Allison. Bill, morning, Eric,

Eric Ashleman

Hi, Scott.

Scott Graham

up one harder line just Bill. So ask let first the then that me for

points, than with at margin XXX this from FMD points, and looking down the were contribution were the the XXX margin ABEL, that less. whereas sales a it we the third FMT in in less down we the quarter quarter basis why on FMT had fourth-quarter I'm the So third, essentially impact looks was over up in so basis revenue-wise like And quarter, much? negative -- FMT the

Bill Grogan

QX? to QX or -- QX Sequentially

Scott Graham

course -- Well both right, year-over-year. but No, of

Bill Grogan

things and take year-over-year, margin perspective. roughly so normalized FMT you FMD you're normalize and I on just would say if ABEL, two -- flat that if you out

just sequential things time ex on out premium I from little there FMD is at customers three quarter some a couple facility so pressuring costs for - the most four, One, year vertically integrated on and get the in final their of year-over-year, weighed a working the and margins bit over things. and businesses, quarter the which associated days less ABEL some is FMT to they that's that so. the the was some dilutive, stuff consolidations freight a and We seasonal, had with the in third three the think quarter, end happens absorption, margins. really piece less years. have Those in of then of to it's the

Scott Graham

acceleration And there? this supply an issues is in not chain

Bill Grogan

No.

Scott Graham

Okay. Great. Thanks.

enough Eric share us organic The supply organically back half -- on for second and expecting look to Bill like and was doesn't second with what more your you, difference the the first. question much kind in -- is your it X%, I you held to than chain you're

half X% and, first that thinking quarter it in of implied X% you're your versus second conservative half year that the in therefore, Doesn't the thinking. being second Just affects half to on second about maybe wondering half fourth guide? lessen how you're how the and

Eric Ashleman

things you come as are certain of We're making can't in absenteeism Bill business. terms first it There's to Clearly, over certain the in extent assumptions Not we've we're that and to Yes. online. for seen there. we subside supplier-driven. was them know the that get because things. then always We time there. or that other have we've uptick already seeing the happening forward. suppliers, lagging here down. networks our There's are about the because out in point One, it. is they definitely have signs of wave things quarter all dependent couple just going the And year, we those tougher around know here extended well, boundaries I trend regards seasonal QX that work we go a anyways is and more any in like those think this as thing current we some we And do those their look, we things. businesses of come outside. quiet than to was of that same that are I see in labor we logistic this mean, so lot of having same the that a talked a a I mean, view some in frame put a if in in

that evidenced back wanting to more into workforce. seeing people are are get We the

those easier place and the run to So well, always it's out. pieces when as it's warmer

expectations. in and sort the stands of way things those of So is the so in ramp there few don't that think I the significant it

Scott Graham

you color. Good Thank both.

Operator

Joe with question. question next the please from of comes proceed your Our with & Giordano line Cowen Company,

Michael Kendal

Michael to is in and Good This morning. see for Joe. us

Eric Ashleman

Hi, Michael.

Michael Kendal

Nextsite. color for the Thanks on

is $XX roughly be would is What portion percentage that a component? million recurring sales mentioned software in there annually. Is from You the nature?

Eric Ashleman

because Well, thing products. an the lot it's in of embedded interesting mean, I a it's

products that with, definable it's that but purpose So we be as it extension the that's identifiable in realized It's wouldn't that, an go-to-market then capability. capabilities like as love for piece. of we

Michael Kendal

Great. you. Thank

Operator

I'd back no to like queue. are to for questions further There closing the in call management the hand remarks.

Eric Ashleman

the Okay. questions as IDEX. Well, all in you thank interest today the for in joining call went appreciate we through the

a important. long creative, an for couple strengthened chain got solve the of We're I that to term. it High innovation any expectation. and that's things mean, very easier. times lot lead about, of put on in also some customization all iterative IDEX agile tough talked supply out. the quickly mean the That frame the Just on make fly, out upon. for but we're us reliance ways there No doesn't in I we've that in here short a and doubt, a we're everyone, short environment we as suppliers. in that as company. seen and I We've problems standard dependent a model value-added

and mutual a there, are a said home. those trust today, time very it's We've few and there trust. relationships I As to deep long for known times folks a close here

a huge that's asset comes that all So for us together.

of to about organic the to had current simple, well terms do going building impact we're going there year I then inspiring to think company out We're few attack We're go but we build out going a advantaged through that our chance future is do support that outposts IDEX, performance in that's ahead and we not for ultimately a continue and improving done continue that that really going talk solutions, mission, in a over of to best lot lever lastly, prospects I'm supporting our driving financials. deliver very growth in and really, So and to glad do stripped years last complexity work these trusted the to to to efforts what verticals going sight inorganic and that most as more the we've our to for the we to to of footprint optimize also some to we've great the the have well. to situation scalable strengthen inspire we're and with, the for lose the lives. growth expand the use which culture months want that sheet strides our all going of balance us, it. we're of supported And and

time day. your you I for great thanks So all today, wish a

Operator

Ladies and today's Thank conclude teleconference. participation. gentlemen, this for you does your

have You may at and a time your lines day. disconnect this wonderful

IDEX (IEX) 2 Feb 222021 Q4 Earnings call transcript