IEX - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the IDEX Corporation First Quarter 2024 Earnings Conference Call.

[Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce Wendy Palacios, Vice President, FP&A and Investor Relations. Thank you.

begin. may You

Wendy Palacios

This and everyone. Palacios, President Vice Good Relations is for FP&A Investor IDEX of morning, Wendy Corporation.

our a be Highlights. Last Thank slides during you IDEX we company's Financial the XX, performance ending presentation for The discussion our www.idexcorp.com. accessed outlining the webcast, company's issued financial today's night, X operating for joining the website First press used us Quarter release, to for with press on be our release at can March months of XXXX. XXXX along

me and today Financial our President are Executive Joining Eric Ashleman, Chief President; Senior Chief our and Officer. Officer Khandelwal, and Abhi Vice

[Operator Instructions]

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

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

Eric Ashleman

Products after municipal In Safety/Diversified good businesses. and I'm able encouraging period and and from to lift and bounce customers. on core elongated Fluid We our morning, markets strong capitalize Thanks, this our deliver a Wendy, results, an destocking, in orders we quickly sequential within of & core industrial on experienced QX, for Slide everyone. execution and X. were our our particularly delivered Technologies capabilities & Fire Metering

outstanding inventory improved overall overall and out we and stripped as times levels lead responsiveness productivity. are at Our excess

bit but call. overall remains stabilized initial within FMT on to in take our launch, strong in modest a consumption a closest January XXXX the report again things correct early Our suggesting and February March April, back pulled after businesses for

but application expectations, takes performed consider Science rates and Health as we & recovery segment there individual sets. there and are markets The at Technologies puts our within

those favor showing our priorities probabilities technologies leverage tactical initiatives markets inflection. of with in near-term growth best higher that differentiated Our most line

efforts, technologies Highest the Largely power expanded capabilities AI support Semiconductor Quality inorganic we've within our the to to revolution. HST through technical

world increased our content increasingly space companies to low within orbit these have technologies We capabilities and we the for called ambitions transformative M&A. national we we and deploy of to balance are defense broadband, continue further advanced sheet develop help have leverage add to as to upon through

and recovery signs instrumentation the for and continue analytical customer demand. to on are capitalize sciences of life watch We first to ready in at of signs improving growth

exceptionally positioned with Our these credible well expertise. businesses spaces serving are highly

persist this We We've and in play once companies. core the a help uncertainty have mindset most tenets three of our runs differentiated into leaned that correction ability as again market to geopolitical all IDEX offense. clear economic expression our it's us of course. Overall, basic confidence difference, with an for backdrop that its outperform that the conviction

together talent culture. Our in great a superior with and special work businesses teams

strong along to teams our things growth performance the and apply IDEX like companies the these compounding IDEX create We amplify operating QX. leaders as for toughest free few we strong cash for matter the top that way for to principles their We the margins in bets of faster-growing thank leverage we the by of and to value model. dedication around XX-XX around practice five the tools really core our driving complementary and shareholders globe I'd natural economics. to bets. We through generate expand ultimately these delivering through solve to align quickly proximity customer outstanding our to organic growth our and support problems their outperformance acquisition

Abhi to over results. it turn I'll that, discuss financial With to our

Abhishek Khandelwal

Eric. Thanks,

results flow Slide in consolidated the profitability consistent the the free to into delivering results, first ability cash you've as I strong Before seen and our in X, year-over-year want to jumping highlight quarter execute, team's on challenging comparables. despite

the the dispensing year in otherwise. emerging X% strength $XXX down digits, stated the unless on organic experienced against FSDP comparisons quarter an HST, in both first FMT prior driven consolidated low results. decrease organically. of Quarters are All period markets. Moving to and were while million financial We and double by overall grew in

organic quarter decrease were X% decrease while overall grew and FSDP and organically. a experienced a down sales million X% down of organic in in X% $XXX First FMT, X% We HST by organically. XX%

was by First price/cost leverage, margin XX%, basis adjusted productivity. points, and contracting quarter XX.X%, points while margin XX to basis operational declining XX gross due volume gross was offset partially

effective a First XX EBITDA is quarter adjusted This of next remain on of points fourth focused basis, rate a down margin year's will versus quarter favorable drivers first expansion. effective the sequential slide. On GAAP points. a of tax due to XXX quarter XX%, decreased discuss quarter I XX.X% discrete last basis of basis on adjusted EBITDA primarily as first our improvement XX.X% the versus item. QX margin tax we was

income EPS net of EPS million of Adjusted First year $X.XX. was adjusted net million, $X.XX, $X.XX down first generating with quarter. quarter $XXX from the $XXX income was prior

last of the rate compensation year lower a mainly income, cash achieved for income. On million up of free was the conversion variable lower and we turns net $XXX $XX over net capital inventory X.X inventory improve year-over-year. Slide period. Finally, the flow an and turn over quarter saw of despite XX% organic expenditures million, drove adjusted basis, XX we by prior than payments driven months, X. XX% reduction We adjusted more

driver EBITDA. X, which adjusted Slide of our Moving on first quarter the details to

first adjusted of quarter, to quarter $XX million the by compared decreased EBITDA XXXX. first the For

our sales by prior flowing EBITDA $XX X% Our unfavorably year adjusted million organic at through reduction gross adjusted rate. margin impacted

These quarter in The XX% that deeper to recording resulting within segment both sales first performance I'll FX the operational that catch-up through. a results EBITDA FMT adjusted margins the and at flow water Price/cost backlog look in segment. businesses, in performance. provide was acquisitions of X-month our prior of inflation. divestitures months municipal Hurricane-related by a accretive flow-through. With a execution of strong. yielded X, our on and of the of remains XX% drove $X of in was Nexsight acquisition project our lag contributed million quarter, sales that, of productivity effectively impacted the of negative first net I'm offset Note a year organic impact Slide employee-related the and we favorably water X quarter treatment In activity in Nexsight XXXX. negative

businesses with Our offset by stable infrastructure tailwinds, energy mild remained favorable winter. a

cyclically expectations. with down, Our line agricultural be continue in businesses to

despite and volumes. basis expanded Finally, slightly lower margins QX by EBITDA adjusted productivity XX price/cost points, driven operational

X. compared to nearly year-over-year to sequential the challenging all the comparables, quarter. & Health HST Technologies improvement as segment on Despite our Page performed orders fourth to saw Moving of business Science expectations, and

teams recovery. for strategic most continued on solutions signs focusing instrumentation customers' in next-gen we watch Our and of life our sciences while analytical

on broadband initiatives continue despite customer space, communication and quarter laser Our delays. track current

conservative material pharma. investments technology biopharma saw Our strength in and that processing customer business nutrition capital food sports within offset and

saw for the our continue semiconductor, the HST quarter. to expect we industrials steady. orders outlook in these line FMT trends compared chips. In an year-over-year improvement, and improved with industrial to with both memory businesses, For fourth line are we And

price/cost A XX XXX improved year. margins volume adjusted operational year-over-year points the last decline was quarter Lastly, and offset basis points by productivity. basis leverage, fourth of of by EBITDA driven over partially

X. Now Slide turning to

performance emerging wins segment which Our the driven customers' Safety/Diversified project U.S. helped markets, was key cycle. impact & Products by in multiyear Fire dispensing refreshment offset of

year. the reallocations & We offset in see initiatives gain Fire the is unfavorable with on budget partially continue our to focus in quarter, stability the strong growth demand industry. BAND-IT in helped Safety. In share expected strategic automotive

was and Additionally, industrial similar HST with performance improvement versus sequential to FMT QX.

margins quarter. on EPS decline outlook QX, I'm to EBITDA X% XX to we're adjusted on expanded of to the range $X.XX second points, adjusted GAAP that, driven adjusted $X like by Slide EBITDA XX.X%. Finally, of X. to margin X% from I'd organic an provide range $X.XX $X.XX, projecting and to for to basis update approximately our revenue approximately with from price/cost. With EPS In and

the Turning full year to XXXX.

EBITDA in bets. With his guidance of growth and of to closing over X% our outlook organic our with margin adjusted that, with We initial driving focused previously turn growth majority performing line XX% efforts $X.XX remarks. approximately and I'll EPS Eric $X.XX are full-year maintaining markets revenue it to and issued for to X% on adjusted our of of of

Eric Ashleman

to Thanks, organic the examples of time across with points We basis growth Abhi. highlighted I'm simple on earlier value my close HST. back I to drive typically any one these within the Technologies starts results. some equation opening talked targeting initiatives Slide about to to about company bps through XX market in coming Applied XX. by I'd at all above like I XX entitlements. achieve It growth remarks. XXX outperformance,

within to high-quality growth. additional to within our we're assets support to complementary in XXX M&A of bets through the life. We of Within wastewater municipal XXX faster-growing points analytical help We technologies our and very and I'll work also through with working integrating quarters with to amplify the to scale go disciplined water markets FMT, the and within basis brands another this our relative market ahead promote deeper share on to FMT, support to digital build recently to opportunity an gain. within enhance examples specific outstanding alongside multiple absolute acquired and add critical containment customer we're distribution see group processing. these that inorganic bring across Also go via transformational tools work Intelligent work experience industrial deploying legacy niches.

the X last form and within within this been thin-film of years, the in working intelligent niche we've play processing. small optics the factor materials-intensive space Over water

seek tools to heartbeat. as deploy our Finally, XX-XX growth drive as our IDEX along the we earnings basic model double-digit operating and margins the expand teams five with way

to is We're decentralized I'll exciting, and a agility our as to way. With in look where the but supports unpredictable and the operator power technology we the with environment I environment supports that you at win building speed meets company infrastructure transforming of forward that for resist intersection the and collaborative speed ways. grow. In communicating turn along agility top-heavy over your closing, thrive it culture. and world progress culture our inclination leverage financial that, to evolving and Our and questions. and in

Operator

[Operator Instructions]

comes first with of Halloran Robert Our from line Mike Baird. the question W.

Michael Halloran

a from year simple if better expectations your first changed the for dispensing in you market about, in remainder really all the little or quarter, expectation in the just anything different. are last perspective, guidance mind, a that the your Eric. doesn't since has the gave just obviously, like seem of So question, Maybe an talk

thinking self the you of -- were changed go seasonality, the the key driving some of ignoring you when year has But you really much some outlook are perspective? normal about with sequentials end that your investments? the some versus things an through how And markets, the positive through from of

Eric Ashleman

mean, I smaller different. thanks Yes. around order provided good diagnostics. the those I mean not are for a that's of kind No, have I that flow of we that of cadence some question. FMT color lot such the businesses

at remains I end sensitivity in think day, the the and but a same, just and the the it to of the ebb show way. watch call was that of interesting flow kind to

little and pullback kind Hot in to little January of unusual. February, a It's March a back coming bit equilibrium of April. in

So I we that interesting same of it sensitivity of look there still think markets mainly about course, of particularly track place. When -- half it's HST, people I think pretty in the the because is industrial, the we reflective interest at but I too. as level of is rates, that's think election, out inflation, at the land frankly,

and rhythm kind it same So the cadence. follows of

of I think HST. the see of growth is of shoots periphery pieces kind what of larger we the around

We got So production That's little in and necessarily lift a on the our saw bottom some food quality of highest not still -- but on core great have some of things handling, in terms and that semicon that company. our pharma. lift of still business in in come. going material ceiling battery around to coming in but off we chip the memory await we offerings world, orders largely in kind the broader the kind consignment the MPT

attention of for step markets broad the those of I modest industrial think potential and that's in on analytical lot much So but in great when within of were, some close kind ago. to and us velocity start support semicon higher-growth HST, markets landscape half back towards we there, the I it. instrumentation question 'XX and months of much core back back, IDEX I on science of kind And a of see two do just pretty to X of kind a sitting think the how where life you then think, it's you

Michael Halloran

or markets running those No, you do it's sense. this later, end then about you HST Yes. back margin you come normalization? year, And right Obviously, margin and normalized mentioned, peak think now. makes an get part question. mix as well whether you're 'XX back, When just how below of

Is the range that you at to bogey that little context just think get a towards pieces we're put to you for you're that normalization? is a XX% peak, when maybe where moving because that And having will little of XX% be kind things still some more segment. around

Abhishek Khandelwal

Yes, Mike, this Abhi. is

if look, that come think end go is more what and XX discussion about think, near you I So sciences life HST, the that what volumes days the once XX% be are talked expect just in semicon I margins we our the and specifically we about. back. of back really QX, said volumes think is in to we've levers And closer business have Eric back the said in This to well. HST

Michael Halloran

just to ranges. the Because me So when XX% previous XX% clarity, EBITDA just margin margins okay? for back, was comes everything XX%

sense. So everyone. We okay, sense. makes That appreciate that makes

Operator

question Markets. RBC Dray from next of Our line Capital the with comes Deane

Deane Dray

think your Warren sign. the of good color play Rupp can of others? started here, the regarding how like anything is it that's sounded also well, the off And rates always about read just a else beginning you and out, on you've bellwethers, BAND-IT I day and to so given some on year but some Eric, touch the

Eric Ashleman

It businesses and that January, cadence barometer a a Mike's that right then those there. of bit before. those It opening as was Easter an use on in And question little that kind into Yes. had again, in March, industrial really saw a in of IDEX. strong look I ultimate for pullback bellwether the articulated interesting, earlier think, really February. weekly And was at and take aggregate, we continued health than I we ever of we in was launching

yet So it. But caught to stabilized too it of and probably sort of broadly again then April. our swing see attention, as it's of see certainly some kind in that and

exact little it we kind of that remains moving both thought. has, at directions, same it's a faster, and yet than the So still arrow typically the slope

is dialogue just want point on a it than reflective seem confidence, which think is up in whatever's of out given and to and conversations having, we the to it's where sensitive does out long of year are. seen chain around we're and more It and the food are. really I've time this isn't we projects, of I where there, kind news again, because, surprising I the and this higher what's kind of what some

but thought I helpful. color So be the largely position, an unchanged might

Abhishek Khandelwal

we've just normalization chain. thing is build the on And lot had to around it, think I a conversations other the supply it points of to that of

move levels a So are lead it's because they it their down. demand people to they faster on on, the normal turns faster it when turns adjust that lot times as know when that see and back can the markets up lot a

Deane Dray

this just instruments and to of real waiting orders. and would chain been That's color watching And inventory their from you separate helpful. focus. they're what We've sciences, and of that supply you just just turned how on But guess, for yet. and guys a mentioned on in stock analytical that the of run a one instrument I I bio OEs be then you it instruments hasn't lag destocking side, has might whether course current been quarter, the the I'm science on did that was really typical strong do And terms pulling just of of these a normalization but glad see about their and question -- they're the typical mean, the running supply its the processing it life the of versus life side. But see that's lag market. what I because more between kind their report levels off from corner helpful. there of their to sales any components? the less and what's some whether your the are -- where

Eric Ashleman

Yes.

I where mean really like sort of So not I -- first we of fulfillment couple 'XX. come I QX time hit because and one you extended our it's to is is cycle companies components think a mean mean in for to ended. reasons when it recognize us there's back destocking one the I'll fast. it's first with abilities start and cycles of points lead replenished of were the I most of lag started, that the the this capabilities of going that and to of there.

cases, I so the they're to probably pretty going And this roll up not in because up requiring think of -- that first to typically, going forecast to heads is we're -- quarters see selling the on to back that most mean, our and turn time into and natural about talking of and most for any the just of of and factories. We quick we're life, we're it I see sign we're the just way components. that months that because would come close set instruments it's

material would think out the exception get with maybe they that signals look, we that think then to those only us. about got sure to there's I same if shift and making the overall profile, be, we've demand suppliers in a do our broader

to You have relatively aligned. that but sort would be conversation, early in quickly of have the inflection turn

to to ahead in see you'll about always sales. come talking point we of other as advance those start only in of you're just side from instruments. reading question move market, of and of signals recognize, the is thinking part maybe are embedded your as the important streams. And The broader back to instrument all tend we're consumable participate of people to the often, to those earlier IDEX, kind it's And would

that's the what's velocity we an it so the have on to kind always instruments to but point, interesting you that go. And ultimately, because components and back where it's supply equate of

Operator

from Bystricky comes of question Citigroup. with the line next Vlad Our

Vladimir Bystricky

what overall seeing the about, cost inflationary versus I missed and for was the you and price terms year? of if year it, coming for I just your expectations actually your into pressures cost talk versus you're sorry the price and quarter guess can in what in versus expectations

Abhishek Khandelwal

Yes, for more Vlad. that Abhi This happy you. is than and to answer I'm

we talked on were it what we XX price/cost But recall, about what this XXXX, So out QX talked if basis you more price about to spread when XXX laid at focused of earnings, our importantly, we X%. was about for points. was we'd

fact, line So from QX, of we standpoint, in exited about XXX% to a were in where think expectations. closer as price/cost the you we high expectations, with that end on

time you something historically, look neighborhood standpoint seen we've the pricing X.X%. and back at to from If XX go X.X% just -- a of IDEX to in is in or X.X

So what this which typically, And that XX here, laid we bps XX XXX the to higher bps. have 'XX is levels. we've than is then what pricing out is we're historically seen XX spread seeing price/cost normal to versus

To that we're seeing discussion. QX question your had laid the cost input compared inflation, favorable on guide we we in to what the answer is of part as out assumed the had second what slightly

Vladimir Bystricky

to color. And helpful appreciate it. back That's to Great. I HST. then go just

decline In industrial in us instrumentation? the seen the life underlying quarter, to you that color semicon rates more give are on in and growth terms seeing analytical sciences in sales the and we've of what able organic you're versus

Eric Ashleman

the Well, there. mean, pretty we are HST couple a comparisons of at year. levels saw a in last given I the lot of things destocking that rapid exaggerated

segment of just over And waiting general percentage, of is condition recovery. we've of for as from and about And a kind let's in instrumentation been so signs flat the X/X that, a life -- segment. just entire analytical of being talking science

ceiling more potential, things really FMT it that entitlement. probably start much with to about but a a semicon, the that of of I and in space, approach as of bit at that generally it starting before tracks saying kind certainly It's about, 'XX places, early some level. In single-digit in, couple we really see what other full dialed think of we're back comes though, half overall. high industrial growth FSDP, to signs. in we mentioned kind I little some have has and the in of talked we're and

add modest more And you do it's I right low Abhi, now. So the want range to something single-digit know, there? in don't

Abhishek Khandelwal

just No, kind the I comparing this, I'd add we only year-over-year think tricky talked last we've think -- thing what look, is given Yes. year. is about of it I saw

look QX tied sequential us the out, it's So to about of I million order from blanket our of is order of I'd saw ship order patterns point important uptick, the blanket QX, XXXX. to say that I FSDP, that, kind trends, sequential if was to of at we give half large $XX $XX look at million customers with throughout that that we think

other is normal The half book-to-bill.

at we've the lastly, story FSDP orders and half up FMT, million us. look India, to markets for Again, the our half blanket. bellwether we're really businesses exciting being coming about demand the tied emerging out and sequentially. true about You that is around And in $XX other of that's growth

saw that you So sequentially.

look key again, that's the here business given I So at to better in I is the sequentially the are it look a think because think at to cycle. here, we focus the way where

Operator

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

Nathan Jones

are It's Getting that from seeing quarter obviously customers your into and going off an Is lot that a pretty customers? bottom that visibility the close your back lot HST back end have you rightsized inventory there. destocking continued those the of that? quite on And did of view businesses. 'XX. you're of have Customers of to orders it been from patterns moving third still to some area where a the out your of up are your kind sequential do and customer on Or to is what inventories order we're improvement destocking selling?

Eric Ashleman

down because a answer I'll the kind of pieces. of so the the bit HST portion-ality Well, on depending varies break think I

those in broadly past industrial, largely the it areas, half I are more of again, destocking they're And IDEX. like of trends -- us. and think say So other I'd the FMT is like rest

because, core. frankly, positive, consumption of and those more seeing become industrial lift you're And we're the And so part levels about at them. rise that as that we of in with it's

in you dynamic elsewhere. about see you see of the half that same So HST

the visibility, a just to is trickier of other extension of bit areas, the think murkier those supply I little be a and it's chains. the fair, because little in

analytical inventory fast and that don't and and ultimately, of of things science see. life in devices, about course, different there all inventory I us and now instrumentation, so global And to course, we accumulation are can reach, best which, there. End us, an probably between the factories. for ask harder here So see see cleared through. of there We are it that platforms probably have for pockets that out there us still and working time very we're

I'd some but or say is. And as pieces be So then think there harder four of minor there's effect I in the there, just outside different it well see to moderate experience they're walls may our and they're semicon. usual of and kind where varies such semicon, of discrete because

us, would So bottom, cleared which as for indicate, too. things the stock consignment starting and that's of said, to inventory okay, with move associated simple kind it's memory, I we off that

the things end of higher of of metrology. Some more or the kind other high-end lithography at tech anchored the spectrum, towards

industry entire honestly, I waiting for catalyst the get -- just demand stronger moving. a there waiting and we're quite think is it -- to

the clear, and depending on half looks segment two say of and then figure large kind half, other IDEX industrial the So these pieces. a XX-XX of generally I'd lot like

Nathan Jones

Maybe back we've target? EBITDA in it and a XX%. said environment, -- the you margin about margin to first, normalized historically, think volume Because back I to more an That's that margins... that is been operating Is talking question gets where helpful. on

Abhishek Khandelwal

item. margins EBITDA

Nathan Jones

very to of you likely be particularly your labor that's be downturn, to during short I highly-skilled during really And that that a would business one would this that, think Yes. and rationalize lot hesitant cyclical. that carries downturn,

all and us some come there what in adjust? seeing as of to And these in incrementals Is on so other pretty result that's commentary that in out the of you'd as should out expect decrementals led of can see very high we give margins that any side. very see high good HST that But incremental that segment. kind of to operating you we leverage volume you're

Abhishek Khandelwal

the how rightsize made Well, cycle. Again, believe of been Eric vision, out expect this your the answer, to terms as the point vision thoughtful we Nathan, which business. is, about it, we've I in come we very, very business say long talks you in is as and the we long-term the of point, think but will business this I the grow to of

you long it's make business. should is as term the the about the the if XX% on as the we expect, in north say to incrementals think you it, depending XX% the grow on of So business we uptick, I'd the incrementals not over investments

Operator

of TD Our comes Cowen. from with question the Giordano next line Joe

Joseph Giordano

the Just curious is? I like a we're internationally period things here of that? destock need and like here, there potential end bit the like and to we on But like is sort given call. end and and over a what's adjust this what next there's tools life at happening that I adjustments the multiyear do the -- top of to medium over there clear to what HST, the science like like piece of term, all like like is of any like know going term long we think mean get is the the potential

Eric Ashleman

highest of there projecting. there's things out to think a the I probably level couple Well, when at you're consider

I you one of hit think them.

something this of position more high a think part supply. that customers recently big about. I think issue ultimate was everybody the of is a of has It's . market, of currently in the for it to catalyst So such growth China most we here because the

some have over stimulus mix. there. And I are any that from applied you been this that where regulatory are know, haven't in out as there there things particular in comes there, the a that so programs move big area seen kind of out

ultimately of where kind question. it an think, in, So open I is settles

things offset done. in continue get the to side, see advancements higher on of the potential populations On just growth customers building where as other that potentially could and though, work with does here. even what I probably you know it, it that on and a positive may we think massive our question we're of global certainly the on working the technology land have that

on So China next do nature what seeing goes can track is biggest and kind the and of the calls. it probably positive of I keeping two put is and right question to it of it all a a innovation where

Joseph Giordano

that China think in, that be globally, a Would kind a demand be this to baseline it to how term you of it's global going like whether like say in needs needs longer where about it? over basis? up Like there's fungible? you is elsewhere, and put it's friction just or shorter-term it's Is like put and

Eric Ashleman

side I And of China the had that's in course, of it. relative from is the what pronounced how certainly, it I we transformational the other. positive is it's this our adjustment reach franchise intended one that's term, things global population. And and think the would with that and on years what nature global mean, now. a technology, few ultimately think scale. But just is always think not the of on having and of life-saving about I -- it about couple applying a particular, of That's been technology, one exactly we long trivial. piece, is

have that. We

if to shift to that's it well with. we're another do and align begins up actually the So set to to from move very one region around work, something

near blowing. It's well way which So are think winds -- in that's term, -- it's stated. the I the

about very, scale the of very And to think do more term, these chase questions. medium seems we long regionally think assured. have it, key it's it do. I and And term, it's go more ultimately I around some you

Operator

from the comes Summerville question next Our Matt with Davidson. of line D.A.

Matt Summerville

which what a which on more maybe present, wanted a maybe M&A markets far just detailed as focused Just I of in little seeing purchase end multiples? pipeline as have seen bit more commentary you're and businesses, you little are color there. price granularity little the you at a on bit

Eric Ashleman

point I Yes. the that fact pieces. talk Well, mean, think the remarks you in had. complementary we're looking made special I about for that I saw to a I

attach in last done X to optics how at that IDEX the other processing on had it we high areas of and Muon where call well I that So mentioned, and factor, things space, frankly, space. the of then over fits water level, STC. form kind years I that's the small material-intensive And

to question And sciences to not great purchase we're the of as these but when the them, just So job it scale back points, see and natural that comes the can do business, absolute businesses it talked vision are to arena a that globalizes. trying we create in synergies. that attachment only can we are well of have IDEX-like there, much of something about we more that we relative the frankly, a which matches purchasing we life

would that think you take there. see I as the of here can applied areas highlighted things of and so areas high be I that we've And those interest, -- the you can evidence

recently think said that. will do capital I for consistently we'll just pricey. very, in of We did expectations, Even of business. can remains if turns look for deployed more it case -- would we we limit meet what at were work not. and here to where you, IDEX, the the higher do we I with lot and the put and quite a of know for we continue be I it's couple valuations, that, disciplined in we've are quality to like held think we've that the is. we us go still that some what number complementary tell And line the very they're the about kind of The a willing where we've just

that think would So aspect a is I put net for other I us. one positive

two us. in to only it's with where ourselves continue people generally having We of conversations find the proprietary spaces,

And -- head we're gives putting the urgent. a the think absolutely this we're in I effort in, mean important bit so here of that's is too. environment, the That that's you in. start. But time a putting I takeaway

looking but in niches, basis, narrower focus line needs a the for super end we well are and quite and where careful about in we're within to these for us. We proprietary our valuation on that doing things are -- we scale attach naturally because are but it

Matt Summerville

muni talking ultimate a minute for of could as strength and Got kind of duration and of kind playing you follow-up, as maybe cycles just about a the then the spend out it. water it you see And IDEX? wastewater

Eric Ashleman

Yes.

very it durable. bang, bolt is I've think, actually, before, said it I launches don't be lightning duration a I of going couple with a times of a as to but think or the

funded of take engineered and funding announcements being to been a home projects had there. are find that now put deployed. have lot intentional their out while Those way a always and You've

in So frankly, focus, unfortunate can't and much that much another systems very we this current that where cycle -- the I have one are positive there. I I've climate not think think this things just reinforcement the out cope intentional of this with about to seen terms in is and of what's able

of that what things for front make get get those really cycles, together, to it is know two approved industrial budget them is confidence the you So what to put of takes it the we spaces us. to through municipalities and things the conversations and level inevitable of in engineers and work, number to do

remind we're to of they a The when our folks always point water last what analysis. think external I is lot of doing businesses, consider

generally doing we're infrastructure So then of that customer providing and over set. technical our a part analysis for

actually we're beginning that diagnostic kind time, capital larger of they're using the a the our substantiate because our of the of at And -- to information positioned so and much to in cycle well projects. as way, output

helping a kind of for multiyear that's is place a we're IDEX projects the together beginning because extend overall. going in so them And cycle, the to good of here actually be to cycle put the

Operator

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

Robert Wertheimer

remarks you do whether Eric, there an semiconductors I in willing. you're your what of in capabilities interesting you're and out your opening is if on of huge of touched pricing Anything across -- kind new any power, flesh which your how AI technological pockets have sorts changing, you demand, you can entering a is things, all exposure semiconductors? industrials. expanded of there, are shift, just comments topic obviously segment wonder, on driving the on

Eric Ashleman

found of I still recently it. of growing some mean a it's overall, portion has and it's of the way into acquired and its the appreciate I portfolios it's growing, No, modest in things Yes. we've HST. but IDEX,

technologies focused we've #X and to it. about interested jobs on interest. and more certainly of I this And ones we're the we our area hardest in, is it, brought as So thought the revolution mean, those do particularly within

advanced the the work, piece called we're into are being hardest ones some right that and the there the to upon that's to instruments out this. do going architecture So most are are those chip that of lithography support going because often to of the create

indexed we there. have of well. was So we're long that's water about We've business all a job our had that, within portion done that the Even on that metrology validating well piece in I And heating. delivery in the best mean one semi-focused, it's talked have and eco-friendly we somewhat critical our the sustainability purification, solutions absolute that of about whole report water as we company. that's

and critical what And fragmented provide do to the us, the because different comes when hardest the so it's about benefit But from. you thinking It's where market. that's technologies. that and broad are typically, done segmented generally think they of jobs a can differentiation economic most are us as into uses for most

chips, play that for trends, those so can that And size we're ways all and that the of tracking of they're the looking being packaged different we a way lot -- there. the

So of how indexed, we're that that's that's think increasing. as just

so think well very, positioned. And ultimately, we're that as very plays I out,

Operator

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

Eric Ashleman

near a in very geopolitical inflation, you appreciate uncertainties Thanks chatter today. the rates, much. there's background. of I election thank term everybody We in lot joining whether out in year. We an Well, IDEX. the it's no some doubt, tensions, obviously out for look, that your it's about hear interest interest think, And there

sensitivity more arrows I time. As think for still businesses like it. the ours broadly, I positive over But to very think I some are and there's others said,

I We've provide going time. moving continue And very here we know, you this As to customers. But here positioned step long over science be where and analytical and things I shareholders term. think we're back say, life with as the instrumentation, for powerful to resources how really within are and discussion incredibly we we going that to for high-quality had in that, to that's to portfolio all execute good we're helpful it's that at were color tracking as think to there you from it. around do

semicon than recently there. aspects day just the our host organic niche that's efforts could other and of here And then of part the well. own what through of of with through every and revolutionary efforts we the more take discussion go the we're we around and the We it and not, our and -- play AI as each building company. a applications, And more had you that through

term long term to so short Have along and forward quarters And to both on the things way that matter, come. and look we're the with and laser-focused great day. talk the continuing a to you

Abhishek Khandelwal

Thank you.

Operator

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

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

IDEX (IEX) 24 Apr 242024 Q1 Earnings call transcript