IDEX Corporation
CEO : Mr. Eric D. Ashleman
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 13.4% YoY | 9.1% | 10.3% | 2023-02-01 |
Eric Ashleman says,
Record Financial Results in 2022
- Double-digit organic growth every quarter
- All 3 segments achieved record sales levels
- Record profitability driven by solid execution
Capital Deployment
- Record $950 million deployed for acquisitions of Nexsight, KZValve, and Muon Group
- Invested in core business to increase capacity and drive productivity
- Repurchased 795,000 shares of IDEX stock for $148 million
Outlook for 2023
- Strong backlog positions
- Leveraging innovative technologies for targeted growth opportunities
- Healthy price carryover in addition to new price actions
- Opportunity to drive strong productivity through the application of the IDEX operating model
- Uncertain period of transition due to limited visibility and new dynamics around order patterns and customer delivery timing
- Pockets of demand softness expected
M&A and Organic Investment
- Balance sheet has ample capacity to support M&A strategy and organic reinvestment
- Extended M&A and strategy team building conviction around best opportunities
- Funnel is strong and of high quality
- Identified areas for organic investment to expand capacity, capture market share, and drive operational productivity
Overall Positioning
- IDEX is exceptionally well-positioned to outperform as we move forward
- Agility, resiliency, and fundamental ability to execute
Eric Ashleman says,
Factors Affecting Order Patterns in IDEX
- The majority of order patterns are generated automatically with minimal human intervention.
- The two main factors driving order patterns are lead times and volatility.
- Lead times and volatility can impact demand requirements throughout the system.
- Calibration of inventory positions and resources is important to manage the impact of these factors.
Impact on IDEX
- Normalization of lead times and volatility can have an impact on short-cycle businesses like IDEX.
- The impact is expected to be limited as most of the products are customized and do not stock well.
- Monitoring end market demand is crucial to manage the impact on IDEX.
Q & A sessions,
Refocusing on Foundational Practices and Tools
- 2023 focus areas include refocusing on foundational practices and tools
- Exit from intense years of double-digit organic growth within an environment of temporal barriers and obstacles
- Double down on the core execution elements that make us an excellent company
- Optimize process-driven fundamental business practices to best support future growth and outperformance
Growing Talent at a Faster Rate
- Committed to growing talent at an even faster rate to fuel future IDEX growth
- Excellent execution is led by incredible leaders around the world who are committed to our core values
- Diversity, equity and inclusion continues to be an area of focus
- Recent departure of Melissa Aquino as the new leader of the FMT and FSD segments
Deploying Additional Capital in 2023
- Deployed $1.5 billion over the last 2 years on high-quality growth businesses
- Look forward to deploying additional capital in 2023
- M&A team has made tremendous progress identifying compelling portfolio extensions
- Strong operating cash flow and balance sheet put us in a great position to continue to capitalize on those opportunities
Short-term Economic Picture
- No significant impact on IDEX’s business as of Q4 2022
- Temporally affected by exposure in Q4 and some carry into Q1
- Bellwethers on the industrial side have not been affected
- Back half of the year is more of a macro call in terms of the floor and top end of the range for all of IDEX
PE Activity and Valuations
- IDEX is fishing in a high-quality universe with strategic conviction
- Competition with PE for high-quality properties
- Less activity competitively or people that have been able to raise funding and be in the game
- Valuations overall still pretty rich
No bad stock 