IEX · 8-K · 20261028PR000026

Gross Margin Drivers

IDEX CORP /DE/ · 2026-10-28 · Importance 18 · Surprise 14

Third-quarter GAAP gross margin rose 60 basis points to 45.1% from 44.5%, while adjusted gross margin increased 70 basis points to 45.2%. Volume leverage, net productivity improvements, and favorable mix drove the gains; price/cost headwinds partially offset them. Adjusted gross margin excludes $0.8 million of restructuring-related charges, including accelerated depreciation tied to an anticipated HST facility closure.

Key facts

• IDEX corporate costs included in consolidated adjusted EBITDA were $25.5 million in third-quarter 2026, up from $21.7 million in the prior-year quarter, primarily due to higher employee-related costs including variable compensation. source
• IDEX third-quarter 2026 gross margin increased to 45.1% from 44.5%, an increase of 60 basis points. source
• IDEX third-quarter 2026 adjusted gross margin increased to 45.2% from 44.5%, an increase of 70 basis points. source
• IDEX’s gross margin and adjusted gross margin increased due to volume leverage, net productivity improvements and favorable mix, partly offset by price/cost headwinds. source
• IDEX HST third-quarter 2026 adjusted EBITDA margin increased primarily due to volume leverage and favorable mix, partly offset by higher employee-related costs, variable compensation and acquisition impacts. source
• IDEX FMT third-quarter 2026 adjusted EBITDA margin increased slightly, reflecting productivity improvements and volume leverage, mostly offset by unfavorable mix and higher variable compensation. source
• IDEX Fire & Safety/Diversified Products third-quarter 2026 adjusted EBITDA margin increased primarily due to volume leverage, favorable mix and net productivity improvements, partly offset by price/cost headwinds. source