IEX · Earnings call · 2026Q3T · Full report

Gross Margin Drivers

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

Adjusted gross margin expanded 70 basis points year over year to 45.2%, driven mostly by volume leverage and productivity. Adjusted EBITDA margin rose 50 basis points to 27.8%, with targeted pricing and productivity keeping the company ahead of inflation. HST adjusted EBITDA margin expanded 110 basis points to 28.8% on volume leverage, while FMT margin rose 20 basis points to 33.9% as productivity and volume leverage more than offset mix headwinds. FSDP margin increased 140 basis points to 28.5%, supported by productivity, volume leverage, and mix.

Key facts

• IDEX's Q3 2026 adjusted gross margin expanded 70 basis points to 45.2%, driven mostly by volume leverage and productivity.
• HST's Q3 2026 adjusted EBITDA margin expanded 110 basis points to 28.8%, driven mostly by volume leverage.
• FSDP Q3 2026 adjusted EBITDA margin expanded 140 basis points to 28.5%.