IEX · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

IDEX CORP /DE/ · 2026-10-28 · Importance 40 · Surprise 40

Third-quarter gross margin increased 60 basis points to 45.1% from 44.5%, and nine-month gross margin increased 50 basis points to 45.5% from 45.0%. Gross profit rose $38.9 million to $429.5 million for the quarter and $102.7 million to $1,254.4 million for nine months. Net operational productivity and volume leverage supported gross profit and margin; quarter mix was favorable, while nine-month mix was unfavorable. Favorable price/cost supported gross profit, but costs were not fully recovered at historical margin rates; IEEPA tariff refunds were included in price/cost benefits.

Key facts

• For the three months ended September 30, 2026, gross margin was 45.1%, up 60 basis points; for the nine months ended September 30, 2026, it was 45.5%, up 50 basis points. source
• Favorable price/cost benefited gross profit, but cost increases were not fully recovered at historical margin rates, creating gross margin pressure in both periods presented. source
• During the third quarter of 2026, IDEX's continuous improvement efforts, 8020, and measured pricing actions expanded margins while absorbing higher costs. source
• Gross profit and gross margin for the three and nine months ended September 30, 2026 benefited from net operational productivity improvements and volume leverage. source
• Mix benefited gross profit and gross margin for the three months ended September 30, 2026, but was unfavorable for the nine months ended September 30, 2026. source
• Foreign currency translation favorably impacted gross profit for the nine months ended September 30, 2026, with no impact to gross margin. source