IDEX Corporation has released its 10-K report for the year ended December 31, 2023. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). In 2023, the company delivered strong operating performance despite sharp volume declines as customers recalibrated inventory levels and order patterns following the easing of global supply chain constraints and reduced lead times. Net income attributable to IDEX and Adjusted EBITDA were $596.1 million and $899.6 million, respectively, in 2023, both up 2% from the prior year. Cash flows from operating activities were $716.7 million during the year ended December 31, 2023, reflecting inventory reduction efforts and resulting in record free cash flow of $626.8 million during the year. The company also deployed capital with the acquisition of two businesses – Iridian Spectral Technologies and STC Material Solutions.
Key financial results for the year ended December 31, 2023, when compared to 2022 were as follows: - Net sales increased by 3% to $3,273.9 million. - Gross profit increased by 1% to $1,446.9 million. - Net income attributable to IDEX increased by 2% to $596.1 million. - Diluted EPS attributable to IDEX increased by 2% to $7.85. - Cash flows from operating activities increased by 29% to $716.7 million. - Free cash flow increased by 28% to $626.8 million.
Moving into 2024, the majority of IDEX's businesses are currently experiencing stable demand and seeing early signs of improvement, particularly in the Fluid & Metering Technologies segment. However, the life sciences and analytical instrumentation markets served by approximately one-third of the Health & Science Technologies segment are not yet showing signs of near-term recovery. The company expects the Dispensing reporting unit within the Fire & Safety/Diversified Products segment to contract in 2024 due to the completion of the fleet refreshment cycle of North American customers in 2023, but these declines are expected to be partly offset by growth in the Dispensing reporting unit in emerging markets and growth in the Fire & Safety and BAND-IT reporting units.
In terms of the reportable business segments, the Fluid & Metering Technologies segment saw a 7% increase in net sales and an 11% increase in Adjusted EBITDA. On the other hand, the Health & Science Technologies segment experienced a 2% decrease in net sales and a 13% decrease in Adjusted EBITDA.
Overall, IDEX Corporation has demonstrated strong financial performance in 2023, with increases in key financial metrics such as net sales, gross profit, net income, and cash flows from operating activities. However, certain segments, particularly the Health & Science Technologies segment, faced challenges in organic net sales and Adjusted EBITDA. As a result of these announcements, the company's shares have moved 0.7% on the market, and are now trading at a price of $235.05. For more information, read the company's full 10-K submission here.
