IDEX CORP /DE/
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
IEX$226.99+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0000832101-26-000009
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0000832101-26-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 94 previous paragraphs and 108 current paragraphs.
55 unchanged; 37 reworded; 16 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
On February 20, 2026, the U. S. Supreme Court issued a decision invalidating the broad-based tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). The Company collected substantially all of the anticipated refunds of previously paid IEEPA tariffs during the second quarter of 2026, resulting in a $22.0 million reduction of Cost of sales as well as a $14.7 million reduction of Net sales from expected customer rebates associated with the refunds.
Current report
Interest expense – net for the three and six months ended June 30, 2026 decreased due to interest income of $0.6 million associated with IEEPA tariff refunds received.
Current report
The Company prepares its financial statements in accordance with U.S. GAAP. To supplement its U.S. GAAP financial results, the Company presents certain non-GAAP financial measures. Management uses these non-GAAP measures to evaluate operating performance, assess trends, allocate resources and support financial and operational decision-making. Management believes these measures provide investors with additional insight into the Company’s ongoing business performance and enhance comparability across reporting periods by excluding the impact of items that management does not consider reflective of ongoing operations.
Current report
The Company defines its non-GAAP measures below and presents reconciliations of these non-GAAP measures to their most directly comparable U.S. GAAP measures in the tables that follow. There were no adjustments to U.S. GAAP financial performance metrics other than the items noted below.
Current report
•Organic sales are calculated as Net sales excluding amounts from acquired or divested businesses during the first twelve months of ownership or prior to divestiture and excluding the impact of foreign currency translation.
Current report
•Adjusted gross profit is calculated as Gross profit, adjusted to exclude the impact of fair value inventory step-up charges and restructuring-related charges.
Current report
•Adjusted gross margin is calculated as Adjusted gross profit divided by Net sales.
Current report
•Adjusted net income attributable to IDEX is calculated as Net income attributable to IDEX, adjusted to exclude the impact of Restructuring expenses and asset impairments and other restructuring-related charges, acquisition-related intangible asset amortization and legal settlements and contingencies, all net of the statutory tax expense or benefit.
Current report
•Adjusted diluted EPS attributable to IDEX is calculated as Adjusted net income attributable to IDEX divided by the diluted weighted average shares outstanding.
Current report
•Consolidated Adjusted EBITDA is calculated as consolidated earnings before interest expense - net, income taxes, depreciation and amortization, or consolidated EBITDA, adjusted to exclude the impact of Restructuring expenses and asset impairments and other restructuring-related charges and legal settlements and contingencies.
Current report
•Consolidated Adjusted EBITDA margin is calculated as Consolidated Adjusted EBITDA divided by Net sales.
Current report
(1) Restructuring-related charges represent accelerated depreciation related to the anticipated closure of a facility in the HST segment.
Current report
(1)Restructuring expenses and asset impairments and other restructuring-related charges consist of the following:
Current report
(a) Restructuring expenses and asset impairments recorded during the three and six months ended June 30, 2025, respectively, included charges of $0.6 million recognized by the Company’s joint venture, $0.3 million of which was attributable to noncontrolling interest.
Current report
(b) Other restructuring-related charges represent accelerated depreciation related to the anticipated closure of a facility in the HST segment.
Current report
(1) Depreciation includes accelerated depreciation related to the anticipated closure of a facility in the HST segment, which was included in Restructuring-related charges in Table 2 and in Restructuring expenses and asset impairments and other restructuring-related charges in Table 3 above.
Removed paragraphs (2)
Previous report
Interest expense – net for the three months ended March 31, 2026 was consistent with the prior year period.
Previous report
Set forth below are reconciliations of Organic sales, Adjusted net income attributable to IDEX, Adjusted diluted EPS attributable to IDEX, Consolidated Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) and Consolidated Adjusted EBITDA margin to their respective most directly comparable U.S. GAAP measure. There were no non-GAAP adjustments to Gross profit or Gross margin during either the three months ended March 31, 2026 nor 2025. Management uses these metrics to measure performance of the Company since they exclude items that are not reflective of ongoing operations, as identified in the reconciliations below. Management also supplements its U.S. GAAP financial statements with adjusted information to provide investors with greater insight, transparency and a more comprehensive understanding of the information used by management in its financial and operational decision making.
Reworded paragraphs (37)
Previous wording
•Reported Net sales of $886.9 million increased 9% overall and increased 5% organically*
Current wording
•Reported Net sales of $920.6 million increased 6% overall and increased 5% organically*
Previous wording
•Reported diluted earnings per common share (“EPS”) attributable to IDEX of $1.61 increased 28%
Current wording
•Reported diluted earnings per common share (“EPS”) attributable to IDEX of $1.93 increased 11%
Previous wording
•Adjusted diluted EPS attributable to IDEX* of $2.00 increased 14%
Current wording
•Adjusted diluted EPS attributable to IDEX* of $2.32 increased 12%
Previous wording
•Returned capital to shareholders in the form of $76.3 million of share repurchases and $52.8 million of dividends
Current wording
•Returned capital to shareholders in the form of $77.1 million of share repurchases and $53.9 million of dividends
Previous wording
During the first quarter of 2026, the Company delivered strong results driven by higher than anticipated volumes in targeted advantaged markets, including data centers, semiconductor and space and defense, within the Health & Science Technologies (“HST”) segment along with positive price across the Company’s segments. The quarter’s results also reflect net operational productivity gains and favorable translation, partly offset by unfavorable mix.
Current wording
During the second quarter of 2026, the Company delivered strong results. Higher than anticipated volumes continued in targeted advantaged markets, including data centers, semiconductor and space and defense, primarily within the Health & Science Technologies (“HST”) segment. The net impact of IEEPA tariff refunds (defined and described below) more than offset a challenging prior year price/cost comparison and contributed an $0.08 benefit to EPS.
Previous wording
On February 20, 2026, the U. S. Supreme Court issued a decision invalidating the broad-based tariffs imposed under the International Emergency Economic Powers Act. In response to the U.S. Supreme Court ruling, the administration implemented new tariffs under alternative statutory authority. The tariffs enacted in 2025 and in the first quarter of 2026 did not have a material impact on the Company’s business or financial statements in the periods presented. The Company will continue to monitor the situation, including the timing and amount of any refunds of such tariffs, and expects it will be able to continue to mitigate the potential unfavorable impact of tariffs.
Current wording
In response to the U.S. Supreme Court ruling, the administration implemented new tariffs under alternative statutory authority and may continue implementing other additional tariffs. The tariffs enacted in 2025 and in the first quarter of 2026 did not have a material impact on the Company’s business or financial statements in the periods presented.
Previous wording
The following is a discussion and analysis of the Company’s results of operations for the three months ended March 31, 2026 compared with the three months ended March 31, 2025.
Current wording
The following is a discussion and analysis of the Company’s results of operations for the three and six months ended June 30, 2026 compared with the three and six months ended June 30, 2025.
Previous wording
Net sales for the three months ended March 31, 2026 increased as compared to the same prior year period as a result of increased organic sales, favorable impacts from foreign currency and contributions from acquisitions. Organic sales for the same period increased 5% primarily driven by higher volumes in the HST segment, which were slightly offset by lower volumes in the Company’s Fire & Safety/Diversified Products (“FSDP”) and Fluid Metering Technologies (“FMT”) segments. The increase also reflects positive price across all segments.
Current wording
Net sales for the three and six months ended June 30, 2026 increased as compared to the same prior year periods primarily as a result of increased organic sales, as well as favorable impacts from foreign currency and contributions from acquisitions. Organic sales for the same periods both increased 5%, primarily driven by higher volumes in the HST segment, which were partially offset by lower volumes in the Company’s Fire & Safety/Diversified Products (“FSDP”) segment, while volumes in the Company’s Fluid & Metering Technologies (“FMT”) segment were reasonably flat in both periods. The increase in both periods also reflects positive price. Net sales for the three and six months ended June 30, 2026 included a $14.7 million reduction resulting from expected customer rebates associated with IEEPA tariff refunds.
Previous wording
Gross profit and Gross margin for the three months ended March 31, 2026 were positively impacted by volume leverage and net operational productivity improvements, and while gross profit further benefited from positive price/cost, gross margin was pressured by price/cost. Both were negatively impacted by unfavorable mix. Gross profit also reflected favorable impacts from foreign currency.
Current wording
Gross profit and Gross margin for the three and six months ended June 30, 2026 were positively impacted by volume leverage, net operational productivity improvements and positive price/cost. Positive price/cost was driven by the net benefit of IEEPA tariff refunds of $7.3 million, which benefited Gross margin for the three and six months ended June 30, 2026 by 150 basis points and 70 basis points, respectively, and more than offset a challenging prior year price/cost comparison. These improvements were partially offset by unfavorable mix. Gross profit for the three and six months ended June 30, 2026 also reflected favorable impacts from foreign currency.
Previous wording
Selling, general and administrative expenses increased for the three months ended March 31, 2026, reflecting a $2.7 million increase from acquisitions, including amortization, as well as higher employee-related costs and increased professional services spending, partially offset by proceeds received related to a legal settlement, as compared to the same prior year period.
Current wording
Selling, general and administrative expenses increased for the three and six months ended June 30, 2026, reflecting a $2.8 million and $5.5 million increase from acquisitions, including amortization, respectively, as well as higher employee-related costs, including variable compensation, and increased professional services spending, partially offset by proceeds received related to legal settlements, as compared to the same prior year periods.
Previous wording
Restructuring expenses and asset impairments for the three months ended March 31, 2026 primarily relate to asset impairments of $4.8 million related to intangible assets and property, plant and equipment within the Company’s FMT segment. The three months ended March 31, 2026 also includes severance costs that were incurred as a result of employee reductions. Restructuring expenses and asset impairments for the three months ended March 31, 2025 primarily relate to severance costs that were incurred in conjunction with organizational changes.
Current wording
Restructuring expenses and asset impairments for the three months ended June 30, 2026 primarily relate to severance costs that were incurred as a result of employee reductions. The six months ended June 30, 2026 also include asset impairments of $4.8 million related to intangible assets and property, plant and equipment within the Company’s FMT segment. Restructuring expenses and asset impairments for the three and six months ended June 30, 2025 primarily relate to severance costs that were incurred in conjunction with organizational changes.
Previous wording
Other (income) expense – net during the three months ended March 31, 2026 reflects the impact of foreign currency gains, while the three months ended March 31, 2025 reflects the impact of foreign currency transaction losses.
Current wording
Other (income) expense – net during the three and six months ended June 30, 2026 reflects the impact of foreign currency transaction gains, while the three and six months ended June 30, 2025 reflects the impact of foreign currency transaction losses.
Previous wording
The effective tax rate was 23.6% for the three months ended March 31, 2026, reasonably consistent with 23.4% during the same period in 2025. For additional information, refer to Note 15, “Income Taxes”, in the Notes to Condensed Consolidated Financial Statements.
Current wording
The effective tax rate was 23.0% and 23.3% for the three and six months ended June 30, 2026, respectively, reasonably consistent with 22.9% and 23.1% during the respective same periods in 2025. For additional information, refer to Note 15, “Income Taxes”, in the Notes to Condensed Consolidated Financial Statements.
Previous wording
The Company has three reportable segments: Health & Science Technologies (“HST”), Fluid & Metering Technologies (“FMT”) and Fire & Safety/Diversified Products (“FSDP”). For a detailed description of the operations within each segment, refer to Note 13, “Business Segments and Geographic Information,”in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Management’s measurements of segment performance are Net sales, adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) and Adjusted EBITDA margin.
Current wording
The Company has three reportable segments: Health & Science Technologies (“HST”), Fluid & Metering Technologies (“FMT”) and Fire & Safety/Diversified Products (“FSDP”). For a detailed description of the operations within each segment, refer to Note 13, “Business Segments and Geographic Information,”in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Management’s measurements of segment performance are Net sales, Adjusted EBITDA and Adjusted EBITDA margin. See the section below titled “Non-GAAP Disclosures” for definitions of Adjusted EBITDA and Adjusted EBITDA margin.
Previous wording
The table below illustrates the share of Net sales and Adjusted EBITDA contributed by each segment on the basis of total segments (not total Company) for the three months ended March 31, 2026.
Current wording
The table below illustrates the share of Net sales and Adjusted EBITDA contributed by each segment on the basis of total segments (not total Company) for the three and six months ended June 30, 2026.
Previous wording
(1) Segment Adjusted EBITDA excludes the impact of unallocated corporate costs of $30.1 million for the three months ended March 31, 2026.
Current wording
(1) Segment Adjusted EBITDA excludes the impact of unallocated corporate costs of $26.2 million and $56.3 million for the three and six months ended June 30, 2026, respectively.
Previous wording
•Organic sales for the three months ended March 31, 2026 reflect higher volumes primarily due to AI-driven demand for data center power and semiconductor markets, as well as strength in space and defense, partially offset by lower volumes in the Company’s life sciences businesses. Net sales also reflect positive price across the segment.
Current wording
•Organic sales for the three and six months ended June 30, 2026 reflect higher volumes primarily due to AI-driven demand for data center power and semiconductor markets, as well as strength in space and defense and positive price. Net sales for both the three and six months ended June 30, 2026 included a $9.3 million reduction resulting from expected customer rebates associated with IEEPA tariff refunds, which unfavorably impacted organic sales growth by 2% for both periods.
Previous wording
•Adjusted EBITDA margin for the three months ended March 31, 2026 increased primarily due to volume leverage and favorable price/cost, partially offset by unfavorable mix and the impact of acquisitions.
Current wording
•Adjusted EBITDA margin for the three and six months ended June 30, 2026 increased primarily due to volume leverage. Higher variable compensation and the impact of acquisitions more than offset positive price/cost. Positive price/cost was driven by the net impact from IEEPA tariff refunds, which benefited Adjusted EBITDA margin for the three and six months ended June 30, 2026 by 90 basis points and 50 basis points, respectively. While mix had a favorable impact on Adjusted EBITDA margin for the three months ended June 30, 2026, mix negatively impacted Adjusted EBITDA margin for the six months ended June 30, 2026.
Previous wording
•Organic sales for the three months ended March 31, 2026 reflect positive price. Higher volumes in the Company’s businesses serving municipal water, semiconductor and mining markets were more than offset by lower volumes in the Company’s chemical and industrial businesses.
Current wording
•Organic sales for the three and six months ended June 30, 2026 reflect positive price. Volumes in both periods were reasonably flat with higher volumes in the Company’s businesses serving municipal water, semiconductor and mining markets offset by lower volumes in the Company’s businesses serving the energy, agriculture and chemical markets. Net sales for both for the three and six months ended June 30, 2026 included a $3.2 million reduction resulting from expected customer rebates associated with IEEPA tariff refunds, which unfavorably impacted organic sales growth by 2% for the three months ended June 30, 2026, but only had a minimal impact for the six months ended June 30, 2026.
Previous wording
•Adjusted EBITDA margin for the three months ended March 31, 2026 decreased due to unfavorable mix and volume deleverage, mostly mitigated by net productivity improvements.
Current wording
•Adjusted EBITDA margin for the three and six months ended June 30, 2026 decreased due to unfavorable mix and higher variable compensation, the impacts of which were mostly mitigated by net productivity improvements and positive price/cost. Positive price/cost was driven by the net impact from IEEPA tariff refunds, which benefited Adjusted EBITDA margin for the three and six months ended June 30, 2026 by 180 basis points and 90 basis points, respectively, more than offsetting a challenging prior year price/cost comparison.
Previous wording
•Organic sales for the three months ended March 31, 2026 reflect higher volumes in the Company’s Fire & Safety businesses and positive price, which were more than offset by lower volumes within the Company’s Dispensing businesses driven by timing of projects.
Current wording
•Organic sales for the three and six months ended June 30, 2026 reflect higher volumes in the Company’s BAND-IT business and positive price, which was more than offset by lower volumes in other FSDP businesses, resulting from the Company’s Fire & Safety businesses, driven by lower European rescue demand during the three months ended June 30, 2026 and the Company’s Dispensing businesses during six months ended June 30, 2026. Net sales also included a $2.2 million reduction resulting from expected customer rebates associated with IEEPA tariff refunds, which unfavorably impacted organic sales growth for both the three and six months ended June 30, 2026 by 1%.
Previous wording
•Adjusted EBITDA margin increased for the three months ended March 31, 2026 primarily due to net productivity improvements, partially offset by unfavorable mix and volume deleverage.
Current wording
•Adjusted EBITDA margin decreased for the three and six months ended June 30, 2026 primarily due to unfavorable mix and volume deleverage, partially offset by net productivity improvements and positive price/cost. Positive price/cost was driven by the net impact from IEEPA tariff refunds, which benefited Adjusted EBITDA margin for the three and six months ended June 30, 2026 by 120 basis points and 60 basis points, respectively, more than offsetting a challenging prior year price/cost comparison.
Previous wording
Foreign currency translation decreased Operating working capital by $6.2 million during the three months ended March 31, 2026. Apart from the translation impact, the primary drivers of the change in Operating working capital were higher receivables, which increased due to higher sales volumes and positive price, and higher inventories, which increased to support planned production.
Current wording
Acquisitions and foreign currency translation decreased Operating working capital by $7.5 million during the six months ended June 30, 2026. Apart from these items, the primary drivers of the change in Operating working capital were higher sales volumes and positive price leading to higher receivables and higher inventories, which increased to support planned production. The increase in Operating working capital was partly offset by expected customer rebates associated with IEEPA tariff refunds.
Previous wording
Cash provided by operating activities decreased $2.0 million in the three months ended March 31, 2026 as compared to the prior year period. Improved operational results were offset by increased receivable balances, driven by timing of customer payments.
Current wording
Cash provided by operating activities increased $36.3 million in the six months ended June 30, 2026 as compared to the prior year period. Improved operational results and cash received for IEEPA tariff refunds of $21.1 million was partially offset by higher operating working capital discussed above.
Previous wording
Cash used in investing activities increased $10.4 million in the three months ended March 31, 2026 as compared to the prior year period reflecting the absence of $4.2 million of funds received in connection with the finalization of the Mott purchase price in the prior year period and a $3.4 million increase in capital expenditures.
Current wording
Cash used in investing activities increased $18.2 million in the six months ended June 30, 2026 as compared to the prior year period reflecting a $11.6 million increase in capital expenditures and the absence of $4.2 million of funds received in connection with the finalization of the Mott purchase price in the prior year period.
Previous wording
Cash used in financing activities decreased $64.5 million in the three months ended March 31, 2026 as compared to the prior year period. The three months ended March 31, 2026 included $84.9 million of higher net draws under the Revolving Facility and $6.3 million of higher proceeds from stock option exercises, net of shares withheld for taxes, partially offset by $26.3 million of higher share repurchases.
Current wording
Cash used in financing activities decreased $141.1 million in the six months ended June 30, 2026 as compared to the prior year period. The six months ended June 30, 2026 included $84.4 million of higher net draws under the Revolving Facility and $10.8 million of higher proceeds from stock option exercises, net of shares withheld for taxes, partially offset by $53.4 million of higher share repurchases. The six months ended June 30, 2025 also included a $100.0 million payment on long-term borrowings that did not reoccur in the current year period.
Previous wording
Subsequent to March 31, 2026, the Company repurchased 0.1 million shares at a cost of $21.8 million.
Current wording
Subsequent to June 30, 2026, the Company repurchased 0.1 million shares at a cost of $21.7 million.
Previous wording
Capital expenditures generally include machinery and equipment that support growth and improved productivity, tooling, business system technology, replacement of equipment and investments in new facilities. The Company believes it has sufficient operating cash flows to continue to meet current obligations and invest in planned capital expenditures. Cash flows from operations were more than adequate to fund capital expenditures of $17.7 million and $14.3 million in the first three months of 2026 and 2025, respectively.
Current wording
Capital expenditures generally include machinery and equipment that support growth and improved productivity, tooling, business system technology, replacement of equipment and investments in new facilities. The Company believes it has sufficient operating cash flows to continue to meet current obligations and invest in planned capital expenditures. Cash flows from operations were more than adequate to fund capital expenditures of $40.7 million and $29.1 million in the first six months of 2026 and 2025, respectively.
Previous wording
During the three months ended March 31, 2026, the Company repurchased a total of 0.4 million shares at a cost of $75.6 million (including estimated excise taxes of $0.6 million, which will be paid in 2027), of which $0.9 million was settled in April 2026. During the three months ended March 31, 2025, the Company repurchased a total of 0.3 million shares at a cost of $50.4 million (including estimated excise taxes of $0.4 million). As of March 31, 2026, the amount of share repurchase authorization remaining was $849.7 million, excluding fees, commissions, excise taxes and other expenses related to such common stock repurchases. For additional information regarding the Company’s share repurchase program, refer to Note 11, “Share Repurchases,” in the Notes to Condensed Consolidated Financial Statements.
Current wording
During the six months ended June 30, 2026, the Company paid $153.4 million for share repurchases, comprised of $148.9 million for shares repurchased and settled during the period, $2.2 million for shares repurchased in December 2025 that settled in January 2026 and $2.3 million of excise taxes for shares repurchased in 2025. During the six months ended June 30, 2025, the Company paid $100.0 million for shares repurchased and settled during the period. As of June 30, 2026, the amount of share repurchase authorization remaining was $774.7 million, excluding fees, commissions, excise taxes and other expenses related to such common stock repurchases. For additional information regarding the Company’s share repurchase program, refer to Note 11, “Share Repurchases,” in the Notes to Condensed Consolidated Financial Statements.
Previous wording
Total dividend payments to common shareholders were $52.8 million during the three months ended March 31, 2026 compared with $52.4 million during the three months ended March 31, 2025.
Current wording
Total dividend payments to common shareholders were $106.7 million during the six months ended June 30, 2026 compared with $105.9 million during the six months ended June 30, 2025.
Previous wording
At March 31, 2026, the Company was in compliance with the covenants contained in the credit agreement associated with the Revolving Facility as well as other long-term debt agreements. The key financial covenants that the Company is required to maintain in connection with the Revolving Facility and the 5.13% Senior Notes, are a minimum interest coverage ratio of 3.0 to 1 and a maximum leverage ratio of 3.50 to 1. At March 31, 2026, the Company’s interest coverage ratio was 13.85 to 1 for covenant calculation purposes and the leverage ratio was 1.93 to 1. There are no financial covenants relating to the 2.625% Senior Notes, the 3.00% Senior Notes or the 4.950% Senior Notes; however, all are subject to cross-acceleration provisions.
Current wording
At June 30, 2026, the Company was in compliance with the covenants contained in the credit agreement associated with the Revolving Facility as well as other long-term debt agreements. The key financial covenants that the Company is required to maintain in connection with the Revolving Facility and the 5.13% Senior Notes, are a minimum interest coverage ratio of 3.0 to 1 and a maximum leverage ratio of 3.50 to 1. At June 30, 2026, the Company’s interest coverage ratio was 14.17 to 1 for covenant calculation purposes and the leverage ratio was 1.87 to 1. There are no financial covenants relating to the 2.625% Senior Notes, the 3.00% Senior Notes or the 4.950% Senior Notes; however, all are subject to cross-acceleration provisions.
Previous wording
The Company had $19.3 million of letters of credit as of March 31, 2026, primarily issued as security for insurance and other performance obligations. Of the $19.3 million of letters of credit, only $2.7 million reduced the Company’s borrowing capacity under the Revolving Facility as of March 31, 2026.
Current wording
The Company had $27.9 million of letters of credit as of June 30, 2026, primarily issued as security for insurance and other performance obligations. Of the $27.9 million of letters of credit, only $4.1 million reduced the Company’s borrowing capacity under the Revolving Facility as of June 30, 2026.
Previous wording
Management uses Adjusted EBITDA as its measure of segment performance, and believes it is a useful indicator of the strength and performance of the Company and its segments’ ongoing business operations, as well as a way for investors to evaluate and compare operating performance and value companies within the Company’s industry. Management believes that Adjusted EBITDA margin is useful for the same reason as Adjusted EBITDA. The definition of Adjusted EBITDA used here may differ from that used by other companies.
Current wording
Management uses Adjusted EBITDA as its measure of segment performance. Management believes it is a useful indicator of the strength and performance of the Company and its segments’ ongoing business operations as well as a way for investors to evaluate and compare operating performance and value companies within the Company’s industry. Management believes that Adjusted EBITDA margin is useful for the same reason as Adjusted EBITDA. The definition of Adjusted EBITDA used here may differ from that used by other companies.
Previous wording
This report also references free cash flow. This non-GAAP measure is discussed and reconciled to its most directly comparable U.S. GAAP measure in the section above titled “Free Cash Flow.”
Current wording
•Free cash flow is calculated as cash flows from operating activities less capital expenditures. This non-GAAP measure is discussed and reconciled to its most directly comparable U.S. GAAP measure in the section above titled “Free Cash Flow.”
Previous wording
The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP. Due to rounding, numbers presented throughout this and other documents may not add up or recalculate precisely. The financial results prepared in accordance with U.S. GAAP and the reconciliations from these results should be carefully evaluated.
Current wording
The non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures prepared in accordance with U.S. GAAP and the reconciliations from those results should be carefully evaluated. Due to rounding, numbers presented throughout this and other documents may not add up or recalculate precisely.
Previous wording
(1) Gain on legal settlement represents settlement funds received in excess of legal costs incurred related to a patent infringement lawsuit within the FMT segment.
Current wording
(2) Legal settlements and contingencies represent settlement funds received in excess of legal costs incurred related to a patent infringement lawsuit within the FMT segment and a class action lawsuit at Corporate, net of estimated settlement costs related to certain legal matters within the HST segment.
Previous wording
(1) Gain on legal settlement represents settlement funds received in excess of legal costs incurred related to a patent infringement lawsuit within the FMT segment.
Current wording
(2) Legal settlements and contingencies represent settlement funds received in excess of legal costs incurred related to a patent infringement lawsuit within the FMT segment and a class action lawsuit at Corporate, net of estimated settlement costs related to certain legal matters within the HST segment.