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IDEX IDEX Reports First Quarter Results ; Raises Full Year Guidance ; Q1 Orders and Sales up 10 Percent Overall and 6 Percent Organically ; Q1 Reported EPS Was $ 1.48 With Adjusted EPS Of $ 1.51 April 27 , 2021 NORTHBROOK , III .-- ( BUSINESS WIRE ) -- Apr . 27 , 2021-- IDEX Corporation ( NYSE : IEX ) today announced its financial results for the three month period ended March 31 , 2021 . First Quarter 2021 Highlights • Record orders and sales were up 10 percent overall and 6 percent organically compared to Q1 2020 • Reported operating margin was 23.9 percent with adjusted operating margin of 24.3 percent • Reported EPS was $ 1.48 with adjusted EPS of $ 1.51 • Record Q1 cash from operations of $ 109.3 million led to record Q1 free cash flow of $ 94.7 million • Full year adjusted EPS guidance raised to $ 6.05 to $ 6.20 • Completed the acquisition of ABEL Pumps , L.P. on March 10 , 2021 • Reached an agreement in April 2021 to acquire Airtech Group , Inc. , US Valve Corporation and related entities ( Airtech ) First Quarter 2021 Orders of $ 710.7 million were up 10 percent compared with the prior year period ( +6 percent organic , +1 percent acquisitions and +3 percent foreign currency translation ) . Sales of $ 652.0 million were up 10 percent compared with the prior year period ( +6 percent organic , +1 percent acquisitions and +3 percent foreign currency translation ) . Gross margin of 44.9 percent was down 80 basis points compared with the prior year period primarily as a result of increases to inventory reserves associated with COVID - 19 new product development ( NPD ) opportunities not materializing , lower margins from the ABEL and Flow MD acquisitions and a fair value inventory step - up charge , partially offset by higher volume and price . Excluding the $ 0.7 million pre - tax fair value inventory step - up charge related to the ABEL acquisition , adjusted gross margin of 45.0 percent was down 70 basis points compared with the prior year period . Operating income of $ 155.5 million resulted in an operating margin of 23.9 percent which was up 40 basis points compared with the prior year period primarily as a result of higher volume , price and cost savings , partially offset by restructuring expenses and asset impairments and lower gross margin . Excluding the $ 0.7 million pre - tax fair value inventory step - up charge and $ 2.2 million of restructuring expenses and asset impairments , adjusted operating income was $ 158.4 million with an adjusted operating margin of 24.3 percent , up 80 basis points compared with the prior year period . Provision for income taxes of $ 32.9 million in the first quarter of 2021 resulted in an effective tax rate ( ETR ) of 22.6 percent , which was higher than the prior year period ETR of 20.0 percent primarily due to a decrease in the excess tax benefits related to share - based compensation . Net income attributable to IDEX was $ 112.7 million which resulted in EPS attributable to IDEX of $ 1.48 . Excluding the fair value inventory step - up charge and restructuring expenses and asset impairments , adjusted EPS attributable to IDEX was $ 1.51 , an increase of 18 cents , or 14 percent , from the prior year period . EBITDA of $ 177.9 million was 27.3 percent of sales and covered interest expense by almost 17 times . Adjusted EBITDA of $ 180.8 million was 27.7 percent of sales and covered interest expense by almost 17 times . Cash from operations of $ 109.3 million was up 29.0 percent from the prior year period primarily due to higher earnings and a favorable impact from the timing of accrued expenses . Cash from operations led to free cash flow of $ 94.7 million , which was up 32 percent from the prior year period and was 82 percent of adjusted net income attributable to IDEX . " Our first quarter results were strong , with demand improving both sequentially and year over year as an uneven global recovery continues . We booked record first quarter orders of $ 711 million and built $ 59 million of additional backlog . Organic orders and sales were solid in the first quarter , both up 6 percent . Our teams have performed well amid a variety of obstacles , meeting the challenges as market conditions improved . Strong execution by our teams continues to be central to maintaining our critical supply chains , staying ahead of inflation and converting orders to cash . This execution delivered robust operating margin , EPS and free cash flow that exceeded our expectations . First quarter adjusted operating margin of 24.3 percent drove adjusted EPS of $ 1.51 , up 14 % versus prior year . Cash conversion continued to be outstanding , with record free cash flow of $ 95 million in the first quarter , which was 32 percent higher compared to the prior year period . In addition to delivering strong financial results , we have been able to make significant progress in our capital deployment efforts . Earlier today , we announced our second acquisition for 2021. We have entered into a definitive agreement to acquire Airtech . Airtech is a leading global manufacturer of highly engineered specialty blowers , vacuum pumps and valves . It will be an excellent complement to our existing GAST business in the Health & Science Technologies ( HST ) segment . The M & A funnel remains robust and we are fully committed to pursuing additional opportunities in 2021 that will create value for our shareholders , customers and employees .