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ILEX IDEX Reports Record Third Quarter Results October 26 , 2021 NORTHBROOK , III .-- ( BUSINESS WIRE ) -- Oct . 26 , 2021-- IDEX Corporation ( NYSE : IEX ) today announced its financial results for the three month period ended September 30 , 2021 . Third Quarter 2021 Highlights • Record orders of $ 774.2 million up 36 percent overall and 28 percent organically comp to Q3 2020 • Record sales of $ 712.0 million up 23 percent overall and 15 percent organically compared to Q3 2020 ● Reported operating margin was 22.6 percent with adjusted operating margin of 24.3 percent • Record reported EPS was $ 1.51 with record adjusted EPS of $ 1.63 • Full year adjusted EPS guidance narrowed to $ 6.30 to $ 6.33 compared to prior guidance of $ 6.26 to $ 6.36 Third Quarter 2021 Orders of $ 774.2 million were up 36 percent compared with the prior year period ( +28 percent organic , +7 percent acquisitions / divestitures and +1 percent foreign currency translation ) . Sales of $ 712.0 million were up 23 percent compared with the prior year period ( +15 percent organic , +7 percent acquisitions / divestitures and +1 percent foreign currency translation ) . Gross margin of 43.8 percent was up 50 basis points compared with the prior year period primarily as a result of higher volume and price capture , partially offset by infla on and supply chain constraints . Adjusted gross margin , which excludes a $ 9.1 pre - tax fair val inventory step - up charge related to the Airtech acquisition , was 45.0 percent , up 170 basis points compared with the adjusted prior year period . Operating income of $ 161.2 million resulted in an operating margin of 22.6 percent , which was flat compared with the prior year period . Adjusted operating income , which primarily excluded a $ 9.1 million pre - tax fair value inventory step - up charge and $ 3.2 million of restructuring expenses and asset impairments , was $ 173.1 million with an adjusted operating margin of 24.3 percent , up 120 basis points compared with the adjusted prior year period . Provision for income taxes of $ 35.3 million in the third quarter of 2021 resulted in an effective tax rate ( ETR ) of 23.4 percent , which was higher than the prior year period ETR of 14.4 percent primarily due to the finalization of tax regulations enacted in the third quarter of 2020 as well as a decrease in the excess tax benefit related to share - based compensation in the current period . Net income attributable to IDEX was $ 115.7 million , which resulted in EPS attributable to IDEX of $ 1.51 . Adjusted EPS attributable to IDEX was $ 1.63 , an increase of 23 cents , or 16.4 percent , from the adjusted prior year period and excluded the impacts of the fair value inventory step - up charge and restructuring expenses and asset impairments discussed above , both net of related tax benefits . EBITDA of $ 187.5 million was 26.3 percent of sales and covered interest expense by almost 20 times . Adjusted EBITDA of $ 199.4 million was 28.0 percent of sales and covered interest expense by 21 times . Cash from operations of $ 156.6 million was up 2 percent from the prior year period primarily due to higher earnings , partially offset by changes in working capital and was 135 percent of net income attributable to IDEX . Free cash flow of $ 141.7 million was up 5 percent from the prior year period and was 113 percent of adjusted net income attributable to IDEX . " IDEX teams continued to navigate a tremendously challenging supply chain environment and achieved strong operating results in the third quarter . We saw broad - based strength across our portfolio , resulting in record orders and sales of $ 774 million and $ 712 million , respectively . Today's global challenges will increasingly drive growth towards problem solvers like IDEX , but in the short term , our focus remains on overcoming the macro constraints that inhibit customer satisfaction while staying committed to investments needed to thrive in the future . Our 80/20 principles serve us well by providing a framework to identify how to best support our customers in a difficult environment . I want to thank all IDEX team members across the globe who have tirelessly worked through these challenges and contributed to our success . Our price capture continues to outpace material inflation and drive sequential improvements in gross margin . Despite targeted increases in discretionary costs and continued investment in the business , we achieved solid flow through , resulting in an adjusted operating margin of 24.3 percent and a record adjusted EPS of $ 1.63 .