Share-Based Compensation

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

The Company typically grants equity awards annually at its regularly scheduled first quarter meeting of the Board of Directors based on the recommendation from the Compensation Committee.

Stock Options

Stock options granted under the Company’s plans are generally non-qualified and are granted with an exercise price equal to the market price of the Company’s stock on the date of grant. The fair value of each option grant in the periods presented was estimated on the date of the grant using the Black Scholes valuation model. Stock options generally vest annually in equal amounts over four years, with vesting beginning one year from the date of grant, and generally expire 10 years from the date of grant. The service period for certain retiree eligible participants is accelerated. The assumptions used in determining the fair value of the stock options granted in the respective periods were as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Weighted average fair value of grants	$45.91	n/a	$49.13	$46.74
Dividend yield	1.49%	n/a	1.37%	1.41%
Volatility	23.98%	n/a	23.81%	23.06%
Risk-free interest rate	3.94%	n/a	3.61%	4.28%
Expected life (in years)	4.90	n/a	4.90	4.70

A summary of the Company’s stock option activity as of June 30, 2026 and changes during the six months ended June 30, 2026 are presented in the following table:


Stock Options	Shares	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Outstanding at January 1, 2026	954,201	$	192.03	5.82	$	8.9
Granted	86,575	207.43
Exercised	(80,632)	148.18
Forfeited	(29,849)	222.13
Outstanding at June 30, 2026	930,295	$	196.30	5.86	$	29.7
Vested and expected to vest as of June 30, 2026	918,018	$	196.06	5.82	$	29.5
Exercisable at June 30, 2026	699,529	$	190.02	5.00	$	26.4

As of June 30, 2026, there was $4.1 million of total unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 1.3 years.

Restricted Stock

Restricted stock awards granted beginning in 2026 generally vest annually in equal amounts over three years, with vesting beginning one year from the date of the grant. Restricted stock awards granted prior to 2026 generally cliff vest after three years for employees. Restricted stock awards granted to non-employee directors generally cliff vest after one year. The service period for certain retiree eligible participants is accelerated. Unvested restricted stock granted after the adoption of the 2024 Incentive Award Plan earn dividend equivalents for the award period, which will be paid to participants upon vesting of the underlying awards. Unvested restricted stock granted prior to the adoption of the 2024 Incentive Award Plan earn and are paid dividends. The fair value of restricted stock is equal to the market price of the Company’s stock at the date of the grant. A summary of the Company’s restricted stock activity as of June 30, 2026 and changes during the six months ended June 30, 2026 are presented in the following table:


Restricted Stock	Shares	Weighted-Average Grant Date Fair Value
Unvested at January 1, 2026	190,822	$	198.64
Granted	97,180	203.24
Vested	(25,025)	210.50
Forfeited	(18,588)	202.22
Unvested at June 30, 2026	244,389	$	198.98

As of June 30, 2026, there was $19.4 million of total unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 1.1 years.

Cash-Settled Restricted Stock

The Company also maintains a cash-settled share-based compensation plan for certain employees. Cash-settled restricted stock awards granted under the 2024 Incentive Plan beginning in 2026 generally vest annually in equal amounts over three years, with vesting beginning one year from the date of grant. Cash-settled restricted stock awards granted prior to 2026 generally cliff vest after three years. The service period for certain retiree eligible participants is accelerated. Cash-settled restricted stock awards are recorded at fair value on a quarterly basis using the market price of the Company’s stock on the last day of the quarter. At June 30, 2026 and December 31, 2025, the Company had accrued $4.8 million and $3.6 million, respectively, for cash-settled restricted stock in Accrued expenses in the Condensed Consolidated Balance Sheets and had accrued $2.5 million and $2.4 million, respectively, for cash-settled restricted stock in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets. These recurring fair value measurements are classified as Level 1 in the fair value hierarchy. Dividend equivalents are earned throughout the award period and paid upon vesting for certain cash-settled restricted stock awards granted after the adoption of the 2024 Incentive Award Plan. Dividend equivalents are paid on certain cash-settled restricted stock awards granted prior to the adoption of the 2024 Incentive Award Plan. A summary of the Company’s unvested cash-settled restricted stock activity as of June 30, 2026 and changes during the six months ended June 30, 2026 are presented in the following table:


Cash-Settled Restricted Stock	Shares	Weighted-Average Fair Value
Unvested at January 1, 2026	62,292	$	177.94
Granted	31,360	207.71
Vested	(14,365)	206.67
Forfeited	(3,785)	226.95
Unvested at June 30, 2026	75,502	$	226.95

As of June 30, 2026, there was $7.7 million of total unrecognized compensation cost related to cash-settled restricted stock that is expected to be recognized over a weighted-average period of 1.2 years.

Performance Share Units

Performance share unit awards represent rights to receive shares of the Company’s common stock and will vest between 0% to 250% of the target share unit amount. Performance share units granted after December 31, 2024 are earned over a three-year performance period based on an internal income growth metric (a performance condition), weighted 25%. The remaining 75% of the award is earned based on a market condition, which is the total shareholder return of IDEX common stock in relation to the total shareholder return of a group of peer companies (for awards granted in 2025, the peer group consists of companies in the S&P 500 index, and for awards granted beginning in 2026, the peer group consists of companies in the S&P 900 Capital Goods and Life Sciences Tools & Services indexes). Performance share unit awards granted prior to 2025 are earned solely based on the Company’s total shareholder return ranking in relation to the total shareholder return of companies in the S&P 500 Index over a three-year period following the date of grant.

The fair value of the performance condition portion of the awards granted after December 31, 2024 is equal to the market price of the Company’s stock at the date of the grant, and the amount of expense recognized over the vesting period is subject to adjustment based on the expected attainment of the performance condition. The fair value of the market condition portion of all performance share unit awards is determined using a Monte Carlo simulation model, and the amount of expense recognized over the vesting period is not subject to change based on future market conditions. The assumptions used in the Monte Carlo simulation model to determine the fair value of the market condition portion of the performance share units granted in the respective periods were as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Weighted average fair value of grants	$250.95	n/a	$274.15	$232.44
Dividend yield	—%	n/a	—%	—%
Volatility	24.28%	n/a	24.07%	22.93%
Risk-free interest rate	3.84%	n/a	3.47%	4.23%
Expected life (in years)	2.82	n/a	2.94	2.94

A summary of the Company’s performance share unit activity as of June 30, 2026 and changes during the six months ended June 30, 2026 are presented in the following table:


Performance Share Units	Shares	Weighted-Average Grant Date Fair Value
Unvested at January 1, 2026	78,205	$	267.78
Granted	41,030	252.58
Vested	—	n/a
Forfeited	(25,485)	301.18
Unvested at June 30, 2026	93,750	$	259.10

The performance period for the 2023 grants ended as of January 31, 2026. The 2023 grants achieved a 0% payout factor, and as such, the Company did not issue any shares of the Company's stock for awards that vested in 2026.

As of June 30, 2026, there was $4.7 million of total unrecognized compensation cost related to performance share units that is expected to be recognized over a weighted-average period of 1.2 years.

Summary of Share-Based Compensation Expense

The Company’s policy is to recognize compensation cost on a straight-line basis, assuming forfeitures, over the requisite service period for the entire award. Total compensation cost related to all share-based awards was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Stock options expense	$	0.6	$	1.1	$	3.7	$	4.3
Restricted stock expense	4.5		3.3		11.0		8.8
Cash-settled restricted stock expense	2.1		0.6		4.3		1.2
Performance share units expense	1.0		0.8		7.2		5.7
Total pre-tax share-based compensation expense(1)	8.2		5.8		26.2		20.0
Income tax benefit	(1.1)		(1.2)		(2.4)		(2.4)
Total share-based compensation expense, net of income taxes	$	7.1	$	4.6	$	23.8	$	17.6

(1) Pre-tax compensation cost is recognized in the Condensed Consolidated Statements of Income depending on the functional area of the underlying employees, as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of sales	$	0.7	$	0.3	$	1.8	$	1.1
Selling, general and administrative expenses	7.5		5.5		24.4		19.5
Restructuring expenses and asset impairments(2)	—		—		—		(0.6)
Total pre-tax share-based compensation expense	$	8.2	$	5.8	$	26.2	$	20.0

(2) During the six months ended June 30, 2025, a benefit of $0.6 million was recognized in Restructuring expenses and asset impairments in the Condensed Consolidated Statements of Income related to forfeitures of share-based compensation awards resulting from restructuring actions initiated during the first quarter of 2025.