An updated edition of the August 19, 2025 article.3D Printing, also known as additive manufacturing, has transformed how the world designs and builds products. The technology, introduced in the 1980s, converts digital designs into physical objects by building them layer by layer, ensuring unprecedented precision, customization and efficiency. Over the years, from custom prosthetics and aerospace components to architectural models and consumer goods, 3D Printing has evolved from a prototyping tool to a full- ...

Core Insights - AMETEK, Inc. is recognized as a leading global provider of industrial technology solutions, focusing on operational excellence, innovation, and strategic acquisitions [1][4] - The company declared a quarterly dividend of $0.31 per share, reflecting management's confidence in cash flow and long-term growth [2] - For Q3 2025, AMETEK set EPS guidance between $1.72 and $1.76 and raised its full-year outlook to $7.06 to $7.20 per share, following strong performance in Q2 [3] Financial Performance - AMETEK's financial momentum is robust, with analysts responding positively through upgrades and higher price targets, indicating optimism about the company's performance trajectory [3] - The company's strategy emphasizes technology innovation, acquisitions, disciplined operations, and global expansion, contributing to steady earnings growth and reliable shareholder returns [4]

Company Overview - AMETEK, Inc. has a market cap of $43.3 billion and specializes in electronic instruments and electromechanical devices, serving sectors such as aerospace, energy, medical, and industrial [1] - The company is classified as a "large-cap" stock and benefits from operational efficiency, solid cash flow, and a broad global footprint, indicating resilience and long-term growth potential [1] Stock Performance - AMETEK stock has decreased by 5.5% from its 52-week high of $198.33, while gaining 4.2% over the past three months, underperforming the Nasdaq Composite's 11% rise during the same period [2] - Year-to-date, AMETEK shares have declined marginally, contrasting with the Nasdaq's 13.3% increase, and over the past 52 weeks, AMETEK has risen 4%, lagging behind the Nasdaq's 28.6% [3] Recent Financial Results - On July 31, AMETEK reported better-than-expected Q2 2025 results, with adjusted EPS of $1.78 and revenue of $1.8 billion, driven by a 6% year-over-year sales increase in the Electromechanical Group [4] - The growth was attributed to strong organic demand, record operating income, margin expansion, and contributions from the FARO Technologies acquisition [4] Future Outlook - AMETEK raised its 2025 adjusted EPS guidance to $7.06–$7.20 and upgraded its annual sales growth outlook to mid-single digits from low-single digits [5] - In comparison, rival Rockwell Automation, Inc. has outperformed AMETEK, with shares soaring 29.5% over the past 52 weeks and gaining 18.8% year-to-date [5] Analyst Ratings - The stock has a consensus rating of "Moderate Buy" from 19 analysts, with a mean price target of $207.94, suggesting an 11% upside from current market prices [6]

Core Insights - Ametek reported record Q2 2025 results with revenue of $1.78 billion and adjusted EPS of $1.78, both exceeding analyst expectations [1][5] - Revenue increased by 2.5% year-over-year, while adjusted EPS rose by 7%, reflecting strong performance despite global trade challenges [1][5] - The Electromechanical Group showed significant growth, while the Electronic Instruments Group experienced slower growth [1][6] Financial Performance - Q2 2025 adjusted EPS (non-GAAP) was $1.78, surpassing the estimate of $1.69 and up from $1.66 in Q2 2024, marking a 7.2% increase [2] - GAAP revenue reached $1.78 billion, exceeding the estimate of $1.73 billion and showing a 2.5% increase from the previous year [2] - Operating income grew to $461.6 million, a 3.2% increase from $447.5 million in Q2 2024, with an operating margin of 26.0%, up from 25.8% [2][5] Business Overview - Ametek operates through two main segments: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG), serving diverse industries including aerospace, medical devices, and energy [3] - EIG focuses on precision instruments for various markets, while EMG specializes in motion control and engineered solutions [3] Strategic Focus - The company is enhancing operational excellence through improved manufacturing efficiency and profit margins, supported by strategic acquisitions and investments in new product development [4][8] - Ametek's flexible manufacturing network and diverse geographic footprint contribute to its efficiency and supply chain resilience [4] Segment Performance - The Electromechanical Group's revenue increased by 6.4% to $618.5 million, with operating income rising by 17% and operating margin improving to 23.3% [2][6] - The Electronic Instruments Group's revenue grew by 0.9% to $1.16 billion, but operating income declined by 1.6% due to customer caution amid global trade conditions [2][6] Future Outlook - Ametek raised its full-year 2025 adjusted EPS guidance to a range of $7.06 to $7.20, projecting mid-single-digit sales growth for FY2025 [12] - For Q3 2025, the company anticipates sales growth in the mid-single digits and adjusted EPS between $1.72 and $1.76 [12] Dividend Policy - The quarterly dividend was increased by 11% to $0.31 per share, marking the sixth consecutive year of double-digit percentage increases [9][14]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents AMETEK, Inc.'s unaudited consolidated financial statements and management's discussion and analysis for the periods ended June 30, 2025 and 2024 [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Provides AMETEK, Inc.'s unaudited consolidated financial statements and comprehensive notes for the periods ended June 30, 2025 and 2024 [Consolidated Statement of Income](index=4&type=section&id=Consolidated%20Statement%20of%20Income) Details AMETEK's net sales, operating income, net income, and earnings per share for the three and six months ended June 30, 2025 and 2024 | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net sales | $1,778.1 | $1,734.8 | $3,510.0 | $3,471.0 | | Operating income | $461.6 | $447.5 | $916.5 | $864.7 | | Net income | $358.4 | $337.7 | $710.1 | $648.6 | | Basic earnings per share | $1.55 | $1.46 | $3.08 | $2.80 | | Diluted earnings per share | $1.55 | $1.45 | $3.07 | $2.79 | | Dividends declared and paid per share | $0.31 | $0.28 | $0.62 | $0.56 | [Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Presents AMETEK's total comprehensive income for the three and six months ended June 30, 2025 and 2024 | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :----------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Total comprehensive income | $469.9 | $325.6 | $859.5 | $611.2 | [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) Outlines AMETEK's assets, liabilities, and stockholders' equity as of June 30, 2025 and December 31, 2024 | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :-------------------------- | :--------------------------- | :----------------------------- | | **ASSETS** | | | | Cash and cash equivalents | $619.7 | $374.0 | | Receivables, net | $1,021.0 | $948.8 | | Inventories, net | $1,110.5 | $1,021.7 | | Total current assets | $3,051.8 | $2,603.0 | | Goodwill | $6,723.9 | $6,555.9 | | Total assets | $15,266.5 | $14,631.2 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $1,868.4 | $2,098.6 | | Long-term debt, net | $1,534.3 | $1,425.4 | | Total liabilities | $4,877.9 | $4,975.9 | | Total stockholders' equity | $10,388.7 | $9,655.3 | [Consolidated Statement of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Stockholders'%20Equity) Details changes in AMETEK's stockholders' equity for the six months ended June 30, 2025 and 2024 | Metric | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Common stock, $0.01 par value | $2.7 | $2.7 | | Capital in excess of par value | $1,275.8 | $1,210.4 | | Retained earnings | $11,624.8 | $10,459.6 | | Accumulated other comprehensive loss | $(406.4) | $(522.4) | | Treasury stock | $(2,108.3) | $(1,897.9) | | Total stockholders' equity | $10,388.7 | $9,252.4 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Summarizes AMETEK's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | Metric | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Cash provided by operating activities | $776.6 | $791.7 | | Cash used for investing activities | $(155.7) | $(43.5) | | Cash used for financing activities | $(409.4) | $(751.7) | | Increase (decrease) in cash and cash equivalents | $245.7 | $(13.2) | | Cash and cash equivalents, End of period | $619.7 | $396.6 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting AMETEK's consolidated financial statements - Contract assets were **$160.4 million** at June 30, 2025, and **$149.7 million** at December 31, 2024[27](index=27&type=chunk) - Contract liabilities were **$420.6 million** at June 30, 2025, and **$425.6 million** at December 31, 2024[27](index=27&type=chunk) - Revenue recognized from the beginning balance of contract liabilities for the six months ended June 30, 2025, was **$243.7 million**, compared to **$285.5 million** for the same period in 2024[27](index=27&type=chunk) - Remaining performance obligations not expected to be completed within one year were **$627.3 million** at June 30, 2025, and **$541.8 million** at December 31, 2024, expected to be substantially satisfied within two to three years[30](index=30&type=chunk) [1. Basis of Presentation](index=9&type=section&id=1.%20Basis%20of%20Presentation) Explains the company's operational structure with two reportable segments: EIG and EMG - The Company operates with two reportable segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG)[24](index=24&type=chunk) - Segment identification is primarily based on product type, production processes, distribution methods, and management organizations[24](index=24&type=chunk) [2. Recent Accounting Pronouncements](index=9&type=section&id=2.%20Recent%20Accounting%20Pronouncements) Discusses new FASB accounting standards and their potential impact on the company's financial disclosures - FASB issued ASU 2024-03, 'Expense Disaggregation Disclosures,' effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with the Company not yet determining its impact[25](index=25&type=chunk) - FASB issued ASU 2023-09, 'Improvements to Income Tax Disclosures,' effective for annual periods beginning after December 15, 2024, which will require additional disclosures but is not expected to materially impact the Company's consolidated financial statements[26](index=26&type=chunk) [3. Revenues](index=9&type=section&id=3.%20Revenues) Details AMETEK's revenue recognition policies, geographic sales, major products, and warranty information [Geographic Areas](index=10&type=section&id=Geographic%20Areas) Provides a breakdown of AMETEK's net sales by geographic region for the reported periods | Geographic Area | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :---------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | United States | $935.0 | $944.9 | $1,862.5 | $1,857.6 | | Total international | $843.0 | $789.9 | $1,647.5 | $1,613.4 | | Consolidated net sales | $1,778.1 | $1,734.8 | $3,510.0 | $3,471.0 | - International sales for Q2 2025 increased by **$53.0 million** or **6.7%** to **$843.0 million**, representing **47.4%** of net sales, driven by higher demand and recent acquisitions[105](index=105&type=chunk) [Major Products and Services](index=11&type=section&id=Major%20Products%20and%20Services) Categorizes AMETEK's net sales by primary product and service lines for the reported periods | Product/Service | Three Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2025 (in millions) | | :-------------------------- | :--------------------------------------------- | :-------------------------------------------- | | Process and analytical instrumentation | $802.9 | $1,579.7 | | Aerospace and power | $537.4 | $1,076.1 | | Automation and engineered solutions | $437.8 | $854.2 | | Consolidated net sales | $1,778.1 | $3,510.0 | [Timing of Revenue Recognition](index=11&type=section&id=Timing%20of%20Revenue%20Recognition) Differentiates AMETEK's revenue recognition based on transfer at a point in time versus over time | Revenue Type | Three Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2025 (in millions) | | :-------------------------------- | :--------------------------------------------- | :-------------------------------------------- | | Products transferred at a point in time | $1,483.6 | $2,923.9 | | Products and services transferred over time | $294.4 | $586.1 | | Consolidated net sales | $1,778.1 | $3,510.0 | [Product Warranties](index=11&type=section&id=Product%20Warranties) Details the company's product warranty policies and changes in warranty accruals - The Company provides limited product warranties, with most periods not exceeding one year[37](index=37&type=chunk) | Metric | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :------------------------------------------ | :-------------------------------------------- | :-------------------------------------------- | | Balance at the beginning of the period | $38.6 | $37.1 | | Accruals for warranties issued during the period | $10.0 | $10.6 | | Settlements made during the period | $(9.4) | $(11.1) | | Balance at the end of the period | $41.2 | $36.6 | [Accounts Receivable](index=12&type=section&id=Accounts%20Receivable) Presents the net accounts receivable and allowances for credit losses at period-end - At June 30, 2025, accounts receivable, net of allowances, totaled **$1,021.0 million**, compared to **$948.8 million** at December 31, 2024[41](index=41&type=chunk) - Allowances for credit losses were **$13.1 million** at June 30, 2025, and **$13.0 million** at December 31, 2024[41](index=41&type=chunk) [4. Earnings Per Share](index=12&type=section&id=4.%20Earnings%20Per%20Share) Provides weighted average basic and diluted shares outstanding for earnings per share calculations | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Weighted average basic shares | 230,818 | 231,437 | 230,743 | 231,267 | | Weighted average diluted shares | 231,472 | 232,304 | 231,507 | 232,170 | [5. Fair Value Measurements](index=12&type=section&id=5.%20Fair%20Value%20Measurements) Explains the company's methodology for fair value measurements and classification hierarchy - Fair value is defined as the exchange price for an asset or liability in an orderly transaction between market participants[43](index=43&type=chunk) - The Company uses a three-level valuation hierarchy for fair value disclosures: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs based on company assumptions)[44](index=44&type=chunk)[46](index=46&type=chunk) [Financial Instruments](index=13&type=section&id=Financial%20Instruments) Details the fair value of AMETEK's long-term debt and its classification within the valuation hierarchy | Metric | June 30, 2025 Recorded Amount (in millions) | June 30, 2025 Fair Value (in millions) | December 31, 2024 Recorded Amount (in millions) | December 31, 2024 Fair Value (in millions) | | :---------------------------------- | :------------------------------------------- | :-------------------------------------- | :----------------------------------------------- | :------------------------------------------ | | Long-term debt (including current portion) | $(1,910.5) | $(1,859.0) | $(1,851.9) | $(1,778.7) | - The fair value of net long-term debt is computed based on comparable current market data for similar debt instruments and is considered a Level 3 liability[48](index=48&type=chunk) [6. Hedging Activities](index=13&type=section&id=6.%20Hedging%20Activities) Describes the company's use of foreign-currency-denominated borrowings to hedge net investments in foreign operations - The Company designates certain foreign-currency-denominated long-term borrowings (British-pound and Euro) as hedges of net investments in foreign operations to offset translation gains or losses[49](index=49&type=chunk) - As of June 30, 2025, **$308.7 million** of British-pound-denominated loans and **$676.8 million** in Euro-denominated loans were designated as net investment hedges[50](index=50&type=chunk) - **$108.7 million** of pre-tax currency remeasurement losses were included in other comprehensive income for the six months ended June 30, 2025, due to these hedges[52](index=52&type=chunk) [7. Inventories, net](index=14&type=section&id=7.%20Inventories,%20net) Provides a breakdown of AMETEK's inventory components, net of allowances, at period-end | Inventory Component | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------------ | :--------------------------- | :----------------------------- | | Finished goods and parts | $79.9 | $80.5 | | Work in process | $204.8 | $171.1 | | Raw materials and purchased parts | $825.7 | $770.1 | | Total inventories, net | $1,110.5 | $1,021.7 | [8. Leases and Other Commitments](index=14&type=section&id=8.%20Leases%20and%20Other%20Commitments) Details the company's lease costs, lease liabilities, and other contractual commitments | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :--------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Operating lease cost | $23.0 | $17.8 | $43.2 | $35.4 | | Variable lease cost | $3.9 | $3.1 | $7.2 | $6.3 | | Total lease cost | $26.8 | $20.9 | $50.4 | $41.7 | | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :---------------------------------------- | :--------------------------- | :----------------------------- | | Right of use assets, net | $245.7 | $235.7 | | Lease liabilities included in Accrued Liabilities and other | $56.0 | $54.7 | | Lease liabilities included in Other long-term liabilities | $200.7 | $190.0 | | Total lease liabilities | $256.7 | $244.8 | [Other Commitments](index=15&type=section&id=Other%20Commitments) Outlines the maximum future payment obligations for guarantees and letters of credit - At June 30, 2025, the maximum amount of future payment obligations for guarantees, stand-by letters of credit, and surety bonds was **$296.2 million**, with an outstanding liability of **$176.1 million**[58](index=58&type=chunk) [9. Acquisitions](index=15&type=section&id=9.%20Acquisitions) Reports on recent and subsequent acquisitions, including purchase prices and their impact on segments - In January 2025, the Company acquired Kern Microtechnik for **$104.1 million** (net of cash acquired), a manufacturer of high-precision machining and optical inspection solutions, now part of the EIG segment[59](index=59&type=chunk) Kern Acquisition Purchase Price Allocation | Metric | (in millions) | | :------------------------------------ | :----- | | Property, plant and equipment | $10.1 | | Goodwill | $55.0 | | Other intangible assets | $59.6 | | Deferred income taxes | $(18.9) | | Net working capital and other | $7.2 | | Total purchase price | $113.0 | | Less: Acquisition date fair value of contingent payment liability | $(8.9) | | Total cash paid | $104.1 | - Subsequent to June 30, 2025, the Company acquired FARO Technologies for approximately **$920.0 million** (net of cash acquired), a provider of 3D measurement and imaging solutions that will join the EIG segment[68](index=68&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) [10. Goodwill](index=16&type=section&id=10.%20Goodwill) Presents the changes in goodwill by segment, including acquisitions and foreign currency adjustments | Metric | EIG (in millions) | EMG (in millions) | Total (in millions) | | :-------------------------------- | :---------------- | :---------------- | :------------------ | | Balance at December 31, 2024 | $4,424.9 | $2,131.0 | $6,555.9 | | Goodwill acquired from 2025 acquisitions | $55.0 | — | $55.0 | | Foreign currency translation adjustments | $72.4 | $36.1 | $108.5 | | Balance at June 30, 2025 | $4,556.8 | $2,167.1 | $6,723.9 | [11. Income Taxes](index=16&type=section&id=11.%20Income%20Taxes) Discusses uncertain tax benefits, effective tax rates, and the potential impact of new tax legislation - At June 30, 2025, gross uncertain tax benefits were **$223.1 million**, with **$178.5 million** impacting the effective tax rate if recognized[70](index=70&type=chunk) | Metric | (in millions) | | :-------------------------- | :------------ | | Balance at December 31, 2024 | $201.6 | | Additions for tax positions | $23.2 | | Reductions for tax positions | $(1.7) | | Balance at June 30, 2025 | $223.1 | - The effective tax rate for the three months ended June 30, 2025, and 2024 was **19.0%**[72](index=72&type=chunk) - The 'One Big Beautiful Bill Act' (OBBBA) was signed into law on July 4, 2025, enacting permanent extensions of most expiring Tax Cuts and Jobs Act provisions and international tax changes, with the Company evaluating its potential impacts[74](index=74&type=chunk) [12. Debt](index=17&type=section&id=12.%20Debt) Details the company's commercial paper program and recent debt repayments - The Company established a commercial paper program in January 2025, allowing for up to **$2.3 billion** in short-term, unsecured notes, with no borrowings outstanding at June 30, 2025[75](index=75&type=chunk) - In the second quarter of 2025, the Company paid in full a **$50.0 million** aggregate principal amount of 3.91% senior notes at maturity[76](index=76&type=chunk) [13. Share-Based Compensation](index=17&type=section&id=13.%20Share-Based%20Compensation) Reports on share-based compensation expenses and outstanding equity awards [Share Based Compensation Expense](index=17&type=section&id=Share%20Based%20Compensation%20Expense) Provides a breakdown of pre-tax share-based compensation expenses by type of award | Expense Type | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Stock option expense | $2.9 | $3.5 | $6.1 | $7.0 | | Restricted stock expense | $5.3 | $5.3 | $10.3 | $10.1 | | Performance restricted stock unit expense | $4.7 | $4.4 | $5.9 | $5.0 | | Total pre-tax expense | $12.8 | $13.2 | $22.3 | $22.2 | [Stock Options](index=18&type=section&id=Stock%20Options) Details outstanding stock options, weighted average exercise price, and future compensation expense | Metric | June 30, 2025 (in thousands, except price) | | :-------------------------------- | :----------------------------------------- | | Outstanding shares | 2,246 | | Weighted Average Exercise Price | $121.83 | | Weighted Average Remaining Contractual Life (Years) | 6.4 | | Aggregate Intrinsic Value (in millions) | $133.0 | - As of June 30, 2025, there was approximately **$20.2 million** of expected future pre-tax compensation expense related to **0.5 million** non-vested stock options, to be recognized over approximately two years[80](index=80&type=chunk) [Restricted Stock](index=18&type=section&id=Restricted%20Stock) Presents non-vested restricted stock outstanding and associated future compensation expense | Metric | June 30, 2025 (in thousands, except fair value) | | :-------------------------------- | :-------------------------------------------- | | Non-vested restricted stock outstanding | 288 | | Weighted Average Grant Date Fair Value | $172.72 | - As of June 30, 2025, there was approximately **$41.1 million** of expected future pre-tax compensation expense related to **0.3 million** non-vested restricted shares, to be recognized over approximately two years[81](index=81&type=chunk) [Performance Restricted Stock Units](index=19&type=section&id=Performance%20Restricted%20Stock%20Units) Outlines non-vested performance restricted stock units and their related future compensation expense | Metric | June 30, 2025 (in thousands, except fair value) | | :-------------------------------- | :-------------------------------------------- | | Non-vested performance restricted stock outstanding | 243 | | Weighted Average Grant Date Fair Value | $166.13 | - As of June 30, 2025, there was approximately **$15.9 million** of expected future pre-tax compensation expense related to **0.2 million** non-vested restricted shares, to be recognized over less than one year[83](index=83&type=chunk) [14. Retirement and Pension Plans](index=19&type=section&id=14.%20Retirement%20and%20Pension%20Plans) Reports on total net pension expense and contributions to defined benefit pension plans | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Total net pension expense | $9.1 | $9.7 | $20.1 | $22.4 | - Contributions to the Company's defined benefit pension plans were **$3.0 million** for the six months ended June 30, 2025, consistent with the prior year[85](index=85&type=chunk) [15. Contingencies](index=20&type=section&id=15.%20Contingencies) Addresses potential liabilities from asbestos-related lawsuits and environmental remediation sites - The Company is a defendant in asbestos-related lawsuits, with certain claims indemnified by sellers of acquired businesses, and no judgments have been rendered against the Company[88](index=88&type=chunk) - The Company is a Potentially Responsible Party (PRP) at **13** non-AMETEK-owned waste sites, mostly identified as 'de minimis' parties[89](index=89&type=chunk) - Total environmental reserves were **$29.1 million** at June 30, 2025, and **$29.8 million** at December 31, 2024, with management believing reserves are sufficient and ultimate costs will not materially affect financial statements[90](index=90&type=chunk)[92](index=92&type=chunk) [16. Reportable Segments](index=20&type=section&id=16.%20Reportable%20Segments) Provides detailed financial information for the Electronic Instruments Group (EIG) and Electromechanical Group (EMG) segments - The Company operates with two reportable segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG)[93](index=93&type=chunk) | Metric | EIG (3 months ended June 30, 2025, in millions) | EMG (3 months ended June 30, 2025, in millions) | Total Consolidated (3 months ended June 30, 2025, in millions) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------------------------- | | Net Sales | $1,159.6 | $618.5 | $1,778.1 | | Segment Operating Income | $344.4 | $143.9 | $488.3 | | Research, Development & Engineering costs | $73.2 | $21.0 | $94.2 | | Capital Expenditures | $11.3 | $10.2 | $29.3 | | Metric | EIG (6 months ended June 30, 2025, in millions) | EMG (6 months ended June 30, 2025, in millions) | Total Consolidated (6 months ended June 30, 2025, in millions) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------------------------- | | Net Sales | $2,303.2 | $1,206.8 | $3,510.0 | | Segment Operating Income | $698.5 | $272.6 | $971.1 | | Research, Development & Engineering costs | $146.8 | $42.3 | $189.1 | | Capital Expenditures | $21.7 | $17.4 | $52.3 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, condition, and operational results, highlighting sales, orders, margins, liquidity, and critical accounting policies [Recent Trends](index=23&type=section&id=Recent%20Trends) Addresses the company's strategies for managing U.S. government tariffs and trade restrictions - The Company is actively addressing potential impacts of U.S. government tariffs and trade restrictions through targeted pricing, strategic supply chain adjustments, and leveraging its global manufacturing footprint[102](index=102&type=chunk) - The outcome of trade negotiations remains uncertain and could adversely impact demand, costs, inflation, customers, suppliers, and the overall global economy[102](index=102&type=chunk) [Results of Operations (Q2 2025 vs Q2 2024)](index=23&type=section&id=Results%20of%20operations%20for%20the%20second%20quarter%20of%202025%20compared%20with%20the%20second%20quarter%20of%202024) Compares AMETEK's consolidated financial results for the second quarter of 2025 against the same period in 2024 | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (%) | | :------------------------- | :-------------------- | :-------------------- | :--------- | | Net sales | $1,778.1 | $1,734.8 | 2.5% | | Orders | $1,782.1 | $1,677.2 | 6.3% | | Segment operating income | $488.3 | $473.0 | 3.2% | | Segment operating margins | 27.5% | 27.3% | +0.2 pp | | Consolidated operating income | $461.6 | $447.5 | 3.2% | | Net income | $358.4 | $337.7 | 6.1% | | Diluted earnings per share | $1.55 | $1.45 | 6.9% | - Net sales increase was driven by **2%** from acquisitions and **1%** favorable foreign currency translation[104](index=104&type=chunk) - Excluding the dilutive impact of recent acquisitions and foreign currency translation, segment operating margins increased **100 basis points** due to sales growth and Operational Excellence initiatives[108](index=108&type=chunk) [Segment Results (Q2 2025 vs Q2 2024)](index=24&type=section&id=Segment%20Results%20(for%20the%20quarter%20ended%20June%2030,%202025%20compared%20with%20the%20second%20quarter%20of%202024)) Analyzes the performance of EIG and EMG segments for the second quarter of 2025 compared to 2024 | Segment | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (%) | | :------ | :-------------------- | :-------------------- | :-------------------- | :--------- | | EIG | Net sales | $1,159.6 | $1,153.6 | 0.5% | | | Operating income | $344.4 | $349.9 | -1.6% | | | Operating margins | 29.7% | 30.3% | -0.6 pp | | EMG | Net sales | $618.5 | $581.2 | 6.4% | | | Operating income | $143.9 | $123.1 | 16.9% | | | Operating margins | 23.3% | 21.2% | +2.1 pp | - EIG's net sales increase was due to **2%** from acquisitions and **1%** favorable foreign currency translation, partially offset by a **3%** organic sales decrease[113](index=113&type=chunk) - EMG achieved record net sales and operating income, driven by a **5%** organic sales increase and **1%** favorable foreign currency translation[115](index=115&type=chunk)[116](index=116&type=chunk) [Results of Operations (6 Months 2025 vs 6 Months 2024)](index=24&type=section&id=Results%20of%20operations%20for%20the%20first%20six%20months%20of%202025%20compared%20with%20the%20first%20six%20months%20of%202024) Compares AMETEK's consolidated financial results for the first six months of 2025 against the same period in 2024 | Metric | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | Change (%) | | :------------------------- | :-------------------------- | :-------------------------- | :--------- | | Net sales | $3,510.0 | $3,471.0 | 1.1% | | Orders | $3,579.8 | $3,339.9 | 7.2% | | Segment operating income | $971.1 | $916.6 | 5.9% | | Segment operating margins | 27.7% | 26.4% | +1.3 pp | | Consolidated operating income | $916.5 | $864.7 | 6.0% | | Net income | $710.1 | $648.6 | 9.5% | | Diluted earnings per share | $3.07 | $2.79 | 10.0% | - Net sales increase was primarily due to a **1%** increase from acquisitions[117](index=117&type=chunk) - Excluding the dilutive impact of recent acquisitions and prior year's Paragon integration costs, segment operating margins increased **80 basis points** due to Operational Excellence initiatives[121](index=121&type=chunk) [Segment Results (6 Months 2025 vs 6 Months 2024)](index=25&type=section&id=Segment%20Results%20(for%20the%20first%20six%20months%20of%202025%20compared%20with%20the%20first%20six%20months%20of%202024)) Analyzes the performance of EIG and EMG segments for the first six months of 2025 compared to 2024 | Segment | Metric | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | Change (%) | | :------ | :-------------------- | :-------------------------- | :-------------------------- | :--------- | | EIG | Net sales | $2,303.2 | $2,310.4 | -0.3% |\ | | Operating income | $698.5 | $702.8 | -0.6% |\ | | Operating margins | 30.3% | 30.4% | -0.1 pp |\ | EMG | Net sales | $1,206.8 | $1,160.6 | 4.0% |\n| | Operating income | $272.6 | $213.8 | 27.5% |\n| | Operating margins | 22.6% | 18.4% | +4.2 pp | - EIG's net sales decrease was due to a **2%** organic sales decrease, partially offset by a **2%** increase from acquisitions[126](index=126&type=chunk) - EMG's operating income and margins significantly improved, with a **170 basis point** increase in operating margins excluding prior year's Paragon integration costs, driven by organic sales growth and Operational Excellence[129](index=129&type=chunk)[130](index=130&type=chunk) [Financial Condition](index=26&type=section&id=Financial%20Condition) Assesses the company's overall financial health, including cash, debt, and capital structure - Cash and cash equivalents increased to **$619.7 million** at June 30, 2025, from **$374.0 million** at December 31, 2024[134](index=134&type=chunk) - Total debt, net, decreased to **$1,942.0 million** at June 30, 2025, from **$2,079.7 million** at December 31, 2024[135](index=135&type=chunk) - The debt-to-capital ratio improved to **15.7%** at June 30, 2025, from **17.7%** at December 31, 2024[137](index=137&type=chunk) - The net debt-to-capital ratio improved to **11.3%** at June 30, 2025, from **15.0%** at December 31, 2024[137](index=137&type=chunk) - The Company had available borrowing capacity of **$2,221.7 million** under its revolving credit facility at June 30, 2025[134](index=134&type=chunk) - The Company believes it has sufficient cash-generating capabilities and access to capital to meet its operating needs and contractual obligations[137](index=137&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Details AMETEK's cash flow generation, investing and financing activities, and available borrowing capacity | Metric | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | | :------------------------------------ | :-------------------------- | :-------------------------- | | Cash provided by operating activities | $776.6 | $791.7 | | Free cash flow | $724.3 | $742.6 | | EBITDA | $1,123.6 | $1,057.5 | | Cash used by investing activities | $155.7 | $43.5 | | Cash used by financing activities | $409.4 | $751.7 | | Cash dividends paid | $143.0 | $129.4 | | Repurchases of common stock | $18.1 | $7.6 | - Cash provided by operating activities decreased by **$15.1 million** (**1.9%**) due to higher working capital investments[131](index=131&type=chunk) - The quarterly cash dividend increased by **11%** to **$0.31** per common share, effective February 7, 2025[136](index=136&type=chunk) [Critical Accounting Policies](index=27&type=section&id=Critical%20Accounting%20Policies) Refers to the detailed critical accounting policies outlined in the company's annual report - Detailed critical accounting policies are provided in Part II, Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024[140](index=140&type=chunk) [Forward-Looking Information](index=27&type=section&id=Forward-Looking%20Information) Highlights the forward-looking nature of statements and associated risks and uncertainties - The discussion contains forward-looking statements subject to various factors and uncertainties, including risks related to acquisitions, international operations, tariffs, raw material prices, government regulations, competition, liquidity, and general economic conditions[141](index=141&type=chunk) - The Company disclaims any intention or obligation to update or revise forward-looking statements unless required by securities laws[141](index=141&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated and confirmed the effectiveness of disclosure controls and procedures, with no material changes to internal control over financial reporting - The Company's disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of June 30, 2025[142](index=142&type=chunk) - No material changes in the Company's internal control over financial reporting occurred during the quarter ended June 30, 2025[143](index=143&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) Contains additional information not included in the financial statements, such as equity sales and exhibits [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases for tax withholding and the new $1.25 billion share repurchase authorization | Period | Total Number of Shares Purchased (1)(2) | Average Price Paid per Share | | :-------------------------- | :-------------------------------------- | :--------------------------- | | April 1, 2025 to April 30, 2025 | — | $— | | May 1, 2025 to May 31, 2025 | 277 | $175.34 | | June 1, 2025 to June 30, 2025 | 355 | $177.71 | | Total | 632 | $166.21 | - Shares purchased primarily represent shares surrendered to satisfy tax withholding obligations in connection with employees' share-based compensation awards[145](index=145&type=chunk) - Effective February 7, 2025, the Board of Directors approved a new **$1.25 billion** share repurchase authorization, replacing the previous **$1 billion** authorization[145](index=145&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) Confirms no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the quarter ended June 30, 2025[146](index=146&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including SOX certifications and XBRL documents - Exhibits include certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[148](index=148&type=chunk) - XBRL Instance Document and various XBRL Taxonomy Extension documents (Schema, Calculation, Definition, Label, Presentation Linkbase) are filed electronically[148](index=148&type=chunk) [SIGNATURES](index=30&type=section&id=SIGNATURES) Provides the official signing details for the report on behalf of AMETEK, Inc - The report was signed on behalf of AMETEK, Inc. by Thomas M. Montgomery, Senior Vice President – Comptroller (Principal Accounting Officer), on July 31, 2025[152](index=152&type=chunk)

[Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) AMETEK reported record financial results for the second quarter of 2025, with a 2.5% increase in sales to $1.78 billion, achieving 7% growth in adjusted EPS to $1.78 and expanding operating margins to 26.0% despite a challenging economic environment Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Sales** | $1.78 billion | $1.73 billion | +2.5% | | **Operating Income** | $461.6 million | $447.5 million | +3% | | **Operating Margin** | 26.0% | 25.8% | +20 bps | | **GAAP EPS** | $1.55 | $1.45 | +6.9% | | **Adjusted EPS** | $1.78 | $1.66 | +7.2% | - Management highlighted the delivery of **record sales and EBITDA**, strong earnings growth, and excellent core margin expansion despite a sluggish and uncertain economic environment[3](index=3&type=chunk) [Business Segment Performance](index=1&type=section&id=Business%20Segment%20Performance) The Electromechanical Group (EMG) was a key driver of growth, with record sales up 6% and a significant 17% increase in operating income, while the Electronic Instruments Group (EIG) delivered solid performance with stable sales and strong operating margins of 29.7% [Electronic Instruments Group (EIG)](index=1&type=section&id=Electronic%20Instruments%20Group%20(EIG)) EIG maintained solid sales and strong operating margins despite customer uncertainty, with a robust project activity pipeline EIG Q2 2025 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Sales** | $1.16 billion | $1.15 billion | +1% | | **Operating Income** | $344.4 million | $349.9 million | -1.6% | | **Operating Margin** | 29.7% | 30.3% | -60 bps | - EIG's performance was solid despite customer uncertainty and slower decision-making attributed to global trade challenges, with the project activity pipeline remaining strong[4](index=4&type=chunk) [Electromechanical Group (EMG)](index=1&type=section&id=Electromechanical%20Group%20(EMG)) EMG achieved an excellent quarter with strong organic sales and orders growth, leading to record operating income and robust margin expansion EMG Q2 2025 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Sales** | $618.5 million | $581.2 million | +6% | | **Operating Income** | $143.9 million | $123.1 million | +17% | | **Operating Margin** | 23.3% | 21.2% | +210 bps | - EMG had an excellent quarter with strong organic sales and orders growth, achieving record-level operating income and robust margin expansion[6](index=6&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) AMETEK has raised its full-year 2025 guidance, citing strong Q2 results and the recent acquisition of FARO Technologies, now expecting mid-single-digit sales growth and adjusted EPS in the range of $7.06 to $7.20 Updated Full Year 2025 Guidance | Metric | Previous Guidance | Updated Guidance | YoY Growth | | :--- | :--- | :--- | :--- | | **Overall Sales** | Not specified | Up mid-single digits | Mid-single digits | | **Adjusted EPS** | $7.02 - $7.18 | $7.06 - $7.20 | +3% to +5% | Q3 2025 Guidance | Metric | Guidance | YoY Growth | | :--- | :--- | :--- | | **Overall Sales** | Up mid-single digits | Mid-single digits | | **Adjusted EPS** | $1.72 - $1.76 | +4% to +6% | - The company recently announced the acquisition of FARO Technologies and maintains a strong acquisition pipeline, supported by robust cash generation and a healthy balance sheet[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The financial statements detail AMETEK's performance, showing a year-over-year increase in net income to $358.4 million for the quarter, growth in total assets to $15.27 billion, and a clear reconciliation from GAAP to non-GAAP EPS [Consolidated Statement of Income](index=4&type=section&id=Consolidated%20Statement%20of%20Income) The consolidated statement of income reflects increased net sales and operating income, leading to higher net income and diluted EPS for both the quarter and the six-month period Q2 Statement of Income Summary (in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net sales** | $1,778,056 | $1,734,834 | | **Operating income** | $461,626 | $447,514 | | **Net income** | $358,367 | $337,683 | | **Diluted EPS** | $1.55 | $1.45 | Six Months Ended June 30 Statement of Income Summary (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | **Net sales** | $3,510,027 | $3,471,014 | | **Operating income** | $916,455 | $864,730 | | **Net income** | $710,125 | $648,626 | | **Diluted EPS** | $3.07 | $2.79 | [Condensed Consolidated Balance Sheet](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) The balance sheet shows an increase in total assets and stockholders' equity, while total liabilities decreased from the end of the previous year Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $3,051,837 | $2,603,032 | | **Total assets** | $15,266,546 | $14,631,169 | | **Total current liabilities** | $1,868,435 | $2,098,587 | | **Total liabilities** | $4,877,874 | $5,975,865 | | **Stockholders' equity** | $10,388,672 | $9,655,304 | [GAAP to Non-GAAP Reconciliation](index=6&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section provides a reconciliation of GAAP diluted EPS to adjusted diluted EPS, primarily by adding back acquisition-related intangible amortization Q2 EPS Reconciliation (GAAP to Non-GAAP) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | $1.55 | $1.45 | | Amortization Adjustment | +$0.23 | +$0.21 | | **Adjusted Diluted EPS (Non-GAAP)** | $1.78 | $1.66 | Forecasted Full Year 2025 EPS Reconciliation | Description | Low | High | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | $6.15 | $6.29 | | Amortization Adjustment | +$0.91 | +$0.91 | | **Adjusted Diluted EPS (Non-GAAP)** | $7.06 | $7.20 |

Financial Data and Key Metrics Changes - AMETEK reported record sales of $1,780 million, a 2.5% increase from 2024, with organic sales flat, acquisitions contributing 1.5 points, and foreign currency translation providing a 1-point benefit [7][9] - Operating income was $462 million, a 3% increase over 2024, with operating margins at 26%, up 20 basis points from the prior year [9] - EBITDA reached a record $565 million, up 4% year-over-year, with EBITDA margins at 31.8% [9] - Earnings per diluted share were $1.78, reflecting a 7% increase compared to 2024 [9] Business Line Data and Key Metrics Changes - **Electronic Instruments Group (EIG)**: Sales were $1,160 million, up 1% from the previous year, with organic sales down 3% [10] - **Electromechanical Group (EMG)**: Achieved record sales of $618 million, a 6% increase from the prior year, with organic sales up 5% [11] - EMG's operating income was a record $144 million, up 17% year-over-year, with operating margins at 23.3% [12] Market Data and Key Metrics Changes - The aerospace and defense sector showed strong growth, with organic sales expected to increase by high single digits for the full year [32] - Power and Industrial businesses reported low single-digit increases in both overall and organic sales for the quarter, with expectations for low single-digit growth for the full year [34] - Automation and Engineered Solutions returned to growth with both overall and organic sales up low single digits [35] Company Strategy and Development Direction - AMETEK plans to invest an incremental $85 million in strategic growth initiatives across the company, focusing on research, development, engineering, and sales and marketing [13] - The acquisition of FARO Technologies for approximately $920 million is expected to enhance AMETEK's presence in the digital reality market and improve operating margins through integration [15][17] - The company remains committed to strategic acquisitions as a core component of its growth model, with a robust acquisition pipeline [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenging macro environment, highlighting strong operating performance and margin expansion [6][20] - The company anticipates full-year sales to increase mid-single digits compared to 2024, with diluted earnings per share expected to be in the range of $7.06 to $7.20, up 3% to 5% year-over-year [20][21] - Management noted proactive measures to address potential impacts of tariffs, including pricing initiatives and supply chain adjustments [18][19] Other Important Information - The effective tax rate for the quarter was 19%, with expectations for 2025 to be between 19% and 19.5% [23] - Total debt decreased to $1.9 billion from $2.1 billion in 2024, with cash and cash equivalents of $620 million [25] Q&A Session Summary Question: Can you provide insights on the end market and regional performance? - Management noted that overall sales for process businesses were flat year-over-year, with a 4% decline in organic sales offset by acquisitions [31] Question: Can you elaborate on the integration plan for FARO Technologies? - Management expects a couple of penny benefit in 2025 from the acquisition, with significant potential to expand operating margins through integration [48] Question: How is the automation business performing? - The automation business is seeing strong growth in orders, contributing to profitability increases in EMG [73] Question: What is the outlook for organic growth in the back half of the year? - Management anticipates organic growth to remain positive, with a strong pipeline of potential orders [96]

Financial Data and Key Metrics Changes - AMETEK reported record sales of $1,780 million, a 2.5% increase from 2024, with organic sales flat, acquisitions contributing 1.5 points, and foreign currency translation providing a one-point benefit [6][7] - Operating income was $462 million, a 3% increase over 2024, with operating margins at 26%, up 20 basis points from the prior year [7][20] - EBITDA reached a record $565 million, up 4% year-over-year, with EBITDA margins at 31.8% [7][20] - Earnings per diluted share were $1.78, reflecting a 7% increase compared to 2024 [7] Business Line Data and Key Metrics Changes - **Electronic Instruments Group (EIG)**: Sales were $1,160 million, up 1% from the previous year, with organic sales down 3% [8] - **Electromechanical Group (EMG)**: Achieved record sales of $618 million, a 6% increase from the prior year, with organic sales up 5% [10][11] - EIG operating income was $344 million with operating margins at 29.7%, while EMG's operating income was a record $144 million with margins at 23.3% [9][11] Market Data and Key Metrics Changes - The aerospace and defense sector showed strong growth with high single-digit increases in both overall and organic sales [31] - Power and Industrial businesses reported low single-digit increases in sales, indicating a positive outlook for long-term growth [32] - The process businesses experienced flat sales year-over-year, with a 4% decline in organic sales [30] Company Strategy and Development Direction - AMETEK plans to invest an additional $85 million in strategic growth initiatives across the company, focusing on research, development, and engineering [12] - The acquisition of Ferro Technologies for approximately $920 million is expected to enhance AMETEK's presence in the digital reality market and improve operating margins [14][15] - The company aims to leverage its strong cash flow for strategic acquisitions, maintaining a robust acquisition pipeline [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenging macro environment, citing strong operating performance and margin expansion [5][19] - The company anticipates full-year sales to increase in the mid-single digits compared to 2024, with diluted earnings per share expected to be in the range of $7.06 to $7.20 [18][19] - Management noted that the trade landscape remains fluid but emphasized proactive measures to mitigate tariff impacts [16][17] Other Important Information - The effective tax rate for the quarter was 19%, with expectations for the full year to be between 19% and 19.5% [21] - Capital expenditures for the year are projected to be approximately $160 million, about 2% of sales [22] - AMETEK's gross debt to EBITDA ratio was 0.85, with a net debt to EBITDA ratio of 0.6 at the end of the second quarter [23] Q&A Session Summary Question: Can you provide insights on the end market and regional performance? - Management noted that overall sales for process businesses were flat year-over-year, with a 4% decline in organic sales, while aerospace and defense showed strong growth [30][31] Question: What are the synergies expected from the Ferro acquisition? - Management expects a couple of cents benefit in 2025, with potential for significant margin expansion through integration into AMETEK's infrastructure [46][48] Question: How is the automation business performing? - The automation business is experiencing strong growth in orders, with profitability increases driven by both Paragon and automation [71] Question: What is the outlook for organic growth in the back half of the year? - Management anticipates organic growth to remain positive, with acquisitions contributing to mid-single-digit growth for the year [84] Question: How is the company addressing tariff impacts? - Management has implemented comprehensive plans to mitigate tariff impacts, including pricing adjustments and supply chain localization [35][66]

Company Performance - Ametek reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.68 per share, and up from $1.66 per share a year ago [1] - The earnings surprise for the quarter was +5.95%, following a previous surprise of +3.55% with earnings of $1.75 per share against an expectation of $1.69 [2] - The company achieved revenues of $1.78 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.96%, and an increase from $1.73 billion year-over-year [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.78 on revenues of $1.77 billion, and for the current fiscal year, it is $7.10 on revenues of $7.05 billion [8] - The estimate revisions trend for Ametek was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - Ametek operates within the Zacks Electronics - Testing Equipment industry, which is currently ranked in the bottom 13% of over 250 Zacks industries [9] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Core Viewpoint - AMETEK, Inc. reported record financial results for the second quarter of 2025, demonstrating strong sales growth and operational performance despite a challenging economic environment [3][7]. Financial Performance - Second quarter 2025 sales reached $1.78 billion, a 2.5% increase from the same period in 2024 [1]. - Operating income rose by 3% to $461.6 million, with operating margins improving by 20 basis points to 26.0% compared to the previous year [1]. - On a GAAP basis, diluted earnings per share were $1.55, while adjusted earnings per diluted share were $1.78, reflecting a 7% increase from the second quarter of 2024 [2][20]. Business Segment Performance - Electronic Instruments Group (EIG) generated sales of $1.16 billion, a 1% increase year-over-year, with operating income of $344.4 million and margins at 29.7% [4]. - Electromechanical Group (EMG) achieved record sales of $618.5 million, up 6% from the previous year, with operating income increasing 17% to $143.9 million and margins rising to 23.3% [5][6]. Strategic Outlook - The company anticipates mid-single-digit sales growth for 2025 compared to 2024, with adjusted earnings per diluted share expected to be in the range of $7.06 to $7.20, an increase of 3% to 5% from the previous guidance [9][10]. - AMETEK's acquisition of FARO Technologies is expected to enhance its growth strategy, with a strong pipeline for future acquisitions identified [8][9]. Cash Generation and Financial Health - AMETEK reported strong cash generation and a solid balance sheet, positioning the company well for strategic investments and acquisitions [8]. - As of June 30, 2025, total assets were $15.27 billion, reflecting an increase from $14.63 billion in the previous year [20].