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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-12981 _________________________ AMETEK, Inc. (Exact name of r ...

[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]

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].

Core Insights - AMETEK, Inc. has completed the acquisition of FARO Technologies, enhancing its Ultra Precision Technologies Division with FARO's expertise in 3D measurement and imaging solutions [1] - The combination of FARO, Creaform, and Virtek creates a comprehensive portfolio of portable and automated 3D metrology, laser projection, and digital reality solutions, aimed at improving customer experiences and product integration [2][3] Company Overview - FARO Technologies has over 40 years of experience in providing technology solutions that enable accurate measurements and data-driven decision-making [4] - The company is recognized for its innovation in bridging the digital and physical worlds through reliable accuracy and immediacy [4] Strategic Implications - The acquisition is expected to open new opportunities for innovation and growth, allowing the companies to collaborate more closely and enhance their service capabilities [3] - Each brand will continue to operate independently while leveraging their combined strengths to deliver greater value to customers [2][3] Industry Applications - The integrated solutions will serve various sectors, including industrial manufacturing, architecture, engineering, construction, and public safety, with applications ranging from quality control to forensics [6]

Earnings Release - AMETEK, Inc. will release its second quarter 2025 earnings before the market opens on July 31, 2025 [1] - The company will host a webcast for its second quarter 2025 investor conference call on the same day at 8:30 AM ET [2] Corporate Profile - AMETEK is a leading global provider of industrial technology solutions with annual sales of approximately $7.0 billion [3] - The company employs a Growth Model that includes Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions [3] - AMETEK aims for double-digit percentage growth in earnings per share over the business cycle and seeks superior returns on total capital [3] - Founded in 1930, AMETEK has been listed on the NYSE for over 90 years and is a component of the S&P 500 [3]

Core Viewpoint - The 2024 global CEO compensation ranking for scientific instrument companies reveals that Thermo Fisher's CEO tops the list with a salary exceeding 200 million yuan, amidst a backdrop of declining industry net profits and a growing focus on the linkage between executive pay and company performance [1][2]. Summary by Sections CEO Compensation Rankings - The ranking includes 13 multinational instrument companies, with Thermo Fisher's CEO Marc N. Casper earning 30.45 million USD, a 60.4% increase from the previous year. Other notable compensations include Danaher's Rainer M. Blair at 22.11 million USD and Agilent's Padraig McDonnell at 9.04 million USD [3][6]. - Five CEOs have annual salaries exceeding 10 million USD, with Thermo Fisher, Danaher, Agilent, Illumina, and AMETEK leading the list [6]. Industry Performance - The overall industry faced challenges, with many companies experiencing reduced profits and increased costs. Only five out of the 13 companies reported year-over-year net profit growth [6][9]. - The average net profit margin for the industry decreased from 15.7% in 2023 to 11.6% in 2024, reflecting a slowdown in industry growth [11]. CEO Pay and Company Performance - The compensation of CEOs is closely tied to company performance, with only three CEOs seeing a decrease in pay. Notably, Illumina's CEO saw a 215.5% increase in compensation despite a decline in company revenue and net profit [6][9]. - The ratio of CEO compensation to net profit varies, with the highest being 5.02% for Bio-Rad's CEO, while Thermo Fisher's CEO has the lowest at 0.48% [9]. Gender Representation - Veralto's CEO Jennifer L. Honeycutt is the only female CEO in the ranking, earning 11.53 million USD, a 22.8% increase from the previous year [8]. Executive Pay Structure - The article discusses the necessity of linking executive pay to company performance, emphasizing that high compensation should be justified by superior company results to align the interests of executives and shareholders [10][11].

Industry Overview - The Zacks Electronics – Testing Equipment industry is facing challenges due to a difficult global macroeconomic environment, end-market volatility, unfavorable foreign exchange rates, and increasing geopolitical tensions [1] - The automotive sector is sluggish, primarily due to declining investments in electric vehicles, which is a significant headwind for industry participants [1] - Key end markets for the industry include consumer electronics, automotive, industrial, aerospace and defense, healthcare, semiconductors, and communications [2] Growth Opportunities - Companies like AMETEK, Itron, and Cognex are capitalizing on growth opportunities related to 5G, automation, and Industry 4.0 [1] - The adoption of software-enabled testing instruments and devices is increasing, providing a positive outlook for the industry [1] - The rising utilization of precision motion-control solutions and automatic test systems in various markets, including aerospace and medical, is a positive trend [3] Pharmaceutical Market - The industry is benefiting from the increasing use of electrical instruments and software in clinical and medical science research, particularly in the pharmaceutical market [4] - Agilent is noted for capitalizing on this trend, indicating strong growth potential in life science research [4] 5G Deployment - The deployment of 5G technology is expected to provide near-term benefits for industry players, with an uptick in demand for 5G test solutions [5] - The migration of infrastructure workloads to the cloud is also driving demand for high-speed Internet services, which is favorable for electronic companies associated with 5G [5] Macroeconomic Challenges - The challenging macroeconomic scenario is causing enterprises to hesitate in signing multi-year deals, which negatively impacts industry participants [6] - The Zacks Electronics – Testing Equipment industry currently ranks 174, placing it in the bottom 29% of over 250 Zacks industries, indicating dim near-term prospects [7][8] Stock Performance - The industry has underperformed the S&P 500 and its sector over the past year, declining by 2.4% compared to the S&P 500's increase of 9.3% [11] - The industry's forward 12-month price-to-earnings (P/E) ratio is currently at 21.86X, which is higher than the S&P 500's 21.36X but lower than the sector's 25.12X [13] Company Highlights - **AMETEK**: This company is experiencing solid momentum across its segments and plans to invest $85 million in global market expansion and technology innovation. The Zacks Consensus Estimate for 2025 earnings is $7.11 per share, reflecting a year-over-year growth of 4.1% [17][19] - **Itron**: Gaining from trends in electrification and energy transition, Itron's shares have climbed 3.7% year to date. The Zacks Consensus Estimate for 2025 earnings is $5.44 per share, indicating a year-over-year decline of 3.2% [22][23] - **Cognex**: The company is integrating artificial intelligence into its products and has launched innovative solutions. However, its shares have declined 17.1% year to date, with the Zacks Consensus Estimate for 2025 earnings at 88 cents per share, indicating year-over-year growth of 18.92% [25][26]