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 March 31, 2023 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 ...

Financial Performance - AMETEK's overall sales increased by 11% to $62 billion[4] - Organic sales also grew by 11%[4] - The company's operating income rose by 15% to $15 billion[4] - Adjusted EPS increased by 17%[5] - EBITDA increased by 15% to $18297 billion[5] Strategic Initiatives - AMETEK deployed approximately $430 million on acquisitions[4] - The company repurchased 26 million shares for around $330 million[4] - Approximately 27% of sales come from products released in the past three years[28] - Since 2013, AMETEK has deployed $70 billion in capital across 35 acquisitions[36] Business Overview - AMETEK's annual sales exceed $60 billion, with about 50% of sales generated outside the US[3, 26] - The company ended the year with a record backlog of $322 billion in organic orders, representing an 8% increase[4]

PART I [Business](index=4&type=section&id=Item%201.%20Business) AMETEK is a global manufacturer of electronic instruments and electromechanical devices, operating through two segments and driven by a growth model focused on operational excellence, acquisitions, and global expansion - AMETEK operates through two main groups: **Electronic Instruments (EIG)** for advanced instruments and **Electromechanical (EMG)** for precision motion control and specialty materials[7](index=7&type=chunk) - The **AMETEK Growth Model** is built on four pillars: Operational Excellence, Strategic Acquisitions (17 since 2018), Global & Market Expansion, and New Product Development[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) - The company addresses market challenges like inflation and supply chain constraints through pricing actions, inventory building, and alternative supply sourcing[21](index=21&type=chunk) 2022 Financial and Operational Highlights | Metric | 2022 Value | Change vs. 2021 | | :--- | :--- | :--- | | **Sales (million USD)** | $6,150.5 | +10.9% | | **Organic Sales Growth** | 11% | - | | **Diluted EPS** | $5.01 | +17.8% | | **Acquisitions** | 2 businesses (Navitar, RTDS) | - | | **Acquisition Spending (million USD)** | $429.7 | - | [Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, international, acquisition, and financial risks, including supply chain disruptions, cybersecurity threats, integration challenges, and potential asset impairment - **Operational Risks** include COVID-19 impacts, economic downturns, supply chain shortages, and cybersecurity threats to IT systems[60](index=60&type=chunk)[67](index=67&type=chunk)[82](index=82&type=chunk) - **International Operations Risks** stem from **48.7% of 2022 sales** being international, exposing the company to trade restrictions, currency fluctuations, and political instability[70](index=70&type=chunk)[71](index=71&type=chunk)[74](index=74&type=chunk) - **Acquisition Risks** include difficulties in identifying suitable candidates, integration challenges, loss of key employees, and assuming unexpected liabilities[85](index=85&type=chunk)[86](index=86&type=chunk) - **Financial Condition Risks** involve environmental liabilities, litigation, and potential impairment of goodwill and intangible assets, which totaled **$8.7 billion (70% of total assets)** at year-end 2022[89](index=89&type=chunk)[90](index=90&type=chunk)[95](index=95&type=chunk) [Unresolved Staff Comments](index=20&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the U.S. Securities and Exchange Commission - No unresolved staff comments were reported[96](index=96&type=chunk) [Properties](index=20&type=section&id=Item%202.%20Properties) AMETEK operates from owned and leased facilities globally, including its Berwyn, Pennsylvania headquarters, all deemed well-maintained and suitable for current needs - The company operates from owned and leased facilities across the United States and globally, with its corporate headquarters in Berwyn, Pennsylvania[96](index=96&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various incidental legal proceedings, which management does not expect to materially affect its financial condition or results - The company is subject to various incidental litigation, but these are not expected to materially affect its financial condition or results of operations[98](index=98&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - This section is not applicable[99](index=99&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) AMETEK's common stock trades on the NYSE, with the company repurchasing **$332.8 million** in shares in 2022 and authorizing a new **$1 billion** program, significantly outperforming market indices in total stockholder return Share Repurchases | Year | Shares Repurchased (approx.) | Cost (million USD) | | :--- | :--- | :--- | | 2022 | 2,673,000 | $332.8 | | 2021 | 113,000 | $14.7 | - In May 2022, a new **$1 billion** share repurchase program was authorized, replacing a prior **$500 million** authorization[103](index=103&type=chunk) Five-Year Cumulative Total Return Comparison (2017-2022) | Company/Index | 2017 (Base $100) | 2022 (End Value) | | :--- | :--- | :--- | | **AMETEK, Inc.** | $100.00 | $199.60 | | **S&P 500 Index** | $100.00 | $156.89 | | **S&P Industrials** | $100.00 | $142.63 | [Reserved](index=24&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) AMETEK achieved record 2022 financial results with **$6.15 billion** in net sales and **$5.01** diluted EPS, driven by organic growth and acquisitions, while maintaining robust liquidity and mitigating market challenges 2022 Financial Highlights vs. 2021 | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales (million USD)** | $6,150.5 | $5,546.5 | +10.9% | | **Net Income (million USD)** | $1,159.5 | $990.1 | +17.1% | | **Diluted EPS** | $5.01 | $4.25 | +17.8% | | **Orders (million USD)** | $6,639.1 | $6,474.4 | +2.5% | | **Backlog (million USD)** | $3,218.6 | $2,730.1 | +17.9% | - The company navigates a challenging global economic environment, mitigating inflation and supply chain constraints through pricing actions, inventory building, and alternative sourcing[116](index=116&type=chunk) Key Cash Flow and Liquidity Metrics (2022) | Metric | Value | | :--- | :--- | | **Cash from Operations (million USD)** | $1,149.4 | | **Free Cash Flow (million USD)** | $1,010.4 | | **EBITDA (million USD)** | $1,829.7 | | **Net Debt-to-Capital Ratio** | 21.4% | - Key cash uses in 2022 included **$429.7 million** for acquisitions, **$332.8 million** for share repurchases, and **$202.2 million** for dividends[131](index=131&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) AMETEK's primary market risks are interest rate, foreign currency, and commodity price fluctuations, which are managed through operational activities, financing strategies, and price adjustments, with potential losses deemed immaterial - The company's main market risks are fluctuations in interest rates, foreign currency exchange rates, and commodity prices[163](index=163&type=chunk) - Significant foreign currency exposures, including Euro and British pound, are managed through local borrowings and derivative instruments[164](index=164&type=chunk) - Primary commodity exposures to materials like nickel and copper are generally mitigated through selling price adjustments and purchase arrangements[165](index=165&type=chunk) [Financial Statements and Supplementary Data](index=37&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2020-2022, including management's report on internal controls and Ernst & Young LLP's unqualified opinions on both financial statements and internal controls - Management concluded that internal control over financial reporting was effective as of December 31, 2022, excluding recently acquired businesses as permitted[174](index=174&type=chunk)[175](index=175&type=chunk) - Ernst & Young LLP issued an unqualified opinion, affirming the fair presentation of financial statements in conformity with U.S. GAAP[183](index=183&type=chunk) Key Financial Statement Data (2022 vs 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Net Sales (million USD)** | $6,150.5 | $5,546.5 | | **Operating Income (million USD)** | $1,500.7 | $1,308.7 | | **Net Income (million USD)** | $1,159.5 | $990.1 | | **Total Assets (million USD)** | $12,431.1 | $11,898.2 | | **Total Stockholders' Equity (million USD)** | $7,476.5 | $6,871.9 | | **Cash from Operations (million USD)** | $1,149.4 | $1,160.5 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=88&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants regarding accounting principles, financial disclosure, or auditing scope - No changes in or disagreements with accountants were reported[394](index=394&type=chunk) [Controls and Procedures](index=88&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of December 31, 2022, with no material changes to internal control over financial reporting identified in Q4 2022 - The principal executive and financial officers concluded that disclosure controls and procedures were effective at a reasonable assurance level as of December 31, 2022[394](index=394&type=chunk) - No material changes to internal control over financial reporting occurred during the fourth quarter of 2022[395](index=395&type=chunk) [Other Information](index=88&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - No other information was reported for this item[396](index=396&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=89&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, corporate governance, and the code of ethics is incorporated by reference from the 2023 Proxy Statement - Information on Directors, Executive Officers, and the Audit Committee is incorporated by reference from the 2023 Proxy Statement[398](index=398&type=chunk)[399](index=399&type=chunk)[400](index=400&type=chunk) - The company has adopted a Code of Ethics for its principal executive and financial officers, available on its website[402](index=402&type=chunk) [Executive Compensation](index=89&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation, including compensation tables and potential payments, is incorporated by reference from the 2023 Proxy Statement - Executive compensation information is incorporated by reference from the 2023 Proxy Statement[403](index=403&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=90&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners and management is incorporated by reference from the 2023 Proxy Statement - Security ownership information is incorporated by reference from the 2023 Proxy Statement[405](index=405&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=90&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2023 Proxy Statement - Information on related transactions and director independence is incorporated by reference from the 2023 Proxy Statement[406](index=406&type=chunk) [Principal Accountant Fees and Services](index=90&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2023 Proxy Statement - Principal accountant fees and services information is incorporated by reference from the 2023 Proxy Statement[407](index=407&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=91&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed with the Form 10-K, noting financial statements are in Item 8 and schedules are omitted, with a comprehensive exhibit list provided - Financial statements are included in Part II, Item 8 of the report[411](index=411&type=chunk) - Financial statement schedules are omitted as not applicable or included elsewhere in the financial statements or notes[411](index=411&type=chunk) - A list of exhibits, including CEO and CFO certifications, is provided with the report[425](index=425&type=chunk) [Form 10-K Summary](index=94&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for this item - No summary has been provided for this item[426](index=426&type=chunk)

Financial Data and Key Metrics Changes - Fourth quarter sales reached $1.63 billion, an 8% increase compared to the same period in 2021, with organic sales growth of 9% and acquisitions contributing 2% [7] - Operating income for the quarter was a record $398 million, up 10% year-over-year, with operating margins at 24.5%, an increase of 50 basis points [7] - Full-year sales totaled $6.15 billion, an 11% increase from 2021, with operating income up 15% to $1.5 billion and EBITDA reaching $1.83 billion, also up 15% [10][11] Business Line Data and Key Metrics Changes - The Electronic Instruments Group (EIG) reported record sales of $1.16 billion in Q4, a 10% increase, with organic sales up 9% and operating income at $307 million, also a record [8] - The Electromechanical Group (EMG) saw sales of $466 million in Q4, a 4% increase, with organic sales growing 8% and operating income up 9% to $115 million [9] Market Data and Key Metrics Changes - Europe was the fastest-growing market, with sales up 12%, while the U.S. market grew 10% organically; Asia remained flat due to challenges in China [27] - In Q4, the Aerospace & Defense segment experienced mid-teens growth, while the Power & Industrial segment saw high single-digit growth [29][30] Company Strategy and Development Direction - The company plans to invest an additional $90 million in organic growth initiatives in 2023, focusing on research, development, and engineering, as well as sales and marketing [12] - AMETEK's acquisition strategy remains active, with over $2.4 billion deployed on eight acquisitions in 2021 and 2022, and a strong pipeline for future deals [12][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, supported by a record backlog and strong operational capabilities [15] - For 2023, the company expects overall and organic sales to increase in the mid-single digits, with diluted earnings per share projected to be between $5.84 and $6 [15] Other Important Information - The company reported a strong cash flow in Q4, with operating cash flow of $385 million, up 37% year-over-year, and free cash flow also up 37% to $327 million [19] - Total debt at year-end was $2.39 billion, down from $2.54 billion in 2021, with a gross debt-to-EBITDA ratio of 1.2 times [20] Q&A Session Summary Question: Can you provide insights on organic investments and their reduction from 2022? - Management indicated that the $90 million investment is incremental over 2022 and reflects healthy investments in R&D and sales [23] Question: What are the expectations for potential weakness in H2 2023? - Management noted that while growth is slowing, the record backlog and strong execution provide confidence, with no current signs of a slowdown [25] Question: How did Europe perform and what is the outlook for China? - Europe showed strong growth at 12%, while China faced challenges but is expected to improve with reopening [27] Question: Can you elaborate on the process segment's performance? - The process segment saw high single-digit growth, particularly in healthcare and semiconductor markets, with expectations for continued growth in 2023 [66][67] Question: What is the expected EPS contribution from recent acquisitions? - The acquisitions of Navitar and RTDS are expected to be slightly accretive to EPS [50] Question: How does the company view the current M&A environment? - Management believes the current environment presents opportunities due to lower valuations and a strong acquisition pipeline [52]

AMETEK Inc. (NYSE:AME) Q3 2022 Earnings Conference Call November 1, 2022 8:30 AM ET Company Participants Kevin Coleman - Head, IR Dave Zapico - CEO Bill Burke - CFO Conference Call Participants Matt Summerville - D.A. Davidson Allison Poliniak - Wells Fargo Deane Dray - RBC Capital Markets Josh Pokrzywinski - Morgan Stanley Nigel Coe - Wolfe Research Scott Graham - Loop Capital Markets Rob Wertheimer - Melius Research Andrew Obin - Bank of America Christopher Glynn - Oppenheimer Tristan Margot - Cowen Opera ...

Financial Data and Key Metrics Changes - AMETEK reported record sales of $1.51 billion for Q2 2022, a 9% increase compared to Q2 2021, with organic sales up 12% [7] - Operating income reached a record $365 million, reflecting a 15% increase year-over-year, with operating margins at 24.1%, up 130 basis points from the previous year [7][8] - Record earnings per diluted share were $1.38, a 20% increase from Q2 2021, exceeding guidance [8] Business Line Data and Key Metrics Changes - The Electronic Instruments Group (EIG) achieved sales of $1.03 billion, up 10% year-over-year, with organic sales also increasing by 12% [8] - The Electromechanical Group (EMG) reported sales of $486.3 million, a 7% increase from the prior year, with organic sales growing 11% [9] Market Data and Key Metrics Changes - Organic orders increased by 11%, with a book-to-bill ratio of 1.09, marking the eighth consecutive quarter of positive book-to-bill [7] - Demand remained strong across all major regions, with a record backlog of $3.1 billion, up approximately 80% since before the COVID pandemic [27] Company Strategy and Development Direction - AMETEK's capital allocation strategy prioritizes value-enhancing strategic acquisitions, with a strong M&A pipeline and plans to be active in the second half of the year [13][14] - The company is focused on driving organic growth through investments in research, development, and engineering, with a vitality index of 26% of sales in Q2 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's resilience despite macroeconomic headwinds, noting solid demand and operational performance [17] - The company raised its full-year earnings guidance, expecting overall sales to increase by high single digits, with diluted earnings per share projected between $5.46 and $5.54 [17][18] Other Important Information - The global supply chain remains constrained, particularly regarding electronic components, but AMETEK has managed to offset inflation with higher pricing [10][11] - The effective tax rate for Q2 was 18.5%, down from 20.6% in the prior year, with expectations for the full year between 19% and 19.5% [21] Q&A Session Summary Question: Any change in order cadence intra-quarter? - Management noted strong orders each month, with June being the strongest, and continued order strength into July, with a record backlog of $3.1 billion [27] Question: Thoughts on inventory levels? - Management indicated that inventory levels are being managed closely to support strong order rates while remaining cautious about supply chain issues [29] Question: Any specific KPIs for Europe amidst macro challenges? - Orders in Europe were up 9%, with notable strength in automation and aerospace, although geopolitical issues are being monitored closely [32] Question: Impact of supply chain bottlenecks on aerospace & defense? - Orders in aerospace & defense were up low double digits, with strong demand and no slowdown observed [35] Question: Pricing and inflation impact in Q2? - Pricing was about 6%, offsetting inflation of about 5%, maintaining a positive spread [37] Question: Outlook for Q3 sales growth? - Guidance reflects mid-to-high single digits growth, with some currency headwinds and seasonal factors considered [39] Question: Changes in outlook by market? - Organic sales for process businesses were up low double digits, with expectations raised for high single-digit growth across all segments [70] Question: Productivity numbers for the quarter? - Cost savings in Q2 were $35 million, with an annual target of $125 million [73] Question: Current M&A pipeline status? - The M&A pipeline remains strong, with management confident in executing deals in the second half of the year [53][75]

AMETEK, Inc. (NYSE:AME) Q1 2022 Earnings Conference Call May 3, 2022 8:30 AM ET Company Participants Kevin Coleman - Vice President-Investor Relations and Treasurer David Zapico - Chairman and Chief Executive Officer William Burke - Executive Vice President and Chief Financial Officer Conference Call Participants Matt Summerville - D.A. Davidson Deane Dray - RBC Capital Markets Allison Poliniak-Cusic - Wells Fargo Rob Wertheimer - Melius Research Scott Graham - Loop Capital Markets David Ridley-Lane - Bank ...