AMETEK(AME) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Highlights 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] Business Segment Performance 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) 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] Electromechanical Group (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] 2025 Outlook 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] Financial Statements 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 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 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 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 |