AMETEK(AME) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION 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 Provides AMETEK, Inc.'s unaudited consolidated financial statements and comprehensive notes for the periods ended June 30, 2025 and 2024 Consolidated Statement of Income 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 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 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 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 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 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] - Contract liabilities were $420.6 million at June 30, 2025, and $425.6 million at December 31, 2024[27] - 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] - 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] 1. Basis of Presentation 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] - Segment identification is primarily based on product type, production processes, distribution methods, and management organizations[24] 2. Recent Accounting Pronouncements 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] - 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] 3. Revenues Details AMETEK's revenue recognition policies, geographic sales, major products, and warranty information Geographic Areas 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] Major Products and Services 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 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 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] | 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 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] - Allowances for credit losses were $13.1 million at June 30, 2025, and $13.0 million at December 31, 2024[41] 4. Earnings Per Share 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 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] - 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][46] Financial Instruments 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] 6. Hedging Activities 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] - 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] - $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] 7. Inventories, net 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 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 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] 9. Acquisitions 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] 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][138][139] 10. Goodwill 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 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] | 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] - 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] 12. Debt 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] - 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] 13. Share-Based Compensation Reports on share-based compensation expenses and outstanding equity awards Share Based Compensation Expense 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 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] Restricted Stock 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] Performance Restricted Stock Units 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] 14. Retirement and Pension Plans 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] 15. Contingencies 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] - The Company is a Potentially Responsible Party (PRP) at 13 non-AMETEK-owned waste sites, mostly identified as 'de minimis' parties[89] - 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][92] 16. Reportable Segments 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] | 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 Management discusses financial performance, condition, and operational results, highlighting sales, orders, margins, liquidity, and critical accounting policies Recent Trends 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] - The outcome of trade negotiations remains uncertain and could adversely impact demand, costs, inflation, customers, suppliers, and the overall global economy[102] Results of Operations (Q2 2025 vs Q2 2024) 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] - 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] Segment Results (Q2 2025 vs Q2 2024) 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] - EMG achieved record net sales and operating income, driven by a 5% organic sales increase and 1% favorable foreign currency translation[115][116] Results of Operations (6 Months 2025 vs 6 Months 2024) 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] - 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] Segment Results (6 Months 2025 vs 6 Months 2024) 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] - 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][130] Financial Condition 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] - Total debt, net, decreased to $1,942.0 million at June 30, 2025, from $2,079.7 million at December 31, 2024[135] - The debt-to-capital ratio improved to 15.7% at June 30, 2025, from 17.7% at December 31, 2024[137] - The net debt-to-capital ratio improved to 11.3% at June 30, 2025, from 15.0% at December 31, 2024[137] - The Company had available borrowing capacity of $2,221.7 million under its revolving credit facility at June 30, 2025[134] - The Company believes it has sufficient cash-generating capabilities and access to capital to meet its operating needs and contractual obligations[137] Liquidity and Capital Resources 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] - The quarterly cash dividend increased by 11% to $0.31 per common share, effective February 7, 2025[136] Critical Accounting Policies 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] Forward-Looking Information 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] - The Company disclaims any intention or obligation to update or revise forward-looking statements unless required by securities laws[141] Item 4. Controls and Procedures 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] - No material changes in the Company's internal control over financial reporting occurred during the quarter ended June 30, 2025[143] PART II. OTHER INFORMATION 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 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] - Effective February 7, 2025, the Board of Directors approved a new $1.25 billion share repurchase authorization, replacing the previous $1 billion authorization[145] Item 5. Other Information 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] Item 6. Exhibits 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] - XBRL Instance Document and various XBRL Taxonomy Extension documents (Schema, Calculation, Definition, Label, Presentation Linkbase) are filed electronically[148] 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]