AMETEK, Inc. (NYSE:AME) Q3 2023 Earnings Conference Call October 31, 2023 8:30 AM ET Company Participants Kevin Coleman - VP, IR & Treasurer Dave Zapico - Chairman and CEO William Burke - EVP and CFO Conference Call Participants Deane Dray - RBC Capital Markets Matt Summerville - D.A. Davidson Allison Poliniak - Wells Fargo Jeffrey Sprague - Vertical Research Partners Scott Graham - Seaport Research Partners Nigel Coe - Wolfe Research Christopher Glynn - Oppenheimer Peter Costa - Mizuho David Ridley-Lane - ...

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 September 30, 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 ...

Financial Data and Key Metrics Changes - AMETEK reported second quarter sales of $1.65 billion, a 9% increase compared to the same period in 2022, with organic sales growth of 5% and acquisitions contributing 4% [6][14] - Operating income reached a record $419 million, up 15% year-over-year, with operating margins at 25.4%, an increase of 130 basis points from the previous year [6][19] - Earnings per diluted share were $1.57, a 14% increase from the second quarter of 2022, exceeding the guidance range [7][14] - EBITDA was a record $496 million, up 12% year-over-year, with EBITDA margins at 30.1% [6][19] Business Line Data and Key Metrics Changes - The Electronic Instruments Group (EIG) achieved sales of $1.13 billion, up 10% year-over-year, with organic sales growth of 8% [7][8] - The Electromechanical Group (EMG) reported sales of $511 million, a 5% increase, driven by the acquisition of Bison Engineering, with organic sales remaining flat [8][9] - EIG's operating income was $307 million, up 16% year-over-year, while EMG's operating income was $136 million, a 10% increase [8][9] Market Data and Key Metrics Changes - The U.S. market saw mid-single-digit growth, with notable strength in process and aerospace and defense businesses [34] - Europe experienced high single-digit growth, particularly in process and power businesses [34] - Asia's growth was up 3%, with strong performance in process [35] Company Strategy and Development Direction - AMETEK is focused on organic growth initiatives and strategic acquisitions, with over $100 million expected to be spent on growth investments in 2023 [10][12] - The company aims to leverage its strong cash flow for strategic acquisitions, maintaining a robust acquisition pipeline [13] - AMETEK's businesses are positioned in attractive niche markets aligned with long-term growth drivers such as electrification and clean energy [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, increasing earnings guidance for the full year [14][19] - The company anticipates overall sales growth in the mid- to high single digits for 2023, with diluted earnings per share expected to be in the range of $6.18 to $6.26 [14][19] - Management noted that while order growth may normalize, the backlog remains strong, providing confidence for the remainder of the year [22][23] Other Important Information - AMETEK's effective tax rate for the second quarter was 18.2%, slightly down from 18.5% in the previous year [17] - Capital expenditures for the second quarter were $28 million, with expectations of approximately $145 million for the full year [18] - Operating cash flow was $335 million, up 42% from the prior year, with free cash flow at $307 million, up 47% [19] Q&A Session Summary Question: Could you talk about order trends and any short-term headwinds? - Management indicated that overall demand remains solid, with a record backlog of $3.44 billion and a positive book-to-bill ratio of 1.01 [22][23] Question: What is holding back the acquisition pipeline? - Management stated that the pipeline remains strong, with a disciplined approach to high-quality deals expected to be active in the second half of the year [25] Question: Can you provide insights on the performance of different business segments? - Management reported strong growth across the Process segment, Aerospace and Defense, and Power & Industrial, with expectations for continued mid-single-digit organic growth [28][30] Question: How is the normalization of inventory levels impacting the automation business? - Management expects the normalization to last a couple of quarters, with significant impacts on the automation business due to inventory corrections [33] Question: What is the outlook for pricing and cost management? - Management indicated that pricing has more than offset inflation, with a positive spread of approximately 100 basis points [40] Question: How is the medical technology sector performing? - Management noted strong growth in the medical business, despite some inventory destocking in the automation segment [62]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides AMETEK's unaudited consolidated financial statements and management's analysis for Q2 and 6M 2023 [Item 1. Financial Statements](index=3&type=section&id=Item%201.Financial%20Statements) This section presents AMETEK's unaudited consolidated financial statements and detailed notes for Q2 and 6M 2023 and 2022 [Consolidated Statement of Income](index=3&type=section&id=Consolidated%20Statement%20of%20Income) This statement details AMETEK's net sales, operating income, net income, and earnings per share for Q2 and 6M 2023 and 2022 Consolidated Statement of Income Highlights (In thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |:----------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Net sales | $1,646,111 | $1,514,552 | $3,243,228 | $2,973,077 | | Operating income | $418,791 | $364,842 | $824,332 | $718,082 | | Income before income taxes | $396,384 | $346,465 | $775,983 | $682,687 | | Net income | $324,242 | $282,373 | $629,954 | $554,820 | | Basic earnings per share | $1.41 | $1.23 | $2.74 | $2.40 | | Diluted earnings per share | $1.40 | $1.22 | $2.72 | $2.39 | | Dividends declared per share| $0.25 | $0.22 | $0.50 | $0.44 | [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents AMETEK's total comprehensive income for the three and six months ended June 30, 2023 and 2022 Condensed Consolidated Statement of Comprehensive Income (In thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |:---------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Total comprehensive income | $350,692 | $222,033 | $682,903 | $479,334 | [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) This statement provides AMETEK's financial position, including assets, liabilities, and equity, as of June 30, 2023, and December 31, 2022 Consolidated Balance Sheet Highlights (In thousands) | Asset/Liability/Equity | June 30, 2023 (Unaudited) | December 31, 2022 | |:-----------------------------------|:--------------------------|:------------------| | **ASSETS** | | | | Cash and cash equivalents | $605,587 | $345,386 | | Total current assets | $2,899,555 | $2,528,058 | | Goodwill | $5,449,590 | $5,372,562 | | Total assets | $12,839,851 | $12,431,120 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $1,341,190 | $1,564,202 | | Long-term debt, net | $2,186,299 | $2,158,928 | | Total liabilities | $4,758,480 | $4,954,608 | | Total stockholders' equity | $8,081,371 | $7,476,512 | [Consolidated Statement of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statement%20of%20Stockholders'%20Equity) This statement details changes in AMETEK's stockholders' equity for the six months ended June 30, 2023 and 2022 Consolidated Statement of Stockholders' Equity Highlights (In thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |:--------------------------------------|:-------------------------------|:-------------------------------| | Common stock, end of period | $2,707 | $2,695 | | Capital in excess of par value, end of period | $1,123,920 | $1,040,951 | | Retained earnings, end of period | $9,372,368 | $8,353,735 | | Accumulated other comprehensive loss, end of period | $(521,996) | $(545,930) | | Treasury stock, end of period | $(1,895,628) | $(1,901,360) | | Total stockholders' equity, end of period | $8,081,371 | $6,950,091 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement outlines AMETEK's cash flows from operating, investing, and financing activities for the six months ended June 30, 2023 and 2022 Condensed Consolidated Statement of Cash Flows Highlights (In thousands) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |:----------------------------------|:-------------------------------|:-------------------------------| | Cash provided by operating activities | $721,783 | $437,237 | | Cash used for investing activities | $(149,987) | $(41,033) |\n| Cash used for financing activities | $(317,091) | $(370,393) | | Increase in cash and cash equivalents | $260,201 | $1,881 | | Cash and cash equivalents, end of period | $605,587 | $348,653 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [1. Basis of Presentation](index=9&type=section&id=1.%20Basis%20of%20Presentation) This note describes the accounting principles and assumptions used in preparing the unaudited interim financial statements - The unaudited consolidated financial statements include all necessary adjustments for fair presentation, with quarterly results not indicative of full-year performance[21](index=21&type=chunk) [2. Revenues](index=9&type=section&id=2.%20Revenues) This note details AMETEK's revenue recognition policies, contract assets and liabilities, and sales by geographic area and product Contract Assets and Liabilities (In thousands) | Metric | June 30, 2023 | January 1, 2023 | |:-----------------------------|:--------------|:----------------| | Contract assets – June 30 | $137,444 | $119,741 | | Contract liabilities – June 30 | $443,768 | $398,692 | | Net change | $(27,373) | $(28,482) | - Net change in contract liabilities for 6M 2023 was driven by advance payments, with **$268.0 million** revenue recognized from beginning contract liabilities[23](index=23&type=chunk) - Remaining performance obligations increased to **$573.0 million** at June 30, 2023, expected to be satisfied within two to three years[24](index=24&type=chunk) Consolidated Net Sales by Geographic Area (In thousands) | Geographic Area | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |:---------------------------|:---------------------------------|:-------------------------------| | United States | $859,892 | $1,668,907 | | Total International Sales | $786,219 | $1,574,321 | | **Consolidated Net Sales** | **$1,646,111** | **$3,243,228** | Consolidated Net Sales by Major Products and Services (In thousands) | Product/Service | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |:-----------------------------------|:---------------------------------|:-------------------------------| | Process and analytical instrumentation | $798,667 | $1,593,100 | | Aerospace and power | $485,771 | $951,635 | | Automation and engineered solutions| $361,673 | $698,493 | | **Consolidated Net Sales** | **$1,646,111** | **$3,243,228** | Timing of Revenue Recognition (In thousands) | Timing of Recognition | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |:----------------------------------|:---------------------------------|:-------------------------------| | Products transferred at a point in time | $1,400,552 | $2,749,461 | | Products and services transferred over time | $245,559 | $493,767 | | **Consolidated Net Sales** | **$1,646,111** | **$3,243,228** | Changes in Accrued Product Warranty Obligation (In thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |:-------------------------------------------|:-------------------------------|:-------------------------------| | Balance at the beginning of the period | $26,487 | $27,478 | | Accruals for warranties issued | $9,397 | $5,143 | | Settlements made | $(7,289) | $(6,023) | | Warranty accruals related to acquired businesses and other | $244 | $(632) | | Balance at the end of the period | $28,839 | $25,966 | - Accounts receivable, net of allowances, totaled **$936.9 million** at June 30, 2023, with immaterial changes in credit loss allowance[37](index=37&type=chunk) [3. Earnings Per Share](index=12&type=section&id=3.%20Earnings%20Per%20Share) This note provides the calculation of basic and diluted earnings per share, including weighted average shares outstanding Weighted Average Shares for EPS Calculation (In thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |:----------------------------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Basic shares | 230,478 | 230,100 | 230,302 | 230,790 | | Equity-based compensation plans | 783 | 1,147 | 943 | 1,366 | | Diluted shares | 231,261 | 231,247 | 231,245 | 232,156 | [4. Fair Value Measurements](index=12&type=section&id=4.%20Fair%20Value%20Measurements) This note describes the Company's fair value hierarchy and measurements for financial assets and liabilities - The Company employs a three-level valuation hierarchy for fair value measurements, categorizing inputs as Level 1, 2, or 3[41](index=41&type=chunk) Fair Value Hierarchy (In thousands) | Asset/Liability | June 30, 2023 Total | June 30, 2023 Level 1 | June 30, 2023 Level 2 | June 30, 2023 Level 3 | |:---------------------------------|:--------------------|:----------------------|:----------------------|:----------------------| | Mutual fund investments | $10,539 | $10,539 | — | — | | Foreign currency forward contracts | $(476) | — | $(476) | — | | Long-term debt (including current portion) | $(2,033,991) | — | — | $(2,033,991) | - Long-term debt is a Level 3 liability, valued using comparable market data due to its private nature and lack of public market[47](index=47&type=chunk) [5. Hedging Activities](index=13&type=section&id=5.%20Hedging%20Activities) This note explains the Company's use of long-term borrowings as net investment hedges to mitigate foreign currency risks - British-pound and Euro-denominated long-term borrowings totaling **$260.5 million** and **$584.1 million** respectively, serve as net investment hedges[48](index=48&type=chunk)[49](index=49&type=chunk) - Pre-tax currency remeasurement losses of **$24.9 million** from hedges were included in other comprehensive income for 6M 2023[49](index=49&type=chunk) [6. Inventories, net](index=13&type=section&id=6.%20Inventories%2C%20net) This note provides a breakdown of AMETEK's inventory components, including finished goods, work in process, and raw materials Inventories, Net (In thousands) | Category | June 30, 2023 | December 31, 2022 | |:--------------------------|:--------------|:------------------| | Finished goods and parts | $124,959 | $130,989 | | Work in process | $151,875 | $138,043 | | Raw materials and purchased parts | $830,990 | $775,252 | | **Total inventories, net**| **$1,107,824**| **$1,044,284** | [7. Leases](index=14&type=section&id=7.%20Leases) This note outlines the Company's operating lease commitments for facilities, vehicles, and equipment, and related costs - Operating lease commitments for facilities, vehicles, and equipment have a weighted average remaining term of approximately **5 years**[52](index=52&type=chunk) Total Lease Cost (In thousands) | Lease Cost Component | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |:---------------------|:---------------------------------|:-------------------------------| | Operating lease cost | $15,905 | $30,582 | | Variable lease cost | $2,716 | $5,946 | | **Total lease cost** | **$18,621** | **$36,528** | Lease Liabilities (In thousands) | Lease Liability Category | June 30, 2023 | December 31, 2022 | |:-------------------------|:--------------|:------------------| | Right of use assets, net | $171,616 | $170,295 | | Total lease liabilities | $175,715 | $175,593 | [8. Acquisitions](index=14&type=section&id=8.%20Acquisitions) This note details the acquisition of Bison Gear & Engineering Corp. and its impact on the Company's financial statements - AMETEK acquired Bison Gear & Engineering Corp. for **$99.3 million** in March 2023, integrating it into the EMG segment[56](index=56&type=chunk) Bison Acquisition Purchase Price Allocation (In millions) | Asset Category | Allocated Amount | |:--------------------------------|:-----------------| | Property, plant and equipment | $10.1 | | Goodwill | $23.5 | | Other intangible assets | $52.8 | | Net working capital and other | $12.9 | | **Total cash paid** | **$99.3** | - Bison acquisition goodwill of **$23.5 million** is tax deductible, with **$52.8 million** in other intangible assets, including **$8.8 million** in trade names[59](index=59&type=chunk)[60](index=60&type=chunk) - The Bison acquisition had an immaterial impact on net sales, net income, and diluted EPS for Q2 and 6M 2023[61](index=61&type=chunk) [9. Goodwill](index=15&type=section&id=9.%20Goodwill) This note outlines changes in goodwill by segment, including acquisitions, purchase price adjustments, and currency translation Changes in Goodwill by Segment (In millions) | Segment/Adjustment | EIG | EMG | Total | |:----------------------------------|:--------|:--------|:--------| | Balance at December 31, 2022 | $4,236.1| $1,136.5| $5,372.6| | Goodwill acquired from 2023 acquisitions | — | $23.5 | $23.5 | | Purchase price allocation adjustments and other | $25.4 | — | $25.4 | | Foreign currency translation adjustments | $16.9 | $11.2 | $28.1 | | **Balance at June 30, 2023** | **$4,278.4**| **$1,171.2**| **$5,449.6**| [10. Income Taxes](index=16&type=section&id=10.%20Income%20Taxes) This note discusses the Company's income tax provisions, uncertain tax benefits, and effective tax rate - Gross uncertain tax benefits totaled **$191.1 million** at June 30, 2023, with **$140.3 million** potentially impacting the effective tax rate[66](index=66&type=chunk) Reconciliation of Liability for Uncertain Tax Positions (In millions) | Metric | Amount | |:---------------------------------|:-------| | Balance at December 31, 2022 | $174.7 | | Additions for tax positions | $16.4 | | Reductions for tax positions | — | | **Balance at June 30, 2023** | **$191.1** | - The effective tax rate for Q2 2023 was **18.2%**, a decrease from 18.5% in Q2 2022, due to foreign tax credit utilization[68](index=68&type=chunk) [11. Share-Based Compensation](index=16&type=section&id=11.%20Share-Based%20Compensation) This note details the Company's share-based compensation plans, including stock options, restricted stock, and PRSUs Total Pre-Tax Share-Based Compensation Expense (In thousands) | Compensation Type | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |:----------------------------------|:---------------------------------|:-------------------------------| | Stock option expense | $3,596 | $7,180 | | Restricted stock expense | $5,257 | $10,297 | | Performance restricted stock unit expense | $3,728 | $5,383 | | **Total pre-tax expense** | **$12,581** | **$22,860** | Stock Option Activity Summary (In thousands, except price and years) | Metric | Shares | Weighted Average Exercise Price | |:-------------------------------------|:-------|:--------------------------------| | Outstanding at December 31, 2022 | 3,060 | $79.46 | | Granted | 453 | $138.46 | | Exercised | (457) | $70.55 | | Forfeited | (51) | $122.05 | | **Outstanding at June 30, 2023** | **3,005**| **$99.43** | | Exercisable at June 30, 2023 | 2,070 | $83.59 | - Expected future pre-tax compensation expense for non-vested stock options was **$25.6 million** at June 30, 2023, over two years[75](index=75&type=chunk) Non-Vested Restricted Stock Activity Summary (In thousands, except value) | Metric | Shares | Weighted Average Grant Date Fair Value | |:-------------------------------------------|:-------|:---------------------------------------| | Non-vested restricted stock outstanding at December 31, 2022 | 356 | $117.18 | | Granted | 154 | $138.60 | | Vested | (155) | $104.06 | | Forfeited | (21) | $125.89 | | **Non-vested restricted stock outstanding at June 30, 2023** | **334** | **$132.59** | - Expected future pre-tax compensation expense for non-vested restricted shares was **$34.7 million** at June 30, 2023, over two years[77](index=77&type=chunk) - PRSUs granted in March 2023 vest over three years, valued based on financial targets and a Monte Carlo model for market conditions[79](index=79&type=chunk)[80](index=80&type=chunk) Non-Vested Performance Restricted Stock Activity Summary (In thousands, except value) | Metric | Shares | Grant Date Fair Value | |:-------------------------------------------|:-------|:----------------------| | Non-vested performance restricted stock outstanding at December 31, 2022 | 275 | $101.98 | | Granted | 79 | $138.46 | | Performance assumption change | 48 | $63.37 | | Vested | (161) | $63.37 | | Forfeited | (2) | $131.67 | | **Non-vested performance restricted stock outstanding at June 30, 2023** | **239** | **$131.90** | - Expected future pre-tax compensation expense for non-vested PRSUs was **$11.4 million** at June 30, 2023, over approximately one year[81](index=81&type=chunk) [12. Retirement and Pension Plans](index=19&type=section&id=12.%20Retirement%20and%20Pension%20Plans) This note details the Company's defined benefit and defined contribution pension plans and related expenses Net Periodic Pension Benefit Expense (Income) (In thousands) | Component | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |:--------------------------------|:---------------------------------|:-------------------------------| | Defined benefit plans: | | | | Service cost | $749 | $1,489 | | Interest cost | $7,566 | $15,067 | | Expected return on plan assets | $(13,071) | $(26,067) | | Amortization of net actuarial loss and other | $2,842 | $5,663 | | Pension income | $(1,914) | $(3,848) | | Other plans: | | | | Defined contribution plans | $10,512 | $24,028 | | Foreign plans and other | $1,999 | $4,570 | | **Total net pension expense** | **$10,597** | **$24,750** | - Contributions to defined benefit pension plans for 6M 2023 were **$2.9 million**, consistent with 2023 estimates[86](index=86&type=chunk) [13. Contingencies](index=19&type=section&id=13.%20Contingencies) This note addresses potential liabilities from legal proceedings, environmental matters, and other contingent events - The Company faces asbestos-related lawsuits, with strong defenses and indemnification for some cases, and no judgments rendered[87](index=87&type=chunk) - Environmental reserves totaled **$41.1 million** at June 30, 2023, with **$3.5 million** recorded and **$4.1 million** spent in 6M 2023[91](index=91&type=chunk) - Management believes existing environmental reserves are sufficient and will not materially affect consolidated financial statements[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses AMETEK's financial performance, liquidity, and condition for Q2 and 6M 2023, highlighting record results and operational drivers [Results of Operations](index=21&type=section&id=Results%20of%20Operations) This section analyzes AMETEK's consolidated and segment-level financial performance, including sales, income, and margins - AMETEK achieved record Q2 2023 sales, operating income, margins, net income, diluted EPS, and backlog, driven by **5% organic growth**[96](index=96&type=chunk)[97](index=97&type=chunk) - International sales increased **9.0%** to **$786.2 million** in Q2 2023, driven by European demand and 2022 acquisitions[97](index=97&type=chunk) - Q2 2023 orders increased **0.6%** to **$1,654.4 million**, with record backlog of **$3,441.9 million** at June 30, 2023[98](index=98&type=chunk) Consolidated Financial Performance Highlights (In thousands, except EPS) | Metric | Q2 2023 | Q2 2022 | YoY Change (%) | 6M 2023 | 6M 2022 | YoY Change (%) | |:----------------------------|:-------------|:-------------|:---------------|:-------------|:-------------|:---------------| | Net sales | $1,646,111 | $1,514,552 | 8.7% | $3,243,228 | $2,973,077 | 9.1% | | Consolidated operating income | $418,791 | $364,842 | 14.8% | $824,332 | $718,082 | 14.8% | | Operating margin | 25.4% | 24.1% | 1.3 pp | 25.4% | 24.2% | 1.2 pp | | Net income | $324,242 | $282,373 | 14.8% | $629,954 | $554,820 | 13.5% | | Diluted EPS | $1.40 | $1.22 | 14.8% | $2.72 | $2.39 | 13.8% | | Effective tax rate | 18.2% | 18.5% | (0.3 pp) | 18.8% | 18.7% | 0.1 pp | - Segment operating margins increased to **26.9%** in Q2 2023 and 6M 2023, driven by increased sales and Operational Excellence[98](index=98&type=chunk)[99](index=99&type=chunk)[107](index=107&type=chunk) - Cost of sales as a percentage of net sales decreased to **64.0%** in both Q2 and 6M 2023[99](index=99&type=chunk)[108](index=108&type=chunk) - SG&A expenses as a percentage of net sales decreased to **10.6%** in both Q2 and 6M 2023[100](index=100&type=chunk)[108](index=108&type=chunk) - Other expense, net was **$3.7 million** in Q2 2023 and **$9.1 million** in 6M 2023, primarily due to lower pension income[100](index=100&type=chunk)[109](index=109&type=chunk) Segment Performance Highlights (In thousands) | Segment/Metric | Q2 2023 Net Sales | Q2 2022 Net Sales | YoY Change (%) | Q2 2023 Op Income | Q2 2022 Op Income | YoY Change (%) | Q2 2023 Op Margin | Q2 2022 Op Margin | |:----------------------------|:------------------|:------------------|:---------------|:------------------|:------------------|:---------------|:------------------|:------------------| | Electronic Instruments (EIG)| $1,134,646 | $1,028,248 | 10.3% | $307,052 | $265,115 | 15.8% | 27.1% | 25.8% | | Electromechanical (EMG) | $511,465 | $486,304 | 5.2% | $136,215 | $124,371 | 9.5% | 26.6% | 25.6% | | | | | | | | | | | | Segment/Metric | 6M 2023 Net Sales | 6M 2022 Net Sales | YoY Change (%) | 6M 2023 Op Income | 6M 2022 Op Income | YoY Change (%) | 6M 2023 Op Margin | 6M 2022 Op Margin | |:----------------------------|:------------------|:------------------|:---------------|:------------------|:------------------|:---------------|:------------------|:------------------| | Electronic Instruments (EIG)| $2,251,893 | $2,016,007 | 11.7% | $616,799 | $509,889 | 21.0% | 27.4% | 25.3% | | Electromechanical (EMG) | $991,335 | $957,070 | 3.6% | $256,719 | $252,580 | 1.6% | 25.9% | 26.4% | - EIG's Q2 2023 net sales increased **10.3%** with operating income up **15.8%** and margins at **27.1%**; 6M sales rose **11.7%** with income up **21.0%**[102](index=102&type=chunk)[110](index=110&type=chunk) - EMG's Q2 2023 net sales increased **5.2%** with operating income up **9.5%**; 6M sales rose **3.6%** with income up **1.6%**, with margin expansion excluding acquisition impacts[103](index=103&type=chunk)[104](index=104&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [Financial Condition](index=25&type=section&id=Financial%20Condition) This section assesses AMETEK's liquidity, capital resources, and cash flow generation for the reporting periods - Cash provided by operating activities increased **65.1%** to **$721.8 million** for 6M 2023, driven by working capital and net income improvements[113](index=113&type=chunk) Liquidity and Capital Resources Highlights (In millions) | Metric | 6M 2023 | 6M 2022 | YoY Change (%) | |:-------------------------------------|:-------------|:-------------|:---------------| | Cash provided by operating activities| $721.8 | $437.2 | 65.1% | | Free cash flow | $673.9 | $384.7 | 75.2% | | EBITDA | $977.3 | $877.2 | 11.4% | | Cash used by investing activities | $150.0 | $41.0 | 265.9% | | Cash used by financing activities | $317.1 | $370.4 | (14.4%) | | Total debt, net (period end) | $2,191.7 | N/A | N/A | | Debt-to-capital ratio (period end) | 21.3% | N/A | N/A | | Net debt-to-capital ratio (period end)| 16.4% | N/A | N/A | | Cash dividends paid | $115.1 | $101.2 | 13.7% | | Repurchases of common stock | $6.5 | $331.4 | (98.0%) | | Proceeds from stock option exercises | $29.1 | $17.8 | 63.5% | | Cash and cash equivalents (period end)| $605.6 | $345.4 | 75.3% | - Investing activities for 6M 2023 included **$99.3 million** for the Bison acquisition and **$47.8 million** in capital expenditures[114](index=114&type=chunk)[115](index=115&type=chunk) - Debt-to-capital ratio improved to **21.3%** and net debt-to-capital ratio to **16.4%** at June 30, 2023[116](index=116&type=chunk) - Quarterly cash dividend increased **14%** to **$0.25 per share**, while stock repurchases decreased significantly to **$6.5 million** in 6M 2023[117](index=117&type=chunk) - Cash and cash equivalents totaled **$605.6 million** at June 30, 2023, with sufficient liquidity for future obligations[118](index=118&type=chunk) [Critical Accounting Policies](index=26&type=section&id=Critical%20Accounting%20Policies) This section refers to the Company's critical accounting policies detailed in its most recent Annual Report on Form 10-K - Critical accounting policies are detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2022[119](index=119&type=chunk) [Forward-Looking Information](index=26&type=section&id=Forward-Looking%20Information) This section cautions that the report contains forward-looking statements subject to various risks and uncertainties - The report contains forward-looking statements subject to various risks, including acquisitions, international operations, and economic conditions, with no obligation to update[120](index=120&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.Controls%20and%20Procedures) Management concluded AMETEK's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control - Disclosure controls and procedures were evaluated as effective at a reasonable assurance level as of June 30, 2023[121](index=121&type=chunk) - No material changes in internal control over financial reporting occurred during Q2 2023[121](index=121&type=chunk) [PART II. OTHER INFORMATION](index=27&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes information on equity security sales, other disclosures, and exhibits filed with the Form 10-Q [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common stock purchases for tax withholding related to employee share-based compensation during Q2 2023 Purchases of Equity Securities (Three Months Ended June 30, 2023) | Period | Total Number of Shares Purchased | Average Price per Share | |:----------------------------|:---------------------------------|:------------------------| | April 1, 2023 to April 30, 2023 | — | — | | May 1, 2023 to May 31, 2023 | 152 | $145.02 | | June 1, 2023 to June 30, 2023 | — | — | | **Total** | **152** | **$145.02** | - Shares purchased satisfied tax withholding for employee share-based compensation under a **$1 billion** repurchase authorization[124](index=124&type=chunk)[125](index=125&type=chunk) - Approximately **$817.4 million** remained available under the share repurchase plan as of June 30, 2023[124](index=124&type=chunk) [Item 5. Other Information](index=27&type=section&id=Item%205.%20Other%20Information) This section confirms no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers in Q2 2023 - No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2023[126](index=126&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL taxonomy documents - Exhibits include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[128](index=128&type=chunk) - XBRL documents are provided for interactive data filing, including Instance, Schema, Calculation, Definition, Label, and Presentation Linkbase Documents[128](index=128&type=chunk) [SIGNATURES](index=29&type=section&id=SIGNATURES) This section provides the official signing of the report by the Company's principal accounting officer - The report was signed by Thomas M. Montgomery, Senior Vice President – Comptroller, on August 1, 2023[130](index=130&type=chunk)

AMETEK, Inc. (NYSE:AME) Q1 2023 Earnings Conference Call May 2, 2023 8:30 AM ET Company Participants Kevin Coleman - Vice President of Investor Relations, and Treasurer Dave Zapico - Chairman and Chief Executive Officer William Burke - Executive Vice President and Chief Financial Officer Conference Call Participants Matt Summerville - D.A. Davidson & Company Allison Poliniak - Wells Fargo Deane Dray - RBC Capital Markets Joshua Pokrzywinski - Morgan Stanley Robert Wertheimer - Melius Research Nigel Coe - Wo ...

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 ...