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AMETEK: AMETEK's Q2 Performance: Record Sales and EBITDA

AMETEK's second-quarter results showed record sales and EBITDA, with strong core margin expansion and excellent earnings growth. Sales were $1.78 billion, up 2.5% from the prior year, with organic sales flat, acquisitions adding 1.5 points, and foreign currency translation a 1-point benefit. Operating income was $462 million, up 3%, with operating margins of 26%, up 20 basis points. EBITDA was a record $565 million, up 4%, with EBITDA margins of 31.8%. Earnings per diluted share were $1.78, up 7%, beating analysts' estimates of $1.69.

AME

USD 199.9

-0.93%

A-Score: 5.4/10

Publication date: July 31, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Record Sales and EBITDA AMETEK achieved record Q2 sales of $1.78 billion, up 2.5% year-over-year, with EBITDA reaching $565 million, a 4% increase.
  • Strong Profitability Operating income rose 3% to $462 million, with operating margins expanding 20 basis points to 26%, and EBITDA margins reaching 31.8%.
  • Segment Performance The Electromechanical Group (EMG) delivered a record quarter with 6% sales growth and 17% operating income increase, while Electronic Instruments Group (EIG) saw a 1% sales rise.
  • FARO Acquisition AMETEK acquired FARO Technologies for $920 million, adding $340 million in annual sales and expected to contribute to earnings in 2025.
  • 2025 Outlook The company expects mid-single-digit sales growth and EPS of $7.06-$7.20, with a planned $85 million investment in strategic growth initiatives.

Segment Performance

The Electronic Instruments Group (EIG) sales were $1.16 billion, up 1%, with organic sales down 3%, acquisitions adding 2 points, and foreign currency a 1-point tailwind. Operating income was $344 million, with operating margins of 29.7% and core margins of 30.7%. The Electromechanical Group (EMG) had a record quarter with sales of $618 million, up 6%, and operating income of $144 million, up 17%. According to the company's management, "The EMG segment had a strong quarter, driven by its Engineered Medical Solutions business" (Source: Q2 Earnings Call Transcript).

Acquisition and Integration

The company acquired FARO Technologies for approximately $920 million, which complements its metrology and precision measurement businesses. FARO has annual sales of around $340 million and is expected to benefit from integration into AMETEK's global infrastructure and operating model. The acquisition is expected to contribute a couple of pennies to earnings in 2025.

Outlook and Guidance

For 2025, AMETEK expects sales to be up mid-single digits and diluted earnings per share to be in the range of $7.06 to $7.20, up 3% to 5% versus the prior year. The company continues to invest in strategic growth initiatives, with an incremental $85 million planned for research, development, engineering, and sales and marketing. The effective tax rate is expected to be between 19% and 19.5%, and capital expenditures are anticipated to be approximately $160 million for the full year.

Valuation and Financials

At current prices, AMETEK trades at a P/E ratio of 29.67, a P/B ratio of 3.58, and a P/S ratio of 6.11. The EV/EBITDA multiple is 21.92, and the dividend yield is 0.64%. The free cash flow yield is 4.02%, and the ROIC is 10.96%. With a net debt to EBITDA ratio of -0.11, the company has a healthy balance sheet to pursue further acquisitions and investments.

AMETEK's A-Score