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1. Company Snapshot

1.a. Company Description

AMETEK, Inc.manufactures and sells electronic instruments and electromechanical devices worldwide.It operates in two segments, Electronic Instruments (EIG) and Electromechanical (EMG).


The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; and instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets.This segment also provides power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility test equipment, gas turbines, and environmental health and safety market sensors, dashboard instruments for heavy trucks and other vehicles, and instrumentation and controls for the food and beverage industries; and aircraft and engine sensors, monitoring systems, power supplies, fuel and fluid measurement systems, and data acquisition systems for the aerospace industry.Its EMG segment offers engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, automation, and other applications; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for use in thermal management, military, commercial aircraft, and military ground vehicles; and motors for use in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps, and industrial blowers.


This segment also operates a network of aviation maintenance, repair, and overhaul facilities.In addition, the company offers clinical and educational communication solutions.AMETEK, Inc.


was founded in 1930 and is headquartered in Berwyn, Pennsylvania.

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1.b. Last Insights on AME

AMETEK's recent performance was driven by strong Q3 results, with revenue up 10.8% year-over-year and operating income up 11.4%. The company's "AMETEK Growth Model" focuses on operational excellence, new products, global expansion, and bolt-on M&A, lifting orders, earnings, and guidance. Europe saw double-digit growth, while Aerospace and Defense (A&D) led with low double-digit organic growth. The company's Q4 2025 earnings release is set for February 3, 2026. Zacks upgraded AMETEK to a Buy rating, citing growing optimism about its earnings prospects.

1.c. Company Highlights

2. AMETEK's Strong Q4 Earnings: A Closer Look

AMETEK reported a robust fourth quarter with record sales of $2 billion, up 13% from the same period in 2024, driven by double-digit growth in sales, orders, and operating profit. Operating income was a record $523 million, a 12% increase over 2024, with operating margins at 26.2%. The company's diluted earnings per share (EPS) came in at $2.01, beating estimates of $1.94. EBITDA in the quarter was a record $618 million, up 10% versus the prior year, with EBITDA margins at a strong 30.9%. The company's excellent operating performance led to strong cash generation, with free cash flow a record $527 million in the quarter.

Publication Date: Feb -04

📋 Highlights
  • Q4 Record Sales & Orders:: Fourth quarter sales hit $2 billion (+13% YoY), orders reached $2 billion (+18% YoY), with a record backlog of $3.58 billion.
  • Strong Full-Year 2025 Performance:: Annual sales $7.4 billion (+7% YoY), operating income $1.94 billion (+7% YoY), and operating margins of 26.2% (+10bps YoY).
  • 2026 Guidance Confirmed:: Sales growth of up to high single digits, diluted EPS of $7.87–$8.07 (+6%–9% YoY), and Q1 guidance of +10% sales and $1.90–$1.95 EPS (+6%–9% YoY).
  • M&A & Capital Allocation:: $5 billion acquisition capacity while maintaining investment-grade credit, including the LKC acquisition and $2.7x EBITDA FARO deal targeting 30% EBITDA margins by 2026.
  • Margin Expansion & Cash Flow:: Q4 core operating margins of 27.6% (+100bps YoY), free cash flow of $527 million (+6% YoY), and EBITDA margins at 30.9%.

Segment Performance

The company's process businesses saw mid-teens sales growth in the fourth quarter, driven by recent acquisitions, with organic growth in the low single digits. The aerospace and defense businesses had low double-digit growth in both overall and organic sales, with strong growth across commercial OE and aftermarket businesses. The power business delivered solid growth, with mid-single-digit growth in overall and organic sales, driven by global grid modernization and applications supporting data center build-out.

Guidance and Outlook

For the full year 2026, AMETEK expects overall sales to be up to high single digits on a percentage basis, with organic sales expected to increase low to mid-single digits versus the prior year. Diluted earnings per share for the year are expected to be in the range of $7.87 to $8.07, up 6% to 9% compared to last year's results. Analysts estimate next year's revenue growth at 5.8%, indicating a relatively conservative guidance.

Valuation Metrics

With a P/E Ratio of 35.96, AMETEK's stock appears to be priced at a premium, reflecting the company's strong growth prospects. The EV/EBITDA ratio of 25.58 also suggests a relatively high valuation. However, the company's strong track record of delivering returns on capital, with an ROIC of 10.63%, and a ROE of 14.49%, supports its premium valuation. The dividend yield of 0.54% is relatively low, but the free cash flow yield of 3.11% provides some comfort.

3. NewsRoom

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Why Ametek (AME) International Revenue Trends Deserve Your Attention

Feb -18

Source: zacks.com

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AMETEK Increases Quarterly Dividend

Feb -12

Source: prnewswire.com

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3 Electronics Testing Stocks to Watch From a Prospering Industry

Feb -10

Source: zacks.com

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AMETEK Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Feb -04

Source: zacks.com

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AMETEK Inc (AME) Q4 2025 Earnings Call Highlights: Record Sales and Strategic Growth Amid Challenges

Feb -03

Source: gurufocus.com

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AMETEK, Inc. (AME) Q4 2025 Earnings Call Transcript

Feb -03

Source: seekingalpha.com

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Ametek (AME) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -03

Source: zacks.com

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Ametek (AME) Q4 Earnings and Revenues Beat Estimates

Feb -03

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

EIG

Expected Growth: 3.0%

EIG's growth is driven by AMETEK's strategic acquisitions, expanding industrial and medical markets, and increasing demand for precision motion control and automation. Strong performance in medical imaging and industrial manufacturing segments contribute to 3.0% growth, fueled by innovative product offerings and operational efficiencies.

EMG

Expected Growth: 3.0%

EMG's growth of 3.0% is driven by increased demand for precision motion control and electric motor products in industrial and medical markets, AMETEK's strategic acquisitions, and organic growth from new product launches and expanded customer relationships.

7. Detailed Products

Process and Analytical Instruments

AMETEK's Process and Analytical Instruments segment offers a range of instruments and systems for the oil and gas, petrochemical, pharmaceutical, and semiconductor industries.

Electromechanical Components

AMETEK's Electromechanical Components segment provides a variety of components, including connectors, switches, and relays, for the aerospace, defense, and industrial markets.

Electronic Instruments

AMETEK's Electronic Instruments segment offers a range of instruments and systems for the aerospace, defense, and industrial markets, including avionics, navigation, and test and measurement systems.

Motors and Meters

AMETEK's Motors and Meters segment provides a range of motors, pumps, and meters for the industrial, aerospace, and defense markets.

Interconnects, Cables, and Assembly

AMETEK's Interconnects, Cables, and Assembly segment offers a range of interconnects, cables, and assemblies for the aerospace, defense, and industrial markets.

8. AMETEK, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

AMETEK, Inc. operates in a niche market with specialized products, reducing the threat of substitutes. However, the company's products are not entirely unique, and some customers may find alternative solutions.

Bargaining Power Of Customers

AMETEK, Inc. has a diverse customer base, reducing the bargaining power of individual customers. The company's products are often critical components in its customers' systems, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

AMETEK, Inc. relies on a network of suppliers for raw materials and components. While the company has some bargaining power due to its size, suppliers may still have some negotiating power, particularly for specialized components.

Threat Of New Entrants

The barriers to entry in AMETEK, Inc.'s markets are relatively high, due to the need for specialized expertise and significant capital investments. New entrants would face significant challenges in competing with established players like AMETEK, Inc.

Intensity Of Rivalry

The markets in which AMETEK, Inc. operates are highly competitive, with several established players competing for market share. The company must continually innovate and improve its products to maintain its competitive position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.51%
Debt Cost 3.95%
Equity Weight 72.49%
Equity Cost 10.02%
WACC 8.35%
Leverage 37.95%

11. Quality Control: AMETEK, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

223.88$

Current Price

223.88$

Potential

-0.00%

Expected Cash-Flows