AMETEK Inc. Files Q3 2024 10-Q Report

TL;DR

AMETEK's Q3 2024 10-Q is in. Check financials for performance.

AI Summary

AMETEK Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter of 2024, detailing financial performance and operational updates. Key financial figures and business segments are presented for the reporting period and comparative periods.

Why It Matters

This filing provides investors and analysts with a detailed look at AMETEK's financial health and operational performance during the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags or significant new risks disclosed.

Key Numbers

• 2024 Q3 — Reporting Quarter (Financial performance for the third quarter of 2024.)
• 2024-09-30 — End of Reporting Period (The date through which financial information is reported.)
• 2024-10-31 — Filing Date (The date the report was officially submitted to the SEC.)

Key Players & Entities

• AMETEK INC/ (company) — Filer
• 20240930 (date) — Period of Report
• 20241031 (date) — Filed as of Date
• 1100 CASSATT ROAD (address) — Business Address
• BERWYN (location) — Business City
• PA (location) — Business State
• 19312 (zip_code) — Business Zip
• 610-647-2121 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $0.01 — est practicable date was: Common Stock, $0.01 Par Value, outstanding at October 29, 2

Filing Documents

• ame-20240930.htm (10-Q) — 957KB
• ame-20240930xexx311.htm (EX-31.1) — 10KB
• ame-20240930xexx312.htm (EX-31.2) — 9KB
• ame-20240930xexx321.htm (EX-32.1) — 6KB
• ame-20240930xexx322.htm (EX-32.2) — 5KB
• 0001037868-24-000053.txt ( ) — 6168KB
• ame-20240930.xsd (EX-101.SCH) — 39KB
• ame-20240930_cal.xml (EX-101.CAL) — 59KB
• ame-20240930_def.xml (EX-101.DEF) — 142KB
• ame-20240930_lab.xml (EX-101.LAB) — 569KB
• ame-20240930_pre.xml (EX-101.PRE) — 371KB
• ame-20240930_htm.xml (XML) — 1027KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1.Financial Statements Consolidated Statement of Income for the three and nine months ended September 30, 2024 and 2023 3 Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 4 Consolidated Balance Sheet at September 30, 2024 and December 31, 2023 5 Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 6 Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Controls and Procedures

Item 4.Controls and Procedures 24

OTHER INFORMATION

PART II. OTHER INFORMATION

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds 25

Other Information

Item 5. Other Information 25

SIGNATURES

SIGNATURES 27 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AMETEK, Inc. Consolidated Statement of Income (In thousands, except per share amounts) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net sales $ 1,708,564 $ 1,622,837 $ 5,179,578 $ 4,866,065 Cost of sales 1,092,754 1,020,920 3,347,860 3,096,635 Selling, general and administrative 169,959 163,782 521,137 506,963 Total operating expenses 1,262,713 1,184,702 3,868,997 3,603,598 Operating income 445,851 438,135 1,310,581 1,262,467 Interest expense ( 25,118 ) ( 18,386 ) ( 90,962 ) ( 57,678 ) Other (expense) income, net ( 1,888 ) ( 6,256 ) ( 2,435 ) ( 15,313 ) Income before income taxes 418,845 413,493 1,217,184 1,189,476 Provision for income taxes 78,604 73,123 228,317 219,152 Net income $ 340,241 $ 340,370 $ 988,867 $ 970,324 Basic earnings per share $ 1.47 $ 1.48 $ 4.28 $ 4.21 Diluted earnings per share $ 1.47 $ 1.47 $ 4.26 $ 4.19 Weighted average common shares outstanding: Basic shares 231,342 230,691 231,292 230,431 Diluted shares 232,224 231,751 232,188 231,414 Dividends declared and paid per share $ 0.28 $ 0.25 $ 0.84 $ 0.75 See accompanying notes. 3 Table of Contents AMETEK, Inc. Condensed Consolidated Statement of Comprehensive Income (In thousands) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Total comprehensive income $ 405,095 $ 294,757 $ 1,016,270 $ 977,660 See accompanying notes. 4 Table of Contents AMETEK, Inc. Consolidated Balance Sheet (In thousands) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 396,266 $ 409,804 Receivables, net 968,240 1,012,932 Inventories, net 1,084,622 1,132,471 Other current assets 284,562 269,461 Total current assets 2,733,690 2,824,668 Property, plant and equipment, net 822,609 891,293 Right of use assets, net 211,381 229,723 Goodwill 6,550,267 6,447,629 Other intangibles, net 3,950,989 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) 1. Basis of Presentation The accompanying consolidated financial statements are unaudited. AMETEK, Inc. (the "Company") believes that all adjustments (which primarily consist of normal recurring accruals) necessary for a fair presentation of the consolidated financial position of the Company at September 30, 2024, the consolidated results of its operations for the three and nine months ended September 30, 2024 and 2023 and its cash flows for the nine months ended September 30, 2024 and 2023 have been included. Quarterly results of operations are not necessarily indicative of results for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes presented in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the U.S. Securities and Exchange Commission. 2. Recent Accounting Pronouncements Recent Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which requires disclosure of significant segment expenses and other segment items on an annual and interim basis under ASC 280. ASU 2023-07 is effective for the Company's annual period ending December 31, 2024, and for interim periods within the annual period ending December 31, 2025. The amendments in this ASU will be applied on a retrospective basis to all periods presented. ASU 2023-07 will require additional disclosures in the Reportable Segments footnote, but will not have a material impact on the Company's consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which improves income tax disclosures by requiring (1) consistent categories and greater disaggregation of

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) The remaining performance obligations not expected to be completed within one year as of September 30, 2024 and December 31, 2023 were $ 611.2 million and $ 607.5 million, respectively. Remaining performance obligations represent the transaction price of firm, non-cancelable orders, with expected delivery dates to customers greater than one year from the balance sheet date, for which the performance obligation is unsatisfied or partially unsatisfied. These performance obligations will be substantially satisfied within two to three years . Geographic Areas Net sales were attributed to geographic areas based on the location of the customer. Information about the Company's operations in different geographic areas was as follows for the three and nine months ended September 30: Three months ended September 30, 2024 Nine months ended September 30, 2024 EIG EMG Total EIG EMG Total (In thousands) United States $ 561,273 $ 333,575 $ 894,848 $ 1,732,847 $ 1,019,636 $ 2,752,483 International (1) : United Kingdom 25,247 31,160 56,407 79,713 95,107 174,820 European Union countries 123,271 109,071 232,342 393,941 331,047 724,988 Asia 301,858 60,008 361,866 881,893 166,517 1,048,410 Other foreign countries 122,939 40,162 163,101 356,586 122,291 478,877 Total international 573,315 240,401 813,716 1,712,133 714,962 2,427,095 Consolidated net sales $ 1,134,588 $ 573,976 $ 1,708,564 $ 3,444,980 $ 1,734,598 $ 5,179,578 ________________ (1) Includes U.S. export sales of $ 465.1 million and $ 1,374.4 million for the three and nine months ended September 30, 2024, respectively. Three months ended September 30, 2023 Nine months ended September 30, 2023 EIG EMG Total EIG EMG Total (In thousands) United States $ 616,988 $ 274,146 $ 891,134 $ 1,754,165 $ 805,876 $ 2,560,041 International (1) : United Kingdom 23,327 30,348 53,675 74,515 89,812 164,327 European Union countries 115,026 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Three months ended September 30, 2024 Nine months ended September 30, 2024 EIG EMG Total EIG EMG Total (In thousands) Process and analytical instrumentation $ 779,772 $ — $ 779,772 $ 2,374,034 $ — $ 2,374,034 Aerospace and power 354,816 160,177 514,993 1,070,946 467,092 1,538,038 Automation and engineered solutions — 413,799 413,799 — 1,267,506 1,267,506 Consolidated net sales $ 1,134,588 $ 573,976 $ 1,708,564 $ 3,444,980 $ 1,734,598 $ 5,179,578 Three months ended September 30, 2023 Nine months ended September 30, 2023 EIG EMG Total EIG EMG Total (In thousands) Process and analytical instrumentation $ 801,027 $ — $ 801,027 $ 2,394,127 $ — $ 2,394,127 Aerospace and power 335,103 146,843 481,946 993,896 439,685 1,433,581 Automation and engineered solutions — 339,864 339,864 — 1,038,357 1,038,357 Consolidated net sales $ 1,136,130 $ 486,707 $ 1,622,837 $ 3,388,023 $ 1,478,042 $ 4,866,065 Timing of Revenue Recognition Three months ended September 30, 2024 Nine months ended September 30, 2024 EIG EMG Total EIG EMG Total (In thousands) Products transferred at a point in time $ 904,622 $ 515,035 $ 1,419,657 $ 2,776,552 $ 1,557,412 $ 4,333,964 Products and services transferred over time 229,966 58,941 288,907 668,428 177,186 845,614 Consolidated net sales $ 1,134,588 $ 573,976 $ 1,708,564 $ 3,444,980 $ 1,734,598 $ 5,179,578 Three months ended September 30, 2023 Nine months ended September 30, 2023 EIG EMG Total EIG EMG Total (In thousands) Products transferred at a point in time $ 937,382 $ 437,542 $ 1,374,924 $ 2,809,624 $ 1,314,761 $ 4,124,385 Products and services transferred over time 198,748 49,165 247,913 578,399 163,281 741,680 Consolidated net sales $ 1,136,130 $ 486,707 $ 1,622,837 $ 3,388,023 $ 1,478,042 $ 4,866,065 Product Warranties The Company provides limited warranties in connection with the sale of its products. The warranty periods for prod

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) Nine Months Ended September 30, 2024 2023 (In thousands) Balance at the beginning of the period $ 37,087 $ 26,487 Accruals for warranties issued during the period 18,049 15,711 Settlements made during the period ( 16,219 ) ( 10,868 ) Warranty accruals related to acquired businesses and other during the period 247 21 Balance at the end of the period $ 39,164 $ 31,351 Accounts Receivable The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations to the Company. The Company recognizes an allowance for credit losses, on all accounts receivable and contract assets, which considers risk of future credit losses based on factors such as historical experience, contract terms, as well as general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible. At September 30, 2024, the Company had $ 968.2 million of accounts receivable, net of allowances of $ 14.3 million. Changes in the allowance were not material for the three and nine months ended September 30, 2024. 4. Earnings Per Share The calculation of basic earnings per share is based on the weighted average number of common shares considered outstanding during the periods. The calculation of diluted earnings per share reflects the effect of all potentially dilutive securities (principally outstanding stock options and restricted stock grants). The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Weighted average shares: Basic shares 231,342 230,691 231,292 230,431 Equity-based compensation plans 882 1,060 896 983 Diluted shares 232,224 231,751 232,188 231,414 The calculation of diluted earnings per share f

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) The following table provides the Company's assets that are measured at fair value on a recurring basis, consistent with the fair value hierarchy, at September 30, 2024 and December 31, 2023: September 30, 2024 Total Level 1 Level 2 Level 3 (In thousands) Mutual fund investments $ 10,910 $ 10,910 $ — $ — Foreign currency forward contracts 1,489 — 1,489 — December 31, 2023 Total Level 1 Level 2 Level 3 (In thousands) Mutual fund investments $ 11,922 $ 11,922 $ — $ — Foreign currency forward contracts 2,035 — 2,035 — The fair value of mutual fund investments is based on quoted market prices. The mutual fund investments are shown as a component of investments and other assets on the consolidated balance sheet. For the nine months ended September 30, 2024 and 2023, gains and losses on the investments noted above were not significant. No transfers between level 1 and level 2 investments occurred during the nine months ended September 30, 2024 and 2023. Foreign Currency At September 30, 2024, the Company had a Euro forward contract for a total notional value of 65.0 million Euros. The foreign currency forward contract is valued as a level 2 liability as it is corroborated by foreign currency exchange rates and shown as a component of other current liabilities on the consolidated balance sheet. For the nine months ended September 30, 2024, realized and unrealized gains and losses on the foreign currency forward contracts were not significant. Financial Instruments Cash, cash equivalents and mutual fund investments are recorded at fair value at September 30, 2024 and December 31, 2023 in the accompanying consolidated balance sheet. The following table provides the estimated fair values of the Company's financial instrument liabilities, for which fair value is measured for disclosure purposes only, compared to the recorded amounts at September 30, 2024 and December 31, 2023: Se

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) gain or loss on the hedging instruments (the debt) following hedge designation is reported in accumulated other comprehensive income in the same manner as the translation adjustment on the hedged investment based on changes in the spot rate, which is used to measure hedge effectiveness. At September 30, 2024, the Company had $ 301.4 million of British-pound-denominated loans, which were designated as a hedge against the net investment in British pound functional currency foreign subsidiaries. At September 30, 2024, the Company had $ 565.4 million in Euro-denominated loans, which were designated as a hedge against the net investment in Euro functional currency foreign subsidiaries. As a result of the British-pound- and Euro-denominated loans designated and 100 % effective as net investment hedges, $ 19.0 million of pre-tax currency remeasurement losses have been included in the foreign currency translation component of other comprehensive income for the nine months ended September 30, 2024. 13 Table of Contents AMETEK, Inc.

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) 7. Inventories, net September 30, 2024 December 31, 2023 (In thousands) Finished goods and parts $ 123,401 $ 136,003 Work in process 186,254 165,914 Raw materials and purchased parts 774,967 830,554 Total inventories, net $ 1,084,622 $ 1,132,471 8. Leases The Company has commitments under operating leases for certain facilities, vehicles and equipment used in its operations. Cash used in operations for operating leases was not materially different from operating lease expense for the nine months ended September 30, 2024 and 2023. The Company's leases have a weighted average remaining lease term of approximately seven years . Certain lease agreements contain provisions for future rent increases. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Operating lease cost $ 17,493 $ 15,901 $ 52,894 $ 46,483 Variable lease cost 3,001 2,501 9,334 8,447 Total lease cost $ 20,494 $ 18,402 $ 62,228 $ 54,930 Supplemental balance sheet information related to leases was as follows: September 30, 2024 December 31, 2023 (In thousands) Right of use assets, net $ 211,381 $ 229,723 Lease liabilities included in Accrued Liabilities and other 54,323 61,055 Lease liabilities included in Other long-term liabilities 166,472 182,436 Total lease liabilities $ 220,795 $ 243,491 Maturities of lease liabilities as of September 30, 2024 were as follows: Lease Liability Maturity Analysis Operating Leases (In thousands) Remaining 2024 $ 15,421

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