AMETEK's Q3 Earnings Soar on Strong Sales, Strategic Acquisitions

TL;DR

**AMETEK is firing on all cylinders, with acquisitions and strong demand driving impressive growth, making it a solid buy.**

AI Summary

AMETEK, Inc. reported robust financial performance for the three and nine months ended September 30, 2025. Net sales for the three months increased by 10.7% to $1.89 billion from $1.71 billion in the prior year, while nine-month net sales grew 4.3% to $5.40 billion from $5.18 billion. Net income saw a significant rise of 9.1% to $371.4 million for the quarter, up from $340.2 million, and a 9.4% increase to $1.08 billion for the nine months, compared to $988.9 million. Diluted EPS also improved, reaching $1.60 for the quarter and $4.67 for the nine months, up from $1.47 and $4.26, respectively. The company's total assets expanded to $16.18 billion from $14.63 billion at December 31, 2024, largely driven by a $933.2 million increase in goodwill and other intangibles due to acquisitions. Short-term borrowings surged to $1.04 billion from $654.3 million, reflecting increased financing activities, including $933.2 million in purchases of businesses, net of cash acquired, during the nine-month period. Strategic outlook remains positive, with continued investment in acquisitions and strong performance across both Electronic Instruments Group (EIG) and Electromechanical Group (EMG) segments.

Why It Matters

AMETEK's strong Q3 performance, marked by double-digit sales growth and increased net income, signals robust demand for its specialized instrumentation and electromechanical solutions. This positive momentum, fueled by strategic acquisitions totaling $933.2 million, suggests a healthy competitive position and potential for continued market share expansion. For investors, the rising diluted EPS and increased dividends declared per share ($0.31 vs. $0.28) indicate solid shareholder returns. Employees benefit from a growing company, while customers can expect continued innovation and expanded product offerings from a financially strong supplier. The broader market sees a key industrial player demonstrating resilience and growth, potentially influencing sector sentiment.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to a significant increase in short-term borrowings to $1.04 billion from $654.3 million, and a substantial $933.2 million spent on business acquisitions, which could introduce integration risks and increased leverage. While net income is up, the 'Other (expense) income, net' line shows a notable increase in expense from $1.89 million to $17.90 million for the three months ended September 30, 2025, indicating potential volatility in non-operating items.

Analyst Insight

Investors should consider AMETEK's strong revenue and net income growth, coupled with its strategic acquisition activity, as a positive indicator. However, they should monitor the increased short-term borrowings and the 'Other (expense) income, net' line for any sustained negative trends. The company's consistent dividend increases and share repurchases suggest a commitment to shareholder value.

Financial Highlights

debt To Equity

0.54

revenue

$1.89B

operating Margin

25.8%

total Assets

$16.18B

total Debt

$2.46B

net Income

$371.4M

eps

$1.60

gross Margin

36.3%

cash Position

$439.2M

revenue Growth

+10.7%

Revenue Breakdown

Key Numbers

• $1.89B — Net Sales (Q3 2025) (Increased 10.7% from $1.71B in Q3 2024)
• $371.4M — Net Income (Q3 2025) (Increased 9.1% from $340.2M in Q3 2024)
• $5.40B — Net Sales (9M 2025) (Increased 4.3% from $5.18B in 9M 2024)
• $1.08B — Net Income (9M 2025) (Increased 9.4% from $988.9M in 9M 2024)
• $1.60 — Diluted EPS (Q3 2025) (Increased from $1.47 in Q3 2024)
• $4.67 — Diluted EPS (9M 2025) (Increased from $4.26 in 9M 2024)
• $933.2M — Acquisition Spending (9M 2025) (Significant investment in business expansion, up from $0 in 9M 2024)
• $1.04B — Short-term Borrowings (Sep 30, 2025) (Increased from $654.3M at Dec 31, 2024, reflecting financing for acquisitions)
• $0.31 — Dividends Per Share (Q3 2025) (Increased from $0.28 in Q3 2024)
• $16.18B — Total Assets (Sep 30, 2025) (Increased from $14.63B at Dec 31, 2024, driven by acquisitions)

Key Players & Entities

• AMETEK, Inc. (company) — Registrant
• Electronic Instruments Group (company) — Reportable segment
• Electromechanical Group (company) — Reportable segment
• U.S. Securities and Exchange Commission (regulator) — Filing oversight
• FASB (regulator) — Accounting standards setter
• $1.89 billion (dollar_amount) — Net sales for three months ended September 30, 2025
• $371.4 million (dollar_amount) — Net income for three months ended September 30, 2025
• $1.08 billion (dollar_amount) — Net income for nine months ended September 30, 2025
• $933.2 million (dollar_amount) — Purchases of businesses, net of cash acquired, for nine months ended September 30, 2025
• $1.04 billion (dollar_amount) — Short-term borrowings and current portion of long-term debt at September 30, 2025

FAQ

Industry Context

AMETEK operates in diverse industrial markets, including aerospace, defense, energy, medical, and automation. The company benefits from trends such as increasing demand for sophisticated instrumentation, automation solutions, and specialized components in high-growth sectors. Competitive pressures exist from both large conglomerates and niche players, requiring continuous innovation and strategic acquisitions to maintain market share.

Regulatory Implications

AMETEK is subject to standard corporate regulations, including financial reporting requirements by the SEC. Recent accounting pronouncements related to intangibles and expense disaggregation may require future disclosure adjustments. Compliance with environmental, health, and safety regulations in its various operating locations is also a consideration.

What Investors Should Do

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Key Dates

• 2025-09-30: Quarterly Financial Reporting — Reported strong net sales and net income growth, reflecting successful acquisition integration and organic performance.
• 2025-09-30: Balance Sheet Date — Total assets increased to $16.18B, largely due to goodwill and intangibles from acquisitions, with a notable rise in short-term borrowings.
• 2024-12-31: Prior Year End Balance Sheet — Provided a baseline for asset growth and debt levels prior to the current period's significant acquisition activity.

Glossary

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (A significant portion of AMETEK's asset increase is attributed to goodwill, indicating substantial acquisition activity.)

Other intangibles, net

Intangible assets other than goodwill, such as patents, trademarks, and customer lists, net of accumulated amortization. (These also increased significantly, reflecting the value of acquired intellectual property and other non-physical assets.)

Contract liabilities

Obligations to transfer goods or services to a customer for which the company has received consideration from the customer. (An increase in customer advance payments (contract liabilities) suggests strong future revenue streams from acquired businesses.)

Remaining performance obligations

The aggregate amount of the consideration that AMETEK expects to be entitled to in exchange for transferring promised goods or services to a customer, not yet satisfied. (A substantial amount of remaining performance obligations ($618.8 million) indicates a strong future revenue backlog.)

EIG

Electronic Instruments Group, one of AMETEK's two reportable segments. (This segment is a key driver of AMETEK's revenue, particularly in process and analytical instrumentation.)

EMG

Electromechanical Group, AMETEK's other reportable segment. (This segment contributes significantly to revenue, with notable growth in automation and engineered solutions.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, AMETEK has demonstrated robust top-line growth with net sales increasing by 4.3% to $5.40 billion. Net income has also seen a healthy increase of 9.4% to $1.08 billion, indicating improved profitability. Diluted EPS has risen from $4.26 to $4.67. A significant shift is the substantial investment in acquisitions, evidenced by $933.2 million in spending and a corresponding increase in goodwill and intangibles on the balance sheet, alongside a rise in short-term borrowings. This contrasts with the prior year's period, which had no reported acquisition spending.

Key Financial Figures

• $0.01 — est practicable date was: Common Stock, $0.01 Par Value, outstanding at October 27, 2

Filing Documents

• ame-20250930.htm (10-Q) — 1176KB
• ex101-deferredcompensation.htm (EX-10.1) — 318KB
• ame-20250930xexx311.htm (EX-31.1) — 10KB
• ame-20250930xexx312.htm (EX-31.2) — 9KB
• ame-20250930xexx321.htm (EX-32.1) — 5KB
• ame-20250930xexx322.htm (EX-32.2) — 5KB
• 0001037868-25-000077.txt ( ) — 8109KB
• ame-20250930.xsd (EX-101.SCH) — 43KB
• ame-20250930_cal.xml (EX-101.CAL) — 66KB
• ame-20250930_def.xml (EX-101.DEF) — 175KB
• ame-20250930_lab.xml (EX-101.LAB) — 614KB
• ame-20250930_pre.xml (EX-101.PRE) — 414KB
• ame-20250930_htm.xml (XML) — 1508KB

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, 2025 and 2024 3 Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 4 Consolidated Balance Sheet at September 30, 2025 and December 31, 2024 5 Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 6 Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2025 and 2024 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 23

Controls and Procedures

Item 4.Controls and Procedures 27

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 28

Other Information

Item 5. Other Information 28

Exhibits

Item 6.Exhibits 29

SIGNATURES

SIGNATURES 30 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, 2025 2024 2025 2024 Net sales $ 1,892,641 $ 1,708,564 $ 5,402,668 $ 5,179,578 Cost of sales 1,206,505 1,092,754 3,455,643 3,347,860 Selling, general and administrative 197,756 169,959 542,190 521,137 Total operating expenses 1,404,261 1,262,713 3,997,833 3,868,997 Operating income 488,380 445,851 1,404,835 1,310,581 Interest expense ( 22,514 ) ( 25,118 ) ( 58,364 ) ( 90,962 ) Other (expense) income, net ( 17,901 ) ( 1,888 ) ( 22,115 ) ( 2,435 ) Income before income taxes 447,965 418,845 1,324,356 1,217,184 Provision for income taxes 76,549 78,604 242,815 228,317 Net income $ 371,416 $ 340,241 $ 1,081,541 $ 988,867 Basic earnings per share $ 1.61 $ 1.47 $ 4.69 $ 4.28 Diluted earnings per share $ 1.60 $ 1.47 $ 4.67 $ 4.26 Weighted average common shares outstanding: Basic shares 230,733 231,342 230,740 231,292 Diluted shares 231,670 232,224 231,561 232,188 Dividends declared and paid per share $ 0.31 $ 0.28 $ 0.93 $ 0.84 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, 2025 2024 2025 2024 Total comprehensive income $ 344,649 $ 405,095 $ 1,204,112 $ 1,016,270 See accompanying notes. 4 Table of Contents AMETEK, Inc. Consolidated Balance Sheet (In thousands) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 439,237 $ 373,999 Receivables, net 1,135,967 948,830 Inventories, net 1,153,074 1,021,713 Other current assets 333,267 258,490 Total current assets 3,061,545 2,603,032 Property, plant and equipment, net 845,603 818,611 Right of use assets, net 267,589 235,666 Goodwill 7,185,294 6,555,877 Other intangibles, net 4,245,

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (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, 2025, the consolidated results of its operations for the three and nine months ended September 30, 2025 and 2024 and its cash flows for the nine months ended September 30, 2025 and 2024 have been included. The Company has two reportable segments, Electronic Instruments Group ("EIG") and Electromechanical Group ("EMG"). The Company identifies its operating segments for segment reporting purposes primarily on the basis of product type, production processes, distribution methods and management organizations. 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, 2024 as filed with the U.S. Securities and Exchange Commission. 2. Recent Accounting Pronouncements Recent Accounting Pronouncements In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06) updating guidance on accounting for internal-use software. The amendments modernize guidance to consider different methods of software development, updating the requirements for capitalization of software costs. ASU 2025-06 is effective for annual and interim reporting periods beginning after December 15, 2027. Prospective, modified prospective, or retrospective application is allowed and early adoption is permitted. The Compa

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) The net change for the nine months ended September 30, 2025 was primarily driven by an increase in customer advance payments from the 2025 acquisitions. For the nine months ended September 30, 2025 and 2024, the Company recognized revenue of $ 276.7 million and $ 324.8 million, respectively, that was previously included in the beginning balance of contract liabilities. Contract assets are reported as a component of Other current assets in the consolidated balance sheet. At September 30, 2025 and December 31, 2024, $ 50.7 million and $ 37.1 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets. The remaining performance obligations not expected to be completed within one year as of September 30, 2025 and December 31, 2024 were $ 618.8 million and $ 541.8 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, 2025 Nine months ended September 30, 2025 EIG EMG Total EIG EMG Total (In thousands) United States $ 605,310 $ 381,254 $ 986,564 $ 1,761,703 $ 1,087,397 $ 2,849,100 International (1) : United Kingdom 29,800 37,512 67,312 85,356 112,921 198,277 European Union countries 164,759 116,401 281,160 442,678 329,723 772,401 Asia 291,063 66,741 357,804 855,893 184,200 1,040,093 Other forei

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) Major Products and Services The Company's major products and services in the reportable segments were as follows: Three months ended September 30, 2025 Nine months ended September 30, 2025 EIG EMG Total EIG EMG Total (In thousands) Process and analytical instrumentation $ 883,483 $ — $ 883,483 $ 2,463,220 $ — $ 2,463,220 Aerospace and power 362,849 189,893 552,742 1,086,356 542,524 1,628,880 Automation and engineered solutions — 456,416 456,416 — 1,310,568 1,310,568 Consolidated net sales $ 1,246,332 $ 646,309 $ 1,892,641 $ 3,549,576 $ 1,853,092 $ 5,402,668 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 Timing of Revenue Recognition Three months ended September 30, 2025 Nine months ended September 30, 2025 EIG EMG Total EIG EMG Total (In thousands) Products transferred at a point in time $ 993,386 $ 576,933 $ 1,570,319 $ 2,819,874 $ 1,674,371 $ 4,494,245 Products and services transferred over time 252,946 69,376 322,322 729,702 178,721 908,423 Consolidated net sales $ 1,246,332 $ 646,309 $ 1,892,641 $ 3,549,576 $ 1,853,092 $ 5,402,668 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 Product Warrant

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) Changes in the accrued product warranty obligation were as follows: Nine Months Ended September 30, 2025 2024 (In thousands) Balance at the beginning of the period $ 38,555 $ 37,087 Accruals for warranties issued during the period 14,629 18,049 Settlements made during the period ( 13,851 ) ( 16,219 ) Warranty accruals related to acquired businesses and other during the period 4,455 247 Balance at the end of the period $ 43,788 $ 39,164 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, 2025, the Company had $ 1,136.0 million of accounts receivable, net of allowances of $ 13.5 million. At December 31, 2024, the Company had $ 948.8 million of accounts receivable, net of allowance of $ 13.0 million. Changes in the allowance were not material for the three and nine months ended September 30, 2025. 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, 2025 2024 2025 2024 (In thousands) Weighted average shares: Basi

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) to measure assets and liabilities at fair value. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. 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, 2025 and December 31, 2024: September 30, 2025 Total Level 1 Level 2 Level 3 (In thousands) Mutual fund investments $ 8,007 $ 8,007 $ — $ — December 31, 2024 Total Level 1 Level 2 Level 3 (In thousands) Mutual fund investments $ 9,124 $ 9,124 $ — $ — 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, 2025 and 2024, 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, 2025 and 2024. Financial Instruments Cash, cash equivalents and mutual fund investments are recorded at fair value at September 30, 2025 and December 31, 2024 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, 2025 and December 31, 2024: September 30, 2025 December 31, 2024 Recorded Amount Fair Value Recorded Amount Fair Value (In thousands) Long-term debt (including current portion) $ ( 1,802,113 ) $ ( 1,756,332 ) $ ( 1,851,873 ) $ ( 1,778,719 ) The fair value of net short-term borrowings approximates the carrying value. The Company's net long-term debt is all privately held with no public market for this debt,

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements September 30, 2025 (Unaudited) currency foreign subsidiaries. As a result of the British-pound- and Euro-denominated loans designated and 100 % effective as net investment hedges, $ 100.2 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, 2025. 7. Inventories, net September 30, 2025 December 31, 2024 (In thousands) Finished goods and parts $ 116,792 $ 80,491 Work in process 210,892 171,084 Raw materials and purchased parts 825,390 770,138 Total inventories, net $ 1,153,074 $ 1,021,713 8. Leases and Other Commitments 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, 2025 and 2024. The Company's leases have a weighted average remaining lease term of approximately six years . The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Operating lease cost $ 18,611 $ 17,493 $ 61,848 $ 52,894 Variable lease cost 4,551 3,001 11,753 9,334 Total lease cost $ 23,162 $ 20,494 $ 73,601 $ 62,228 Supplemental balance sheet information related to leases was as follows: September 30, 2025 December 31, 2024 (In thousands) Right of use assets, net $ 267,589 $ 235,666 Lease liabilities included in Accrued Liabilities and other 61,223 54,736 Le