10-Q · April 30, 2026
AMETEK reported strong Q1 2026 results with revenues of $1.93 billion, a 11.3% increase year-over-year, and a record diluted EPS of $1.74, up 14.5%. The company's robust operating income and margins were bolstered by…
Earnings analysis · 10-Q
AME earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
AMETEK delivered record Q2 revenue of $2.0444 billion, up 15.0% year over year, and record GAAP EPS of $1.77, up 14.2%, supported by 10% organic growth, acquisitions, and Operational Excellence initiatives. Demand…
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AMETEK delivered record Q2 revenue of $2.0444 billion, up 15.0% year over year, and record GAAP EPS of $1.77, up 14.2%, supported by 10% organic growth, acquisitions, and Operational Excellence initiatives. Demand indicators were notably strong, with orders up 28.2% to $2.2840 billion and backlog up 14.8% to $4.1102 billion. EMG drove margin expansion, while consolidated operating margin declined to 25.8% as acquisition dilution and $16.2 million of integration costs offset underlying productivity gains; the pending approximately $5.0 billion Indicor acquisition is the central execution and financing consideration.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.77
What stood out
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Sales growth accelerated to 15%
Record Q2 sales were $2.0444 billion, up $266.3 million or 15.0% year over year, driven by 10% organic growth and a 5% contribution from acquisitions. Sales also increased by $116.0 million from the implied $1.9284 billion Q1 level.
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Orders and backlog set records
Orders rose $501.9 million, or 28.2%, to a record $2.2840 billion, materially outpacing sales. Backlog reached a record $4.1102 billion at June 30, up $528.7 million or 14.8% from December 31, 2025.
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GAAP EPS increased 14.2%
Diluted GAAP EPS increased $0.22, or 14.2%, year over year to a record $1.77, while net income rose $48.5 million, or 13.5%, to $406.9 million. The effective tax rate declined to 17.4% from 19.0%.
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Gross margin improved year over year
Gross margin improved 20 basis points year over year to 36.0% as cost of sales declined to 64.0% of revenue from 64.2%; however, gross margin was below the implied 37.2% in Q1. Operating margin was 25.8%, down 20 basis points year over year and 90 basis points sequentially, reflecting $16.2 million of acquisition-related costs and an 80-basis-point acquisition dilution impact.
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EMG drove outsized profit growth
EMG was the standout segment: revenue grew 16.9% to $723.2 million and operating income rose 31.6% to $189.3 million, lifting margin 290 basis points to 26.2%. EIG revenue grew 13.9% to $1.3212 billion, though its margin declined 170 basis points to 28.0% amid $15.0 million of FARO and LKC integration costs.
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Cash conversion and leverage improved
First-half operating cash flow increased $158.6 million, or 20.4%, to $935.2 million and free cash flow increased $153.4 million to $877.7 million. Capital expenditures were $57.5 million, only about 1.4% of $3.9728 billion in first-half sales; net debt fell $284.5 million to $1.5408 billion.
What to watch
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Large Indicor deal carries execution risk
The proposed Indicor Instrumentation transaction is valued at approximately $5.0 billion and remains subject to regulatory approvals and other closing conditions. The financing plan includes up to $4.0 billion of senior unsecured term loans available only upon closing, creating material execution, integration, and financing risk.
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Financing costs pressured earnings
Acquisition financing already increased Q2 interest expense by $13.2 million, or 78.6%, to $30.1 million, including $10.0 million of bridge-loan fees. Although the bridge facility was terminated, funding and integration costs could remain a drag as the $5.0 billion acquisition approaches closing.
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Trade and global-demand exposure remains high
Management added emphasis on evolving tariff and geopolitical uncertainty. International sales were $963.7 million, or 47.1% of Q2 revenue, leaving demand, supply-chain costs, and currency exposure sensitive to broader trade and macro developments despite no material tariff impact in the first six months of 2026.
Management's outlook
The 10-Q MD&A contains no explicit numeric earnings or revenue guidance. Management states that the approximately $5.0 billion Indicor Instrumentation acquisition, which has approximately $1.1 billion of annual sales, is expected to close in the second half of 2026, subject to customary conditions and regulatory approvals.
Earlier filings 4
10-K · February 17, 2026
AMETEK reported record 2025 results with sales of $7,401.1 million (up 6.6% YoY) and record diluted EPS of $6.40 (up 7.9% vs. $5.93 in 2024), driven by organic growth, Operational Excellence and contributions from…
10-Q · May 1, 2025
AMETEK reported Q1 results with revenue of $1,731,971,000 (down $4,209,000 vs. Q1 2024) while operating income rose to $454,829,000 (up $37,613,000). Gross margin expanded to 36.1% and diluted EPS increased to $1.52…
10-K · February 20, 2025
AMETEK reported record 2024 results with sales of $6,941.2 million and record diluted EPS of $5.93, driven by operational excellence and acquisitive growth. The company continues to pursue its AMETEK Growth Model…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.