AMETEK, Inc.

What they do

AMETEK designs and manufactures electronic instruments and electromechanical devices, with operations in North America, Europe, Asia and South America. It sells through two operating groups: Electronic Instruments, which makes advanced instruments for the process, power and industrial, and aerospace markets, and Electromechanical, which supplies precision motion control, medical components and devices, thermal management systems, specialty metals and electrical interconnects. End markets include aerospace and defense, medical, automation and other industrial markets.

Revenue drivers

• Electronic Instruments Group (EIG) — Advanced instruments for process, power and industrial, and aerospace markets; Q2 2026 sales of $1.32 billion, about 65% of quarterly sales.
• Electromechanical Group (EMG) — Precision motion control, medical components, thermal management, specialty metals and electrical interconnects; Q2 2026 sales of $723.2 million, about 35% of quarterly sales.
• Strategic acquisitions — Management states growth comes partly from acquisitions, which also consolidate operations, product lines and distribution channels; goodwill rose to $7.42 billion at June 30, 2026 from $7.17 billion at December 31, 2025.
• International and best-cost manufacturing — Operating facilities as of December 31, 2025 in China, Czechia, Malaysia, Mexico and Serbia support proximity to customers and international sales growth.

Recent performance

Second quarter 2026 sales were a record $2.04 billion, up 15% from $1.78 billion in the second quarter of 2025. GAAP diluted EPS was a record $1.77; adjusted EPS was a record $2.09, up 17%. GAAP operating income was $528.2 million; adjusted operating income rose 18% to $544.4 million with 26.6% margins, up 60 basis points. Orders grew 28% in the quarter, following exceptional orders growth in the prior quarter. First-half 2026 net sales were $3.97 billion versus $3.51 billion in the first half of 2025, with net income of $806.3 million.

Strategy

AMETEK states it follows the AMETEK Growth Model, targeting high single digit annual sales growth and double digit annual EPS growth over the business cycle, strong cash flow and superior return on total capital. The model integrates Operational Excellence, Strategic Acquisitions, Global and Market Expansion, and New Product Development, with focus on cash generation and capital deployment. Operational Excellence is described as the cornerstone strategy for accelerating growth and improving margins. Management also cites investments in research, development and engineering, use of Design for Six Sigma, Value Analysis/Value Engineering and artificial intelligence tools in product development.

Risks

• Cyclical end markets — A downturn in the U.S. or global economy, particularly in aerospace and defense, oil and gas, process instrumentation or power markets, could adversely affect results.
• Limited market visibility — The company states visibility into future performance of certain markets is limited, particularly for markets sold through distribution, and quarterly sales depend on order volume and timing that are difficult to forecast.
• Operational Excellence execution — Success is partly dependent on properly executing and realizing cost savings or benefits from Operational Excellence initiatives.
• Customer capital spending and public policy — In certain businesses, demand depends on customers' capital spending budgets and government funding policies, which can shift with product and economic cycles.

Outlook

For full year 2026, management expects overall sales to be up approximately 10% versus 2025 and adjusted diluted EPS of $8.20 to $8.30, up 10% to 12% over the comparable 2025 basis, raised from prior guidance of $7.94 to $8.14. For the third quarter of 2026, overall sales are expected to be up high single digits and adjusted EPS is anticipated at $2.08 to $2.10, up 10% to 11% versus the third quarter of 2025. Management cites broad-based sales and orders growth and demand tied to the global infrastructure build-out.