Ametek (NYSE: AME) lifts 2026 EPS guidance after record Q2 surge
Rhea-AI Filing Summary
AMETEK, Inc. reported record second-quarter 2026 results, with net sales of $2.04 billion, up 15% from a year earlier. GAAP diluted earnings were $1.77 per share and adjusted diluted earnings were $2.09 per share, up 17%, reflecting organic growth and contributions from acquisitions.
GAAP operating income reached $528.2 million and adjusted operating income $544.4 million, for a 26.6% operating margin, up 60 basis points. Operating cash flow rose 35% to $483.7 million with free cash flow conversion of 111%. Orders grew 28% and both segments delivered double-digit sales growth and margin expansion.
The company now expects 2026 sales to increase about 10% versus 2025 and raised its adjusted earnings outlook to $8.20–$8.30 per share, from $7.94–$8.14. For third-quarter 2026, adjusted earnings are anticipated between $2.08 and $2.10 per share on high single-digit sales growth.
Positive
- Record Q2 2026 growth with sales of $2.04 billion up 15% and adjusted diluted EPS of $2.09 up 17% versus Q2 2025.
- Strong cash generation as operating cash flow rose 35% to $483.7 million and free cash flow conversion reached 111%.
- Raised 2026 guidance with adjusted EPS now expected at $8.20–$8.30, up 10%–12% versus 2025 and above the prior $7.94–$8.14 range.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales Q2 2026: $2,044,397 (in thousands)
GAAP diluted EPS Q2 2026: $1.77
Adjusted diluted EPS Q2 2026: $2.09
+4 more
7 metrics
Net sales Q2 2026
$2,044,397 (in thousands)
Three months ended June 30, 2026; a 15% increase over Q2 2025
GAAP diluted EPS Q2 2026
$1.77
Record GAAP diluted earnings per share for the three months ended June 30, 2026
Adjusted diluted EPS Q2 2026
$2.09
Adjusted diluted earnings per share for Q2 2026, up 17% from the second quarter of 2025
Operating cash flow Q2 2026
$483,693 (in thousands)
Cash provided by operating activities in Q2 2026; up 35% year over year
Free cash flow Q2 2026
$451,681 (in thousands)
Free cash flow in Q2 2026; free cash flow conversion was 111%
2026 adjusted EPS guidance
$8.20–$8.30
Full-year 2026 adjusted diluted EPS expected range; up 10%–12% versus 2025
Q2 2026 orders growth
28%
Orders grew 28% in the quarter compared to the prior year period
Key Terms
free cash flow, adjusted operating income, core operating margin, non-GAAP financial measures, +1 more
5 terms
free cash flow financial
"Free cash flow (Non-GAAP) | $ | 451,681 | | | $ | 329,820"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
adjusted operating income financial
"Adjusted Operating income (Non-GAAP) | $ | 544,397 | | | $ | 461,626"
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
core operating margin financial
"Adjusted core operating income margin (Non-GAAP) | 27.1 | %"
Core operating margin measures the percentage of sales a company keeps as profit from its regular business activities after routine operating costs, excluding one-time gains or losses. Think of it like checking how much a bakery earns from selling bread each month while ignoring a single big equipment sale or a rare legal bill; investors use it to judge sustainable profitability, operational efficiency, and to compare businesses on a like-for-like basis.
non-GAAP financial measures financial
"The non-GAAP financial measures referenced in this press release include adjusted operating income"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Net sales Q2 2026: $2,044,397 (in thousands) · Guidance included
Three and six months ended June 30, 2026
Net sales Q2 2026
$2,044,397 (in thousands)
Net sales were a record $2.04 billion, a 15% increase over the second quarter of 2025
GAAP diluted EPS Q2 2026
$1.77
GAAP diluted earnings per share were $1.77 versus $1.55 in the second quarter of 2025
Adjusted diluted EPS Q2 2026
$2.09
Adjusted diluted earnings per share were $2.09, up 17% from the second quarter of 2025
Adjusted operating income Q2 2026
$544,397 (in thousands)
Adjusted operating income increased 18% to $544.4 million with a 26.6% margin, up 60 basis points
Operating cash flow Q2 2026
$483,693 (in thousands)
Operating cash flow in the quarter was up 35% to $483.7 million
Guidance
For 2026, overall sales are expected to be up approximately 10% versus 2025 and adjusted earnings per diluted share are expected to be in the range of $8.20 to $8.30. For the third quarter of 2026, adjusted earnings are anticipated to be in the range of $2.08 to $2.10 per share.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did AMETEK (AME) perform financially in the second quarter of 2026?
AMETEK reported Q2 2026 net sales of $2.04 billion, up 15% from Q2 2025. GAAP diluted EPS were $1.77, while adjusted diluted EPS were $2.09, an increase of 17% driven by organic growth and recent acquisitions.
What were AMETEK (AME)’s segment results in Q2 2026?
Electronic Instruments Group sales were $1.32 billion, up 14%, with adjusted operating income of $384.7 million. Electromechanical Group sales were a record $723.2 million, up 17%, with adjusted operating income of $190.5 million and 26.3% operating margins.
What guidance did AMETEK (AME) provide for full-year 2026?
For 2026, AMETEK expects overall sales to be up approximately 10% versus 2025. Adjusted diluted EPS are projected between $8.20 and $8.30, up 10%–12% over the comparable 2025 basis and raised from the prior $7.94–$8.14 range.
What is AMETEK (AME)’s earnings outlook for the third quarter of 2026?
For Q3 2026, AMETEK expects overall sales to be up high single digits versus Q3 2025. Adjusted diluted EPS are anticipated in the range of $2.08 to $2.10 per share, up 10%–11% compared to the prior-year quarter.
How strong was AMETEK (AME)’s cash flow in Q2 2026?
Operating cash flow in Q2 2026 was $483.7 million, up 35% year over year. Free cash flow totaled $451.7 million, and free cash flow to net income conversion reached 111%, indicating strong cash generation relative to reported earnings.
How did AMETEK (AME)’s margins and orders trend in Q2 2026?
Adjusted operating margin was 26.6% in Q2 2026, up 60 basis points from the prior year, with core operating margin up 110 basis points. Orders were described as exceptional, growing 28% in the quarter, reflecting broad-based demand strength.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________
FORM 8-K
__________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2026
__________________
(Exact name of registrant as specified in its charter)
__________________
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (610 ) 647-2121
Not Applicable
(Former name or former address, if changed since last report)
__________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On August 4, 2026, AMETEK, Inc. (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2026. A copy of the release is furnished as Exhibit 99.1 and incorporated by reference herein. This Current Report on Form 8-K and the press release attached hereto are being furnished pursuant to Item 2.02 of Form 8-K.
The information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
99.1 | Press release, dated August 4, 2026, “AMETEK Announces Record Second Quarter 2026 Results and Raises Full Year Guidance " | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AMETEK, Inc. | |||||||||||
| August 4, 2026 | By: | /s/ ROBERT J. AMODEI | |||||||||
| Name: Robert J. Amodei | |||||||||||
| Title: Senior Vice President – Controller | |||||||||||
Exhibit 99.1
AMETEK Announces Record Second Quarter 2026 Results and Raises Full Year Guidance
Berwyn, Pa., Aug 4, 2026 – AMETEK, Inc. (NYSE: AME) today announced its financial results for the second quarter ended June 30, 2026.
AMETEK’s second quarter 2026 sales were a record $2.04 billion, a 15% increase over the second quarter of 2025. On a GAAP basis, second quarter earnings were a record $1.77 per diluted share. Adjusted earnings in the quarter were a record $2.09 per diluted share, up 17% from the second quarter of 2025. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization, financing fees and integration costs of $0.32 per diluted share.
GAAP operating income was a record $528.2 million. Adjusted operating income increased 18% to a record $544.4 million and operating margins were 26.6% in the quarter, up 60 basis points from the prior year. Operating cash flow in the quarter was up 35% to $483.7 million and free cash flow to net income conversion was 111%. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.
“AMETEK delivered superb results in the second quarter. Strong organic sales growth, contributions from recent acquisitions, and outstanding operating performance led to high-teens earnings growth, excellent 110 basis points of core margin expansion and record operating performance,” stated David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Notably, for the second quarter in a row, orders were exceptional, growing 28% in the quarter.”
Electronic Instruments Group (EIG)
EIG sales in the second quarter were $1.32 billion, an increase of 14% over the same period in 2025. On a GAAP basis, EIG’s second quarter operating income was $369.8 million. On an adjusted basis, EIG’s operating income was up 12% to $384.7 million.
"EIG generated outstanding results in the second quarter with mid-teens sales growth, sizeable orders growth and excellent operating performance,” commented Mr. Zapico. “Sales growth in the quarter was balanced between organic growth and contributions from recent acquisitions, with excellent orders growth highlighted by our semiconductor and commercial aerospace markets. Further, EIG’s strong operating performance drove core margins up 40 basis points to 30.1%.”
Electromechanical Group (EMG)
EMG sales in the second quarter were a record $723.2 million, up 17% from the second quarter of 2025. In the quarter, EMG’s GAAP operating income was $189.3 million. On an adjusted basis,
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EMG’s operating income increased 32% to a record $190.5 million and operating income margins were 26.3%.
“EMG delivered exceptional results in the second quarter. Strong organic sales growth resulted in sizeable profit growth and 290 basis points of core margin expansion," noted Mr. Zapico. “Orders growth was also outstanding and broad-based in the quarter with notable strength in medtech, defense and automation markets.”
Third Quarter and Full Year 2026 Outlook
“Our businesses performed exceptionally well in the second quarter highlighting the strength of the AMETEK Growth Model, the quality of our business and the attractiveness of our markets. Our broad-based sales and orders growth reflects our unique position as a mission critical provider of highly differentiated solutions supporting strong secular growth markets including the global infrastructure build-out,” added Mr. Zapico.
“For 2026, we now expect overall sales to be up approximately 10% versus 2025. Adjusted earnings per diluted share are now expected to be in the range of $8.20 to $8.30, up 10% to 12% over the comparable basis for 2025. This is an increase from our prior guidance range of $7.94 to $8.14 per diluted share reflecting our strong underlying performance and outlook for the balance of the year,” he added.
“For the third quarter of 2026, overall sales are expected to be up high single digits on a percentage basis compared to the third quarter of 2025. Adjusted earnings in the quarter are anticipated to be in the range of $2.08 to $2.10 per share, up 10% to 11% compared to the third quarter of 2025,” concluded Mr. Zapico.
Conference Call
AMETEK will webcast its second quarter 2026 investor conference call on Tuesday, August 4, 2026, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.
Corporate Profile
AMETEK (NYSE: AME) is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales of approximately $8.0 billion. The AMETEK Growth Model integrates the Four Growth Strategies - Operational Excellence, Technology Innovation, Global and Market Expansion, and Strategic Acquisitions - with a disciplined focus on cash generation and capital deployment. AMETEK's objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. Founded in 1930, AMETEK has been listed on the NYSE for over 95 years and is a component of the S&P 500. For more information, visit www.ametek.com.
Forward-looking Information
Statements in this news release relating to future events, such as AMETEK’s expected business and financial performance, are "forward-looking statements." Forward-looking statements are subject to various factors and uncertainties that may cause actual results to differ materially from expectations. These factors and uncertainties include risks related to AMETEK’s ability to
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consummate and successfully integrate future acquisitions; risks with international sales and operations, including supply chain disruptions, tariffs, trade disputes and currency conditions; AMETEK’s ability to successfully develop new products, open new facilities or transfer product lines; the price and availability of raw materials; compliance with government regulations, including environmental regulations; changes in the competitive environment or the effects of competition in our markets; the ability to maintain adequate liquidity and financing sources; and general economic conditions affecting the industries we serve. A detailed discussion of these and other factors that may affect our future results is contained in AMETEK’s filings with the U.S. Securities and Exchange Commission, including its most recent reports on Forms 10-K, 10-Q and 8-K. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.
Contact:
Kevin Coleman
Vice President, Investor Relations and Treasurer
kevin.coleman@ametek.com
Phone: 610.889.5247
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AMETEK, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | 2,044,397 | $ | 1,778,056 | $ | 3,972,834 | $ | 3,510,027 | |||||||||||||||
| Cost of sales | 1,309,356 | 1,142,167 | 2,520,234 | 2,249,138 | |||||||||||||||||||
| Selling, general and administrative | 206,848 | 174,263 | 409,471 | 344,434 | |||||||||||||||||||
| Total operating expenses | 1,516,204 | 1,316,430 | 2,929,705 | 2,593,572 | |||||||||||||||||||
| Operating income | 528,193 | 461,626 | 1,043,129 | 916,455 | |||||||||||||||||||
| Interest expense | (30,101) | (16,857) | (51,010) | (35,850) | |||||||||||||||||||
| Other (expense) income, net | (5,720) | (2,600) | (6,767) | (4,214) | |||||||||||||||||||
| Income before income taxes | 492,372 | 442,169 | 985,352 | 876,391 | |||||||||||||||||||
| Provision for income taxes | 85,476 | 83,802 | 179,099 | 166,266 | |||||||||||||||||||
| Net income | $ | 406,896 | $ | 358,367 | $ | 806,253 | $ | 710,125 | |||||||||||||||
| Diluted earnings per share | $ | 1.77 | $ | 1.55 | $ | 3.51 | $ | 3.07 | |||||||||||||||
| Basic earnings per share | $ | 1.78 | $ | 1.55 | $ | 3.52 | $ | 3.08 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Diluted shares | 229,855 | 231,472 | 229,845 | 231,507 | |||||||||||||||||||
| Basic shares | 229,086 | 230,818 | 228,994 | 230,743 | |||||||||||||||||||
| Dividends per share | $ | 0.34 | $ | 0.31 | $ | 0.68 | $ | 0.62 | |||||||||||||||
AMETEK, Inc.
Information by Business Segment
(In thousands)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||
| Electronic Instruments | $ | 1,321,153 | $ | 1,159,571 | $ | 2,585,689 | $ | 2,303,244 | |||||||||||||||
| Electromechanical | 723,244 | 618,485 | 1,387,145 | 1,206,783 | |||||||||||||||||||
| Consolidated net sales | $ | 2,044,397 | $ | 1,778,056 | $ | 3,972,834 | $ | 3,510,027 | |||||||||||||||
| Operating income: | |||||||||||||||||||||||
| Segment operating income: | |||||||||||||||||||||||
| Electronic Instruments | $ | 369,722 | $ | 344,428 | $ | 743,660 | $ | 698,478 | |||||||||||||||
| Electromechanical | 189,317 | 143,888 | 360,083 | 272,606 | |||||||||||||||||||
| Total segment operating income | 559,039 | 488,316 | 1,103,743 | 971,084 | |||||||||||||||||||
| Corporate administrative expenses | (30,846) | (26,690) | (60,614) | (54,629) | |||||||||||||||||||
| Consolidated operating income | $ | 528,193 | $ | 461,626 | $ | 1,043,129 | $ | 916,455 | |||||||||||||||
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AMETEK, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
| June 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 495,446 | $ | 457,951 | |||||||
| Receivables, net | 1,170,497 | 1,119,257 | |||||||||
| Inventories, net | 1,195,383 | 1,106,405 | |||||||||
| Other current assets | 365,475 | 336,229 | |||||||||
| Total current assets | 3,226,801 | 3,019,842 | |||||||||
| Property, plant and equipment, net | 850,173 | 855,215 | |||||||||
| Right of use assets, net | 259,308 | 273,142 | |||||||||
| Goodwill | 7,418,304 | 7,170,770 | |||||||||
| Other intangibles, investments and other assets | 4,840,127 | 4,748,574 | |||||||||
| Total assets | $ | 16,594,713 | $ | 16,067,543 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term borrowings and current portion of long-term debt, net | $ | 980,633 | $ | 1,208,975 | |||||||
| Accounts payable and accruals | 1,677,965 | 1,633,777 | |||||||||
| Total current liabilities | 2,658,598 | 2,842,752 | |||||||||
| Long-term debt, net | 1,055,541 | 1,074,334 | |||||||||
| Deferred income taxes and other long-term liabilities | 1,619,811 | 1,521,671 | |||||||||
| Stockholders' equity | 11,260,763 | 10,628,786 | |||||||||
| Total liabilities and stockholders' equity | $ | 16,594,713 | $ | 16,067,543 | |||||||
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AMETEK, Inc.
Reconciliations of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| EIG Segment operating income (GAAP) | $ | 369,722 | $ | 344,428 | |||||||
Acquisition-related costs(1) | 14,996 | — | |||||||||
| Adjusted EIG Segment operating income (Non-GAAP) | $ | 384,718 | $ | 344,428 | |||||||
| EMG Segment operating income (GAAP) | $ | 189,317 | $ | 143,888 | |||||||
Acquisition-related costs(1) | 1,208 | — | |||||||||
| Adjusted EMG Segment operating income (Non-GAAP) | $ | 190,525 | $ | 143,888 | |||||||
| Operating income (GAAP) | $ | 528,193 | $ | 461,626 | |||||||
Acquisition-related costs(1) | 16,204 | — | |||||||||
| Adjusted Operating income (Non-GAAP) | $ | 544,397 | $ | 461,626 | |||||||
| Interest expense (GAAP) | $ | 30,101 | $ | 16,857 | |||||||
Acquisition-related costs(1) | (10,006) | — | |||||||||
| Adjusted interest expense (non-GAAP) | $ | 20,095 | $ | 16,857 | |||||||
| Diluted earnings per share (GAAP) | $ | 1.77 | $ | 1.55 | |||||||
Acquisition-related costs(1) | 0.11 | — | |||||||||
Income tax benefit on acquisition-related costs(1) | (0.02) | — | |||||||||
| Pretax amortization of acquisition-related intangible assets | 0.30 | 0.31 | |||||||||
| Income tax benefit on amortization of acquisition-related intangible assets | (0.07) | (0.08) | |||||||||
| Rounding | — | — | |||||||||
| Adjusted Diluted earnings per share (Non-GAAP) | $ | 2.09 | $ | 1.78 | |||||||
| Cash provided by operating activities (GAAP) | $ | 483,693 | $ | 359,089 | |||||||
| Deduct: Capital expenditures | (32,012) | (29,269) | |||||||||
| Free cash flow (Non-GAAP) | $ | 451,681 | $ | 329,820 | |||||||
| Free cash flow conversion (Non-GAAP) | 111 | % | 92 | % | |||||||
______________________
(1) - Acquisition-related costs comprise integration costs in Cost of Sales and one-time Indicor bridge financing fees in interest expense.
Use of Non-GAAP Financial Information
The Company supplements its consolidated financial statements presented on a U.S. generally accepted accounting principles (“GAAP”) basis with certain non-GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non-GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.
The non-GAAP financial measures referenced in this press release include adjusted operating income, adjusted operating margin, and adjusted earnings per share. These measures are adjusted to exclude items that management does not consider indicative of AMETEK’s ongoing operational performance, such as after-tax acquisition-related intangible amortization, one-time acquisition-related costs (including transaction related costs, purchase accounting adjustments, and integration related costs).
In providing forward-looking guidance for quarterly and full-year GAAP and non-GAAP measures, the Company has not included adjustments, such as acquisition-related costs, whose timing and/or magnitude are contingent on future events.
The Company believes that these measures provide useful information to investors by reflecting additional ways of viewing AMETEK’s operations that, when reconciled to the comparable GAAP measure, helps our investors to better understand the long-term profitability trends of our business, and facilitates easier comparisons of our profitability to prior and future periods and to our peers.
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AMETEK, Inc.
Reconciliations of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended June 30, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Change | |||||||||||||||||
| EIG Segment operating margin (GAAP) | 28.0 | % | 29.7 | % | |||||||||||||
Acquisition-related costs(1) | 1.1 | % | — | % | |||||||||||||
| Adjusted EIG Segment operating margin (Non-GAAP) | 29.1 | % | 29.7 | % | |||||||||||||
Dilutive impact of acquisitions and foreign exchange(2) | 1.0 | % | — | % | |||||||||||||
| Adjusted EIG Segment core operating margin (Non-GAAP) | 30.1 | % | 29.7 | % | 0.4 | % | |||||||||||
| EMG Segment operating margin (GAAP) | 26.2 | % | 23.3 | % | |||||||||||||
Acquisition-related costs(1) | 0.1 | % | — | % | |||||||||||||
| Adjusted EMG Segment operating margin (Non-GAAP) | 26.3 | % | 23.3 | % | |||||||||||||
Dilutive impact of acquisitions and foreign exchange(2) | (0.1) | % | — | % | |||||||||||||
| Adjusted EMG Segment core operating margin (Non-GAAP) | 26.2 | % | 23.3 | % | 2.9 | % | |||||||||||
| Operating income margin (GAAP) | 25.8 | % | 26.0 | % | |||||||||||||
Acquisition-related costs(1) | 0.8 | % | — | % | |||||||||||||
| Adjusted operating income margin (Non-GAAP) | 26.6 | % | 26.0 | % | 0.6 | % | |||||||||||
Dilutive impact of acquisitions and foreign exchange(2) | 0.5 | % | — | % | |||||||||||||
| Adjusted core operating income margin (Non-GAAP) | 27.1 | % | 26.0 | % | 1.1 | % | |||||||||||
______________________
(1) - Acquisition-related costs comprise integration costs in Cost of Sales and one-time Indicor bridge financing fees in interest expense.
(2) - Operating income margins adjusted for dilutive impact from acquisitions completed in the last twelve months and the foreign exchange gain or loss.
Use of Non-GAAP Financial Information
The Company supplements its consolidated financial statements presented on a U.S. generally accepted accounting principles (“GAAP”) basis with certain non-GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non-GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.
The non-GAAP financial measures referenced in this press release include adjusted operating income, adjusted operating margin, and adjusted earnings per share. These measures are adjusted to exclude items that management does not consider indicative of AMETEK’s ongoing operational performance, such as after-tax acquisition-related intangible amortization, one-time acquisition-related costs (including transaction related costs, purchase accounting adjustments, and integration related costs).
In providing forward-looking guidance for quarterly and full-year GAAP and non-GAAP measures, the Company has not included adjustments, such as acquisition-related costs, whose timing and/or magnitude are contingent on future events.
The Company believes that these measures provide useful information to investors by reflecting additional ways of viewing AMETEK’s operations that, when reconciled to the comparable GAAP measure, helps our investors to better understand the long-term profitability trends of our business, and facilitates easier comparisons of our profitability to prior and future periods and to our peers.
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| AMETEK, Inc. | ||||||||||||||||||||
| Reconciliations of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Forecasted Diluted Earnings Per Share | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| September 30, 2026 | December 31,2026 | ||||||||||||||||||||||
| Low | High | Low | High | ||||||||||||||||||||
| Diluted earnings per share (GAAP) | $ | 1.85 | $ | 1.87 | $ | 7.19 | $ | 7.29 | |||||||||||||||
| Pretax amortization of acquisition-related intangible assets | 0.31 | 0.31 | 1.21 | 1.21 | |||||||||||||||||||
| Income tax benefit on amortization of acquisition-related intangible assets | (0.08) | (0.08) | (0.30) | (0.30) | |||||||||||||||||||
Acquisition-related costs(3) | — | — | 0.12 | 0.12 | |||||||||||||||||||
Income tax benefit on acquisition-related costs(3) | — | — | (0.02) | (0.02) | |||||||||||||||||||
| Adjusted Diluted earnings per share (Non-GAAP) | $ | 2.08 | $ | 2.10 | $ | 8.20 | $ | 8.30 | |||||||||||||||
______________________
(3) - In providing forward-looking guidance for quarterly and full-year GAAP and non-GAAP measures, the Company has not included adjustments, such as acquisition-related costs, whose timing and/or magnitude are contingent on future events. Acquisition-related costs reflected in the table above are actual June 30, 2026 year-to-date adjustments.
Use of Non-GAAP Financial Information
The Company supplements its consolidated financial statements presented on a U.S. generally accepted accounting principles (“GAAP”) basis with certain non-GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non-GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.
The non-GAAP financial measures referenced in this press release include adjusted operating income, adjusted operating margin, and adjusted earnings per share. These measures are adjusted to exclude items that management does not consider indicative of AMETEK’s ongoing operational performance, such as after-tax acquisition-related intangible amortization, one-time acquisition-related costs (including transaction related costs, purchase accounting adjustments, and integration related costs).
In providing forward-looking guidance for quarterly and full-year GAAP and non-GAAP measures, the Company has not included adjustments, such as acquisition-related costs, whose timing and/or magnitude are contingent on future events.
The Company believes that these measures provide useful information to investors by reflecting additional ways of viewing AMETEK’s operations that, when reconciled to the comparable GAAP measure, helps our investors to better understand the long-term profitability trends of our business, and facilitates easier comparisons of our profitability to prior and future periods and to our peers.
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