Ametek (AME) Earnings Date & Reports

Key Takeaways

• Revenue beat: AMETEK posted record Q2 2026 sales of $2.04 billion, up 15% year-over-year and surpassing the consensus estimate of $1.95 billion.
• Earnings exceeded expectations: Adjusted earnings per share (EPS) reached a record $2.09, beating the consensus estimate of $1.99 and the company's own guidance range of $1.96 to $2.00.
• Orders surged to an all-time high: Orders jumped 28% to a record $2.3 billion, driving backlog to a record $4.11 billion and producing a book-to-bill ratio of 1.12.
• Full-year guidance raised: Management lifted its 2026 adjusted EPS outlook to $8.20–$8.30, up from the prior range of $7.94–$8.14, citing strong first-half momentum.
• Double-digit organic growth: Organic sales rose 10%, reflecting broad-based demand across both the Electronic Instruments Group (EIG) and Electromechanical Group (EMG).
• Margins expanded: Core operating margin improved 110 basis points to 27.1%, while free cash flow conversion reached 111% of net income.

Earnings Context and Why It Matters

AMETEK's Q2 2026 report landed at a pivotal moment for the industrial technology sector. As a diversified manufacturer of electronic instruments and electromechanical devices, AMETEK serves as a bellwether for demand across semiconductor fabrication, aerospace and defense, power infrastructure, medical technology, and industrial automation. Investors entered this earnings season looking for confirmation that capital spending cycles in these end markets remain healthy. With the company in the process of integrating FARO Technologies and preparing to close its $5 billion acquisition of Indicor Instrumentation, this quarter's results also provided a real-time snapshot of AMETEK's ability to execute on its acquisition-heavy growth strategy while maintaining operational discipline.

Reported Results

AMETEK delivered second-quarter net sales of $2.04 billion, a 15% increase from $1.78 billion in the same period a year ago and comfortably above the $1.95 billion Wall Street consensus. Organic sales—which strip out the effects of acquisitions and foreign currency—grew 10%, while acquisitions contributed approximately 5 percentage points of growth. Currency translation was essentially neutral.

On the bottom line, GAAP (Generally Accepted Accounting Principles) diluted earnings per share were a record $1.77. Adjusted EPS, which excludes non-cash acquisition-related intangible amortization, financing fees, and integration costs of $0.32 per share, came in at a record $2.09. That marked a 17% increase from $1.78 in Q2 2025 and exceeded the analyst consensus of $1.99 by $0.10. It also outpaced the high end of management's own guidance range of $1.96 to $2.00.

Adjusted operating income rose 18% to a record $544.4 million, with operating margins expanding 60 basis points to 26.6%. Core operating margins—which exclude the impact of recent acquisitions—reached 27.1%, an improvement of 110 basis points year-over-year. EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 14% to $644 million, producing an EBITDA margin of 31.5%.

Segment-level results were robust across both business groups. The Electronic Instruments Group (EIG) generated sales of $1.32 billion, up 14%, with organic growth of 7% and acquisitions adding 7 percentage points. Core EIG margins expanded 40 basis points to 30.1%. The Electromechanical Group (EMG) posted record sales of $723 million, up 17%, with organic growth of 15%. EMG operating income surged 32% to a record $191 million, and core margins expanded 290 basis points to 26.2%.

Perhaps the most consequential figure in the report was orders. Total orders reached a record $2.3 billion, up 28% from a year ago, including 25% organic orders growth. The backlog ended the quarter at a record $4.11 billion, and the book-to-bill ratio—which measures orders received relative to sales fulfilled—stood at a healthy 1.12. Management noted that June was the strongest month for orders in the company's history, and approximately 80% of the backlog is expected to ship within the next 12 months.

Free cash flow totaled $452 million, up 37% year-over-year, representing a conversion rate of 111% of net income. Operating working capital improved to 16.4% of sales, a 220-basis-point improvement from the prior-year period.

AI Screener

For investors looking to identify opportunities in the industrial technology space or across broader markets, Tickeron's AI Screener offers an AI-powered stock and ETF discovery tool designed to streamline the research process. The screener allows users to filter thousands of stocks and ETFs using customizable criteria such as industry classification, market capitalization, technical indicators, price patterns, and AI-driven signals. Whether scanning for breakout candidates, tracking trending sectors, or monitoring fundamental shifts following earnings events like AMETEK's, the AI Screener helps traders and investors surface trade ideas and market opportunities more efficiently than manual screening. Explore the screener to complement your own analysis with data-driven insights.

Market Reaction and Investor Sentiment

AMETEK shares closed at $243.77 on August 3, 2026, the day before the earnings release. In premarket trading on August 4, the stock edged up approximately 0.65% to around $245.36, reflecting a mildly positive but measured response to the beat-and-raise quarter. With a market capitalization of approximately $56.3 billion and a trailing price-to-earnings ratio near 36.7, AMETEK trades at a premium valuation, which likely tempered the magnitude of the initial post-earnings move despite the headline beats. The muted reaction also suggests that strong results may have been partially priced in following 13 positive analyst EPS revisions over the preceding 90 days. Nonetheless, the stock remained near the upper end of its 52-week range, and the broader 12-month return stood at roughly 31.8% at the time of the report, underscoring sustained investor confidence in the company's execution and growth trajectory.

Forward Outlook and Key Factors to Monitor

AMETEK raised its full-year 2026 guidance, now projecting total sales growth of approximately 10% and adjusted diluted EPS in the range of $8.20 to $8.30, representing 10% to 12% growth over 2025. For the third quarter, management guided for high-single-digit sales growth and adjusted EPS of $2.08 to $2.10, ahead of the then-consensus estimate of $2.05. The upgraded outlook reflects continued momentum across key end markets, though management acknowledged that second-half comparisons grow more challenging.

Several strategic items warrant close attention in the quarters ahead. First, the pending $5 billion acquisition of Indicor Instrumentation—expected to close in the second half of 2026—represents the largest deal in AMETEK's history. Integration execution, synergy realization (management targets 10% to 12% cost synergies), and the impact on the balance sheet will be critical variables. The company expanded its revolving credit facility to $3.5 billion and arranged a new $4.0 billion term loan to support the transaction.

Second, the integration of FARO Technologies continues, and management expects it to contribute meaningful margin upside over the next six to twelve months. FARO will be included in core margin calculations starting in Q3 2026, providing greater transparency into the acquisition's contribution.

Finally, investors should monitor the durability of the orders surge. Management described the demand environment as the early stages of a multi-year infrastructure buildout tied to semiconductor manufacturing, power infrastructure, aerospace and defense modernization, and medical technology. However, orders can be lumpy, and the second-half guidance implies a moderation in organic growth to mid-to-high single digits. Sustaining book-to-bill above 1.0 and converting the record backlog into revenue will be essential to supporting the stock's premium valuation.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations