AMETEK’s fourth quarter demonstrated continued momentum, as management cited strong sales and order growth, with recent acquisitions contributing notably to revenue expansion. CEO Dave Zapico highlighted robust performance across both the Electronic Instruments and Electromechanical segments, and pointed to a record backlog as evidence of sustained demand. Management credited disciplined pricing actions and a refreshed product portfolio for supporting profitability, even as operating margins came under pressure due to the integration of lower-margin acquired businesses.
Is now the time to buy AME? Find out in our full research report (it’s free for active Edge members).
AMETEK (AME) Q4 CY2025 Highlights:
- Revenue: $2.00 billion vs analyst estimates of $1.95 billion (13.4% year-on-year growth, 2.6% beat)
- Adjusted EPS: $2.01 vs analyst estimates of $1.94 (3.4% beat)
- Adjusted EBITDA: $629 million vs analyst estimates of $616 million (31.5% margin, 2.1% beat)
- Revenue Guidance for Q1 CY2026 is $1.91 billion at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $7.97 at the midpoint, in line with analyst estimates
- Operating Margin: 25.3%, down from 26.6% in the same quarter last year
- Organic Revenue rose 5.6% year on year (beat)
- Market Capitalization: $53.73 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AMETEK’s Q4 Earnings Call
- Matt Summerville (D.A. Davidson) asked about the medium-term growth expectations for the medical technology portfolio. CEO Dave Zapico projected mid-single digit growth, with strong contributions from recent acquisitions and recurring revenue streams.
- Deane Dray (RBC Capital Markets) inquired about the backlog conversion rate for 2026. Zapico explained that conversion should remain within the historical 30-50% range, supported by a balanced mix of long- and short-cycle business.
- Andrew Buscaglia (BNP Paribas) questioned the sustainability of recent growth in the Electromechanical Group. Zapico noted strength across all divisions, indicating that while comps will be tougher, execution and momentum remain positive.
- Chris Snyder (Morgan Stanley) queried the timing of margin expansion, especially regarding the impact of recent acquisitions. Zapico and CFO Dalip Puri clarified that core margins are expected to expand in Q1, with reported margins improving as integration progresses.
- Scott Graham (Seaport Research Partners) sought details on the sources of vitality index growth. Zapico highlighted contributions from data center, defense, and a bottom-up approach to product development across business units.
Catalysts in Upcoming Quarters
In the coming quarters, our team will closely monitor (1) the pace and effectiveness of integrating newly acquired businesses and their margin improvement, (2) the trajectory of organic growth in key end markets such as aerospace, medical technology, and power, and (3) the sustainability of price-cost management as inflation and tariff pressures persist. Investments in product innovation and digital capabilities will also be critical indicators of future performance.
AMETEK currently trades at $233.40, up from $227.72 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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