AMETEK (AME) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached $1.71B, up 5.3% year-over-year, driven by acquisitions despite a 2% organic sales decline; operating income was $445.9M, up 2%, with operating margin at 26.1%.

• Adjusted EPS was $1.66, up 1% and above guidance, while GAAP EPS was $1.47; net income was flat at $340.2M.

• Orders grew double digits, with backlog at $3.44B near record levels; robust margin performance and record free cash flow conversion at 135%.

• Navigated macro headwinds, including destocking and project delays, while maintaining focus on long-term growth and operational efficiency.

• Acquisitions, including Virtek Vision, Amplifier Research, and Paragon Medical, expanded capabilities; $60M spent on share repurchases in Q3.

Financial highlights

• Q3 sales were $1.71B, up 5% year-over-year; organic sales down 2%, acquisitions added 7.5 points.

• Operating income was $445.9M, up 2% year-over-year; operating margin at 26.1%.

• EBITDA for the nine months was $1.59B, up from $1.49B in the prior year period.

• Free cash flow for Q3 was $461M, up 4% year-over-year, with conversion at 135%.

• Interest expense increased 36.6% in Q3, mainly due to acquisition-related borrowings.

Outlook and guidance

• Raised full-year adjusted EPS guidance to $6.77–$6.82, up 6–7% year-over-year.

• Q4 sales expected to be up mid-single digits; Q4 adjusted EPS guidance is $1.81–$1.86, up 8–11% year-over-year.

• Full-year 2024 sales expected to increase 5–7% over prior year, benefiting from recent acquisitions and operational initiatives.