AMETEK (AME) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year results in sales, operating income, EBITDA, EPS, and cash flow, despite a challenging macroeconomic environment.

• Q4 2024 sales reached $1.76B (up 2% YoY), with organic sales down 3% but acquisitions adding 5 points.

• Full-year 2024 sales reached $6.94B, a 5% increase over 2023, with record operating cash flow of $1.83B, up 5%.

• Orders grew organically by 4% YoY, with a strong backlog of $3.4B.

• Repurchased $155M in shares in Q4 and $220M for the year; acquired Kern Microteknik for ~€105M.

Financial highlights

• Q4 operating income: $469M (up 5% YoY); operating margin: 26.6% (up 90 bps YoY).

• Q4 EBITDA: $561M (up 7% YoY); EBITDA margin: 31.9%.

• Q4 free cash flow: $498M (up 4% YoY); free cash flow to net income conversion: 129%.

• Q4 diluted/adjusted EPS: $1.87 (up 11% YoY, above guidance); GAAP EPS: $1.67.

• Full-year adjusted EPS: $6.83 (up 7% YoY); GAAP EPS: $5.93.

Outlook and guidance

• 2025 sales expected to grow low single digits YoY; Q1 sales to be flat YoY.

• 2025 adjusted EPS guidance: $7.02–$7.18 (up 3–5% YoY); Q1 EPS: $1.67–$1.69 (up 2–3% YoY).

• Free cash flow conversion expected at ~115% for 2025.

• Capital expenditures for 2025 projected at $155M (~2% of sales).

• Effective tax rate for 2025 expected at 19–20%.