AMETEK (AME) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year results with double-digit growth in sales, orders, and operating profit, robust margin expansion, and strong cash flow generation.

• Q4 set records for sales ($2B, +13% YoY), orders ($2B, +18% YoY), operating income ($523M, +12% YoY), EBITDA ($618M, +10% YoY), and EPS ($2.01, +7% YoY).

• Full year sales reached $7.4B, up 7% YoY, with adjusted EPS up 9% to $7.43.

• Ended Q4 with a record backlog of $3.58B, reflecting strong demand and momentum entering 2026.

• Announced and completed acquisitions, including LKC Technologies and FARO Technologies, expanding med tech exposure and recurring revenue streams.

Financial highlights

• Q4 organic sales up 5%, acquisitions added 7 points, FX a 1-point tailwind.

• Q4 operating margin 26.2%, core margin 27.6% (+100 bps YoY), EBITDA margin 30.9%.

• Free cash flow in Q4 was $527M (+6% YoY), with conversion of 132%.

• Full-year 2025 sales $7.4B (+7% YoY), operating income $1.94B (+7%), EBITDA $2.33B (+7%), EPS $7.43 (+9%).

• Dividends per share increased to $1.24 for the year, up from $1.12 in 2024.

Outlook and guidance

• 2026 sales expected up mid- to high-single digits; organic sales up low- to mid-single digits.

• 2026 EPS guidance: $7.87–$8.07 (+6–9% YoY); Q1 sales up ~10% YoY, adjusted EPS $1.90–$1.95 (+6–9%).

• Free cash flow conversion expected at 110–115% of net income; capex ~$160M (2% of sales).

• Effective tax rate for 2026 expected at 18.5–19.5%.