AMETEK 2025-26: Record Q4, FY26 EPS $7.87-$8.07
FY25 revenue $7.40B (+7%); Op income $1.94B (+9%); NI $1.48B (+8%); EPS $6.40 (+8%). Q4 record sales + orders + operating income + EBITDA + EPS + cash flow + FCF. Backlog record. LKC Technologies acquisition announced. EIG Q4 +13% (organic +2%, M&A +10pp). EMG Q4 +15% (organic +14%). Mgmt FY26 guide: revenue +mid-single-digit, organic +low to mid-single-digit, EPS $7.87-$8.07 (+6-9%).
Key takeaways
- Record-setting Q4 + record backlog exit FY25. Sales + orders + operating income + EBITDA + diluted EPS + operating cash flow + FCF all hit Q4 records. Strong momentum into FY26.
- EIG vs EMG dispersion. Electronic Instruments Group (EIG, ~70% of OI): Q4 +13% sales (organic +2%, M&A +10pp); margin 32.3% (+50bp). Electromechanical Group (EMG, ~30% of OI): Q4 +15% sales (organic +14%); margin 22.6% (+200bp). EMG organically outperforming.
- LKC Technologies acquisition. Announced + integrating. Builds on AMETEK's M&A cadence — $4-5B+ deployed across multiple deals over recent years.
- FY26 guide: revenue +mid-single-digit, organic +low to mid-single-digit, EPS $7.87-$8.07 (+6-9%). Conservative; mgmt has track record of beating.
- Q1 FY26 guide: sales +~10% YoY, adj EPS $1.90-$1.95 (+6%). Sequential strength continuing.
Business
AMETEK is a global manufacturer of electronic instruments + electromechanical devices serving 30+ markets. Two reporting segments + ~80 differentiated business units:
- Electronic Instruments Group (EIG) (~63% of revenue, ~70% of OI, ~32% margin): Process + analytical + ultraprecision instruments + power + industrial measurement. Industries: aerospace, semiconductor, oil/gas, food/beverage, medical research, environmental monitoring. Highest-margin segment.
- Electromechanical Group (EMG) (~37% of revenue, ~30% of OI, ~22% margin): Connection technologies + automation + specialty motion control + thermal + custom solutions. Industries: aerospace, defense, automotive, industrial automation, medical equipment. Q4 organic +14% (vs EIG +2% organic) — accelerating.
Strategic position: differentiated niche businesses + pricing power + M&A cadence (~$4-5B+ deployed cumulatively over 5 years across multiple deals). Operating model is highly decentralized with each ~80 business units running autonomously.
FY25 financial performance
| Metric (FY) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue ($B) | 6.60 | 6.94 | 7.40 |
| Gross profit ($B) | 2.38 | 2.48 | 2.69 |
| Op income ($B) | 1.71 | 1.78 | 1.94 |
| Op margin | 25.9% | 25.6% | 26.2% |
| EBITDA ($B) | 2.03 | 2.16 | 1.88 |
| Net income ($B) | 1.31 | 1.38 | 1.48 |
| Diluted EPS ($) | 5.67 | 5.93 | 6.40 |
| FCF ($B) | 1.60 | 1.70 | 1.67 |
| Capex ($M) | -136 | -127 | -130 |
| Total debt ($B) | 3.37 | 2.32 | 2.28 |
| Dividends ($M) | -230 | -259 | -285 |
| Buyback ($M) | -8 | -212 | -434 |
The earnings print: Revenue +7%, op margin +60bp to 26.2%, EPS +8%. Q4 alone was record on multiple metrics.
Buyback stepped to $-434M FY25 (vs $-212M FY24, $-8M FY23) — meaningful capital return acceleration.
Capital allocation
- Capex: $-130M FY25 (1.8% of revenue). Capital-light niche manufacturing.
- Dividends: $-285M FY25 (+10% YoY). Continued raise.
- Buybacks: $-434M FY25 (+105% YoY). Material capital return acceleration.
- M&A: 2025 multiple acquisitions completed; LKC Technologies announced + integrating. ~$4-5B deployed cumulatively recent years.
- Debt: $2.28B (-$40M YoY) — modest paydown.
FY26 outlook (per Q4 2025 call, 2026-02-03)
| FY26 guide | Range / point |
|---|---|
| Sales growth | +mid-single-digit |
| Organic sales growth | +low to mid-single-digit |
| Diluted EPS | $7.87-$8.07 (+6-9%) |
| Q1 FY26 sales | +~10% YoY |
| Q1 FY26 adj EPS | $1.90-$1.95 (+6%) |
The FY26 guide implies operating leverage + M&A integration + capital allocation compounding. Mgmt has consistently delivered through-cycle.
Key risks
- Industrial cycle: AMETEK is exposed to broad industrial demand. A meaningful recession would compress organic growth.
- Aerospace cycle: Both segments have aerospace exposure (EIG instrumentation + EMG components). Aerospace cycle softness flows through.
- Semiconductor cycle: EIG has semiconductor industry exposure (process + metrology instruments). Semi cycle volatility.
- M&A integration: Multiple acquisitions per year requires disciplined integration to maintain margin.
- Commodity costs: Specialty materials + components; pass-through generally works but with lag.
- FX: International revenue ~50%; major currency exposure.
Bottom line
AMETEK FY25 is the textbook quality industrial compounder year — revenue +7%, op margin +60bp, EPS +8%, record Q4 across multiple metrics + record backlog. FY26 guide +mid-single-digit revenue + EPS $7.87-$8.07 (+6-9%). The structural read: ~80 niche business units + M&A cadence + decentralized operating model + consistent margin expansion + capital return acceleration. Risks are industrial cycle + aerospace + semi + M&A integration.
Citations
- AMETEK Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- AMETEK Q4 2025 earnings call, 2026-02-03 — record Q4 on sales/orders/OI/EBITDA/EPS/OCF/FCF, record backlog, LKC Technologies acquisition; EIG Q4 +13% (org +2%, M&A +10pp) margin 32.3%; EMG Q4 +15% (org +14%) margin 22.6% +200bp; FY26 guide (sales +mid-single, organic +low-to-mid single, EPS $7.87-$8.07 +6-9%); Q1 FY26 +~10% sales / EPS $1.90-$1.95.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).