AMETEK, Inc. Q1 FY2026 earnings call

Ametek delivered excellent Q1 with double-digit sales growth, exceptional orders growth, robust core margin expansion, record EBITDA. Announced acquisition of First Aviation Services. EIG had double-digit sales growth, strong operating performance. EMG had record sales, strong orders growth. Highlighted order growth across divisions, including defense, space, nuclear, and semiconductor markets. Discussed new product development from RTDS Technologies. Mentioned small sales exposure to Middle East.

Electronic Instruments Group (EIG): Q1 sales were $1.26 billion, up 11% y-o-y. Organic sales up 2%, acquisitions added 7 points, foreign currency balanced growth. Organic orders up 25%. Operating income $376 million, operating margin 31.4%. Electromechanical Group (EMG): Q1 sales a record $664 million, up 13% y-o-y. Organic sales up 11%, foreign currency a 2-point tailwind. Organic orders up 16%. Operating income $171 million, core operating margin 26%, up 410 basis points y-o-y.

2026 overall sales expected to be up high single digits, organic sales mid-single digits y-o-y. Diluted earnings per share expected in range of $7.94 to $8.14, up 7% - 10% y-o-y. Q2 overall sales expected high single digits, adjusted earnings $1.96 - $2 per share, up 10% - 12% y-o-y.

Small sales exposure to Middle East with some orders not shipped due to safety reasons and disruptions. Geopolitical uncertainty and broader macroeconomic uncertainty may impact business.

Q: About Middle East sales exposure and geographies, A: Balanced growth across geographies, Asia up low double digits driven by strong China, Europe up low single digits, U.S. up mid-single digits. Some discrete orders from Middle East didn't ship.

Q: About potential large deals, A: Ametek policy not to comment on market rumors, pipeline is strong with mix of deals.

Q: About orders pull forward and macro risk, A: No significant pull forward, laser focused on macro changes and input costs.

Q: About large orders and medical end market, A: Order strength to continue, medical end market up low double digits in Q1 with tougher comps later.

Q: About aerospace and defense impact and First Aviation acquisition, A: A&D business strong, First Aviation Services is defense-driven MRO and parts provider.

Q: About organic and full year for other segments and orders trend, A: Process business up mid-teens, power subsegment low single-digit growth, automation up high single-digit organic sales growth, orders broad-based.

Q: About aerospace aftermarket concern and Abaco, A: Aerospace aftermarket small part of sales, Abaco provides advanced computing solutions to semiconductor market.

Q: About guide increase and deal risk-reward, A: Guide increase driven by certain segments, focus on matching deals with strategy.

Q: About operating leverage and EMG comps, A: Strong operating leverage in Q1, EMG has tough comps later in year but orders growing