AMETEK Delivers Record Results, Looks Ahead to 2025

AMETEK, Inc. (NYSE: AME), a leading global provider of industrial technology solutions, announced record fourth quarter and full year results for 2024. The company's strong performance was driven by operational excellence, strategic acquisitions, and a diverse set of attractive niche markets.

Record Fourth Quarter and Full Year Results

AMETEK's fourth quarter 2024 sales reached $1.76 billion, up 2% year-over-year, with operating income increasing 5% to $469.0 million. Operating margins improved to 26.6%, up 90 basis points from the prior year. The company achieved record Q4 operating cash flow of $550.0 million and free cash flow of $498.3 million, with a free cash flow to net income conversion of 129%.

Full-year 2024 sales were $6.94 billion, a 5% increase over 2023. Adjusted earnings per share for the full year reached $6.83, up 7% from 2023. AMETEK established annual records for sales, operating income, EBITDA, operating cash flow, free cash flow, and both GAAP and adjusted earnings per share.

Segment Performance

The Electronic Instruments Group (EIG) saw a 2% decrease in Q4 sales to $1.21 billion, while the Electromechanical Group (EMG) reported an 11% increase to $546.7 million. EIG's operating income margins expanded by 280 basis points to a record 31.8%, reflecting successful portfolio optimization and pricing power. EMG's revenue growth was driven by the contributions from the acquisition of Paragon Medical and continued strong growth across its Aerospace and Defense businesses.

2025 Outlook

For 2025, AMETEK expects overall sales to be up low single digits on a percentage basis compared to 2024. Adjusted earnings per diluted share are expected to be in the range of $7.02 to $7.18, an increase of 3% to 5% over the comparable basis for 2024. For the first quarter of 2025, overall sales are expected to be roughly flat compared to the same period last year, with adjusted earnings in the quarter anticipated to be in the range of $1.67 to $1.69 per share, up 2% to 3% compared to the first quarter of 2024.

Strategic Initiatives and Long-term Sustainability

AMETEK's strong free cash flow to net income conversion, operating margin improvement, and divergent segment performance can be attributed to several strategic initiatives, including pricing strategies, cost control measures, portfolio optimization, and acquisitions. These improvements are sustainable in the long term due to the company's diverse market exposures, Growth Model, strong balance sheet and cash generation capabilities, and experienced management team.