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AMETEK Achieves Record Results for Q4 and Full Year 2024

AMETEK, Inc. (NYSE: AME) has delivered remarkable financial performance as it wraps up a successful year, announcing its results for the fourth quarter and the full year ending December 31, 2024. The company has established a series of new records that highlight its operational excellence and robust market strategy.

Quarterly Highlights

In the fourth quarter of 2024, AMETEK reported sales of approximately $1.76 billion, reflecting a 2% increase from the same period last year. This achievement underscores not only the resilience of the company but also the effectiveness of its business approaches amidst a fluctuating economic landscape. Operating income surged 5% to reach $469.0 million, while the operating margin climbed to 26.6%, a notable growth of 90 basis points compared to the previous year.

The company's operating cash flow for the quarter reached a record $550.0 million, and free cash flow also hit an all-time high at $498.3 million, showcasing its robust cash-generating capabilities. The accomplishment of a 129% conversion rate of free cash flow to net income further emphasizes AMETEK's effective management of financial resources.

Earnings per diluted share for Q4 came in at a record $1.67, with adjusted earnings rising to $1.87 per share, marking an 11% increase over Q4 2023. AMETEK attributes this performance to its strategic focus on operational flexibility and disciplined execution, which have allowed the company to navigate a complex macroeconomic environment with confidence.

Annual Performance

For the full year, AMETEK realized total sales of $6.94 billion, a 5% year-over-year increase. Operating income on a GAAP basis stood at $1.78 billion, reflecting consistent growth and stability, with an annual operating margin of 25.6%. Overall, earnings per diluted share for the year were reported at $5.93, up from $5.67 in the prior year. Adjusted earnings reached $6.83 per share, indicating a 7% increase from 2023.

The company’s performance metrics underscore a strong operational backbone, as it set records in sales, operating income, EBITDA, free cash flow, and both GAAP and adjusted earnings per share.

Segment Performance

Breaking down the performance by segments, the Electronic Instruments Group (EIG) reported sales of $1.21 billion in Q4, slightly down by 2% compared to the previous year. However, operating income within EIG saw a remarkable 8% rise to $386.6 million, with margins reaching 31.8%, illustrating the segment's profitability.

On the other hand, the Electromechanical Group (EMG) displayed strong growth with Q4 sales climbing 11% to $546.7 million. EIG’s continuous investment in growth opportunities, particularly in Aerospace and Defense, significantly contributed to its performance despite some headwinds due to inventory adjustments across customer bases.

Looking Ahead to 2025

Looking towards the future, David A. Zapico, AMETEK’s Chairman and CEO, expressed optimism about the company’s trajectory. He noted that AMETEK is well-positioned for further growth in 2025, expecting a low single-digit increase in overall sales compared to 2024. Adjusted earnings per diluted share are projected to range between $7.02 to $7.18, indicating a modest increase over 2024.

The first quarter of 2025 is anticipated to show flat sales compared to the same period last year, with adjusted earnings forecasted to rise 2% to 3% from Q1 2024. Zapico emphasized the strength of AMETEK's Growth Model, which integrates operational excellence with innovative strategies across global markets.

Conference Call and Webinar

As part of their commitment to transparency, AMETEK will host an investor conference call on February 4, 2025, at 8:30 AM ET, to discuss these results in detail. The live audio will be available on their website, allowing stakeholders to engage and gain a deeper understanding of the company’s performance and strategies.

About AMETEK

Founded in 1930 and listed on the NYSE for over 90 years, AMETEK has established itself as a prominent global provider of industrial technology solutions, with projected annual sales around $7.0 billion. The company aims for continuous growth through its defined strategies, contributing positively to shareholder value and market presence.

For more information, please visit www.ametek.com.