Ametek Posts Record Quarter as Orders Jump 28%
Ametek reported record second-quarter sales of $2.04 billion and raised its full-year profit outlook as orders climbed 28% for a second straight quarter.
Ametek (AME) reported record second-quarter results and raised its full-year guidance, as order growth accelerated for a second consecutive quarter and margins expanded across its two operating segments. The diversified electronic-instruments and industrial-technology maker posted sales of $2.04 billion, up 15% from $1.778 billion a year earlier.
Orders rose 28% in the quarter, matching the pace set in the first quarter of 2026. That trajectory, sustained rather than a one-quarter spike, underpinned the company's decision to lift full-year guidance even as it absorbed higher financing costs tied to its recent acquisition activity.
Adjusted diluted earnings per share reached a record $2.09, up 17% from $1.78 in the prior-year quarter. GAAP diluted EPS climbed to $1.77 from $1.55, a 14% increase. Adjusted operating income rose 18% to $544.4 million from $461.6 million, and adjusted operating margin expanded 60 basis points to 26.6%; on a core basis, excluding currency and acquisition dilution, margin expanded 110 basis points to 27.1%.
The Electronic Instruments Group generated $1.32 billion in sales, up 14%, with adjusted operating income up 12% to $384.7 million. Its core operating margin expanded just 40 basis points to 30.1%, the smallest gain among Ametek's segments. The Electromechanical Group outpaced it, with record sales of $723.2 million, up 17%, and adjusted operating income up 32% to a record $190.5 million. EMG's core margin expanded 290 basis points to 26.2%, making it the standout performer of the quarter.
Operating cash flow rose 35% to $483.7 million from $359.1 million, and free cash flow conversion to net income improved to 111% from 92% a year earlier. The stronger cash generation came alongside rising costs from Ametek's acquisition of Indicor: interest expense nearly doubled to $30.1 million from $16.9 million, reflecting acquisition-related financing, while goodwill grew to $7.42 billion from $7.17 billion at the end of 2025. The quarter also included $16.2 million in acquisition-related costs, covering integration expenses and one-time Indicor bridge-financing fees, which were not present a year earlier. Those costs cut GAAP operating margin by 80 basis points and added $0.32 a share to the adjustments used to calculate adjusted EPS.
Ametek raised its full-year 2026 guidance, now expecting sales up about 10% and adjusted EPS of $8.20 to $8.30, up 10% to 12% from 2025, versus its prior guide of $7.94 to $8.14. For the third quarter, the company guided to high-single-digit sales growth and adjusted EPS of $2.08 to $2.10, up 10% to 11% from a year earlier.
The raised outlook signals confidence that the order momentum built over the first half of 2026 will carry through the back half, even as the company continues to fold Indicor into its cost base and balance sheet.