AMETEK Stock Gains 5% as Q2 Earnings and Revenues Beat Estimates

AMETEK, Inc. (AME) shares closed 4.6% higher on Thursday after the company reported better-than-expected results for second-quarter 2025. The company reported its second-quarter non-GAAP earnings of $1.78 per share, beating the Zacks Consensus Estimate by 5.9%. The figure increased 7.2% year over year.

AMETEK’s top line of $1.78 billion surpassed the Zacks Consensus Estimate by 3%. The figure increased 2.5% year over year.

The company experienced an increase in sales in its largest EIG segment and a year-over-year improvement in the EMG segment.

AMETEK, Inc. Price, Consensus and EPS Surprise

AMETEK, Inc. price-consensus-eps-surprise-chart | AMETEK, Inc. Quote

Ametek’s Q2 2025 Details

EIG sales (65.2% of total revenue) in the second quarter were $1.16 billion, up 1% from the year-ago quarter’s reported figure. Our model estimate for the EIG sales was pegged at $1.14 billion.

In the second quarter, revenues from EMG (34.8% of total revenues) were $618.5 million, up 6.4% from the year-ago quarter. Our model estimate for the EMG sales was pegged at $583.2 million.

For the second quarter, operating income increased 3% year over year to $461.6 million and operating margin expanded 20 basis points (bps) from the year-ago quarter.

EIG's second-quarter operating income was $344.4 million, and operating income margins were 29.7% in the quarter.

EMG’s operating income in the quarter increased 17% to $143.9 million with operating income margins of 23.3%, reflecting an increase of 210 bps from the year-ago reported figure.

AME’s Balance Sheet & Cash Flow

As of June 30, 2025, AME had cash and cash equivalents of $619.7 million compared with the previous quarter’s $399 million.

As of June 30, 2025, AME’s long-term debt was $1.53 billion, up from the previous quarter’s $1.46 billion.

Operating cash flow in the second quarter was $359.1 million, and free cash flow was $329.8 million. In the first half of 2025, it generated operating and free cash flows of $776.6 million and $724.3 million, respectively. Year to date, the company’s free cash flow to net income conversion was 102%.

AME Raises Guidance

For 2025, AME expects overall sales to be up in mid-single digits on a percentage basis compared to the 2024 reported level. Earlier, it had expected growth in the low-single-digit range. The Zacks Consensus Estimate is pegged at $7.05 billion, indicating a year-over-year increase of 1.6%.

The company expects its adjusted earnings per share in the range of $7.06-$7.20, up from the earlier guidance of $7.02-$7.18. The Zacks Consensus Estimate for earnings is pegged at $7.10 per share, indicating a year-over-year increase of 4%.

For the third quarter of 2025, the company expects overall sales to be up mid-single digits on a percentage basis compared to the same period last year. The Zacks Consensus Estimate is pegged at $7.77 billion, indicating a year-over-year increase of 3.7%.

Adjusted earnings for the third quarter are expected to be in the range of $1.72 -$1.76, indicating a year-over-year increase of 4-6%. The Zacks Consensus Estimate for earnings is pegged at $1.78 per share, indicating a year-over-year increase of 7.2%.

Zacks Rank and Stocks to Consider

Currently, AME carries a Zacks Rank #3 (Hold).

Amphenol (APH), DoorDash (DASH) and CyberArk Software (CYBR) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol and DoorDash sport a Zacks Rank #1 (Strong Buy), while CyberArk Software carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amphenol’s 2025 earnings has been revised upwards over the past seven days at $2.98 per share and suggests a year-over-year increase of 57.67%. Amphenol shares have soared 54.1% year to date.

The Zacks Consensus Estimate for DoorDash’s 2025 earnings has been revised upward over the past seven days to $2.17 per share, suggesting an increase of 648.3% from year ago’s reported figure. DoorDash shares have rallied 48.6% year to date.

The Zacks Consensus Estimate for CyberArk Software’s 2025 earnings has been revised downwards by 4 cents to $3.83 per share in the past 60 days, reflecting 26.4% year-over-year growth. CyberArk Software shares have risen 23.5% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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