AMETEK Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

AMETEK, Inc. AME reported fourth-quarter 2025 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.

AMETEK reported its fourth-quarter non-GAAP earnings of $2.01 per share, beating the Zacks Consensus Estimate by 3.6%. The figure increased 7.5% year over year.

AMETEK’s top line of $2 billion surpassed the Zacks Consensus Estimate by 2.6%. The figure increased 13.4% 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 Q4 2025 Details

EIG sales (68.5% of total revenue) in the fourth quarter were $1.37 billion, up 13% from the year-ago quarter’s reported figure. Our model estimate for the EIG sales was pegged at $1.33 billion.

In the fourth quarter, revenues from EMG (31.5% of total revenues) were $628.92 million, up 15% from the year-ago quarter. Our model estimate for the EMG sales was pegged at $595 million.

For the fourth quarter, operating income increased 11.5% year over year to $523 million. However, the operating margin contracted 50 basis points (bps) from the year-ago quarter.

EIG's fourth-quarter operating income was $396.1 million, and operating income margins were 28.9% in the quarter.

EMG’s operating income in the quarter increased 28% to $142.5 million with operating income margins of 22.7%, reflecting an increase of 240 bps from the year-ago reported figure.

AME’s Balance Sheet & Cash Flow

As of Dec. 31, 2025, AME had cash and cash equivalents of $457.95 million compared with the previous quarter’s $439.2 million.

As of Dec. 31, 2025, AME’s long-term debt was $1.07 billion, down from the previous quarter’s $1.43 billion.

Operating cash flow in the fourth quarter was $584.3 million, and free cash flow was $527.3 million. In 2025, it generated operating and free cash flows of approximately $1.80 billion and $1.67 billion, respectively. In the fourth quarter, the company’s free cash flow to net income conversion was 132%.

AME Initiates Guidance for 2026

For 2026, AME expects overall sales to be up mid to high single digits compared to the 2025 reported level. The Zacks Consensus Estimate is pegged at $7.92 billion, indicating a year-over-year increase of 7.9%.

The company expects its adjusted earnings per share to be in the range of $7.87-$8.07, up 6% to 9% compared with the 2025 reported level. The Zacks Consensus Estimate for earnings is pegged at $7.98 per share, indicating a year-over-year increase of 8.5%.

For the first quarter of 2026, the company expects overall sales to be up approximately 10% compared with the same period last year. The Zacks Consensus Estimate is pegged at $1.90 billion, indicating a year-over-year increase of 9.8%.

Adjusted earnings for the first quarter are expected to be in the range of $1.85-$1.90, indicating a year-over-year increase of 6-9%. The Zacks Consensus Estimate for earnings is pegged at $1.89 per share, indicating a year-over-year rise of 8%.

Zacks Rank and Other Stocks to Consider

Currently, AME carries a Zacks Rank #2 (Buy).

Amphenol APH, Amtech Systems ASYS and BILL Holdings, Inc. BILL are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, Micron Technology and Lam Research sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amphenol’s earnings for 2026 has been revised upward by 2 cents to $4.32 per share over the past seven days and suggests a year-over-year increase of 29.3%. Amphenol shares have jumped 35.9% in the past six months.

The Zacks Consensus Estimate for Amtech Systems’ fiscal 2026 earnings is pegged at 43 cents per share, up from the prior estimate of 15 cents per share over the past 60 days, calling for a year-over-year surge of 760%. Amtech Systems shares have soared 290.3% in the past six months.

The Zacks Consensus Estimate for BILL Holdings’ fiscal 2026 earnings has remained unchanged at $2.21 per share over the past 60 days, suggesting no year-over-year growth. BILL Holdings shares have declined 11.2% in the past six months. 

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

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