A month has gone by since the last earnings report for Ametek (AME). Shares have added about 3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ametek due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
AMETEK Q4 Earnings Surpass Expectations, Revenues Rise Y/Y
AMETEK reported fourth-quarter 2025 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. The company 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’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 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.
For the first quarter of 2026, the company expects overall sales to be up approximately 10% compared with the same period last year. 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%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Ametek has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Ametek has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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AMETEK, Inc. (AME): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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