Amtek Stock Earnings Reports

AMETEK reported an excellent start to 2026: Q1 sales $1.93B (+11% YoY), organic sales +5%, record orders of $2.2B (+23% YoY, organic +22%) and a record backlog of $3.87B. Operating income was $517M (+14% YoY) with core operating margins up 160 bps to 27.9%, and record EBITDA $620M (32.1% margin). Free cash flow was $426M with free-cash-flow-to-net-income conversion of 107% in the quarter (company expects ~110–115% for the year). AMETEK raised full-year EPS guidance to $7.94–$8.14 (up 7–10% vs. prior year) and expects 2026 sales to be up high single digits with organic growth in the mid-single digits. Both operating groups performed strongly: EIG had double-digit sales growth and a notable inflection in orders (EIG core margins 31.4%), while EMG delivered a record quarter ($664M sales), double-digit organic growth and large core margin expansion (core margins up ~410 bps). Major demand drivers included aerospace & defense (missile defense, UAVs, naval, nuclear), semiconductor equipment, space/satellite, power/data-center related products, and process/metrology. Management announced the acquisition of First Aviation Services (adds ~$80M revenue; expands defense MRO & proprietary parts capabilities) and reiterated M&A as the top capital deployment priority with capacity to deploy well over $5B while maintaining investment-grade ratings. Company will invest an incremental $100M in 2026 (R&D, sales & marketing); vitality index (3-year new product sales) was 25%. Management noted limited direct exposure to the Middle East (~2% of sales) but is monitoring geopolitical and macro risks. Capital allocation remains focused on acquisitions, opportunistic buybacks, and a growing dividend (recent 10% increase).