In This Article:
-
Sales: $1.73 billion, flat compared to Q1 2024.
-
Organic Sales: Down 1%; acquisitions added 1 point.
-
Orders: Up 8% overall; organic orders up 3%.
-
Operating Income: $455 million, a 2% increase over Q1 2024.
-
Operating Margins: 26.3%, up 60 basis points from the prior year.
-
EBITDA: $559 million, up 3% with margins at 32.2%.
-
Free Cash Flow: $394 million, with a conversion rate of 112%.
-
Diluted EPS: $1.75, up 7% from Q1 2024.
-
Electronic Instruments Group Sales: $1.14 billion, down 1% from last year.
-
Electronic Instruments Group Operating Margins: 31%, up 50 basis points.
-
Electromechanical Group Sales: $588.3 million, up 2% year-over-year.
-
Electromechanical Group Operating Margins: Up 120 basis points.
-
General and Administrative Expenses: $28 million, up $1.5 million from the prior year.
-
Interest Expense: $19 million.
-
Effective Tax Rate: 19%.
-
Capital Expenditures: $23 million for the quarter.
-
Operating Cash Flow: $418 million, up 2% from Q1 2024.
-
Total Debt: $1.9 billion as of March 31.
-
Cash and Cash Equivalents: $399 million.
-
Gross Debt-to-EBITDA Ratio: 0.9 times.
-
Net Debt-to-EBITDA Ratio: 0.7 times.
-
Dividend Increase: 11% increase to $0.31 per share.
-
Share Repurchase Authorization: $1.25 billion.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
AMETEK Inc (NYSE:AME) reported strong first-quarter 2025 results with robust margin expansion and earnings above expectations.
-
The company generated strong free cash flow of $394 million, with a free cash flow to net income conversion of 112%.
-
Orders were strong in the quarter, with overall orders up 8% and organic orders up 3% versus the prior year.
-
AMETEK Inc (NYSE:AME) maintained a near-record backlog of $3.47 billion, indicating strong future demand.
-
The company is actively pursuing strategic acquisitions and has a robust pipeline of attractive acquisition candidates.
Negative Points
-
Organic sales were down 1% in the first quarter, indicating some challenges in core business growth.
-
The company faced a 10% decline in the China market, impacting overall international sales.
-
There is increased uncertainty due to global trade dynamics and tariffs, which could affect future performance.
-
The company did not provide specific guidance for the second quarter due to uncertainty around sales and potential shipping delays.
-
Some delays in project timing were noted in the Process business, reflecting cautious customer behavior amid macroeconomic uncertainties.
Q & A Highlights
Q: Can you provide more detail on Paragon and the broader group of medical-related businesses, especially given the recent inflection in orders? A: Paragon, acquired over a year ago, specializes in single-use surgical instruments and implantable components. After a period of destocking, we executed a multiyear improvement plan to enhance cost efficiency. Orders in the medtech OEM businesses, including Paragon, were up significantly, indicating customers are beginning to restock. We expect substantial growth in the second half of the year. - David Zapico, CEO