AMETEK’s second quarter saw a positive response from the market, underpinned by results that surpassed Wall Street expectations and demonstrated resilience across core business segments. Management attributed the quarter’s growth to strong performance in the Electromechanical Group, which delivered record operating income and notable margin expansion, as well as ongoing execution of acquisition integration. CEO David Zapico cited the impact of recent product launches and strategic growth investments, noting particular strength in aerospace and defense along with improvements in the automation and Paragon businesses. He also highlighted the company’s ability to manage through challenging macroeconomic conditions by leveraging operational agility and targeted pricing actions.
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AMETEK (AME) Q2 CY2025 Highlights:
- Revenue: $1.78 billion vs analyst estimates of $1.73 billion (2.5% year-on-year growth, 2.8% beat)
- Adjusted EPS: $1.78 vs analyst estimates of $1.69 (5.5% beat)
- Adjusted EBITDA: $569.3 million vs analyst estimates of $544.1 million (32% margin, 4.6% beat)
- Revenue Guidance for Q3 CY2025 is $1.79 billion at the midpoint, above analyst estimates of $1.78 billion
- Management slightly raised its full-year Adjusted EPS guidance to $7.13 at the midpoint
- Operating Margin: 26%, in line with the same quarter last year
- Organic Revenue was flat year on year vs analyst estimates of 1.3% declines (128.2 basis point beat)
- Market Capitalization: $42.71 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AMETEK’s Q2 Earnings Call
- Deane Dray (RBC): Asked about order cadence and regional performance. CEO David Zapico explained that June was the strongest month for orders and sales, and emphasized robust pipelines despite choppy macro conditions, particularly in aerospace and automation.
- Jeffrey Sprague (Vertical Research): Requested details on FARO integration and synergy expectations. Zapico clarified that FARO is expected to contribute marginally to 2025 earnings, with potential for substantial margin expansion in subsequent years through operational focus and cost reduction.
- Jamie Cook (Truist): Inquired about margin sustainability in the Electromechanical Group and the level of conservatism in guidance. Zapico confirmed expectations for continued EMG margin improvement and acknowledged some caution in near-term guidance given market uncertainties.
- Matt Summerville (D.A. Davidson): Sought insight on automation segment profitability and future organic growth potential. Zapico noted that destocking is complete, automation profitability is improving, and that the segment is positioned to lead the next phase of growth.
- Andrew Obin (Bank of America): Asked whether short-cycle industrial demand has bottomed and about potential pull-forward in China metrology orders. Zapico responded that while short-cycle segments have stabilized, he does not see meaningful pull-forward in metrology, and expects research-related softness to persist in the near term.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will monitor (1) the pace and impact of FARO Technologies’ integration, particularly the realization of cost synergies and recurring revenue contributions; (2) sustained order growth and margin expansion in the Electromechanical Group, especially in automation and Paragon; and (3) resolution of tariff and funding uncertainties affecting process and research end markets. Continued investment in new product development and the health of AMETEK’s acquisition pipeline will also be critical markers to track.
AMETEK currently trades at $184.94, up from $176.88 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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