AMETEK (AME) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $1.73 billion, flat year-over-year, with operating income up 2% to $454.8 million and operating margin rising to 26.3% from 24.0% year-over-year.

• Orders rose 8.1% to $1,797.8 million, and backlog increased 1.9% to $3,469.1 million; orders and backlog remain near record levels.

• Organic sales declined 1%, offset by 1% growth from acquisitions; overall orders up 8% and organic orders up 3% versus prior year.

• Net income grew 13.1% to $351.8 million, and adjusted diluted EPS increased 7% to $1.75; GAAP EPS was $1.52.

• Strategic investments in R&D and engineering continue, with a vitality index of 26% for new products.

Financial highlights

• EBITDA for Q1 2025 was $559 million, up 3%, with EBITDA margin at 32.2%.

• Free cash flow was $394.5 million, up 3%, with a conversion rate of 112%; operating cash flow was $418 million, up 2% year-over-year.

• Segment operating income was $482.8 million, up 8.8%, and segment operating margin increased to 27.9%.

• Cost of sales decreased 3.3% to $1,107.0 million, with Q1 2024 including $29.2 million in Paragon integration costs.

• Dividends per share increased 11% to $0.31.

Outlook and guidance

• Full-year 2025 sales expected to be up low-single-digits versus 2024; adjusted EPS guidance reaffirmed at $7.02–$7.18, up 3–5%.

• Free cash flow conversion for 2025 expected at approximately 115% of net income.

• No specific Q2 guidance due to uncertainty around timing of shipments to China.

• Management expects to offset tariff headwinds through mitigation actions.

• The company expects to meet operating needs and contractual obligations with current liquidity and credit facilities.