AMETEK (AME) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached $1.73B, up 5% year-over-year, driven by acquisitions despite a 2% organic sales decline, with record operating income of $447.5M, up 7%.

• Adjusted diluted EPS was $1.66, up 6% from Q2 2023, while GAAP EPS was $1.45.

• Net income for Q2 2024 rose 4.1% year-over-year to $337.7M.

• Acquisitions of United Electronic Industries, Amplifier Research, and Paragon Medical contributed positively.

• Operational Excellence initiatives and focus on efficiencies, R&D, and sales investments supported margin and profitability gains.

Financial highlights

• Q2 operating income hit a record $447.5M, up 7% year-over-year; operating margins at 25.8%, up 40 bps; core margins up 180 bps excluding acquisitions.

• EBITDA was $545M, up 10% year-over-year, with EBITDA margins at 31.4%.

• Free cash flow for Q2 was $360M, up 17%, with a 107% conversion rate; operating cash flow up 14% to $381M.

• EPS of $1.66, up 6% year-over-year and above guidance; adjusted EPS excludes $0.21 per share of non-cash, after-tax, acquisition-related amortization.

• Dividends per share increased to $0.28 from $0.25 in Q2 2023.

Outlook and guidance

• Full-year 2024 sales expected to rise 5%-7% over 2023; organic sales flat to down low single digits.

• Diluted EPS for 2024 now expected at $6.70-$6.80, up 5%-7% year-over-year, a less than 1% reduction from prior guidance.

• Q3 2024 sales projected to grow mid-single digits year-over-year; adjusted EPS expected at $1.60-$1.62, down 1%-2% from Q3 2023.

• Free cash flow conversion for the year expected at 110%-120% of net income.

• Guidance reflects ongoing inventory normalization and cautious customer spending.