Ametek (AME -1.37%), a manufacturer of electronic instruments and electromechanical devices, announced earnings for Q2 2025 on July 31, 2025. The company delivered record results, reporting revenue of $1.78 billion (GAAP) and adjusted earnings per share (EPS) of $1.78 (non-GAAP), both above analyst expectations. Revenues (GAAP) rose 2.5% compared to the same quarter last year, while adjusted EPS rose 7%. These figures exceeded estimates by $43 million (2.5%) for revenue and $0.09 (5.3%) for adjusted EPS, reflecting resilient performance despite noted customer caution and global trade headwinds. The quarter showed continued margin improvement, with especially strong results from the Electromechanical Group segment, though growth in the Electronic Instruments Group slowed. Overall, the quarter represented a solid showing in the face of an uncertain operating environment.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.78 | $1.69 | $1.66 | 7.2% |
| Revenue (GAAP) | $1.78 billion | $1.73 billion | $1.73 billion | 2.5% |
| Operating Income | $461.6 million | $447.5 million | 3.2% | |
| Operating Margin | 26.0% | 25.8% | 0.2 pp | |
| Revenue – Electronic Instruments Group | $1.16 billion | $1.15 billion | 0.9% | |
| Revenue – Electromechanical Group | $618.5 million | $581.2 million | 6.4% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Recent Focus
Ametek provides a wide range of electronic instruments, including analytical, monitoring, testing, and measurement devices, as well as electromechanical products such as motors, pumps, and air-moving solutions. Its two main business units are the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG). The company services industries from aerospace to medical devices, energy, and manufacturing. EIG supplies precision instruments for process, power, and research markets; EMG focuses on motion control and engineered solutions, including components for medical and industrial uses.
Recently, Ametek has concentrated on sustaining operational excellence by improving manufacturing efficiency and profit margins. Strategic acquisitions play a major role in expanding product offerings and market reach, while ongoing investment in new product development and global market expansion support long-term growth. Key success factors include maintaining strong cash flow, disciplined capital allocation, and a commitment to sustainability and human capital management. The company operates a flexible manufacturing network with a diverse geographic footprint, supporting its goals for efficiency and supply chain resilience.
Quarter Highlights: Financial and Operational Performance
Ametek delivered record sales and adjusted EPS, with both figures beating consensus expectations. Revenue (GAAP) climbed 2.5% from the prior year period, driven by strong results in the Electromechanical Group. Adjusted earnings per share increased 7%, benefiting from improved operating margins and cost management. Operating income grew 3%, outpacing revenue growth and contributing to a 0.2 percentage point improvement in the operating margin, reaching 26.0%.
The Electromechanical Group, which produces motors, pumps, and motion control devices, posted the most notable gains. Its revenue increased 6% from the prior year period, while operating income jumped 17%, and the operating margin improved by 2.1 percentage points to 23.3%. This reflected higher demand and order momentum. The Electronic Instruments Group, which manufactures test, measurement, and analytical devices, saw sales growth of 1%, while its operating income (GAAP) slipped 1.6% from the previous year. This was due to greater customer caution in response to global trade conditions.
Strategic acquisitions continued to shape the company's portfolio, with the completion of the FARO Technologies transaction during the period. Ametek's management confirmed that its acquisition pipeline remains active, signaling a strong foundation for future revenue.
In particular, EMG's margin expansion was a key highlight, reflecting both operating discipline and a recovery in medical-related businesses following a period of customer destocking. The company's capital deployment during the quarter included maintaining elevated investment in research and development plus a continued focus on productivity and digital transformation across its operations. The balance sheet strengthened, with total equity rising 7.6% from December 2024.
The company raised its quarterly dividend by 11% in February 2025 to $0.31 per share, marking its sixth consecutive year of double-digit percentage increases. This policy aligns with Ametek's consistent track record of returning capital to shareholders, supported by robust cash flow.
Product Families and Developments
The Electromechanical Group features industrial motors and engineered medical device components like surgical instruments and medical actuator systems. During the period, performance within EMG benefited from renewed demand in the medical device supply chain, particularly through Paragon Medical, a manufacturer of single-use surgical instruments and components. Customer order activity in medical and automation sub-segments recovered, supporting future growth in these product families.
The company continued to emphasize research and development (R&D) investment as a driver for new product launches. The prior quarter saw product introductions such as the EDAX Elite Ultra—an advanced x-ray spectroscopy system used in scientific research—and high-speed imaging cameras from Vision Research. These R&D efforts remain central to Ametek’s ability to respond to evolving market demands in instrumentation and control solutions.
Looking Ahead: Outlook and Guidance
Management raised its full-year 2025 outlook, increasing adjusted earnings per diluted share guidance to a range of $7.06 to $7.20, supported by strong results and recent acquisitions. The company projects mid-single-digit sales growth for FY2025. Adjusted EPS guidance now stands at $7.06 to $7.20 for 2025, implying annual growth of 3–5%. For Q3 2025, the company expects sales to increase by mid-single digits compared to the prior year, and adjusted EPS (non-GAAP) is expected to be between $1.72 and $1.76 for Q3 2025, reflecting further progress in both financial and operational performance.
Risks highlighted by management include ongoing trade disputes and tariffs, particularly those affecting business with and sourcing from China. Delays in customer decisions and occasional project deferrals, especially in instrumentation markets, could impact timing of revenue recognition. Currency volatility and supply chain risks also remain under close watch. The company’s near-record backlog and ongoing cost control actions support its ability to manage these uncertainties. Investors should monitor performance in new product development and the integration of recently acquired businesses, as these areas are critical for sustaining mid- and long-term growth.
The quarterly dividend was raised 11% to $0.31 per share in Q1 2025.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
