AMETEK, Inc. (AME): history, ownership, mission, how it works & makes money

A Brief History of AMETEK, Inc.

AMETEK, Inc. is a leading global manufacturer of electronic instruments and electromechanical devices. As of 2024, the company has a rich history characterized by strategic acquisitions, robust financial performance, and continuous innovation.

Financial Performance Overview

For the first nine months of 2024, AMETEK reported consolidated net sales of $5,179.6 million, representing an increase of $313.5 million or 6.4% compared to the same period in 2023. This growth was largely driven by an 8% increase from acquisitions, partially offset by a 2% organic sales decline.

Order and Backlog Trends

Orders for the first nine months of 2024 totaled $5,083.3 million, an increase of $66.2 million or 1.3% year-over-year. The backlog of unfilled orders at September 30, 2024, was $3,437.8 million, a slight decrease from $3,534.1 million at December 31, 2023.

Segment Performance

AMETEK operates through two primary segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG). For the first nine months of 2024, EIG reported net sales of $3,445.0 million, while EMG reported net sales of $1,734.6 million.

Cost and Profitability Analysis

The cost of sales for the first nine months of 2024 was $3,347.9 million, representing 64.6% of net sales, an increase from $3,096.6 million or 63.6% in the prior year. The consolidated operating margin for the first nine months of 2024 was 25.3%, slightly down from 25.9% in 2023.

Cash Flow and Capital Resources

Cash provided by operating activities for the first nine months of 2024 was $1,278.8 million, an increase of $84.2 million or 7.0% compared to the same period in 2023. Free cash flow was $1,203.5 million, up from $1,118.1 million in 2023.

Dividend and Shareholder Returns

AMETEK has maintained a strong commitment to returning value to shareholders. In February 2024, the company announced a 12% increase in its quarterly cash dividend to $0.28 per share from $0.25 per share.

Debt and Liquidity Position

As of September 30, 2024, total debt was $2,336.5 million, down from $3,313.3 million at December 31, 2023. The debt-to-capital ratio improved to 19.7% from 27.5%.

AMETEK continues to demonstrate strong financial health, characterized by solid revenue growth, effective cost management, and a commitment to shareholder returns.

A Who Owns AMETEK, Inc. (AME)

Major Shareholders

As of 2024, the ownership structure of AMETEK, Inc. (AME) is characterized by a mix of institutional and retail investors. The largest shareholders include:

Executive Ownership

The executive management team of AMETEK, Inc. also holds significant shares in the company. Key executives and their ownership stakes include:

Stock Performance and Trends

AMETEK, Inc. has demonstrated a strong financial performance in 2024. Key financial metrics include:

Recent Acquisitions

AMETEK has pursued a strategy of growth through acquisitions, with notable purchases in 2023 impacting its ownership structure and market position:

Future Outlook

AMETEK, Inc. continues to focus on expanding its market presence and enhancing shareholder value through strategic investments and operational efficiency. The company forecasts a robust growth trajectory driven by innovation and increased demand across its business segments.

AMETEK, Inc. (AME) Mission Statement

AMETEK, Inc. focuses on delivering innovative solutions and exceptional service to its customers through a commitment to operational excellence and continuous improvement. The company aims to be a leader in the design and manufacture of advanced instruments and electromechanical devices, providing high-quality products that meet the evolving needs of its global customer base.

In 2024, AMETEK’s mission statement emphasizes the importance of operational excellence, innovation, and customer satisfaction as key drivers of its business strategy.

Financial Overview

As of September 30, 2024, AMETEK reported consolidated net sales of $5,179.6 million for the first nine months of the year, reflecting a 6.4% increase compared to $4,866.1 million for the same period in 2023. The increase was primarily driven by an 8% increase from acquisitions, despite a 2% organic sales decline.

Operational Highlights

AMETEK's operational strategies are focused on enhancing its capabilities through acquisitions and operational excellence initiatives. In the third quarter of 2024, orders reached $1,743.4 million, representing a 12.4% increase from the previous year. The company’s backlog of unfilled orders stood at $3,437.8 million as of September 30, 2024.

Segment Performance

The company operates through two primary segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG).

Cost Structure

Cost of sales for the third quarter of 2024 was reported at $1,092.8 million, which is 64.0% of net sales, compared to 62.9% of net sales in Q3 2023. Selling, general and administrative expenses increased to $170.0 million, accounting for 9.9% of net sales.

Cash Flow and Capital Resources

For the first nine months of 2024, AMETEK generated free cash flow of $1,203.5 million, an increase from $1,118.1 million in the same period in 2023. Cash provided by operating activities totaled $1,278.8 million, representing a 7.0% increase year-over-year.

Debt and Equity

As of September 30, 2024, AMETEK's total debt was $2,336.5 million, down from $3,313.3 million at December 31, 2023. The company had an available borrowing capacity of $2,520.3 million under its revolving credit facility. The debt-to-capital ratio was 19.7% at the end of Q3 2024, compared to 27.5% at year-end 2023.

How AMETEK, Inc. (AME) Works

Company Overview

AMETEK, Inc. operates as a leading global manufacturer of electronic instruments and electromechanical devices. As of 2024, the company is structured into two primary business segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG).

Financial Performance

For the third quarter of 2024, AMETEK reported consolidated net sales of $1,708.6 million, reflecting an increase of 5.3% compared to $1,622.8 million in the same quarter of 2023. This growth is attributed to a 7% increase from acquisitions and a 2% organic sales decline.

Segment Performance

The EIG segment reported net sales of $1,134.6 million for Q3 2024, down 0.1% from $1,136.1 million in Q3 2023. Operating income for EIG was $339.0 million, a 1.1% increase compared to $335.2 million in the prior year.

The EMG segment, on the other hand, experienced significant growth with net sales of $574.0 million, marking an increase of 17.9% from $486.7 million in Q3 2023. Operating income for EMG was $131.5 million, up 3.1% from $127.5 million.

Cost and Expenses

In Q3 2024, the cost of sales was $1,092.8 million or 64.0% of net sales, up from $1,020.9 million or 62.9% in Q3 2023. Selling, general and administrative expenses were $170.0 million, accounting for 9.9% of net sales, compared to $163.8 million or 10.1% in the previous year.

Cash Flow and Capital Structure

For the first nine months of 2024, cash provided by operating activities was $1,278.8 million, an increase of 7.0% from $1,194.6 million in the same period of 2023. Free cash flow for the same period was $1,203.5 million, up from $1,118.1 million.

Total debt as of September 30, 2024, was $2,336.5 million, down from $3,313.3 million at the end of 2023. The debt-to-capital ratio improved to 19.7% from 27.5%.

Market Position and Strategy

AMETEK's strategy focuses on growth through acquisitions and operational excellence. The company has made significant acquisitions in 2023, including Amplifier Research Corp. and Paragon Medical, which have positively impacted its financial results. The integration of these acquisitions is expected to enhance AMETEK's market position and operational capabilities.

Outlook

Looking forward, AMETEK anticipates continued growth driven by its strategic initiatives and operational efficiencies. The company remains committed to enhancing shareholder value through consistent performance and strategic investments.

How AMETEK, Inc. (AME) Makes Money

Revenue Streams

AMETEK, Inc. generates revenue primarily through two business segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG).

Segment Performance

The EIG segment focuses on the design and manufacture of electronic instruments for various industries, including aerospace, power generation, and process control. The EMG segment specializes in electromechanical devices, including motors and motion control systems.

For the first nine months of 2024, the net sales for EIG totaled $3,445.0 million, while EMG reported $1,734.6 million, reflecting a strong performance driven by acquisitions and operational excellence initiatives.

Operating Income

For the third quarter of 2024, AMETEK reported consolidated operating income of $445.9 million, which represents an increase of 1.8% compared to the same period in 2023. The operating income margins have been affected by acquisitions and foreign currency translation impacts.

Cost of Sales and Expenses

The cost of sales for Q3 2024 was $1,092.8 million, which is 64.0% of net sales, compared to 62.9% in Q3 2023. Selling, general, and administrative expenses totaled $170.0 million, or 9.9% of net sales, reflecting an increase from the previous year.

Net Income and Earnings Per Share

Net income for the third quarter of 2024 was $340.2 million, slightly down from $340.4 million in the same quarter of 2023. Diluted earnings per share remained stable at $1.47.

Cash Flow and Financial Position

Cash provided by operating activities for the first nine months of 2024 was $1,278.8 million, representing an increase of 7.0% from the prior year. Free cash flow was $1,203.5 million, up from $1,118.1 million in the same period of 2023.

Debt and Capital Structure

Total debt at September 30, 2024, was $2,336.5 million, significantly reduced compared to $3,313.3 million at December 31, 2023. The debt-to-capital ratio improved to 19.7% from 27.5% over the same period.

Article updated on 8 Nov 2024

Resources:

• AMETEK, Inc. (AME) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AMETEK, Inc. (AME)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View AMETEK, Inc. (AME)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.