Yahoo Finance

• Fourth Quarter Sales: $1.76 billion, up 2% from the same period in 2023.

• Organic Sales: Down 3% in the fourth quarter.

• Operating Income: $469 million, a 5% increase over the fourth quarter of 2023.

• Operating Margins: 26.6%, up 90 basis points from the prior year.

• EBITDA: $561 million, up 7% versus the prior year, with a margin of 31.9%.

• Free Cash Flow: $498 million, up 4% versus last year's fourth quarter.

• Diluted Earnings Per Share: $1.87, up 11% versus the fourth quarter of 2023.

• Electronic Instruments Group (EIG) Sales: $1.21 billion, down 2% from the fourth quarter of last year.

• EIG Operating Income: $386.6 million, up 8% versus the prior year.

• EIG Operating Margins: 31.8%, up 280 basis points from the prior year.

• Electromechanical Group (EMG) Sales: $546.7 million.

• EMG Operating Income: $111.2 million, down 1% compared to the prior year period.

• EMG Operating Margins: 20.3%.

• Full Year 2024 Sales: $6.94 billion, up 5% from 2023.

• Full Year 2024 Operating Income: $1.81 billion, up 6%.

• Full Year 2024 EBITDA: $2.18 billion, up 8%.

• Full Year 2024 Earnings Per Share: $6.83, up 7% versus the prior year.

• Share Repurchases: $155 million in the fourth quarter, $220 million for the year.

• Acquisition of Kern Microtechnik: Approximately EUR105 million.

• Capital Expenditures: $52 million in the fourth quarter, $127 million for the full year.

• Effective Tax Rate: 12.8% in the fourth quarter, 17.3% for the full year.

• Total Debt at Year End: $2.1 billion, down $1.2 billion from the end of 2023.

• Warning! GuruFocus has detected 5 Warning Sign with AME.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AMETEK Inc (NYSE:AME) delivered strong fourth-quarter results with record sales of $1.76 billion, operating income of $469 million, and EBITDA of $561 million.

• The company achieved a robust free cash flow of $498 million in the quarter, with a free cash flow to net income conversion of 129%.

• AMETEK Inc (NYSE:AME) announced the acquisition of Kern Microtechnik, enhancing its capabilities in high-precision machining and optical inspection solutions.

• The Electronic Instruments Group (EIG) showed impressive margin expansion with operating margins reaching a record 31.8%, up 280 basis points from the prior year.

• AMETEK Inc (NYSE:AME) has a strong pipeline of acquisition candidates and a healthy balance sheet, providing flexibility for strategic capital deployment.

Negative Points

• Organic sales in the fourth quarter were down 3%, indicating some challenges in achieving organic growth.

• The Electromechanical Group (EMG) faced headwinds from inventory destocking, with organic sales down 4% in the quarter.

• The company experienced project delays in the EIG segment, attributed to customer caution at year-end.

• AMETEK Inc (NYSE:AME) anticipates macroeconomic uncertainties in 2025, which could impact growth projections.

• The effective tax rate is expected to increase to between 19% and 20% in 2025, up from 17.3% in 2024.