01—Abstract
Summary
Summary of the 10-K filed February 21, 2023. Cited figures are marked; the original filing is the authoritative source.
AMETEK, Inc. delivered a record-breaking performance in 2022, marked by significant increases in sales, operating income, net income, and diluted earnings per share.
This strong financial outcome was driven by robust organic sales growth across both its Electronic Instruments (EIG) and Electromechanical (EMG) groups, complemented by strategic acquisitions and the company's ongoing Operational Excellence initiatives. The company successfully navigated a challenging macroeconomic environment characterized by inflation, supply chain constraints, and rising interest rates, demonstrating resilience and effective cost management. The company's growth strategy, centered on Operational Excellence, Strategic Acquisitions, Global & Market Expansion, and New Product Development, continues to yield positive results.
AMETEK remains focused on cash generation and capital deployment, prioritizing value-enhancing acquisitions while also returning capital to shareholders through dividends and share repurchases. The record backlog at year-end indicates continued demand and provides a solid foundation for future performance.
02—Key points
Key Highlights
- Record Net Sales of $6.15 billion, up 10.9% year-over-year, driven by strong organic growth and recent acquisitions.
- Record Diluted Earnings Per Share of $5.01, an increase of 17.8% compared to 2021, showcasing improved profitability.
- Record Orders of $6.64 billion and a record backlog of $3.22 billion at year-end, indicating sustained demand for AMETEK's products.
- Strategic Acquisitions: Completed the acquisitions of Navitar, Inc. and RTDS Technologies, Inc. to further enhance its product portfolio and market reach.
- Operational Excellence initiatives contributed to improved operating margins, with segment operating margins reaching 25.9%.
- Strong Free Cash Flow of $1.01 billion, demonstrating efficient cash generation to support growth and shareholder returns.
- Increased quarterly cash dividend by 14% in February 2023, reflecting confidence in future performance and commitment to shareholder returns.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Ametek Inc kept $0.19.
- Revenue$6.15B100.0%
- Cost of revenue−$4.01B65.1%
- Gross profit$2.15B34.9%
- Operating costs−$644.6M10.5%
- Operating income$1.50B24.4%
- Interest, other & tax−$341.1M5.5%
- Net income$1.16B18.9%
04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 21, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $6.15B$5.55B | +10.9% |
| Cost of Revenue | $4.01B$3.63B | +10.2% |
| Gross Profit | $2.15B$1.91B | +12.2% |
| R&D Expenses | $198.80M$194.20M | +2.4% |
| SG&A Expenses | $644.58M$603.94M | +6.7% |
| Operating Expenses | $4.65B$4.24B | +9.7% |
| Operating Income | $1.50B$1.31B | +14.7% |
| Interest Expense | $83.19M$80.38M | +3.5% |
| Net Income | $1.16B$990.05M | +17.1% |
| EPS (Basic) | $5.04$4.29 | +17.5% |
| EPS (Diluted) | $5.01$4.25 | +17.9% |
| Shares Outstanding (Basic) | 230.21M230.96M | −0.3% |
| Shares Outstanding (Diluted) | 231.54M232.81M | −0.5% |
05—Questions
Frequently Asked Questions
What were the key drivers of AMETEK's record performance in 2022?
AMETEK's record performance in 2022 was primarily driven by an 11% organic sales increase across both its Electronic Instruments Group (EIG) and Electromechanical Group (EMG). This growth was bolstered by contributions from two strategic acquisitions made during the year (Navitar, Inc. and RTDS Technologies, Inc.) and the continued benefits of its Operational Excellence initiatives, which focused on improving efficiency and profitability.
How is AMETEK managing inflationary pressures and supply chain challenges?
AMETEK has implemented pricing actions to mitigate the impact of material and transportation cost inflation. To address supply chain pressures, including component shortages and strained transportation capacity, the company has actively worked to build inventory and secure alternative sources of supply. This proactive approach has helped support sales and backlog growth despite the challenging environment.
What is AMETEK's strategy for future growth?
AMETEK's growth strategy, known as the AMETEK Growth Model, integrates four key pillars: Operational Excellence, Strategic Acquisitions, Global & Market Expansion, and New Product Development. The company continues to focus on generating strong cash flow, which is then deployed primarily towards strategic, value-enhancing acquisitions. They also maintain a commitment to developing innovative new products and expanding their global reach.
How is AMETEK returning value to its shareholders?
AMETEK demonstrates a commitment to shareholder returns through a combination of a modest quarterly dividend and share repurchases. The company announced a 14% increase in its quarterly cash dividend to $0.25 per common share in February 2023, and repurchased approximately 2.7 million shares of its common stock for $332.8 million in 2022 under a new $1 billion authorization.
06—Continue