10-KPeriod: FY2022

AMETEK INC/ Annual Report, Year Ended Dec 31, 2022

Filed February 21, 2023For Securities:AME

Summary

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.

Financial Highlights

55 data points
Beta

Revenue

$6.15B

34.9% Gross Margin

Net Income

$1.16B

18.9% Net Margin

EPS (Diluted)

$5.01

Total Assets

$12.43B

Cash & Equivalents

$345.39M

Free Cash Flow

$1.01B

Financial Statements
Beta
Revenue$6.15B
Cost of Revenue$4.01B
Gross Profit$2.15B
R&D Expenses$198.80M
SG&A Expenses$644.58M
Operating Expenses$4.65B
Operating Income$1.50B
Interest Expense$83.19M
Net Income$1.16B
EPS (Basic)$5.04
EPS (Diluted)$5.01
Shares Outstanding (Basic)230.21M
Shares Outstanding (Diluted)231.54M

Key Highlights

  • 1Record Net Sales of $6.15 billion, up 10.9% year-over-year, driven by strong organic growth and recent acquisitions.
  • 2Record Diluted Earnings Per Share of $5.01, an increase of 17.8% compared to 2021, showcasing improved profitability.
  • 3Record Orders of $6.64 billion and a record backlog of $3.22 billion at year-end, indicating sustained demand for AMETEK's products.
  • 4Strategic Acquisitions: Completed the acquisitions of Navitar, Inc. and RTDS Technologies, Inc. to further enhance its product portfolio and market reach.
  • 5Operational Excellence initiatives contributed to improved operating margins, with segment operating margins reaching 25.9%.
  • 6Strong Free Cash Flow of $1.01 billion, demonstrating efficient cash generation to support growth and shareholder returns.
  • 7Increased quarterly cash dividend by 14% in February 2023, reflecting confidence in future performance and commitment to shareholder returns.

Frequently Asked Questions

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.

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.

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.

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.