Summary
AMETEK, Inc. reported a record year in 2023, demonstrating robust financial performance with increased sales, operating income, net income, and diluted earnings per share. The company's growth was driven by a combination of organic sales increases and successful contributions from recent acquisitions, supported by its "AMETEK Growth Model" which emphasizes Operational Excellence, Strategic Acquisitions, Global & Market Expansion, and New Product Development. The company continues to execute its strategy of targeted acquisitions, notably adding four new businesses in 2023 across its Electronic Instruments (EIG) and Electromechanical (EMG) groups. AMETEK's diversified end markets, including aerospace and defense, medical, and industrial sectors, provide resilience. The company also highlighted strong operating cash flow generation and a commitment to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
55 data points| Revenue | $6.60B |
| Cost of Revenue | $4.21B |
| Gross Profit | $2.38B |
| R&D Expenses | $220.80M |
| SG&A Expenses | $677.01M |
| Operating Expenses | $4.89B |
| Operating Income | $1.71B |
| Interest Expense | $81.80M |
| Net Income | $1.31B |
| EPS (Basic) | $5.70 |
| EPS (Diluted) | $5.67 |
| Shares Outstanding (Basic) | 230.52M |
| Shares Outstanding (Diluted) | 231.51M |
Key Highlights
- 1Record sales of $6,597.0 million in 2023, a 7.3% increase over 2022, driven by 4% organic sales growth and 3% from acquisitions.
- 2Record diluted earnings per share of $5.67 in 2023, a 13.2% increase compared to $5.01 in 2022.
- 3Record operating cash flow of $1,735.3 million in 2023, a significant 51.0% increase over 2022.
- 4Record backlog of $3,534.1 million at December 31, 2023, up 9.8% year-over-year, indicating strong future demand.
- 5Acquisition of four businesses in 2023 (Bison Gear & Engineering, United Electronic Industries, Amplifier Research, and Paragon Medical) for $2,237.9 million, strengthening its market positions in motion control, test/measurement, EMC equipment, and medical components.
- 6Continued investment in innovation with $351.7 million spent on research, development, and engineering in 2023, with approximately 25% of sales from products introduced in the last three years.
- 7Increased quarterly cash dividend by 14% in February 2023, and a subsequent 12% increase in February 2024, reflecting confidence in future performance and commitment to shareholder returns.