01—Abstract
Summary
Summary of the 10-K filed February 22, 2024. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Record sales of $6,597.0 million in 2023, a 7.3% increase over 2022, driven by 4% organic sales growth and 3% from acquisitions.
- Record diluted earnings per share of $5.67 in 2023, a 13.2% increase compared to $5.01 in 2022.
- Record operating cash flow of $1,735.3 million in 2023, a significant 51.0% increase over 2022.
- Record backlog of $3,534.1 million at December 31, 2023, up 9.8% year-over-year, indicating strong future demand.
- Acquisition 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.
- Continued 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.
- Increased 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Ametek Inc kept $0.20.
- Revenue$6.60B100.0%
- Cost of revenue−$4.21B63.9%
- Gross profit$2.38B36.1%
- Operating costs−$677.0M10.3%
- Operating income$1.71B25.9%
- Interest, other & tax−$394.3M6.0%
- Net income$1.31B19.9%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 22, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $6.60B$6.15B | +7.3% |
| Cost of Revenue | $4.21B$4.01B | +5.2% |
| Gross Profit | $2.38B$2.15B | +11.1% |
| R&D Expenses | $220.80M$198.80M | +11.1% |
| SG&A Expenses | $677.01M$644.58M | +5.0% |
| Operating Expenses | $4.89B$4.65B | +5.2% |
| Operating Income | $1.71B$1.50B | +13.8% |
| Interest Expense | $81.80M$83.19M | −1.7% |
| Net Income | $1.31B$1.16B | +13.3% |
| EPS (Basic) | $5.70$5.04 | +13.1% |
| EPS (Diluted) | $5.67$5.01 | +13.2% |
| Shares Outstanding (Basic) | 230.52M230.21M | +0.1% |
| Shares Outstanding (Diluted) | 231.51M231.54M | 0.0% |
05—Questions
Frequently Asked Questions
What was AMETEK's overall financial performance in 2023?
AMETEK achieved record results in 2023, with net sales reaching $6,597.0 million, an increase of 7.3% from 2022. Diluted earnings per share also hit a record at $5.67, up 13.2%. The company reported strong operating cash flow of $1,735.3 million and a record backlog of $3,534.1 million, indicating robust demand and effective operational execution.
How did AMETEK's acquisition strategy contribute to its 2023 results?
Acquisitions played a significant role, contributing a 3% increase to net sales in 2023. AMETEK strategically acquired four companies: Bison Gear & Engineering, United Electronic Industries, Amplifier Research, and Paragon Medical, for a total of $2,237.9 million. These acquisitions are expected to enhance its market positions in areas like motion control, test and measurement, and medical components, aligning with its growth model.
What is AMETEK's approach to shareholder returns and capital deployment?
AMETEK demonstrates a balanced approach to capital deployment. The company consistently increases its quarterly cash dividend, as evidenced by a 14% increase in February 2023 and another 12% increase in February 2024. It also engages in opportunistic share repurchases, though the activity was modest in 2023 ($7.8 million) compared to 2022 ($332.8 million). Strategic acquisitions remain a primary focus for capital deployment.
What are the main business segments of AMETEK and how did they perform?
AMETEK operates through two main segments: Electronic Instruments (EIG) and Electromechanical (EMG). EIG's net sales increased by 9.3% in 2023, driven by organic growth and acquisitions, with operating margins improving to 28.3%. EMG's net sales saw a more modest increase of 2.7%, primarily due to acquisitions, with operating margins slightly decreasing to 25.2%, impacted by the dilutive effect of recent acquisitions.
06—Continue