01—Abstract
Summary
Summary of the 10-Q filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
AMETEK, Inc. reported a strong second quarter and first half of 2026, demonstrating robust growth across key financial metrics.
Net sales for the second quarter reached a record $2.04 billiona, a 15% increase year-over-year, driven by a 10% organic sales increase and a 5% contribution from acquisitions. This growth was reflected across both the Electronic Instruments Group (EIG) and Electromechanical Group (EMG), with EMG showing particularly strong margin expansion. Net income for the quarter was also a record at $406.9 million, a 13.5% increase from the prior year, leading to a diluted EPS of $1.77, up 14.2%.
The first half of 2026 continued this positive momentum, with net sales up 13.2% to $3.97 billionb. The company achieved record orders and backlog, indicating sustained demand.
AMETEK also successfully integrated recent acquisitions, including LKC Technologies and First Aviation Services, and is progressing towards the significant $5.0 billionc acquisition of Indicor Instrumentation, expected to close in the second half of 2026. Despite increased interest expenses related to financing for the Indicor acquisition, the company's financial condition remains strong, supported by healthy operating cash flow and a solid balance sheet.
02—Key points
Key Highlights
- Record net sales of $2.04 billion for the second quarter of 2026, a 15% increase year-over-year, driven by 10% organic growth and 5% from acquisitions.
- Diluted Earnings Per Share (EPS) reached a record $1.77 for the quarter, a 14.2% increase compared to $1.55 in the prior year.
- Net income for the second quarter was a record $406.9 million, up 13.5% from $358.4 million in Q2 2025.
- Orders and backlog also hit record levels, signaling strong future demand: $2.28 billion in orders and $4.11 billion in backlog as of June 30, 2026.
- The company is advancing a significant $5.0 billion acquisition of Indicor Instrumentation, expected to close in the second half of 2026.
- Electromechanical Group (EMG) demonstrated strong operational leverage with operating margins increasing 300 basis points year-over-year (excluding acquisition costs).
- Operating cash flow for the first six months increased by 20.4% to $935.2 million, supporting investments and shareholder returns.
03—Questions
Frequently Asked Questions
What are the key drivers of AMETEK's revenue growth in the second quarter of 2026?
Revenue growth was driven by a combination of organic sales increases and contributions from recent acquisitions. Specifically, organic sales grew by 10%, and acquisitions contributed approximately 5% to the 15% overall net sales increase for the second quarter of 2026 compared to the prior year. Strong demand in Europe and Asia, along with the integration of acquired businesses like LKC Technologies and First Aviation Services, also played a significant role.
How is the planned acquisition of Indicor Instrumentation expected to impact AMETEK?
The acquisition of Indicor Instrumentation, valued at approximately $5.0 billion, is expected to significantly expand AMETEK's instrumentation business. Indicor Instrumentation has annual sales of approximately $1.1 billion and aligns closely with AMETEK's existing portfolio, serving demanding industrial and scientific applications. The transaction is expected to close in the second half of 2026 and will be integrated into either the EIG or EMG segments. While the acquisition will be financed through a combination of a $3.5 billion revolving credit facility and a $4.0 billion term loan, the company's financial position remains robust.
What is the outlook for AMETEK's profitability, considering acquisition costs and other expenses?
AMETEK reported strong profitability, with record net income and EPS in the second quarter. However, the reported results include acquisition-related integration costs ($16.2 million in Q2 2026) and increased interest expenses primarily related to bridge financing for the Indicor acquisition. Excluding these factors, segment operating margins showed substantial improvement, particularly in the EMG segment, due to organic sales growth and Operational Excellence initiatives. The company expects continued operational efficiency and growth from its strategic acquisitions.
How has AMETEK's financial position evolved, particularly regarding debt and cash flow?
AMETEK's financial position remains strong. Operating cash flow for the first six months of 2026 increased significantly by 20.4% to $935.2 million. The company also improved its leverage ratios, with the debt-to-capital ratio decreasing to 15.3% at June 30, 2026, from 17.7% at the end of 2025. The company recently amended and extended its revolving credit facility to $3.5 billion and secured a $4.0 billion term loan facility, enhancing its liquidity and capacity for strategic initiatives, including the Indicor acquisition.
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