01—Abstract
Summary
Summary of the 8-K filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
AMETEK reported record second-quarter 2026 results, with sales of $2.04 billiona, up 15% year over year.
GAAP diluted EPS was $1.77b, up 14%, and adjusted diluted EPS was a record $2.09, up 17%. Orders grew 28% for the second consecutive quarter, and operating cash flow rose 35% to $483.7 million, with free cash flow conversion of 111% of net income. Both segments contributed: Electronic Instruments (EIG) sales rose 14% to $1.32 billion with core margin up 40 basis points to 30.1%, and Electromechanical (EMG) sales rose 17% to a record $723.2 million with core margin up 290 basis points.
Adjusted operating margin was 26.6%, up 60 basis points, and core operating margin was 27.1%, up 110 basis points. Management raised full-year 2026 guidance. Sales are now expected to grow about 10% versus 2025, and adjusted EPS is now guided to $8.20 to $8.30c, up from $7.94 to $8.14, implying 10% to 12% growth.
For the third quarter, sales are expected to grow high single digits and adjusted EPS to be $2.08 to $2.10d, up 10% to 11%. Acquisitions contributed meaningfully to sales growth, and goodwill rose about $248 million since year-end 2025. Interest expense more than doubled to $30.1 million, partly due to one-time bridge financing fees tied to an acquisition referred to as Indicor, which management excludes from adjusted results.
For investors, the quarter shows broad-based organic growth, strong orders momentum, and high cash conversion, alongside an acquisition-driven balance sheet. Total debt declined from about $2.28 billion at year-end 2025 to about $2.04 billion at June 30, 2026, and cash was $495 million. Investors should weigh the non-GAAP adjustments, which exclude about $0.32 per share of acquisition amortization, financing fees, and integration costs, against the GAAP figures.
02—Key points
Key Highlights
- Record Q2 2026 sales of $2.04 billion, up 15% year over year, with orders up 28%
- GAAP diluted EPS of $1.77 (up 14%) and record adjusted diluted EPS of $2.09 (up 17%)
- Full-year 2026 adjusted EPS guidance raised to $8.20-$8.30 from $7.94-$8.14; sales now expected up about 10%
- Q3 2026 guidance: sales up high single digits and adjusted EPS of $2.08-$2.10 (up 10%-11%)
- EMG core operating margin expanded 290 bps to 26.2%; EIG core margin rose 40 bps to 30.1%
- Operating cash flow up 35% to $483.7 million; free cash flow of $451.7 million with 111% conversion of net income
- Total debt reduced to about $2.04 billion from $2.28 billion at year-end 2025, while interest expense rose to $30.1 million due to one-time bridge financing fees
03—Questions
Frequently Asked Questions
How much of the sales growth came from acquisitions versus organic growth?
The release says EIG's sales growth was balanced between organic growth and contributions from recent acquisitions, and that EMG's growth was driven by strong organic sales. Goodwill rose from $7.17 billion to $7.42 billion in the first half of 2026, indicating acquisition activity, but the release does not quantify the split for the consolidated company.
Why did GAAP EPS grow more slowly than adjusted EPS?
Adjusted EPS excludes after-tax acquisition-related intangible amortization, which was $0.30 per share pretax in Q2 2026 versus $0.31 a year earlier, and acquisition-related costs of about $0.11 per share pretax, including integration costs and one-time Indicor bridge financing fees. GAAP EPS rose 14% to $1.77, while adjusted EPS rose 17% to $2.09. Management also notes that guidance excludes acquisition costs whose timing is uncertain.
Is the guidance raise sustainable given the Q3 outlook?
The raised full-year range implies adjusted EPS growth of 10% to 12%. Q3 guidance of $2.08 to $2.10 implies 10% to 11% growth, which is in line with the full-year pace rather than the 17% growth in Q2. Strong Q2 orders growth of 28% supports the outlook, but the release does not provide a detailed bridge for the second half.
Is AMETEK's balance sheet getting stronger or weaker?
Debt is lower: total short-term and long-term debt fell to about $2.04 billion from about $2.28 billion at year-end 2025, and cash rose to $495 million. Equity increased to $11.26 billion. Interest expense rose to $30.1 million from $16.9 million a year earlier, largely from one-time bridge financing fees; adjusted interest expense was $20.1 million, still higher than the prior year, so investors should monitor future financing costs.
04—Continue