Key Highlights

  • EPS of USD 2.21 topped the consensus estimate of USD 2.11, while GAAP diluted EPS rose 15.6% to USD 1.85.
  • Record net sales of USD 2.22 billion rose 17.3% and topped the consensus estimate of USD 2.12 billion.
  • Orders reached a record USD 2.65 billion, up 34.7%, lifting Backlog to a record USD 4.54 billion.
  • Total debt, net climbed to USD 6.67 billion from USD 2.28 billion at year end after the Indicor acquisition.

AMETEK, Inc. (NYSE:AME) reported record third quarter 2026 net sales of USD 2.22 billion, up 17.3% from USD 1.89 billion a year earlier and above a consensus estimate of USD 2.12 billion. EPS of USD 2.21 compared with a consensus estimate of USD 2.11, while GAAP diluted EPS was a record USD 1.85, up 15.6% from USD 1.60. Net Income reached a record USD 426.3 million, up 14.8%.

Organic sales rose 10% and acquisitions added 7%. International sales were USD 1.06 billion, or 47.8% of the total, led by Demand in Asia. Orders of USD 2.65 billion rose 34.7%, split between a 17% organic increase and an 18% contribution from acquisitions.

Margins Held Despite Acquisition Dilution and Integration Costs

Consolidated Operating Income rose 19.8% to a record USD 584.9 million, a 26.3% Margin against 25.8%. Segment Operating Margin was 27.8% against 27.3%, and excluding the dilutive effect of recent acquisitions and acquisition related costs it rose 130 basis points. Cost of sales fell to 63.5% of net sales from 63.7%. The quarter carried USD 27.8 million of pre-tax costs tied to the Indicor acquisition, with USD 9.8 million of integration costs in cost of sales and USD 18.1 million of Transaction Costs in other expense.

The Electronic Instruments Group posted record net sales of USD 1,442.3 million, up 15.7%, and operating income of USD 406.7 million at a 28.2% margin. The Electromechanical Group posted record net sales of USD 778.0 million, up 20.4%, and operating income of USD 210.0 million at a 27.0% margin against 25.4%. Interest expense rose to USD 39.8 million from USD 22.5 million, and the effective tax rate was 18.3% against 17.1%.

Acquisitions and Financing Structure

The company spent USD 5.35 billion, net of cash acquired, on LKC Technologies in January, First Aviation Services in May and Indicor in August 2026. Indicor has annual sales of approximately USD 1.1 billion, and First Aviation has annual sales of approximately USD 80 million. The FARO Technologies acquisition from July 2025 also contributes to year over year growth.

The company funded the deals through an amended revolving Credit agreement, raising commitments to USD 3.5 billion with Maturity extended to June 9, 2031, and a term Loan agreement of up to USD 4.0 billion in three tranches of USD 1.625 billion, USD 1.625 billion and USD 750 million. The quarterly Dividend was raised 10% to USD 0.34 per share in February 2026.

Backlog, Leverage and Cash Flow Against Prior Periods

Backlog of USD 4,540.5 million compares with USD 3,581.5 million at year end 2025, a gain of 26.8%. The net Debt to Capital ratio stood at 33.9% against 14.7%, and the debt to capital ratio at 36.3% against 17.7%. Available revolver capacity was USD 2,168.1 million, and cash was USD 666.2 million against USD 458.0 million. Nine month Operating Cash Flow of USD 1,495.9 million compares with USD 1,217.5 million a year earlier, free cash flow was USD 1,405.2 million against USD 1,144.2 million, and share repurchases fell to USD 28.2 million from USD 163.6 million. Nine month net sales of USD 6.19 billion rose 14.6%.