A diversified industrial leader delivering high-precision instruments and sensors to aerospace, defense, and medical sectors with a track record of organic growth and shareholder returns.
Investors should consider Ametek for its consistent double-digit revenue growth trajectory and expanding profit margins driven by organic demand in growing end-markets. The company's history of returning capital to shareholders through dividends and buybacks demonstrates management confidence in the long-term value of the business. Diversification across multiple high-barrier-to-entry industries reduces overall portfolio risk compared to single-segment industrial peers.
The substantial goodwill balance of $7.17B represents a significant impairment risk if customer acquisitions or market conditions deteriorate unexpectedly. High levels of accumulated other comprehensive losses at -$399.2M indicate potential volatility in foreign currency exposure or equity value adjustments that could impact reported equity. Dependence on complex global supply chains for specialized components leaves the company vulnerable to geopolitical tensions and logistics bottlenecks.
Ametek Inc. is a leading global manufacturer of high-performance instruments, sensors, and industrial equipment serving aerospace, defense, medical, and semiconductor markets across North America, Europe, and Asia. The company leverages its diversified portfolio to deliver precision measurement solutions for critical applications including space exploration, power generation, and healthcare diagnostics. With a robust balance sheet and consistent cash flow generation, Ametek maintains a strong position in niche industrial segments requiring advanced engineering expertise.
Ametek delivered solid financial performance with revenue growing from $6.94B in 2024 to $7.40B in 2025, reflecting successful market penetration and pricing power. Net income expanded consistently over the five-year period, rising from $1.16B in 2022 to $1.48B in 2025, while operating cash flow significantly outpaced net income at $1.80B versus $1.48B. The company maintained a healthy liquidity position with ending cash of $458M and utilized nearly half of its operating cash flow for share repurchases and debt reduction.
The industrial instrumentation and sensor industry is characterized by high barriers to entry, requiring decades of R&D investment and deep domain expertise in physics and materials science. End-markets in aerospace and defense prioritize reliability over cost, allowing suppliers with proven track records to command premium pricing power. Industry consolidation continues as larger firms seek scale, yet niche specialists like Ametek retain dominance through proprietary technologies that competitors cannot easily replicate.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $6.15B | $6.60B | $6.94B | $7.40B |
| Cost of Revenue | $4.01B | $4.21B | $4.46B | $4.73B |
| Gross Profit | $2.15B | $2.38B | $2.48B | $2.67B |
| Operating Expenses | $644.6M | $677.0M | $696.9M | $757.1M |
| Operating Income | $1.50B | $1.71B | $1.78B | $1.91B |
| R&D | $198.8M | $220.8M | $236.6M | $236.1M |
| G&A | $644.6M | $677.0M | $105.3M | $115.7M |
| Stock-Based Comp | $47.4M | $46.2M | $47.9M | $47.8M |
| D&A | $319.4M | $337.6M | $382.9M | $422.8M |
| Depreciation | $113.7M | $122.5M | $135.3M | $145.5M |
| Amortization | $205.8M | $215.1M | $247.7M | $277.3M |
| Other OpEx | $-198.8M | $-220.8M | $355.0M | $405.3M |
| Non-Operating Income | $-72.0M | $-101.0M | $-118.0M | $-112.0M |
| Interest Expense | $83.2M | $81.8M | — | — |
| Pre-Tax Income | $1.43B | $1.61B | $1.66B | $1.80B |
| Income Tax | $269.1M | $293.2M | $285.4M | $318.2M |
| Continuing Ops | $1.16B | $1.31B | $1.38B | $1.48B |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.16B | $1.31B | $1.38B | $1.48B |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.16B | $1.31B | $1.38B | $1.48B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.53B | $2.82B | $2.60B | $3.02B |
| Cash & Equivalents | $345.4M | $409.8M | $374.0M | $458.0M |
| Inventory | $1.04B | $1.13B | $1.02B | $1.11B |
| Other Current Assets | $1.14B | $1.28B | $1.21B | $1.46B |
| Long-Term Assets | $9.90B | $12.20B | $12.03B | $13.05B |
| PP&E (Net) | $635.6M | $891.3M | $818.6M | $855.2M |
| Intangibles | $3.34B | $4.17B | $3.92B | $4.13B |
| Goodwill | $5.37B | $6.45B | $6.56B | $7.17B |
| Operating Leases | $170.3M | $229.7M | $235.7M | $273.1M |
| Other LT Assets | $382.5M | $464.9M | $502.8M | $620.2M |
| Total Assets | $12.43B | $15.02B | $14.63B | $16.07B |
| Current Liabilities | $1.56B | $2.88B | $2.10B | $2.84B |
| Accounts Payable | $497.1M | $516.6M | $523.3M | $618.0M |
| Current Leases | $46.4M | $61.1M | $54.7M | $61.1M |
| Deferred Revenue | $357.7M | $375.5M | $363.6M | $396.2M |
| Taxes Payable | $48.2M | $69.6M | $84.4M | $82.7M |
| Other Current Liab | $179.7M | $1.36B | $599.6M | $1.15B |
| Long-Term Liabilities | $3.39B | $3.41B | $2.88B | $2.60B |
| Long-Term Debt | $2.16B | $1.90B | $1.43B | $1.07B |
| LT Operating Leases | $129.2M | $182.4M | $190.0M | $227.1M |
| Other LT Liab | $1.10B | $1.33B | $1.25B | $1.24B |
| Total Liabilities | $4.95B | $6.29B | $4.98B | $5.44B |
| Shareholders' Equity | $7.48B | $8.73B | $9.66B | $10.63B |
| Retained Earnings | $8.86B | $9.94B | $11.06B | $12.25B |
| AOCI | $-574.9M | $-484.9M | $-555.7M | $-399.2M |
| Treasury Stock | $1.90B | $1.90B | $2.11B | $2.54B |
| Total L&E | $12.43B | $15.02B | $14.63B | $16.07B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.16B | $1.31B | $1.38B | $1.48B |
| Non-Cash Adjustments | $-266.2M | $249.3M | $552.2M | $94.4M |
| Working Capital Changes | $256.0M | $172.9M | $-99.5M | $227.3M |
| Cash from Operations | $1.15B | $1.74B | $1.83B | $1.80B |
| Capital Expenditures | $139.0M | $136.2M | $127.1M | $130.2M |
| Cash from Investing | $-552.8M | $-2.38B | $-244.8M | $-1.06B |
| Debt Repayments | $0 | $0 | $300.0M | $514.9M |
| Share Buybacks | $332.8M | $7.8M | $212.0M | $434.0M |
| Dividends Paid | $202.2M | $230.3M | $258.8M | $285.3M |
| Cash from Financing | $-575.7M | $697.3M | $-1.60B | $-686.3M |
| FX Effect | $-22.3M | $8.3M | $-17.4M | $31.3M |
| Net Change in Cash | $-1.4M | $64.4M | $-35.8M | $84.0M |
| Beginning Cash | $346.8M | $345.4M | $409.8M | $374.0M |
| Ending Cash | $345.4M | $409.8M | $374.0M | $458.0M |
The company operates primarily through four core segments: Instruments (sensors and measurement devices), Industrial (specialized equipment for manufacturing and energy), Power Components (electrical components for aerospace and industrial applications), and Medical (diagnostic imaging and patient monitoring systems).
Exposure to volatile raw material costs, particularly rare earth elements and specialized metals used in sensor manufacturing, which can marginally compress profitability. Potential supply chain disruptions affecting the delivery of complex instrumentation components in just-in-time aerospace production environments. Currency headwinds impacting international revenue streams given significant operations outside the United States.
Ametek benefits from a deep technical moat in specialized, low-volume markets where proprietary engineering creates high switching costs for customers. The diversified revenue streams across non-cyclical industries like defense and medical provide resilience against economic downturns affecting other sectors. Strong cash flow generation allows for consistent capital returns via dividends and buybacks while funding strategic R&D without heavy reliance on external financing.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.