AME · Q3 2025 Earnings

Cautious

Ametek

Reported October 30, 2025

30-second summary

Ametek beat its own Q3 EPS guide by ~8–9% on revenue +10.8% YoY to $1.89B, with adjusted EPS of $1.89 vs. a guided $1.72–$1.76 range, and raised FY adjusted EPS to $7.32–$7.37 (from $7.06–$7.20). The headline is strong, but the Q4 frame is the story: management guided Q4 EPS growth to just 2–4% YoY despite revenue growth holding at ~10%, implying meaningful margin or mix pressure in the December quarter that wasn't present in Q3. Tariff offsets held, Paragon and FARO are tracking to plan, and orders grew double digits — yet the FY revenue framing stayed at "mid-single digits" even after a 10.8% Q3 print, signaling management is unwilling to extrapolate the current pace.

Headline numbers

EPS

Q3 FY2025

$1.89

Revenue

Q3 FY2025

$1.89B

+10.8% YoY

Gross margin

Q3 FY2025

36.3%

Operating margin

Q3 FY2025

25.8%

Key financials

Q3 FY2025

Metric	Q3 FY2025	YoY	Q2 FY2025	QoQ
Revenue	$1.89B	+10.8%	$1.78B	+6.5%
EPS	$1.89	—	$1.78	+6.2%
Gross margin	36.3%	—	35.8%	+50bps
Operating margin	25.8%	—	26.0%	-20bps

Guidance

AMETEK raised full-year FY2025 EPS guidance by +$0.12–$0.17 after Q3 beat both revenue and EPS expectations, but Q4 guidance signals a deceleration in earnings growth vs. Q3 performance.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Adjusted EPS	Q3 FY2025	$1.72 to $1.76	$1.89	+$0.13 to $0.17 above guide	Beat
Revenue	Q3 FY2025	mid-single digits YoY	$1.893 billion (10.8% YoY)	+4–6 percentage points above guide	Beat

New guidance

Metric	Period	Guide	YoY
Adjusted EPS	Q4 FY2025	$1.90 to $1.95	+2% to +4%
Revenue Growth	Q4 FY2025	approximately 10% YoY	+10%

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Adjusted EPS	FY2025	$7.06 to $7.20	$7.32 to $7.37	+$0.12 to $0.17 (or +1.7–2.4% midpoint increase)	Raised

Reaffirmed unchanged this quarter: Revenue Growth (mid-single digits)

Segment KPIs

Q3 FY2025

Segment	Q3 FY2025	YoY
Electronic Instruments Group (EIG)	$1.246B	+9.8%
Electromechanical Group (EMG)	$0.646B	+12.6%

Other KPIs

Q3 FY2025

Segment	Q3 FY2025
Adjusted Operating Income	$496.1 million
Adjusted Operating Margin	27.0%
EIG Operating Margin (GAAP)	28.3%
EIG Adjusted Operating Margin	30.4%
EMG Operating Margin	25.4%
EIG Adjusted Operating Income Growth	6% YoY
EMG Operating Income Growth	25% YoY
Orders Growth	Double digit

Management tone

Q1 → Q2 → Q3 arc: Tariff mitigation playbook → Tariffs neutralized, margins as the story → Record results, double-digit orders, but Q4 caution baked in.

Two quarters ago, the narrative was tariff defense ($100M headwind, mitigation plan). Last quarter, it shifted to margin execution on flat organic ("our ability to deliver strong operating performance is notable given the challenging macro"). This quarter, with the macro narrative quiet, management leaned into "record results in the quarter" and "double digit growth in sales, orders and earnings per share." The shift signals that the tariff story is now fully behind them as an investor concern — but the absence of it as a talking point also removed the easy framing for the Q4 deceleration in the guide.

Last quarter management spent significant Q&A time qualifying organic growth as flat with inflection ahead. This quarter the inflection arrived — process up low teens, A&D up low double digits organically, EMG +12.6% — yet the FY revenue label stayed at "mid-single digits." Management's reaffirmation of that language despite Q3 and Q4 both running at ~10% is a tonal disconnect: the company is telling investors not to extrapolate. The implicit message is that 2026 bridging math is harder than the Q3 print suggests.

The Paragon narrative continued its multi-quarter rehabilitation. Two quarters ago Paragon was framed as a destocking drag; last quarter as "30%+ EBITDA, D-stock complete"; this quarter as "leading EMG orders growth, ~50% through restructuring, targeting 35+ EBITDA." That is a consistent and credible recovery trajectory, and the +25% YoY EMG operating income growth makes the case quantitatively.

FARO appeared for the first time as a delivered result rather than a thesis. Management said FARO hit both top-line and bottom-line commitments in the quarter — a quiet confirmation that gets the Zygo comparison out of the realm of hope. Integration metrics (organic visibility, margin trajectory) won't show until the one-year anniversary, but the absence of bad news on a $920M deal in its first full quarter is itself a signal.

Q&A highlights

Dean Dre · RBC Capital Markets

Asked for a tour of key platforms and regions, with specific interest in Paragon's strong performance and tariff impacts on China.

Dave Zepico provided detailed regional breakdown showing process markets up low teens (acquisitions-driven), A&D up low double digits organically, power/industrial mid single digits (raised outlook to low-mid single digits), and automation/engineering up high single digits organically. Europe up low double digits led by automation, email, and materials analysis. Asia ex-China up mid-high single digits; China down mid single digits due to tariff renegotiation delays. Paragon delivered strong orders and is halfway through restructuring with margin improvement in progress.

Process segment overall sales up low teens, organic flat to down low single digits for full yearA&D organic sales up low double digits in Q3, high single digit expected for full yearPower/industrial raised to low-mid single digit organic growth for full yearAutomation/engineering high single-digit organic growth

Matt Somerville · DA Davidson

Requested granularity on Paragon's organic sales and order growth, go-forward algorithm, profitability vs. acquisition thesis, and detail on process market optimism.

Dave confirmed Paragon in mid-high single digit growth markets with excellent engineering capability and new product wins. Orders substantially up, business is 50%+ through restructuring with plant closures reducing cost structure while phasing in new programs. Margins now in line with Ametek levels with upside potential; targeting 35+ EBITDA. On process: improved sequentially in all markets except China; expects strong 2026 as visibility improves and leverage from controlled cost structure and new products kicks in.

Paragon mid-high single digit long-term market growth ratesParagon restructuring 50%+ complete with cost reduction and new program rampsParagon margins now in line with Ametek with 35+ EBITDA business targetProcess markets improving sequentially everywhere except China

Andrew Obin · Bank of America

Asked about Europe strength drivers, order progression throughout quarter, and October trends.

Dave noted Europe strength (up low double digits) was broad-based across Dunker Motoren, Paragon Europe, materials analysis division, and aerospace. September was strongest month of quarter and year-to-date for both sales and orders. October year-to-date also very solid.

Europe up low double digits in Q3September strongest month of quarter and year-to-date on sales and ordersOctober year-to-date tracking very solidEurope strength driven by automation, materials analysis, aerospace, and Paragon

Chris Snyder · Morgan Stanley

Asked for breakdown of Q4 10% guide between organic and M&A; also questioned power/industrial improvement drivers and relative contribution of data center vs. traditional industrial.

Dala Puri clarified Q4 acquisitions contributing mid-to-high single digit growth with organic making up remainder to ~10%; no FX impact expected. Dave explained power business strength primarily driven by backup power systems, microgrids, server racks, and nuclear applications, plus RTDS simulation systems for grid expansion tied to hyperscaler data center buildout. Industrial side solid but not primary upside driver.

Q4 guidance ~10% sales growth with mid-high single digit from M&ANo FX impact expected Q4 or full year; primarily dollar-centricPower business backup systems backlog >$25M with $30M pipelineRTDS simulation systems working with hyperscalers on grid expansion

Julian Mitchell · Barclays

Asked about Faro business organic progress and margin trends, and process industry order trends for next year.

Dave noted Faro hit sales and profit commitments in quarter with strong integration; won't show in organic metrics until one-year anniversary. Faro is number 1-2 in multiple niches; strategic fit with Creaform; all integration arrows up. Process orders trending up in all areas except China; pipeline of new orders strong; process business powerful when it turns.

Faro hit top-line and bottom-line commitments in Q3Faro number 1 or 2 in multiple 3D metrology nichesFaro integration progressing well with new products and channels in developmentProcess orders trending up in all areas except China

Answers to last quarter's watch list

FARO integration print — Management said FARO "hit top-line and bottom-line commitments" in its first full quarter and integration "all arrows up," with new products and channel work underway. Specific EBITDA margin progression off the ~15% base wasn't quantified — they'll report organic contribution at the one-year anniversary. The absence of bad news on a $920M deal counts as a green light, but the data isn't yet on the table.

Continue monitoring

Tariff offset durability — Tariff impact was effectively absent from prepared commentary as a headwind. China revenue was -mid single digits on tariff renegotiation delays (a timing issue), but margin expansion across both segments and operating income +25% YoY in EMG indicates the price/cost offset is holding.

Resolved positively

Organic growth inflection — A&D organic +low double digits, automation/engineering +high single digits organic, power/industrial +low-mid single digits organic, EMG +25% operating income growth on +12.6% revenue. The inflection management telegraphed in Q2 arrived, and was broad-based. Process organic remains the laggard (flat-to-down low single digits FY) but order trends are turning.

Resolved positively

Research/academia headwind duration — Not called out on the print as a discrete drag. EIG grew 9.8% with adjusted op margin at 30.4%; whatever research/funding headwind persists is not visibly denting the segment. Management did not refresh the timing on FY26 recovery.

Not resolved

M&A cadence — No new deals announced this quarter beyond the prior FARO close. Management didn't refresh the $4.5–5B capacity number on the print.

Continue monitoring

What to watch into next quarter

Q4 EPS delivery vs. the +2–4% YoY guide: Q3 beat by 7+ points on guide. If Q4 prints in line with +2–4%, the deceleration is real and 2026 EPS estimates need to come in. If Q4 beats by a similar Q3-style magnitude, the guide was conservative and management's "mid-single digits" FY revenue framing was sandbagging.

FY26 revenue framing on the Q4 call: Management already flagged "excellent 2026" on process. Watch whether the Q4 call introduces a numerical FY26 framing or holds to qualitative language. Holding qualitative would suggest the same caution telegraphed by the unchanged "mid-single digits" FY25 label.

EIG margin trajectory: Adj. operating income grew only +6% on +9.8% revenue, implying acquisition mix (FARO ~15% EBITDA) is diluting reported EIG margins. Watch whether EIG adjusted op margin holds above the 30.4% Q3 level as FARO scales.

FARO organic disclosure at the one-year mark (closes mid-2026): First clean look at the Zygo comparison thesis. Watch the first organic growth rate and EBITDA margin disclosure when it becomes available.

Process organic inflection: Orders trending up everywhere except China; management expects "excellent 2026." Watch whether process organic turns positive in Q4 or remains flat-to-down — the bull case on FY26 leans heavily on this segment.

China cadence: -mid single digits on tariff renegotiation delays. Watch whether China stabilizes or worsens as renegotiations resolve into 2026.

Sources

AME Q3 2025 press release / 8-K Exhibit 99.1, filed 2025-10-30 — https://www.sec.gov/Archives/edgar/data/1037868/000103786825000075/ametek8kexhibit991103025.htm
AME Q3 2025 earnings call Q&A (as supplied)
Tapebrief AME Q2 2025 brief (prior quarter context)

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