tapebrief
AME · Q3 2025

AME · Q4 2025 Earnings

Bullish

Ametek

Reported February 3, 2026

30-second summary

Ametek delivered Q4 revenue of $2.0B (+13% YoY) and non-GAAP EPS of $2.01, beating its own Q4 guide of ~10% revenue growth and $1.90–$1.95 EPS by 3 points and 3–6% respectively — exactly the "Q3-style beat" the prior watch list flagged as the bull case. The Q4 deceleration telegraphed last quarter did not materialize: EMG organic ran double digits, China was up low double digits, and December was a record orders month. FY26 guidance of $7.87–$8.07 EPS (+6–9%) and mid-to-high single digit revenue is structurally the same conservative framing management used through FY25 — which proved to be sandbagged by 2+ points, so the FY26 setup looks similar.

Headline numbers

EPS

Q4 FY2025

$2.01

Revenue

Q4 FY2025

$2.00B

+13.0% YoY

Gross margin

Q4 FY2025

36.0%

Free cash flow

Q4 FY2025

$0.53B

Operating margin

Q4 FY2025

25.3%

Key financials

Q4 FY2025
MetricQ4 FY2025YoYQ3 FY2025QoQ
Revenue$2.00B+13.0%$1.89B+5.7%
EPS$2.01—$1.89+6.3%
Gross margin36.0%—36.3%-30bps
Operating margin25.3%—25.8%-50bps
Free cash flow$0.53B———

Guidance

AMETEK beat Q4 FY2025 and full-year FY2025 guidance across EPS and revenue; FY2026 guidance for 6–9% EPS growth and mid-to-high single-digit revenue growth reflects confidence in record backlog and improving end markets.

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

MetricPeriodPrior guideActualΔResult
EPS (non-GAAP)Q4 FY2025$1.90–$1.95$2.01+$0.06–$0.11 above guideBeat
RevenueQ4 FY2025approximately 10% YoY13% YoY+3 percentage points above guideBeat
EPS (non-GAAP)FY 2025$7.32–$7.37$7.43+$0.06–$0.11 above guideBeat
RevenueFY 2025mid-single digits YoY6.6% YoYat high end of mid-single digitsBeat

New guidance

MetricPeriodGuideYoY
EPS (non-GAAP)Q1 FY2026$1.85–$1.906–9% YoY
RevenueQ1 FY2026approximately 10% YoYapproximately 10%
EPS (non-GAAP)FY 2026$7.87–$8.076–9% YoY
Revenue growthFY 2026mid to high single digits YoY—

Segment KPIs

Q4 FY2025
SegmentQ4 FY2025YoY
Electronic Instruments Group (EIG)$1.37B+12.7%
Electromechanical Group (EMG)$0.629B+15.0%

Other KPIs

Q4 FY2025
SegmentQ4 FY2025
Adjusted Operating Income$523.0M
Adjusted Operating Margin26.2%
Operating Cash Flow$584.3M
Free Cash Flow Conversion132%
EIG Adjusted Operating Margin32.3%
EMG Operating Margin22.7%
Organic Sales GrowthDouble-digit in EMG divisions

Management tone

Q1 → Q2 → Q3 → Q4 arc: Tariff mitigation playbook → Tariffs neutralized, margins as story → Records with Q4 caution baked in → Record backlog, improving end markets, FY26 framed for steady-state.

The Q4 deceleration that management telegraphed in Q3 did not happen — and the Q4 framing for FY26 now mirrors the Q3 framing for FY25 that proved to be sandbagged. Last quarter management held FY25 revenue at "mid-single digits" with Q3 and Q4 both running at ~10%, signaling caution about 2026 bridging math. This quarter, with a 13% Q4 print in hand and December a record orders month, management guided FY26 revenue to "mid to high single digits" and FY26 EPS growth to +6–9% — structurally the same conservative posture, applied to a higher base. The signal: management is again refusing to extrapolate the current run-rate, even with EIG organic turning positive and China up double digits.

The process inflection that management forecast in Q3 arrived. Two quarters ago David Zapico called for "excellent 2026" on process; last quarter process was still down low single digits organic FY. This quarter Andrew Buscaglia (BNP) got the explicit answer: EIG organic +2% in Q4, with process turning positive at low single digits organic — the first positive organic print for process all year. That converts a forecast into a delivered result. The FY26 EIG guide of low-to-mid single digit organic growth depends on this inflection holding through 2026.

The M&A posture stepped up from "robust pipeline" to "chunky sizes" with explicit capacity sizing and an actual deal. Last quarter management didn't refresh the $4.5–5B firepower number. This quarter Jamie Cook got it on the record: $5B available while maintaining investment-grade, 11 dedicated M&A personnel, and a pipeline with a "stronger mix of larger deals than historical norm." And alongside the call, Ametek announced LKC Technologies — a tuck-in ophthalmic diagnostics deal that pairs with Zygo's ultra-precision platform. Combined with the explicit mention of "significant financial flexibility" in the FY26 outlook, management is telegraphing that 2026 capital deployment will be more aggressive than 2025's single $920M FARO deal.

The FARO integration arc stayed on script. FARO is at "mid-teens EBITDA margins currently with pathway to 30% through integration and cost synergies" — unchanged from the Q2 thesis. No bad news, no surprises, but also no new data point until the one-year anniversary in mid-2026.

Q&A highlights

Matt Somerville · DA Davidson

Requested breakdown of medical portfolio performance across EIG and EMG, including Paragon and Roland performance and medium-to-long-term algorithm. Also asked about strategic price capture going forward after multi-year inflation and tariff pressures.

Medical represents 21% of business. Paragon and Roland were up low double digits in Q4, high single digits for full year 2025, expected low to mid single digits in 2026. On pricing: Q4 had positive price-cost spread offsetting inflation and tariffs with 50 basis points of expansion. Expect similar performance in 2026 with highly differentiated products maintaining pricing power.

Medical portfolio: 21% of businessParagon and Roland: up low double digits Q4, high single digits full year 2025Medical expected: low to mid single digits growth 2026Q4 price-cost spread: positive 50 basis points offset inflation and tariffs

Dean Jure · RBC Capital Markets

Requested typical end market and platform run-through with focus on regional dynamics. Follow-up on backlog conversion expectations for 2026 versus historical 30-50% range.

Process businesses up mid-teens overall with low single digit organic growth in Q4. Aerospace and defense had low double-digit growth, expected high single-digit organic growth 2026. Power business mid-single digits growth driven by grid modernization and data centers. Automation and engineering solutions up low double digits. Geographically: US mid single digits, Europe low single digits, Asia up 10% (China up low double digits). Backlog conversion between 30-50% range, similar to historical pattern.

Process businesses: mid-teens overall growth, low single digit organic Q4Aerospace and Defense: low double-digit growth, expected high single-digit organic 2026Power business: mid-single digit growth 2026Automation and engineering: mid single-digit organic 2026

Jamie Cook · Truist Securities

Asked about M&A pipeline thinking for 2026 and sizable deals. Also asked about margin guide implications with FARO headwinds and other factors to consider.

Core incrementals at 45% in Q4, conservatively guiding 35% for 2026 with 30 basis points of margin expansion expected. Both EIG and EMG core margins expanding. FARO at 15% EBITDA margins currently with pathway to 30% through integration and cost synergies. M&A pipeline has mix of normal quality and larger deals, stronger than historical pipeline with 'chunky sizes.' Company has 11 dedicated M&A personnel and can deploy $5B while maintaining investment-grade rating.

Q4 core incrementals: 45%2026 guidance incrementals: 35% reported, expecting 30 bps margin expansionQ4 EIG core margins: up 50 bpsQ4 EMG core margins: up 310 bps

Andrew Buscaglia · BNP Parapas

Focused on EIG organic growth of 2% in Q4 and whether expectations underperformed. Asked what expectations are for EIG in 2026 and process/analytical instrumentation performance.

EIG had negative organic growth in first couple quarters of 2025 that improved, with Q4 positive at low single digits driven by process business performance. For 2026, overall sales expected mid to high single digits with organic growth low to mid single digits. Both EIG and EMG expected to have low to mid single digit organic growth with overall mid to high single digit growth.

EIG Q1-Q3 2025: negative organic growthEIG Q4 2025: positive organic growth, low single digits2026 EIG guidance: overall mid to high single digits, organic low to mid single digits2026 EMG guidance: overall mid to high single digits, organic low to mid single digits

Nicole DeBlaze · Deutsche Bank

Asked about China market turn with low double-digit growth. Requested detail on which businesses driving strength and 2026 expectations. Follow-up on whether current M&A pipeline is stronger than historical norms.

China up low double digits driven by process, power, and automation businesses. Company has strong local team and products well-suited to Chinese customer needs in high-value manufacturing, automation, nuclear power, and EV testing. Being conservative on China outlook but encouraged by the turnaround. M&A pipeline contains stronger mix of 'chunky' larger deals compared to historical pipeline, though always maintained discipline and strong sourcing.

China Q4 growth: low double digitsChina drivers: process, power, automation businessesAsia ex-China growth: high single digitsM&A pipeline: contains higher proportion of larger deals than historical norm

Answers to last quarter's watch list

Q4 EPS delivery vs. the +2–4% YoY guide — Q4 non-GAAP EPS of $2.01 beat the $1.90–$1.95 guide by $0.06–$0.11, the same magnitude of beat as Q3's. The Q4 guide was conservative; "mid-single digits" FY revenue framing was sandbagging, just as the watch hypothesized. 2026 EPS estimates do not need to come in on Q4 execution — but the FY26 guide is similarly conservative.
Resolved positively
FY26 revenue framing on the Q4 call — Management did not introduce a numerical FY26 framing; they held to "mid to high single digits" — a one-bucket upgrade from FY25's "mid-single digits" label, but qualitative all the same. This is the same caution telegraphed in Q3, and given the FY25 framing proved 2+ points light, the same skepticism applies.
Resolved negatively
EIG margin trajectory — EIG adj. op margin came in at 32.3% in Q4, +50bps YoY on a core basis (vs 31.8% prior year) and up sequentially from Q3's 30.4%. The FARO-dilution thesis is not visible in the Q4 print; EIG delivered 12.7% revenue growth alongside the core margin expansion.
Resolved positively
FARO organic disclosure at the one-year mark — Closes mid-2026, no data this quarter. Management characterized FARO as on track at 15% EBITDA today with a path to 30% by year three.
Continue monitoring
Process organic inflection — Confirmed in Q4: process turned positive at low single digit organic after three quarters negative, driving EIG organic positive (+2%) for the first time in 2025. FY26 process guide implicit in mid-to-high single digit overall growth.
Resolved positively
China cadence — China flipped from -mid single digits in Q3 to +low double digits in Q4, the cleanest reversal in the print. Driven by process, power, and automation; management remains conservative on sustainability.
Resolved positively

What to watch into next quarter

Q1 FY26 delivery vs. the ~10% revenue and $1.85–$1.90 EPS guide: Q4 beat the same-shaped guide by $0.06–$0.11 and 3 revenue points. If Q1 prints another similar-magnitude beat, the FY26 "mid-to-high single digits" framing is again sandbagged and FY26 EPS upside is structural.

FY26 guide trajectory through the year: FY25 entered with a Q3-issued FY25 EPS guide of $7.32–$7.37 and finished at $7.43 — modest in-year raise, but the revenue line ran well ahead of the "mid-single digits" label. Watch whether the FY26 $7.97 midpoint moves up through the year and whether revenue again runs above its qualitative framing, which would validate the "conservative framing" thesis.

EIG organic growth durability: Positive at +2% in Q4 after three negative quarters. Watch whether Q1 holds positive organic in EIG and whether process maintains its inflection — the FY26 EIG organic guide of low-to-mid single digits depends on this.

M&A deployment pace: Management explicitly sized $5B of capacity and characterized the pipeline as "chunky" and stronger than historical norm; LKC announced alongside the print is a tuck-in down-payment. Watch whether 2026 produces a $1B+ deal in H1, which would convert the rhetoric into action.

China sustainability: +low double digits in Q4 from -mid single digits in Q3 is a sharp swing. Watch whether China holds positive in Q1 or reverts — management is explicitly conservative on durability.

FARO one-year organic and EBITDA print (mid-2026): First clean Zygo-comparison data point. Watch the first organic growth rate and EBITDA margin disclosure when FARO laps.

Sources

  1. AME Q4 2025 press release / 8-K Exhibit 99.1, filed 2026-02-03 — https://www.sec.gov/Archives/edgar/data/1037868/000103786826000006/ametek8kexhibit99102032026.htm
  2. AME Q4 2025 earnings call Q&A (as supplied)
  3. Tapebrief AME Q3 2025 and Q2 2025 briefs (prior quarter context)

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