AMETEK (AME) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year results for sales, operating income, EBITDA, EPS, and cash flow, despite a challenging macroeconomic environment.

• Q4 sales reached $1.76B, up 2% year-over-year, with organic sales down 3% but acquisitions adding 5 points.

• Full-year 2024 sales reached $6.94B, a 5% increase over 2023, with record operating cash flow of $1.83B, up 5%.

• Adjusted EPS for Q4 was $1.87, up 11% year-over-year; full-year adjusted EPS was $6.83, up 7%.

• Repurchased $155M in shares in Q4 and $220M for the year; announced acquisition of Kern Microteknik for €105M.

Financial highlights

• Q4 operating income: $469M, up 5% year-over-year; operating margin 26.6%, up 90 bps.

• Q4 EBITDA: $561M, up 7% year-over-year; EBITDA margin 31.9%.

• Q4 free cash flow: $498M, up 4%; free cash flow to net income conversion 129%.

• Q4 diluted EPS: $1.87, up 11%, exceeding guidance.

• Full-year 2024 sales: $6.94B, up 5%; operating income: $1.81B, up 6%; EBITDA: $2.18B, up 8%.

• Full-year EPS: $6.83, up 7%; free cash flow: $1.7B, up 6%, with 124% conversion.

• Q4 GAAP EPS was $1.67; adjusted EPS excludes $0.20 per share of non-cash, after-tax, acquisition-related amortization.

• Dividends per share increased to $0.28 in Q4 and $1.12 for the year.

Outlook and guidance

• 2025 sales expected to grow low single digits; EPS guidance $7.02–$7.18, up 3–5%.

• Q1 2025 sales expected flat year-over-year; adjusted EPS $1.67–$1.69, up 2–3%.

• Free cash flow conversion expected at ~115% for 2025.

• Capital expenditures projected at $155M (2% of sales); depreciation and amortization at $400M.