AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 31/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Proprietary technology, differentiated niche products and actual engineering spending support an intangible-asset advantage. Organic order and sales growth corroborate commercial relevance. However, relative market-share strength remains an issuer assertion without quantified comparisons, and barriers preventing competitors from replicating these capabilities are incompletely established.
durability · 2/4 · Engineering spending across 2021–2023, subsequent product introductions and firm orders deliverable over two to three years support persistence. Maintaining technological advantages requires continued investment. No patent or trademark group is essential, and the disclosures do not demonstrate exceptional long-term exclusion of substitutes or competitors.
customer dependency · 2/4 · Remaining obligations beyond one year rose from $627.4 million at December 31, 2025 to $747.7 million at June 30, 2026 and represent firm, non-cancelable orders. This demonstrates bounded contractual commitment. It does not establish expensive replacement, qualification barriers, customer concentration or portfolio-wide operational dependency.
erosion resilience · 2/4 · Organic orders increased 4% in 2025 and 25% in second-quarter 2026; first-half tariffs had no material operating impact. The 2024 organic order contraction was attributed to inventory normalization, not established competitive displacement. Copying and substitution remain prospective erosion risks, with insufficient comparative evidence for stronger resilience.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Targeted pricing initiatives show management acted on prices, but the supplied passages do not disclose achieved price changes, concessions or a price contribution separated from volume and mix. Organic sales growth and tariff resilience cannot isolate realized pricing because supply-chain changes and operating efficiencies also contributed.
retention · 2/4 · Growing firm long-term obligations and organic demand provide indirect evidence of continuing customer demand. They do not identify repeat customers or establish retention after repricing. The earlier organic order contraction also shows demand variability, although its inventory-normalization explanation does not demonstrate customer defections.
margin resilience · 3/4 · Segment margins improved in 2025, with underlying improvements also disclosed for 2024 and second-quarter 2026. Tariffs had no material first-half impact. Reported second-quarter segment margins nevertheless slipped and integration costs were real. This demonstrates strong operating resilience, while efficiency, acquisition effects and sales growth prevent attributing it solely to pricing.
contractual freedom · 2/4 · Targeted pricing initiatives demonstrate some practical discretion to adjust prices. Certain contracts also provide volume discounts, rebates and early-payment options that affect transaction prices. These support a mixed assessment; the scope of unilateral repricing rights, escalation provisions and restrictions across the portfolio is not disclosed.
Predictability100
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 2.09
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.16
- observedAnnualPeriods
- 5.00
Financial strength75
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 94.77
- netDebtEbitGrade
- 80.89
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 24.98
- Debt / FCF (x)
- 1.37
- Net debt / operating income (x)
- 0.96
- Interest coverage (x)
- 23.51
- Current ratio (x)
- 1.06
Capital allocation91
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 15.89
- 3-year average dilution (%)
- 0.04
- 3-year average SBC / revenue (%)
- 0.68
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual cash generation, acquisition spending, repurchases, lower year-end shares and first-half borrowing reductions support discipline. Acquisition returns are not separately demonstrated. The conditional approximately $5 billion Indicor agreement and up to $4 billion term facility materially increase prospective exposure; term loans remained undrawn at June 30, 2026.
incentive alignment · 3/4 · Substantial performance-unit incentives, certified earned awards and actual vesting demonstrate implementation. Compensation uses relative shareholder return and return on tangible capital. Reported ownership compliance, clawback and trading restrictions strengthen alignment. Unvested restricted stock counts toward ownership requirements, and these mechanisms do not prove exceptional incentive effectiveness.
execution · 3/4 · Organic sales and order growth, cash generation and underlying margin improvement provide strong indirect operating evidence of execution. Acquisition contributions are distinguished from organic growth. The earlier order contraction and realized integration costs temper the assessment; projected benefits from the pending Indicor transaction are excluded.
governance · 2/4 · The March proxy established seven independent directors out of eight, a lead independent director, equal voting rights and no poison pill. A subsequently appointed director was explicitly independent. Combined chairman and CEO roles and staggered board terms offset these safeguards; a complete subsequently reconciled board count is not supplied.
Evidence
Many of our products rely on proprietary technology; therefore, we endeavor to protect our intellectual property rights through patents, copyrights, trade secrets, trademarks, confidentiality agreements and other contractual provisions.
2025 Form 10-K, filed 2026-02-17; proprietary technology and intellectual-property protection · Filed 17/02/2026
AMETEK maintains strong market share in a number of targeted niche markets through its ability to produce and deliver high-quality, differentiated products at competitive prices.
2025 Form 10-K, filed 2026-02-17; niche market-share and differentiation assertion · Filed 17/02/2026
Research, development and engineering costs before customer reimbursement were $351.7 million in 2023, $322.1 million in 2022 and $299.6 million in 2021.
2023 Form 10-K, filed 2024-02-22; 2021–2023 research, development and engineering costs before customer reimbursement · Filed 22/02/2024
In 2025, AMETEK added to its highly differentiated product portfolio with a range of new products across many of its businesses.
2025 Form 10-K, filed 2026-02-17; product introductions during 2025 · Filed 17/02/2026
Maintaining our existing technological advantages will require us to continue investing in research and development and sales and marketing.
2025 Form 10-K, filed 2026-02-17; continuing investment required to maintain technological advantages · Filed 17/02/2026
Competition In general, AMETEK’s markets are highly competitive with competition based on technology, performance, quality, service and price.
2025 Form 10-K, filed 2026-02-17; competition · Filed 17/02/2026
Our competitors may develop new or improve existing products that are superior to our products or may adapt more readily to new technologies or changing requirements of our customers.
2025 Form 10-K, filed 2026-02-17; competing technology risk · Filed 17/02/2026
Despite our efforts to protect proprietary rights, unauthorized parties or competitors may copy or otherwise obtain and use our products or technology.
2025 Form 10-K, filed 2026-02-17; copying and proprietary-rights risk · Filed 17/02/2026
There also is competition from alternative materials and processes.
2025 Form 10-K, filed 2026-02-17; alternative materials and processes · Filed 17/02/2026
AMETEK, however, does not consider any single patent or trademark, or any group of them, essential either to its business as a whole or to either one of its reportable segments.
2025 Form 10-K, filed 2026-02-17; limits on essential patent and trademark protection · Filed 17/02/2026
The remaining performance obligations not expected to be completed within one year as of June 30, 2026 and December 31, 2025 were $747.7 million and $627.4 million, respectively.
June 2026 Form 10-Q, filed 2026-08-04; remaining performance obligations beyond one year · Filed 04/08/2026
Remaining performance obligations represent the transaction price of firm, non-cancelable orders, with expected delivery dates to customers greater than one year from the balance sheet date, for which the performance obligation is unsatisfied or partially unsatisfied.
June 2026 Form 10-Q, filed 2026-08-04; definition of firm, non-cancelable remaining performance obligations · Filed 04/08/2026
These performance obligations will be substantially satisfied within two to three years.
June 2026 Form 10-Q, filed 2026-08-04; expected satisfaction period for remaining performance obligations · Filed 04/08/2026
The increase in orders for the second quarter of 2026 was due to a 25% increase in organic orders and a 6% increase from acquisitions, partially offset by a 3% unfavorable effect of foreign currency translation.
June 2026 Form 10-Q, filed 2026-08-04; second-quarter order growth separated into organic, acquisition and currency effects · Filed 04/08/2026
The increase in net sales for the second quarter of 2026 was due to a 10% increase in organic sales, as well as a 5% increase from acquisitions.
June 2026 Form 10-Q, filed 2026-08-04; second-quarter organic and acquisition sales growth · Filed 04/08/2026
The decrease in orders was due to a 2% organic order decrease, a 1% unfavorable effect of foreign currency translation, partially offset by a 2% increase from acquisitions.
2024 Form 10-K, filed 2025-02-20; annual order decline and organic, currency and acquisition components · Filed 20/02/2025
The organic orders decrease is due to customer inventory normalization in our automation and engineered solutions core businesses.
2024 Form 10-K, filed 2025-02-20; inventory-normalization explanation for organic order decline · Filed 20/02/2025
The increase in orders was due to a 4% increase from acquisitions, a 4% organic order increase, as well as a 3% favorable effect of foreign currency translation.
2025 Form 10-K, filed 2026-02-17; annual organic, acquisition and currency order-growth components · Filed 17/02/2026
Our businesses have been proactive in addressing the impacts of tariffs, including targeted pricing initiatives, strategic adjustments to our global supply chains, and leveraging our worldwide manufacturing footprint to localize production and adapt to changing demand patterns.
June 2026 Form 10-Q, filed 2026-08-04; targeted pricing and other tariff mitigation initiatives · Filed 04/08/2026
While recent tariff-related changes did not have a material impact on our results of operations for the six months ended June 30, 2026, as the situation continues to evolve, we cannot be certain of the outcome, which could adversely impact demand for our products, costs, inflation, customers, suppliers, and the overall global economy.
June 2026 Form 10-Q, filed 2026-08-04; realized first-half tariff impact and prospective uncertainty · Filed 04/08/2026
The Company has certain contracts with variable consideration in the form of volume discounts, rebates and early payment options, which may affect the transaction price used as the basis for revenue recognition.
2025 Form 10-K, filed 2026-02-17; contractual discounts, rebates and early-payment options · Filed 17/02/2026
Segment operating income, as a percentage of net sales, increased to 27.4% in 2025, compared with 27.2% in 2024.
2025 Form 10-K, filed 2026-02-17; 2025 versus 2024 segment operating income as a percentage of net sales · Filed 17/02/2026
Segment operating margins, as a percentage of net sales, decreased to 27.3% for the second quarter of 2026, compared with 27.5% for the second quarter of 24 Table of Contents 2025.
June 2026 Form 10-Q, filed 2026-08-04; second-quarter reported segment operating margins · Filed 04/08/2026
Excluding the dilutive impact of recent acquisitions and acquisition-related costs, segment operating margins increased 140 basis points compared to the second quarter of 2025 due to the sales increase discussed above, as well as continued benefits from the Company's Operational Excellence initiatives.
June 2026 Form 10-Q, filed 2026-08-04; segment margin change excluding recent acquisitions and acquisition-related costs · Filed 04/08/2026
Excluding the dilutive impact of the 2023 acquisitions and the Paragon integration costs, segment operating margins increased 130 basis points compared to 2023, due to the continued benefits from the Company's Operational Excellence initiatives.
2024 Form 10-K, filed 2025-02-20; segment margin improvement excluding 2023 acquisitions and Paragon integration costs · Filed 20/02/2025
Operating income and operating margins for the second quarter of 2026 included $16.2 million of acquisition-related integration costs related to the FARO, LKC, and First Aviation acquisitions ("recent acquisitions"), which negatively impacted operating margins by 80 basis points.
June 2026 Form 10-Q, filed 2026-08-04; second-quarter integration costs and operating-margin impact · Filed 04/08/2026
•Cash provided by operating activities totaled $1,801.8 million in 2025.
2025 Form 10-K, filed 2026-02-17; annual operating cash generation · Filed 17/02/2026
In 2025, the Company paid $933.2 million, net of cash acquired, to purchase Kern Microtechnik and FARO Technologies, compared to $117.5 million, net of cash acquired, to purchase Virtek Vision International in 2024.
2025 Form 10-K, filed 2026-02-17; actual acquisition spending net of acquired cash · Filed 17/02/2026
Under its share repurchase program, the Company repurchased approximately 2,306,500 shares of its common stock for $443.0 million in 2025 and approximately 1,258,200 shares of its common stock for $223.1 million in 2024.
2025 Form 10-K, filed 2026-02-17; annual share repurchases · Filed 17/02/2026
The number of shares outstanding at December 31, 2025 was 229.0 million shares, compared with 230.7 million shares at December 31, 2024.
2025 Form 10-K, filed 2026-02-17; year-end outstanding share counts · Filed 17/02/2026
Condensed Consolidated Statement of Cash Flows (In thousands) (Unaudited) Six months ended June 30, 2026 2025 Cash provided by (used for): Operating activities: Net income $ 806,253 $ 710,125 Adjustments to reconcile net income to total operating activities: Depreciation and amortization 211,421 214,068 Deferred income taxes (8,362) (39,069) Share-based compensation expense 23,600 22,313 Loss (Gain) on sale of facilities — (91) Net change in assets and liabilities, net of acquisitions (77,450) (121,101) Pension contributions (2,535) (3,021) Other, net (17,717) (6,590) Total operating activities 935,210 776,634 Investing activities: Additions to property, plant and equipment (57,479) (52,338) Purchases of businesses, net of cash acquired (424,484) (104,110) Proceeds from sale of facilities — 200 Other, net 473 521 Total investing activities (481,490) (155,727) Financing activities: Net change in short-term borrowings (208,689) (202,653) Repayments of long-term borrowings — (50,000) Repurchases of common stock (28,100) (18,122) Cash dividends paid (155,651) (142,960) Proceeds from stock option exercises 20,800 12,343 Debt financing costs (21,773) — Other, net (14,695) (8,016) Total financing activities (408,108) (409,408) Effect of exchange rate changes on cash and cash equivalents (8,117) 34,214 Increase (decrease) in cash and cash equivalents 37,495 245,713 Cash and cash equivalents: Beginning of period 457,951 373,999 End of period $ 495,446 $ 619,712 See accompanying notes.
June 2026 Form 10-Q, filed 2026-08-04; unaudited first-half cash flows, in thousands, including investment, borrowing and equity activity · Filed 04/08/2026
On May 5, 2026, the Company announced that it has entered into a definitive agreement to acquire a portfolio of instrumentation business from Indicor, LLC ("Indicor Instrumentation") in an all-cash transaction valued at approximately $5.0 billion.
June 2026 Form 10-Q, filed 2026-08-04; announced approximately $5.0 billion Indicor portfolio acquisition agreement · Filed 04/08/2026
The transaction is subject to customary closing conditions, including applicable regulatory approvals, and is expected to close in the second half of 2026.
June 2026 Form 10-Q, filed 2026-08-04; acquisition closing conditions and expected timing · Filed 04/08/2026
The Term Loan Agreement provides for a senior unsecured term loan facility of up to $4.0 billion, consisting of three tranches: $1.625 billion maturing three years after funding, $1.625 billion maturing four years after funding, and $750 million maturing five years after funding.
June 2026 Form 10-Q, filed 2026-08-04; up to $4.0 billion term facility and tranche maturities · Filed 04/08/2026
At June 30, 2026, the Company had no borrowings outstanding under the term loans.
June 2026 Form 10-Q, filed 2026-08-04; no term-loan borrowings outstanding at June 30, 2026 · Filed 04/08/2026
Performance-based restricted stock units comprise 55% of the target long-term incentive award for the CEO, and 50% for the other named executive officers.
2026 proxy, filed 2026-03-11; performance-unit proportions of target long-term incentives · Filed 11/03/2026
The following table shows the number of performance-based restricted stock units to be earned upon achievement of target performance under the terms of the 2024 and 2025 awards, the number of performance-based restricted stock units earned (102%) under the terms of the 2023 awards as certified by the Compensation Committee in early 2026 and the respective value of each award as of the most recent fiscal year-end.
2026 proxy, filed 2026-03-11; certified earned 2023 performance awards distinguished from target awards · Filed 11/03/2026
The most important performance measures used to link executive compensation and company performance during the most recently completed fiscal year, sorted alphabetically, were:
Adjusted Earnings Per Share
Relative Total Shareholder Return
Return on Tangible Capital
50
OTHER BUSINESS
We are not aware of any other matters that will be presented at the annual meeting.
2026 proxy, filed 2026-03-11; measures actually used to link executive compensation and performance · Filed 11/03/2026
As of December 31, 2025, all of our named executive officers are in compliance with the stock ownership guidelines.
2026 proxy, filed 2026-03-11; named executive officers' ownership-guideline compliance as of December 31, 2025 · Filed 11/03/2026
Unvested restricted stock/units count towards stock ownership.
2026 proxy, filed 2026-03-11; unvested restricted stock and units count toward ownership requirements · Filed 11/03/2026
Neither performance-based restricted stock units nor unexercised stock options count towards executive officer stock ownership.
2026 proxy, filed 2026-03-11; performance units and unexercised options excluded from executive ownership requirements · Filed 11/03/2026
What We Do
✓
Strong alignment between pay and performance
✓
Large majority of executive compensation is at-risk and variable
✓
Large majority of variable compensation is delivered as long-term incentives
✓
All long-term incentives are denominated and delivered in equity
✓
Stock ownership requirements for all executive officers
✓
Minimum vesting requirements for equity awards per our equity plan
✓
Caps on annual bonuses to avoid excessive short-term focus and potentially adverse risk-taking
✓
Independent external compensation benchmarking is performed annually to ensure competitiveness
✓
Use of an independent consultant to advise the Compensation Committee
✓
Clawback policy applicable to current and former executive officers
What We Don’t Do
✘
No “single trigger” equity vesting upon change of control
✘
No excise tax gross-ups on change of control payments
✘
No excessive perquisites
✘
No hedging of our common stock by our officers and Directors
✘
No pledging of our common stock by our officers and Directors
✘
No discounting, reloading or repricing of stock options without stockholder approval
✘
No evergreen provision in our equity plan
2025 Compensation
Compensation Objectives
The compensation paid or awarded to our named executive officers for 2025 was designed to meet the following objectives:
2026 proxy, filed 2026-03-11; existing compensation governance, clawback, hedging and pledging policies · Filed 11/03/2026
Performance Restricted Stock Units The following is a summary of the Company’s non-vested performance restricted stock activity and related information: Shares Weighted Average Grant Date Fair Value (In thousands) Non-vested performance restricted stock outstanding at December 31, 2025 240 $ 166.06 Granted 79 212.77 Performance assumption change 1 2 138.46 Vested (77) 138.46 Forfeited (5) 182.76 Non-vested performance restricted stock outstanding at June 30, 2026 239 $ 189.80 _________________________________________ 1 Reflects the number of PRSUs above target levels based on performance metrics.
June 2026 Form 10-Q, filed 2026-08-04; actual performance restricted stock activity and performance-assumption footnote · Filed 04/08/2026
Accordingly, seven of our eight Directors are “independent” Directors based on an affirmative determination by our Board in accordance with the listing standards of the NYSE and the SEC rules.
2026 proxy, filed 2026-03-11; seven of eight directors determined independent · Filed 11/03/2026
✓ Lead independent Director chairs meetings of the independent Directors and is a liaison between the independent Directors and our Chairman and CEO.
2026 proxy, filed 2026-03-11; lead independent director responsibilities · Filed 11/03/2026
The Board is divided into three classes with staggered terms of three years each, so that the term of one class expires at each Annual Meeting of Stockholders.
2026 proxy, filed 2026-03-11; classified board and staggered three-year terms · Filed 11/03/2026
The Board currently believes that a combined Chairman and CEO is in the best interest of our company as our Chairman and CEO serves as a bridge between management and the Board, ensuring that both groups act with a common vision and strategy.
2026 proxy, filed 2026-03-11; combined chairman and CEO · Filed 11/03/2026
✓ One share, one vote. ✓ No poison pill.
2026 proxy, filed 2026-03-11; one-share-one-vote rights and absence of poison pill · Filed 11/03/2026
Mr. Stanage joins the Board as an independent director.
Form 8-K, filed 2026-05-08; independence of newly appointed director · Filed 08/05/2026
Nick L. Stanage was appointed to the Board of Directors of AMETEK, Inc., or the “Company” effective May 7, 2026 to serve as a Class III Director until the 2027 Annual Meeting.
Form 8-K, filed 2026-05-08; director appointment effective May 7, 2026 and specified term · Filed 08/05/2026
