AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Proprietary technology, specialized products and ongoing engineering investment support differentiation, corroborated by organic demand growth. Relative superiority and barriers to replication are incompletely established.
durability · 2/4 · Continuing innovation and firm orders extending beyond one year support persistence. Maintaining the advantage requires investment, and no essential patent portfolio or demonstrated long protected lifespan is established.
customer dependency · 2/4 · Firm non-cancelable orders demonstrate customer commitment for a portion of the business. This is indirect evidence of dependency; it does not establish high replacement costs or reliance across the whole portfolio.
erosion resilience · 2/4 · Organic order growth in 2025 and 2026 and limited realized tariff impact support resilience. The 2024 order decline shows cyclicality, while substitution and copying remain possible threats rather than demonstrated competitive losses.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Targeted pricing initiatives are disclosed, but realized pricing outcomes are not separated from volume, mix, procurement or production adjustments. Tariff resilience alone cannot establish price realization.
retention · 2/4 · Growing organic orders and longer-term non-cancelable commitments support continuing demand indirectly. They do not identify repeat customers or establish retention following price changes; the earlier order decline limits confidence.
margin resilience · 3/4 · Underlying segment margin improvements across 2024, 2025 and second-quarter 2026, together with limited tariff impact, demonstrate strong operating resilience. Reported second-quarter 2026 margins declined and integration costs matter; resilience cannot be attributed solely to pricing.
contractual freedom · — · Non-cancelable orders establish purchase commitments, but do not reveal AMETEK's ability to change agreed prices, impose surcharges or renegotiate terms. Pricing initiatives do not resolve this contractual gap.
Predictability100
Five consecutive 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
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, or reported pretax profit plus reported interest expense when operating income is unavailable. 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 or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; 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. Nonpositive invested capital has no defined return and remains unavailable. 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 and lower year-end 2025 share count support disciplined deployment. First-half 2026 cash flows include reduced short-term borrowing. The approximately $5 billion pending acquisition and committed financing materially increase execution exposure, with returns still unproven and term loans undrawn at June 30.
incentive alignment · 3/4 · Performance units comprise a substantial share of executive long-term incentives, with certified earned awards and actual vesting demonstrating implementation. Ownership requirements, clawback and hedging restrictions strengthen alignment. Actual executive holdings and compliance are missing, preventing an exceptional assessment.
execution · 3/4 · Organic sales and order growth, sustained cash generation and underlying margin improvement demonstrate strong execution through indirect operating outcomes. Acquisition integration costs and the earlier demand contraction temper the assessment; announced acquisition benefits are not treated as achieved.
governance · 2/4 · A predominantly independent board, lead independent director, one-share-one-vote structure and no poison pill provide safeguards. Combined chairman and CEO roles and staggered board terms reduce accountability, yielding a mixed assessment.
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.
Risk factors / 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.
Business / Competitive Strengths / niche market positions · Filed 17/02/2026
In 2025, AMETEK added to its highly differentiated product portfolio with a range of new products across many of its businesses.
Business / Competitive Strengths / 2025 product introductions · 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.
Research, Development and Engineering / 2021–2023 spending · Filed 22/02/2024
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.
MD&A / second-quarter 2026 organic sales growth · 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.
MD&A / second-quarter 2026 organic order growth · Filed 04/08/2026
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.
Revenue recognition / remaining performance obligations at June 30, 2026 · 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.
Revenue recognition / definition of firm non-cancelable orders · Filed 04/08/2026
Competition In general, AMETEK’s markets are highly competitive with competition based on technology, performance, quality, service and price.
Business / Competition / competitive dimensions · 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.
Risk factors / competing products and technological adaptation · 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.
Risk factors / potential copying of proprietary technology · Filed 17/02/2026
There also is competition from alternative materials and processes.
Business / Competition / alternative materials and processes · Filed 17/02/2026
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.
MD&A / 2024 organic order decline · 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.
MD&A / second-quarter 2026 acquisition integration costs · Filed 04/08/2026
Maintaining our existing technological advantages will require us to continue investing in research and development and sales and marketing.
Risk factors / ongoing investment needed to maintain technological advantages · 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.
Business / intellectual property / no essential patent or trademark group · Filed 17/02/2026
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.
MD&A / 2025 organic order growth · 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.
MD&A / tariff mitigation and targeted pricing 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.
MD&A / tariffs did not materially affect first-half 2026 results · Filed 04/08/2026
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.
MD&A / second-quarter 2026 reported segment margin decline · 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.
MD&A / second-quarter 2026 adjusted segment margin improvement · Filed 04/08/2026
Segment operating income, as a percentage of net sales, increased to 27.4% in 2025, compared with 27.2% in 2024.
MD&A / 2025 reported segment margin improvement · Filed 17/02/2026
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.
MD&A / 2024 adjusted segment margin improvement · Filed 20/02/2025
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.
Condensed Consolidated Statement of Cash Flows / first half of 2026 · Filed 04/08/2026
The number of shares outstanding at December 31, 2025 was 229.0 million shares, compared with 230.7 million shares at December 31, 2024.
Financial statement notes / year-end 2025 and 2024 shares outstanding · Filed 17/02/2026
Indicor, LLC Agreement 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.
Acquisitions / definitive agreement for approximately $5 billion instrumentation acquisition · 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.
Acquisitions / 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.
Debt / acquisition term loan facility and maturities · Filed 04/08/2026
At June 30, 2026, the Company had no borrowings outstanding under the term loans.
Debt / acquisition term loans undrawn 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.
Executive Compensation / performance-based share of 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.
Executive Compensation / certified 2023 award performance outcome · 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.
Share-Based Compensation / actual performance restricted stock grants and vesting · Filed 04/08/2026
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: •Provide compensation that is competitive with market levels of compensation provided to other relevant companies’ executive officers, as described further below, taking into account the size of our company or operating group, as applicable.
Executive Compensation / ownership requirements, clawback and prohibited practices · Filed 11/03/2026
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.
Corporate Governance / seven of eight directors 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.
Corporate Governance / 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.
Corporate Governance / staggered three-year board 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.
Board Structure / combined chairman and CEO roles · Filed 11/03/2026
✓ One share, one vote. ✓ No poison pill.
Corporate Governance / voting rights and absence of poison pill · Filed 11/03/2026
The organic orders decrease is due to customer inventory normalization in our automation and engineered solutions core businesses.
MD&A / customer inventory normalization behind 2024 organic order decline · Filed 20/02/2025
•Cash provided by operating activities totaled $1,801.8 million in 2025.
MD&A / 2025 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.
Liquidity and Capital Resources / completed 2025 acquisition spending · 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.
Share repurchase program / actual 2025 and 2024 repurchases · Filed 17/02/2026
