AMETEK, Inc.

AMETEK reported Q2 2026 sales of $2.04 billion, up 15% versus Q2 2025, with organic sales up 10% and acquisitions contributing 5 points. Orders were a record $2.3 billion, up 28% year over year, with organic orders up 25%, and backlog ended at a record $4.11 billion. Diluted EPS was a record $2.09, up 17% year over year and above guidance of $1.96 to $2.00. Operating income was a record $544 million, up 18%, with operating margin of 26.6% (+60 bps) and core margin of 27.1% (+110 bps); EBITDA was $644 million, up 14%, with EBITDA margin of 31.5%. Free cash flow increased 37% to $452 million; operating cash flow was $484 million, up 35%. For 2026, AMETEK now expects total sales up approximately 10%, organic sales up mid- to high single digits, and diluted EPS of $8.20 to $8.30, up 10% to 12%. For Q3, the company expects sales up high single digits and adjusted EPS of $2.08 to $2.10, up 10% to 11%.

Dave Zapico framed the quarter as evidence that AMETEK is benefiting from multiple secular growth drivers at once: AI infrastructure, semiconductor manufacturing, power grid build-out, defense modernization, commercial aerospace, and MedTech. He repeatedly emphasized that the company is in the early innings of a multiyear infrastructure build-out and that its niche, mission-critical products create durability, pricing power, and high switching costs. His tone was highly confident and upbeat, with several references to broad-based strength and strong positioning across end markets.

Dalip Puri highlighted the financial execution behind the quarter: G&A was 1.5% of sales, interest expense was $20 million, other operating expense was $6 million, and the tax rate was 17.5%. Capital expenditures were $32 million in the quarter and are expected to be about $160 million for 2026, or about 2% of sales; depreciation and amortization is expected to be about $430 million, including about $210 million of after-tax acquisition-related intangible amortization. He also noted operating working capital of 16.4% of sales, gross debt of $2 billion versus $2.3 billion at year-end 2025, cash of $495 million, and leverage of 0.8x gross debt-to-EBITDA and 0.6x net debt-to-EBITDA. He said free cash flow conversion is still expected to be 110% to 115% of net income, and the revolver was renewed at $3.5 billion, with maturity extended to June 2031.

Analysts focused on whether order strength was sustainable, asking about lumpiness, July trends, and whether the business is seeing a broader industrial inflection. Management said June was the strongest month for orders ever, July was also very good, and while orders can be lumpy, the company sees durable demand tied to a multiyear infrastructure build-out. Analysts also pressed on the apparent slowdown in Q3 organic revenue guidance versus strong orders; management said the second-half guide already reflects the Q2 beat, is 1.5 to 2 points stronger on organic sales versus the prior view, and includes AMETEK prudence. On margins and acquisitions, management said Q2 expansion came from strong incrementals, productivity, and positive pricing, and said FARO will begin contributing to core margins as it laps the one-year ownership mark.