ame-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

FORM 10-Q

_________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-12981

_________________________

AMETEK, Inc.

(Exact name of registrant as specified in its charter)

_________________________

Delaware

(State or other jurisdiction of

incorporation or organization)

1100 Cassatt Road

Berwyn, Pennsylvania

(Address of principal executive offices)

14-1682544

(I.R.S. Employer

Identification No.)

19312-1177

(Zip Code)

Registrant’s telephone number, including area code: (610) 647-2121

_________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

_________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange
on which registered

Common Stock

AME

New York Stock Exchange

The number of shares of the registrant’s common stock outstanding as of the latest practicable date was: Common Stock, $0.01 Par Value, outstanding at October 29, 2024 was 231,307,680 shares.

AMETEK, Inc.

Form 10-Q

Table of Contents


			Page

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

Consolidated Statement of Income for the three and nine months ended September 30, 2024 and 2023			3
Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023			4
Consolidated Balance Sheet at September 30, 2024 and December 31, 2023			5
Consolidated Statement of Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023			6
Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2024 and 2023			7
Notes to Consolidated Financial Statements			8

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations			20
Item 4.Controls and Procedures			24

PART II. OTHER INFORMATION


Item 2.Unregistered Sales of Equity Securities and Use of Proceeds			25
Item 5. Other Information			25
Item 6.Exhibits			26

SIGNATURES			27

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AMETEK, Inc.

Consolidated Statement of Income

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net sales	$	1,708,564	$	1,622,837	$	5,179,578	$	4,866,065
Cost of sales	1,092,754		1,020,920		3,347,860		3,096,635
Selling, general and administrative	169,959		163,782		521,137		506,963
Total operating expenses	1,262,713		1,184,702		3,868,997		3,603,598
Operating income	445,851		438,135		1,310,581		1,262,467
Interest expense	(25,118)		(18,386)		(90,962)		(57,678)
Other (expense) income, net	(1,888)		(6,256)		(2,435)		(15,313)
Income before income taxes	418,845		413,493		1,217,184		1,189,476
Provision for income taxes	78,604		73,123		228,317		219,152
Net income	$	340,241	$	340,370	$	988,867	$	970,324
Basic earnings per share	$	1.47	$	1.48	$	4.28	$	4.21
Diluted earnings per share	$	1.47	$	1.47	$	4.26	$	4.19
Weighted average common shares outstanding:
Basic shares	231,342		230,691		231,292		230,431
Diluted shares	232,224		231,751		232,188		231,414
Dividends declared and paid per share	$	0.28	$	0.25	$	0.84	$	0.75

See accompanying notes.

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AMETEK, Inc.

Condensed Consolidated Statement of Comprehensive Income

(In thousands)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Total comprehensive income	$	405,095	$	294,757	$	1,016,270	$	977,660

See accompanying notes.

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AMETEK, Inc.

Consolidated Balance Sheet

(In thousands)


	September 30, 2024		December 31, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	396,266	$	409,804
Receivables, net	968,240		1,012,932
Inventories, net	1,084,622		1,132,471
Other current assets	284,562		269,461
Total current assets	2,733,690		2,824,668
Property, plant and equipment, net	822,609		891,293
Right of use assets, net	211,381		229,723
Goodwill	6,550,267		6,447,629
Other intangibles, net	3,950,989		4,165,317
Investments and other assets	498,703		464,903
Total assets	$	14,767,639	$	15,023,533

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt, net	$	571,061	$	1,417,915
Accounts payable	511,680		516,588
Customer advanced payments	350,865		375,513
Income taxes payable	64,763		69,567
Accrued liabilities and other	468,556		502,990
Total current liabilities	1,966,925		2,882,573
Long-term debt, net	1,765,473		1,895,432
Deferred income taxes	792,540		836,695
Other long-term liabilities	692,478		678,642
Total liabilities	5,217,416		6,293,342
Stockholders’ equity:
Common stock	2,717		2,709
Capital in excess of par value	1,228,670		1,168,694
Retained earnings	10,735,140		9,940,343
Accumulated other comprehensive loss	(457,539)		(484,942)
Treasury stock	(1,958,765)		(1,896,613)
Total stockholders’ equity	9,550,223		8,730,191
Total liabilities and stockholders’ equity	$	14,767,639	$	15,023,533

See accompanying notes.

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AMETEK, Inc.

Consolidated Statement of Stockholders’ Equity

(In thousands)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Capital stock

Common stock, $0.01 par value
Balance at the beginning of the period	$	2,716	$	2,707	$	2,709	$	2,700
Shares issued	1		1		8		8
Balance at the end of the period	2,717		2,708		2,717		2,708
Capital in excess of par value
Balance at the beginning of the period	1,210,414		1,123,920		1,168,694		1,094,236
Issuance of common stock under employee stock plans	5,513		11,274		25,069		18,098
Share-based compensation expense	12,743		12,913		34,907		35,773
Balance at the end of the period	1,228,670		1,148,107		1,228,670		1,148,107
Retained earnings
Balance at the beginning of the period	10,459,556		9,372,368		9,940,343		8,857,485
Net income	340,241		340,370		988,867		970,324
Cash dividends paid	(64,657)		(57,622)		(194,068)		(172,693)

Other	—		(2)		(2)		(2)
Balance at the end of the period	10,735,140		9,655,114		10,735,140		9,655,114
Accumulated other comprehensive (loss) income
Foreign currency translation:
Balance at the beginning of the period	(338,606)		(318,359)		(298,835)		(368,124)
Translation adjustments	91,052		(62,092)		40,231		568
Change in long-term intercompany notes	2,106		(6,994)		(1,942)		(1,091)
Net investment hedge instruments (loss) gain , net of tax of $9,595 and $(7,126) for the quarter ended September 30, 2024 and 2023, and $4,678 and $(1,004) for the nine months ended September 30, 2024 and 2023, respectively	(29,464)		21,881		(14,366)		3,083
Balance at the end of the period	(274,912)		(365,564)		(274,912)		(365,564)
Defined benefit pension plans:
Balance at the beginning of the period	(183,787)		(203,637)		(186,107)		(206,821)
Amortization of net actuarial loss and other, net of tax of $(365) and $(518) for the quarter ended September 30, 2024 and 2023 and $(1,095) and $(1,554) for the nine months ended September 30, 2024 and 2023 , respectively	1,160		1,592		3,480		4,776
Balance at the end of the period	(182,627)		(202,045)		(182,627)		(202,045)
Accumulated other comprehensive loss at the end of the period	(457,539)		(567,609)		(457,539)		(567,609)
Treasury stock
Balance at the beginning of the period	(1,897,889)		(1,895,628)		(1,896,613)		(1,902,964)
Issuance of common stock under employee stock plans	(476)		(129)		5,843		13,731
Purchase of treasury stock	(60,400)		(54)		(67,995)		(6,578)
Balance at the end of the period	(1,958,765)		(1,895,811)		(1,958,765)		(1,895,811)
Total stockholders’ equity	$	9,550,223	$	8,342,509	$	9,550,223	$	8,342,509

See accompanying notes.

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AMETEK, Inc.

Condensed Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)


	Nine months ended September 30,
	2024		2023
Cash provided by (used for):
Operating activities:
Net income	$	988,867	$	970,324
Adjustments to reconcile net income to total operating activities:
Depreciation and amortization	287,049		245,713
Deferred income taxes	(28,970)		(67,525)
Share-based compensation expense	34,907		35,773

Gain on sale of facilities	(995)		—
Net change in assets and liabilities, net of acquisitions	20,675		27,266
Pension contributions	(4,433)		(3,927)
Other, net	(18,268)		(12,985)
Total operating activities	1,278,832		1,194,639
Investing activities:
Additions to property, plant and equipment	(75,350)		(76,506)
Purchases of businesses, net of cash acquired	—		(246,656)

Proceeds from sale of facilities	4,246		—
Other, net	1,580		(3,149)
Total investing activities	(69,524)		(326,311)
Financing activities:
Net change in short-term borrowings	(698,099)		(220,555)

Repayments of long-term borrowings	(300,000)		—
Repurchases of common stock	(67,995)		(6,578)
Cash dividends paid	(194,068)		(172,693)
Proceeds from stock option exercises	39,728		40,120
Other, net	(7,976)		(5,068)
Total financing activities	(1,228,410)		(364,774)
Effect of exchange rate changes on cash and cash equivalents	5,564		(7,039)
(Decrease) increase in cash and cash equivalents	(13,538)		496,515
Cash and cash equivalents:
Beginning of period	409,804		345,386
End of period	$	396,266	$	841,901

See accompanying notes.

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AMETEK, Inc.

Notes to Consolidated Financial Statements

September 30, 2024

(Unaudited)

1. Basis of Presentation

The accompanying consolidated financial statements are unaudited. AMETEK, Inc. (the “Company”) believes that all adjustments (which primarily consist of normal recurring accruals) necessary for a fair presentation of the consolidated financial position of the Company at September 30, 2024, the consolidated results of its operations for the three and nine months ended September 30, 2024 and 2023 and its cash flows for the nine months ended September 30, 2024 and 2023 have been included. Quarterly results of operations are not necessarily indicative of results for the full year. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the U.S. Securities and Exchange Commission.

2. Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires disclosure of significant segment expenses and other segment items on an annual and interim basis under ASC 280. ASU 2023-07 is effective for the Company's annual period ending December 31, 2024, and for interim periods within the annual period ending December 31, 2025. The amendments in this ASU will be applied on a retrospective basis to all periods presented. ASU 2023-07 will require additional disclosures in the Reportable Segments footnote, but will not have a material impact on the Company's consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"), which improves income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The ASU indicates that all entities will apply its guidance prospectively with an option for retroactive application to each period in the financial statements. The Company has not determined the impact ASU 2023-09 may have on the Company’s financial statement disclosures.

3. Revenues

The outstanding contract asset and liability accounts were as follows:


	2024		2023
	(In thousands)
Contract assets—January 1	$	140,826	$	119,741
Contract assets – September 30	151,451		139,771
Change in contract assets – increase (decrease)	10,625		20,030
Contract liabilities – January 1	432,830		398,692
Contract liabilities – September 30	396,172		422,415
Change in contract liabilities – decrease (increase)	36,658		(23,723)
Net change	$	47,283	$	(3,693)

The net change for the nine months ended September 30, 2024 was primarily driven by contract liabilities, specifically lower advance payments from customers. For the nine months ended September 30, 2024 and 2023, the Company recognized revenue of $324.8 million and $297.7 million, respectively, that was previously included in the beginning balance of contract liabilities.

Contract assets are reported as a component of Other current assets in the consolidated balance sheet. At September 30, 2024 and December 31, 2023, $45.3 million and $57.3 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.

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AMETEK, Inc.

Notes to Consolidated Financial Statements

September 30, 2024

(Unaudited)

The remaining performance obligations not expected to be completed within one year as of September 30, 2024 and December 31, 2023 were $611.2 million and $607.5 million, respectively. 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. These performance obligations will be substantially satisfied within two to three years.

Geographic Areas

Net sales were attributed to geographic areas based on the location of the customer. Information about the Company’s operations in different geographic areas was as follows for the three and nine months ended September 30:


	Three months ended September 30, 2024						Nine months ended September 30, 2024
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
United States	$	561,273	$	333,575	$	894,848	$	1,732,847	$	1,019,636	$	2,752,483
International(1):
United Kingdom	25,247		31,160		56,407		79,713		95,107		174,820
European Union countries	123,271		109,071		232,342		393,941		331,047		724,988
Asia	301,858		60,008		361,866		881,893		166,517		1,048,410
Other foreign countries	122,939		40,162		163,101		356,586		122,291		478,877
Total international	573,315		240,401		813,716		1,712,133		714,962		2,427,095
Consolidated net sales	$	1,134,588	$	573,976	$	1,708,564	$	3,444,980	$	1,734,598	$	5,179,578

________________

(1) Includes U.S. export sales of $465.1 million and $1,374.4 million for the three and nine months ended September 30, 2024, respectively.


	Three months ended September 30, 2023						Nine months ended September 30, 2023
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
United States	$	616,988	$	274,146	$	891,134	$	1,754,165	$	805,876	$	2,560,041
International(1):
United Kingdom	23,327		30,348		53,675		74,515		89,812		164,327
European Union countries	115,026		99,931		214,957		381,495		327,614		709,109
Asia	271,922		47,699		319,621		846,450		151,357		997,807
Other foreign countries	108,867		34,583		143,450		331,398		103,383		434,781
Total international	519,142		212,561		731,703		1,633,858		672,166		2,306,024
Consolidated net sales	$	1,136,130	$	486,707	$	1,622,837	$	3,388,023	$	1,478,042	$	4,866,065

______________

(1) Includes U.S. export sales of $391.7 million and $1,265.0 million for the three and nine months ended September 30, 2023, respectively.

Major Products and Services

The Company’s major products and services in the reportable segments were as follows:

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AMETEK, Inc.

Notes to Consolidated Financial Statements

September 30, 2024

(Unaudited)


	Three months ended September 30, 2024						Nine months ended September 30, 2024
	EIG		EMG		Total		EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	779,772	$	—	$	779,772	$	2,374,034	$	—	$	2,374,034
Aerospace and power	354,816		160,177		514,993		1,070,946		467,092

SEC Form 10-Q filed by AMETEK Inc.