ame-20260331

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 March 31, 2026


☐			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, a 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	☐	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 April 24, 2026 was 229,203,002 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 months ended March 31, 2026 and 2025			3
Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2026 and 2025			4
Consolidated Balance Sheet at March 31, 2026 and December 31, 2025			5
Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2026 and 2025			6
Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2026 and 2025			7
Notes to Consolidated Financial Statements			8

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations			22
Item 4.Controls and Procedures			25

PART II. OTHER INFORMATION


Item 2.Unregistered Sales of Equity Securities and Use of Proceeds			26
Item 5. Other Information			26
Item 6.Exhibits			27

SIGNATURES			28

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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 March 31,
	2026		2025
Net sales	$	1,928,437	$	1,731,971
Cost of sales	1,210,878		1,106,971
Selling, general and administrative	202,623		170,171
Total operating expenses	1,413,501		1,277,142
Operating income	514,936		454,829
Interest expense	(20,909)		(18,993)
Other (expense) income, net	(1,047)		(1,614)
Income before income taxes	492,980		434,222
Provision for income taxes	93,623		82,464
Net income	$	399,357	$	351,758
Basic earnings per share	$	1.74	$	1.52
Diluted earnings per share	$	1.74	$	1.52
Weighted average common shares outstanding:
Basic shares	228,903		230,668
Diluted shares	229,835		231,542
Dividends declared and paid per share	$	0.34	$	0.31

See accompanying notes.

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AMETEK, Inc.

Consolidated Statement of Comprehensive Income

(In thousands)

(Unaudited)


	Three Months Ended March 31,
	2026		2025
Net income	$	399,357	$	351,758
Other comprehensive income (loss):
Amounts arising during the period – gains (losses), net of tax (expense) benefit:
Foreign currency translation:
Translation adjustments	(49,329)		65,778
Change in long-term intercompany notes	1,511		(3,116)
Net investment hedge instruments gain (loss), net of tax of $(4,397) and $8,099 for the quarter ended March 31, 2026 and 2025, respectively	14,010		(25,801)
Defined benefit pension plans:
Amortization of net actuarial loss, net of tax of $(167) and $(296) for the quarter ended March 31, 2026 and 2025, respectively	531		942


Other comprehensive (loss) income	(33,277)		37,803
Total comprehensive income	$	366,080	$	389,561

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AMETEK, Inc.

Consolidated Balance Sheet

(In thousands)


	March 31, 2026		December 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	481,250	$	457,951
Receivables, net	1,153,951		1,119,257
Inventories, net	1,143,418		1,106,405
Other current assets	358,889		336,229
Total current assets	3,137,508		3,019,842
Property, plant and equipment, net	840,388		855,215
Right of use assets, net	263,167		273,142
Goodwill	7,266,351		7,170,770
Other intangibles, net	4,165,088		4,128,394
Investments and other assets	637,033		620,180
Total assets	$	16,309,535	$	16,067,543

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt, net	$	1,114,946	$	1,208,975
Accounts payable	619,255		617,950
Customer advanced payments	463,706		396,177
Income taxes payable	91,169		82,682
Accrued liabilities and other	467,060		536,968
Total current liabilities	2,756,136		2,842,752
Long-term debt, net	1,062,603		1,074,334
Deferred income taxes	839,748		788,915
Other long-term liabilities	731,751		732,756
Total liabilities	5,390,238		5,438,757
Stockholders’ equity:

Common stock, $0.01 par value	2,728		2,725
Capital in excess of par value	1,314,400		1,317,288
Retained earnings	12,574,041		12,252,480
Accumulated other comprehensive loss	(432,497)		(399,220)
Treasury stock	(2,539,375)		(2,544,487)
Total stockholders’ equity	10,919,297		10,628,786
Total liabilities and stockholders’ equity	$	16,309,535	$	16,067,543

See accompanying notes.

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AMETEK, Inc.

Consolidated Statement of Stockholders’ Equity

(In thousands)

(Unaudited)


	Common stock		Capital in excess of par value		Retained earnings		Accumulated other comprehensive (loss) income		Treasury stock		Total stockholders’ equity
Three months ended March 31, 2026
Balance at December 31, 2025	$	2,725	$	1,317,288	$	12,252,480	$	(399,220)	$	(2,544,487)	$	10,628,786
Net income	—		—		399,357		—		—		399,357
Shares issued	3		—		—		—		—		3
Issuance of common stock under employee stock plans	—		(12,596)		—		—		13,046		450
Share-based compensation expense	—		9,708		—		—		—		9,708
Cash dividends paid	—		—		(77,796)		—		—		(77,796)
Other comprehensive (loss) income	—		—		—		(33,277)		—		(33,277)
Purchase of treasury stock	—		—		—		—		(7,934)		(7,934)
Other	—		—		—		—		—		—
Balance at March 31, 2026	$	2,728	$	1,314,400	$	12,574,041	$	(432,497)	$	(2,539,375)	$	10,919,297


Three months ended March 31, 2025
Balance at December 31, 2024	$	2,720	$	1,264,670	$	11,057,684	$	(555,739)	$	(2,114,031)	$	9,655,304
Net income	—		—		351,758		—		—		351,758
Shares issued	2		—		—		—		—		2
Issuance of common stock under employee stock plans	—		(19,116)		—		—		13,152		(5,964)
Share-based compensation expense	—		9,464		—		—		—		9,464
Cash dividends paid	—		—		(71,455)		—		—		(71,455)
Other comprehensive (loss) income	—		—		—		37,803		—		37,803
Purchase of treasury stock	—		—		—		—		(6,966)		(6,966)
Other	—		—		—		—		—		—
Balance at March 31, 2025	$	2,722	$	1,255,018	$	11,337,987	$	(517,936)	$	(2,107,845)	$	9,969,946

See accompanying notes.

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AMETEK, Inc.

Condensed Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)


	Three months ended March 31,
	2026		2025
Cash provided by (used for):
Operating activities:
Net income	$	399,357	$	351,758
Adjustments to reconcile net income to total operating activities:
Depreciation and amortization	105,490		106,367
Deferred income taxes	16,062		(1,328)
Share-based compensation expense	9,708		9,464


Net change in assets and liabilities, net of acquisitions	(51,985)		(42,196)
Pension contributions	(1,412)		(1,462)
Other, net	(25,704)		(5,058)
Total operating activities	451,516		417,545
Investing activities:
Additions to property, plant and equipment	(25,468)		(23,069)
Purchases of businesses, net of cash acquired	(209,558)		(103,165)


Other, net	473		521
Total investing activities	(234,553)		(125,713)
Financing activities:
Net change in short-term borrowings	(82,689)		(185,093)


Repurchases of common stock	(27,935)		(18,011)
Cash dividends paid	(77,796)		(71,455)
Proceeds from stock option exercises	9,643		4,669
Other, net	(9,187)		(7,803)
Total financing activities	(187,964)		(277,693)
Effect of exchange rate changes on cash and cash equivalents	(5,700)		10,863
Increase (decrease) in cash and cash equivalents	23,299		25,002
Cash and cash equivalents:
Beginning of period	457,951		373,999
End of period	$	481,250	$	399,001

See accompanying notes.

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AMETEK, Inc.

Notes to Consolidated Financial Statements

March 31, 2026

(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 March 31, 2026, the consolidated results of its operations for the three months ended March 31, 2026 and 2025 and its cash flows for the three months ended March 31, 2026 and 2025 have been included. The Company has two reportable segments, Electronic Instruments Group (“EIG”) and Electromechanical Group (“EMG”). The Company identifies its operating segments for segment reporting purposes primarily on the basis of product type, production processes, distribution methods and management organizations. 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, 2025 as filed with the U.S. Securities and Exchange Commission.

2. Recent Accounting Pronouncements

Recent Accounting Pronouncements

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815) - Hedge Accounting Improvements ("ASU 2025-09"). The amendments in this update aim to better align financial reporting with an entity's risk management strategies. It makes improvements in five key areas to help entities achieve and maintain hedge accounting for highly effective economic hedges. Improvements include changes to similar risk assessment for cash flow hedges, a new model for Choose-Your-Rate debt instruments, a principles-based approach for nonfinancial forecasted transactions, clarification on net written options, and addressing the mismatch in dual-hedge accounting. ASU 2025-09 is effective for annual periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Company is evaluating the impact ASU 2025-09 may have on the Company's financial statement disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06) updating guidance on accounting for internal-use software. The amendments modernize guidance to consider different methods of software development, updating the requirements for capitalization of software costs. ASU 2025-06 is effective for annual and interim reporting periods beginning after December 15, 2027. Prospective, modified prospective, or retrospective application is allowed and early adoption is permitted. The Company has not determined the impact ASU 2025-06 may have on the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income —Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional disclosures about significant expenses included in certain expense captions presented on the face of the income statement. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Prospective or retrospective application is allowed and early adoption is permitted. The Company has not determined the impact ASU 2024-03 may have on the Company’s financial statement disclosures.

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AMETEK, Inc.

Notes to Consolidated Financial Statements

March 31, 2026

(Unaudited)

3. Revenues

The outstanding contract asset and liability accounts were as follows:


	2026		2025
	(In thousands)
Contract assets—January 1	$	159,896	$	136,432
Contract assets – March 31	178,306		157,815
Change in contract assets – increase (decrease)	18,410		21,383
Contract liabilities – January 1	448,849		400,689
Contract liabilities – March 31	505,507		426,235
Change in contract liabilities – (increase) decrease	(56,658)		(25,546)
Net change	$	(38,248)	$	(4,163)

The net change for the three months ended March 31, 2026 was primarily driven by an increase in customer advance payments. For the three months ended March 31, 2026 and 2025, the Company recognized revenue of $261.5 million and $182.5 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 March 31, 2026 and December 31, 2025, $41.8 million and $52.7 million of Customer advanced payments (contract liabilities), respectively, were recorded in Other long-term liabilities in the consolidated balance sheets.

The remaining performance obligations not expected to be completed within one year as of March 31, 2026 and December 31, 2025 were $684.7 million and $627.4 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 months ended March 31:


	Three months ended March 31, 2026
	EIG		EMG		Total
	(In thousands)
United States	$	619,384	$	385,391	$	1,004,775
International(1):
United Kingdom	34,177		38,060		72,237
European Union countries	162,015		128,577		290,592
Asia	323,467		66,567		390,034
Other foreign countries	125,493		45,306		170,799
Total international	645,152		278,510		923,662
Consolidated net sales	$	1,264,536	$	663,901	$	1,928,437

________________

(1) Includes U.S. export sales of $533.4 million for the three months ended March 31, 2026.

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AMETEK, Inc.

Notes to Consolidated Financial Statements

March 31, 2026

(Unaudited)


	Three months ended March 31, 2025
	EIG		EMG		Total
	(In thousands)
United States	$	580,125	$	347,405	$	927,530
International(1):
United Kingdom	30,817		37,806		68,623
European Union countries	132,466		104,185		236,651
Asia	274,865		55,178		330,043
Other foreign countries	125,400		43,724		169,124
Total international	563,548		240,893		804,441
Consolidated net sales	$	1,143,673	$	588,298	$	1,731,971

______________

(1) Includes U.S. export sales of $470.0 million for the three months ended March 31, 2025.

Major Products and Services

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


	Three months ended March 31, 2026
	EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	891,630	$	—	$	891,630
Aerospace and power	372,906		196,595		569,501
Automation and engineered solutions	—		467,306		467,306
Consolidated net sales	$	1,264,536	$	663,901	$	1,928,437


	Three months ended March 31, 2025
	EIG		EMG		Total
	(In thousands)
Process and analytical instrumentation	$	776,871	$	—	$	776,871
Aerospace and power	366,802		171,908		538,710
Automation and engineered solutions	—		416,390		416,390
Consolidated net sales	$	1,143,673	$	588,298	$	1,731,971

Timing of Revenue Recognition


	Three months ended March 31, 2026
	EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	1,001,212	$	589,065	$	1,590,277
Products and services transferred over time	263,324		74,836		338,160
Consolidated net sales	$	1,264,536	$	663,901	$	1,928,437


	Three months ended March 31, 2025
	EIG		EMG		Total
	(In thousands)
Products transferred at a point in time	$	906,887	$	533,408	$	1,440,295
Products and services transferred over time	236,786		54,890		291,676
Consolidated net sales	$	1,143,673	$	588,298	$	1,731,971

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AMETEK, Inc.

Notes to Consolidated Financial Statements

March 31, 2026

(Unaudited)

Product Warranties

The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company’s operations, but the majority do not exceed one year. The Company calculates its warranty expense provision based on its historical warranty experience and adjustments are made periodically to reflect actual warranty expenses. Product warranty obligations are reported as a component of Accrued liabilities and other in the consolidated balance sheet.

Changes in the accrued product warranty obligation were as follows:


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Balance at the beginning of the period	$	44,738	$	38,555
Accruals for warranties issued during the period	3,809		5,167
Settlements made during the period	(4,931)		(4,846)
Warranty accruals related to acquired businesses and other during the period	(201)		1,345
Balance at the end of the period	$	43,415	$	40,221

Accounts Receivable

The Company maintains allowances for estimated losses resulting from the inability of customers to meet their financial obligations to the Company. The Company recognizes an allowance for credit losses, on all accounts receivable and contract assets, which considers risk of future credit losses based on factors such as historical experience, contract terms, as well as general and market business conditions, country, and political risk. Balances are written off when determined to be uncollectible.

At March 31, 2026, the Company had $1,154.0 million of accounts receivable, net of allowances of $13.5 million. At December 31, 2025, the Company had $1,119.3 million of accounts receivable, net of allowance of $13.7 million. Changes in the allowance were not material for the three months ended March 31, 2026.

4. Earnings Per Share

The calculation of basic earnings per share is based on the weighted average number of common shares considered outstanding during the periods. The calculation of diluted earnings per share reflects the effect of all potentially dilutive securities (principally outstanding stock options and restricted stock grants). The number of weighted average shares used in the calculation of basic earnings per share and diluted earnings per share was as follows:


	Three Months Ended March 31,
	2026	2025
	(In thousands)
Weighted average shares:
Basic shares	228,903	230,668
Equity-based compensation plans	932	874
Diluted shares	229,835	231,542

The calculation of diluted earnings per share for the three months ended March 31, 2025 excluded an immaterial number of stock options because the exercise prices of these stock options exceeded the average market price of the Company’s common shares, and the effect of their inclusion would have been antidilutive. There were no antidilutive shares for the three months ended March 31, 2026.

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AMETEK, Inc.

Notes to Consolidated Financial Statements

March 31, 2026

(Unaudited)

5. Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The Company utilizes a valuation hierarchy for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following table provides the Company’s assets that are measured at fair value on a recurring basis, consistent with the fair value hierarchy, at March 31, 2026 and December 31, 2025:


	March 31, 2026
	Total		Level 1		Level 2		Level 3
	(In thousands)
Mutual fund investments	$	8,244	$	8,244	$	—	$	—


	December 31, 2025
	Total		Level 1		Level 2		Level 3
	(In thousands)
Mutual fund investments	$	8,199	$	8,199	$	—	$	—

The fair value of mutual fund investments is based on quoted market prices. The mutual fund investments are shown as a component of investments and other assets on the consolidated balance sheet.

For the three months ended March 31, 2026 and 2025, gains and losses on the investments noted above were not significant. No transfers between level 1 and level 2 investments occurred during the three months ended March 31, 2026 and 2025.

Financial Instruments

Cash, cash equivalents and mutual fund investments are recorded at fair value at March 31, 2026 and December 31, 2025 in the accompanying consolidated balance sheet.

The following table provides the estimated fair values of the Company’s financial instrument liabilities, for which fair value is measured for disclosure purposes only, compared to the recorded amounts at March 31, 2026 and December 31, 2025:


	March 31, 2026				December 31, 2025
	Recorded Amount		Fair Value		Recorded Amount		Fair Value
	(In thousands)
Long-term debt (including current portion)	$	(1,508,804)	$	(1,463,418)	$	(1,527,238)	$	(1,488,009)

The fair value of net short-term borrowings approximates the carrying value. The Company’s net long-term debt is all privately held with no public market for this debt, therefore, the fair value of net long-term debt was computed based on comparable current market data for similar debt instruments and is considered a level 3 liability.

6. Hedging Activities

The Company has designated certain foreign-currency-denominated long-term borrowings as hedges of the net investment in certain foreign operations. As of March 31, 2026, these net investment hedges included British-pound-and Euro-denominated long-term debt. These borrowings were designed to create net investment hedges in certain designated foreign

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AMETEK, Inc.

Notes to Consolidated Financial Statements

March 31, 2026

(Unaudited)

subsidiaries. The Company designated the British-pound- and Euro-denominated loans as hedging instruments to offset translation gains or losses on the net investment due to changes in the British pound and Euro exchange rates. These net investment hedges are evidenced by management’s contemporaneous documentation supporting the hedge designation. Any gain or loss on the hedging instruments (the debt) following hedge designation is reported in accumulated other comprehensive income in the same manner as the translation adjustment on the hedged investment based on changes in the spot rate, which is used to measure hedge effectiveness.

At March 31, 2026, the Company had $296.6 million of British-pound-denominated loans and $662.2 million in Euro-denominated loans, which were designated as a hedge against the net investment in British pound and Euro functional currency foreign subsidiaries. As a result of the British-pound- and Euro-denominated loans designated and 100% effective as net investment hedges, $18.4 million of pre-tax currency remeasurement gains have been included in the foreign currency translation component of other comprehensive income for the three months ended March 31, 2026.

7. Inventories, net


	March 31, 2026		December 31, 2025
	(In thousands)
Finished goods and parts	$	129,367	$	112,300
Work in process	191,667		179,792
Raw materials and purchased parts	822,384		814,313
Total inventories, net	$	1,143,418	$	1,106,405

8. Leases and Other Commitments

The Company has commitments under operating leases for certain facilities, vehicles and equipment used in its operations. Cash used in operations for operating leases was not materially different from operating lease expense for the three months ended March 31, 2026 and 2025. The Company's leases have a weighted average remaining lease term of approximately seven years.

The components of lease expense were as follows:


	Three Months Ended March 31,
	2026		2025
	(In thousands)
Operating lease cost	$	21,200	$	20,275
Variable lease cost	3,696		3,345
Total lease cost	$	24,896	$	23,620

Supplemental balance sheet information related to leases was as follows:


	March 31, 2026		December 31, 2025
	(In thousands)
Right of use assets, net	$	263,167	$	273,142
Lease liabilities included in Accrued Liabilities and other	61,031		61,133
Lease liabilities included in Other long-term liabilities	217,054		227,066
Total lease liabilities	$	278,085	$	288,199

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AMETEK, Inc.

Notes to Consolidated Financial Statements

March 31, 2026

(Unaudited)

Maturities of lease liabilities as of March 31, 2026 were as follows:


Lease Liability Maturity Analysis	Operating Leases
	(In thousands)
Remaining 2026	$	54,080
2027	62,473
2028	50,002
2029	41,905
2030	34,662
Thereafter	84,759
Total lease payments	327,881
Less: imputed interest	49,796
	$	278,085

The Company does not have any significant leases that have not yet commenced.

Other Commitments

In the ordinary course of its business, the Company issues guarantees, stand-by letters of credit and surety bonds to provide financial or performance assurance to third parties on behalf of its consolidated subsidiaries to support or enhance the subsidiary's stand-alone creditworthiness. At March 31, 2026, the maximum amount of future payment obligations relative to these various guarantees was $337.7 million and the outstanding liability under certain of those guarantees was $210.8 million.

9. Acquisitions

The Company spent $209.6 million in cash, net of cash acquired, to acquire LKC Technologies ("LKC") in January 2026. LKC is a leading provider of innovative technologies to enable the effective diagnosis and management of ophthalmic conditions. LKC is part of EIG.

The following table represents the allocation of the purchase price for the net assets of the LKC acquisition based on the estimated fair values at acquisition (in millions):




Property, plant and equipment	$	0.5
Goodwill	117.3
Other intangible assets	115.5
Deferred income taxes	(25.7)
Net working capital and other(1)	10.2
Total purchase price	$	217.8
Less: Acquisition date fair value of cash acquired	(8.2)

Total cash paid	$	209.6

________________

(1)Includes $1.3 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal.

The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the acquisitions. LKC's design and engineering capabilities complement the Company's existing ultra precision technologies business.

At March 31, 2026, the purchase price allocated to other intangible assets of $115.5 million consists of $21.0 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $94.5 million of other intangible assets consists of $73.5 million of customer relationships, which are being amortized over a period of 15 years, and $21.0 million of purchased technology, which is being amortized over a period of 15 years. Amortization expense for each of the next five years for the 2026 acquisition is expected to approximate $6 million per year.

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AMETEK, Inc.

Notes to Consolidated Financial Statements

March 31, 2026

(Unaudited)

The LKC acquisition had an immaterial impact on reported net sales, net income, and diluted earnings per share for the three months ended March 31, 2026. Had the acquisition been made at the beginning of 2026 or 2025, pro forma net sales, net income, and diluted earnings per share for the three months ended March 31, 2026 and 2025, would not have been materially different than the amounts reported.

The Company is in the process of finalizing the measurement of certain tangible assets and liabilities, including accounts receivable and inventory, as well as the associated income tax considerations, for its July 2025 acquisition of FARO Technologies. The Company is in the process of finalizing the measurement of the intangible assets and tangible assets and liabilities, as well as the associated income tax considerations, for its January 2026 acquisition of LKC.

In January 2025, the Company acquired Kern Microtechnik ("Kern"). The Kern acquisition included an $8.9 million estimated fair value contingent payment due upon Kern achieving certain cumulative revenue and EBITDA targets over the period January 1, 2025 to January 1, 2027. The contingent liability was based on a probabilistic approach using level 3 inputs. At March 31, 2026, there was no change to the estimated fair value of the contingent payment liability.

SEC Form 10-Q filed by AMETEK Inc.