AMETEK surges on record earnings, raised 2026 guidance
Electronics instruments maker beats EPS by 14% and revenue by 10% as backlog reaches record levels
AMETEK shares rallied after the precision instruments manufacturer reported fourth-quarter earnings that shattered analyst expectations and raised its outlook for 2026, underscoring robust demand across its aerospace and industrial end markets.
The Pennsylvania-based company reported adjusted earnings per share of $2.01 for the quarter, handily beating the consensus estimate of $1.76 by 14.3%. Revenue reached $2 billion, exceeding Wall Street projections of $1.81 billion by 10.2%. The performance capped what the company described as a record year across all financial metrics.
"We delivered record fourth quarter and full year results with strong organic growth and margin expansion, while successfully deploying capital through strategic acquisitions and returning cash to shareholders," AMETEK's chief executive officer said in a statement accompanying the results. The company highlighted a record backlog and improving end market dynamics as key drivers for continued growth.
The operational performance extended beyond headline figures. Free cash flow conversion reached an impressive 132%, while operating margins in the Electronic Instruments Group expanded by 240 basis points. The company also completed the acquisition of LKC Technologies during the quarter, bolstering its diagnostics and vision measurement capabilities.
Looking ahead, AMETEK raised its 2026 guidance to adjusted earnings per share of $7.87 to $8.07, representing year-over-year growth of 6 to 9%. Sales are projected to increase in the mid-to-high single digit range, with management citing continued strength across its diversified portfolio.
The strong results come as AMETEK, which operates more than 220 manufacturing facilities worldwide, has positioned itself as a leader in electronic instruments and electromechanical devices serving aerospace, power generation, and industrial applications. The company's strategic focus on operational excellence and an aggressive acquisition strategy have helped drive consistent growth in an evolving manufacturing landscape.
Shares of AMETEK have been trading near their 52-week high of $227.79, reflecting investor confidence in the company's execution. The stock carries a market capitalization of $51.7 billion and trades at a price-to-earnings ratio of 35.7 times trailing earnings, with analysts maintaining a broadly positive outlook. The consensus price target of $232.41 suggests modest upside from current levels, with 12 analysts rating the stock a buy or strong buy compared to six recommending hold.
The earnings beat and guidance increase place AMETEK among the standout performers in the industrial machinery sector, which has faced mixed demand conditions amid broader economic uncertainty. The company's ability to deliver double-digit revenue growth while expanding margins demonstrates pricing power and operational efficiency that peers have struggled to replicate.
Investors will be watching whether the record backlog translates into sustained momentum through 2026, particularly as the company integrates the LKC Technologies acquisition and continues to pursue strategic bolt-on deals. The mid-to-high single digit sales growth outlook suggests management remains cautious about the macroeconomic environment despite the current strength in order books.