AMETEK Achieves Record-Breaking First Quarter Sales of $1.74 Billion, Marking a 9% Surge Over Q1 2023 In the initial quarter of 2024, AMETEK witnessed remarkable financial performance, with sales reaching an unprecedented $1.74 billion, reflecting a substantial 9% increase compared to the same period last year. On a GAAP basis, the company reported first quarter earnings per diluted share at $1.34. However, adjusted earnings stood higher at $1.64 per diluted share, marking a commendable 10% rise from Q1 2023. This adjusted figure factors in the exclusion of non-cash, after-tax, acquisition-related intangible amortization of $0.21 per diluted share, along with the exclusion of a pre-tax charge of $29.2 million (equivalent to $0.10 per diluted share) for integration costs associated with the Paragon Medical acquisition.
GAAP operating income for the quarter amounted to $417.2 million, representing 24.0% of sales. Excluding the Paragon Medical charge, adjusted operating income soared to a record $446.4 million, marking a 10% increase from the previous year’s first quarter. Adjusted operating margins stood at 25.7%, up by 30 basis points compared to Q1 2023. A detailed reconciliation of reported GAAP results to adjusted results is available in the financial tables accompanying this release and on the AMETEK website.
David A. Zapico, Chairman and Chief Executive Officer of AMETEK, expressed satisfaction with the company’s performance in the first quarter, emphasizing the outstanding operating results that led to record adjusted operating income, significant core margin expansion of 180 basis points, and double-digit growth in adjusted earnings per share. He also highlighted the strong cash flow generated during the period, with operating cash flow amounting to $410 million and free cash flow conversion reaching 123%.
Electronic Instruments Group (EIG) reported sales of $1.16 billion in Q1, marking a 4% increase from the corresponding quarter in 2023. EIG’s operating income surged by 14% to $352.9 million, achieving operating income margins of a record 30.5%, which represents a notable increase of 280 basis points compared to Q1 2023.
Mr. Zapico praised EIG’s strong performance, attributing it to solid sales growth and exceptional operating results that facilitated significant margin expansion.
Electromechanical Group (EMG) achieved record sales of $579.4 million in the first quarter, representing a remarkable 21% increase from Q1 2023. On a GAAP basis, EMG reported first quarter operating income at $90.7 million, equivalent to 15.7% of sales. Excluding the costs associated with Paragon integration and the dilutive impact from recent acquisitions, core operating margins for EMG stood at 24.1% during the quarter.
Despite challenges stemming from the normalization of inventory levels across a portion of the customer base, Mr. Zapico commended EMG’s solid performance in the first quarter, expressing confidence in the businesses’ ability to navigate short-term impacts and positioning them for robust growth in the latter half of 2024.
Looking ahead to 2024, Mr. Zapico reiterated AMETEK’s optimistic outlook, anticipating low double-digit sales growth compared to 2023 and adjusted earnings per diluted share in the range of $6.74 to $6.86, reflecting a 6% to 8% increase over 2023. This revised guidance surpasses the previous range of $6.70 to $6.85.
For the second quarter of 2024, AMETEK anticipates mid to high single-digit sales growth on a percentage basis compared to the same period last year. Adjusted earnings for the quarter are expected to be in the range of $1.63 to $1.65 per share, marking a 4% to 5% increase compared to Q2 2023.
AMETEK will host its first quarter 2024 investor conference call on Thursday, May 2, 2024, commencing at 8:30 AM ET. The live audio webcast will be accessible and later archived in the Investors section of www.ametek.com.
The forward-looking statements in this news release regarding AMETEK’s anticipated business and financial performance are subject to various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors include risks related to acquisitions, international sales and operations, product development, government regulations, competition, liquidity, financing, and general economic conditions. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.
