Any references made on this call to historical results will be on an adjusted basis, excluding after-tax acquisition-related intangible amortization and excluding acquisition-related costs. AMETEK delivered outstanding results in the third quarter with double-digit growth in sales, orders, operating profit, and diluted earnings per share. Organic sales growth was strong in the quarter, leading to outstanding margin expansion and earnings well ahead of our expectations. Given these excellent results and our outlook for the remainder of the year, we are increasing our full-year earnings guidance.
Sales were a record $1.89 billion, an increase of 11% from the third quarter of 2024. Organic sales were up 4%, acquisitions added 6 points, and foreign currency translation was a 1 point benefit. Orders were also very strong in the quarter, with overall orders up 13% to a record $1.97 billion and organic orders up 7%, leading to a record backlog of $3.54 billion. Excluding the impact of recent acquisitions, margins were 27%, up 90 basis points versus the prior year.
EBITDA in the quarter was a record $592 million, up 11% versus the prior year, with EBITDA margins an outstanding 31.3%. This operating performance led to record earnings of $1.89 per diluted share, up 14% versus the third quarter of 2024. First, the Electronic Instruments Group (EIG) delivered outstanding operating performance in the third quarter with strong margin expansion and operating margin levels that reflect the differentiated nature of our products and solutions. EIG sales were a record $1.25 billion, up 10% from last year's third quarter.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year earnings | FY2025 | Increased / raised (Raised) |
| Q4 total sales growth | Q4 2025 | Approximately 10% |
| Effective tax rate | FY2025 | 18% to 18.5% |
| Capital expenditures | FY2025 | Approximately $150 million (about 2% of sales) |
| Depreciation and amortization | FY2025 | Approximately $425 million |
| Free cash flow conversion | FY2025 | Approximately 110% to 115% of net income |
| Incremental organic growth investment | FY2025 | $90 million |
| Aerospace & Defense sales growth | FY2025 | Up high single digits |
| Process segment sales growth | FY2025 | Up mid to high single digits; organic flat to down low single |
| Power and industrial organic sales growth | FY2025 | Up low to mid single digits (Raised) |
| Automation and engineered solutions organic growth | FY2025 | Mid single digits (maintained) (Maintained) |
| Metric | YoY | Note |
|---|---|---|
| Total sales | +11% | Organic sales up 4%, acquisitions added 6 points, and foreign currency a 1-point benefit. |
| EIG sales | +10% | Organic flat, acquisitions added 9 points, and foreign currency a 1-point tailwind. |
| EMG sales | +13% | Organic up 12% with broad-based growth across all EMG businesses, led by Paragon Medical as medical destocking ended. |
| EMG operating income | +25% | Sizable margin expansion to 25.4% (up 250 bps) from outstanding organic growth and ended destocking across EMG businesses. |
| Diluted EPS | +14% | Record $1.89 per share driven by strong organic growth, margin expansion, and double-digit earnings growth. |
| Europe sales | Up low double digits | Broad strength across Dunkermotoren, automation, Paragon, Materials Analysis, and aerospace businesses. |
| China sales | Down mid single digits | Tariff repricing negotiations and export issues delaying customer orders. |
| Effective tax rate | 17.2% vs 18.8% | Lower effective international tax rate for 2025. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Tariffs and trade dynamics | — | Pricing offset total inflation and tariffs with a positive spread; tariff repricing delaying China orders | Steady |
| M&A pipeline and capital deployment | — | Strong pipeline across deal sizes and end markets with significant balance sheet capacity; FARO, Virtek, Kern, Paragon integrating well | Rising |
| Paragon Medical turnaround | Source of concern from medical destocking | Led EMG with double-digit-plus orders; restructuring about half done; margins now in line with AMETEK, targeting 35%+ EBITDA | Rising |
| Process market recovery | Sluggish | Orders trending up across most markets and geographies except China; improving visibility, optimistic on 2026 | Rising |
| Data center power opportunity | Initial successes noted last quarter | IntelliPower UPS backlog north of $25 million plus ~$30 million pipeline; RTDS simulation traction with hyperscalers | Rising |
| Automation / EMG destocking end | Called bottom last quarter | High single-digit organic growth as destocking ended, led by discrete automation and German machine builders in Europe | Rising |