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 cost. AMETEK delivered an excellent first quarter, highlighted by double-digit sales growth, exceptional orders growth, robust core margin expansion, record EBITDA, and a high quality of earnings that exceeded our expectations. We also raised our full-year earnings guidance to reflect our first quarter results and the outlook for the balance of the year. Today, we also announced we signed a definitive agreement to acquire First Aviation Services, an attractive acquisition which strategically broadens our defense aftermarket capabilities.
Orders were outstanding in the quarter, with broad-based and meaningful growth across all AMETEK divisions. Overall orders were a record $2.2 billion, up 23% versus the prior year, and organic orders were up 22%, leading to a record backlog of $3.87 billion. Operating income in the quarter was $517 million, a 14% increase over the first quarter of 2025. Operating margins were 26.8% in the quarter, and core margins were an impressive 27.9%, up a robust 160 basis points versus the prior year.
EBITDA in the quarter was a record $620 million, up 11% versus the prior year, with EBITDA margins a strong 32.1%. Our excellent operating performance led to strong cash generation, with free cash flow to net income conversion of 107%. Diluted earnings per share were $1.97, up 13% versus the first quarter of 2025, and above our guidance range of $1.85-$1.90 per share. EIG had an excellent first quarter, with double-digit sales growth, strong operating performance, and a meaningful inflection in orders.
| Metric | Period | Current guidance |
|---|---|---|
| Process organic sales | FY2026 | Up low to mid single digits (Raised) |
| Aerospace & Defense growth | FY2026 | Approximately 10% (Raised) |
| Power organic sales | FY2026 | Up mid single digits (Maintained) |
| Automation & Engineered Solutions organic sales | FY2026 | Up mid single digits (Maintained) |
| Medical organic sales | FY2026 | Mid single digits |
| Core operating margin | FY2026 | Up around 50 basis points |
| Incremental margins | FY2026 | Approximately 35% |
| Effective tax rate | FY2026 | 18.5% to 19.5% (Maintained) |
| Capital expenditures | FY2026 | Approximately $160 million (about 2% of sales) (Maintained) |
| Depreciation & amortization | FY2026 | Approximately $430 million |
| Corporate G&A expense | FY2026 | Approximately 1.5% of sales (Maintained) |
| Free cash flow conversion | FY2026 | Approximately 110%-115% of net income (Maintained) |
| Metric | YoY | Note |
|---|---|---|
| Total sales | +11% | Organic sales up 5%, acquisitions added 5 points, with foreign currency a tailwind. |
| EIG (Electronic Instruments Group) sales | +11% | Organic sales up 2% and acquisitions added 7 points; organic orders up 25% with notable growth in defense, power, and semiconductor businesses. |
| EMG (Electromechanical Group) sales | +13% | Record $664 million on 11% organic growth plus a 2-point FX tailwind, with broad-based strength in automation, engineered solutions, and aerospace and defense. |
| EMG operating income | +33% | Strong sales growth plus excellent productivity drove a 410 basis point core margin increase to 26%. |
| Aerospace & Defense | High single digit growth | Broad-based strength with notable defense demand; about 60% defense and 40% commercial of the A&D portfolio. |
| Medical | Up low double digits | Led by strong performance at Paragon and Reichert; about 20% of total exposure. |
| Process | Up mid teens | Driven by acquisitions and low single-digit organic growth with broad-based orders growth. |
| Power | Low single digit growth | Record-level orders driven by power generation, backup power, data center microgrids, and power simulation systems demand. |
| Automation & Engineered Solutions | High single digit organic growth | Solid demand across niche markets in both automation/engineered solutions and the eMet business. |
| Geographic: Asia | Up low double digits | Driven by strong China, up high teens, led by process and power markets. |
| Geographic: U.S. | Up mid single digits | Very strong growth in A&D and materials analysis businesses. |
| Geographic: Europe | Up low single digits | Strength in power and automation, partly offset by modest Middle East headwinds. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Record orders and backlog | Signaled order inflection in prior calls | Record $2.2 billion orders up 23%, record $3.87 billion backlog, with March the all-time record month | Rising |
| EIG order inflection following EMG | Highlighted EIG would follow EMG by six to nine months | EIG orders inflected with organic orders up 25%, as anticipated | Rising |
| Defense demand | — | Broad-based strength across missile defense, UAVs, naval/submarine, nuclear, driven by budget modernization and geopolitical conflict | Rising |
| M&A capital deployment | Stated M&A would differentiate performance over coming years | First Aviation Services signed; over $5 billion deployment capacity; M&A is the top capital priority | Rising |
| Core margin expansion | — | Core margins up 160 bps with core incrementals greater than 50% company-wide | Rising |
| Macro and tariff/inflation caution | — | Prudent guidance amid geopolitical uncertainty; expects to offset inflation including tariffs with pricing | Steady |
| Commercial aviation aftermarket risk | — | Watching international aftermarket (under 2% of sales) for fuel-related weakness, seen first in Asia then Europe | Steady |