stockrowWhat it does
AMETEK makes electronic instruments and electromechanical devices used to measure, control, power or move equipment. It traces its founding to 1930 and is headquartered in Berwyn, Pennsylvania. David A. Zapico is chairman and chief executive officer.
The company serves customers in aerospace and defense, medical equipment, manufacturing, power and other industrial markets. Its products can be components inside a larger machine or instruments used to monitor a process, test materials or inspect a manufactured part. AMETEK also provides aviation maintenance, repair and overhaul services.
The business has two operating groups. Electronic Instruments Group, or EIG, makes analytical, test and measurement instruments, including sensors and systems for aircraft, power networks and industrial processes. Electromechanical Group, or EMG, makes products such as precision motion controls, medical components, heat exchangers, specialty metals and electrical connectors.
For example, EIG supplies instruments that measure radiation or inspect components with optical technology. EMG supplies motion-control products for automation equipment and single-use surgical instruments. Its thermal-management products help cool electronics or control environmental conditions in aerospace and semiconductor applications.
AMETEK operates across North America, Europe, Asia and South America. It develops products within its businesses and adds capabilities through acquisitions, including purchases of measurement and imaging companies and, more recently, industrial technology businesses.
How it makes money
AMETEK earns revenue by selling instruments, components and systems through its two operating groups, as well as by providing services such as aviation maintenance, repair and overhaul. Many products are designed for particular technical applications, including aircraft, medical equipment, industrial processes and power systems.
EIG sells instruments for measuring, analyzing and testing materials and processes. Its products include emissions monitors, sensors, precision manufacturing systems and metrology equipment. It also sells aircraft sensors and monitoring systems, power-monitoring instruments and uninterruptible power supplies. Some aerospace products are designed to customer specifications, and AMETEK supplies spare parts, repairs and overhaul services.
EMG sells precision motion-control products, medical components and devices, heat exchangers, electrical interconnects and specialty metals. Its medical products include single-use surgical instruments, implantable components and drug-delivery systems. Its aviation service network performs maintenance, repair and overhaul for commercial and military customers.
AMETEK says its specialized products and niche market positions help it offset inflation through pricing. In Q3 2026, the company said its inflation rate was about 3% and that pricing exceeded it. Recurring activity includes spare parts, repairs, overhaul and consumable medical products. Before the Indicor acquisition closed, AMETEK said 50% of Indicor’s revenue was recurring.
Net sales were $7,401.1 million in 2025 and $2.22 billion in Q3 2026. In the latter quarter, organic sales rose 10%, while acquisitions added seven points to growth.
Customers and how it sells
AMETEK sells to manufacturers and operators in markets including commercial and military aerospace, medical equipment, semiconductor manufacturing, power generation, research and industrial automation. Its aerospace customers include aircraft and jet-engine manufacturers and aerospace system integrators. Other customers use its instruments to monitor industrial processes or inspect and measure materials and components.
Neither operating group depends on a single customer whose loss would materially harm its operations. Approximately 4% of EIG’s 2025 net sales went to its five largest customers, and no single customer accounted for more than 2% of its net sales. Approximately 15% of EMG’s 2025 net sales went to its five largest customers, with no single customer accounting for greater than 5% of its net sales.
Marketing is generally organized at the business level. EIG uses specialized distributors and sales representatives alongside direct sales staff for technically sophisticated products. Aerospace manufacturers are served primarily by direct sales engineers. EMG also uses a direct sales force, with some representatives and distributors.
International sales were $3,570.5 million, or 48.2% of net sales, in 2025. Europe was AMETEK’s largest overseas market. The company also has operations in North America, Asia and South America, and has expanded sales, service and engineering capabilities internationally.
Suppliers and costs
AMETEK obtains raw materials and supplies from a variety of sources, generally using more than one supplier. For EMG, however, some base metals and steel components are available from only a limited number of suppliers. The company considers its raw-material sources and supplies adequate for its needs.
Its manufacturing footprint includes facilities in China, Czechia, Malaysia, Mexico and Serbia. AMETEK uses global sourcing, lean manufacturing and product-design methods to improve efficiency. It also consolidates operations, product lines and distribution channels after acquisitions where it can obtain operating synergies.
Cost of sales was $4,733.7 million, or 64.0% of net sales, in 2025. Selling, general and administrative expenses were $757.1 million, or 10.2% of net sales. Research, development and engineering costs were $382.8 million in 2025. AMETEK uses that spending to develop new products and improve existing ones.
The company has also adjusted pricing and supply chains in response to tariffs, including localizing production through its manufacturing network. It said pricing exceeded inflation in Q3 2026.
- Revenue$7.4B
- Cost of revenue−$4.7B
- Selling, general and administrative−$757.1M
- Operating income$1.9B
Competitive position
AMETEK’s markets are competitive on technology, performance, quality, service and price. In process and analytical instruments, numerous companies compete in each market. EMG also faces competition from alternative materials and processes.
It was reported on 7 October 2026 that Allient competes in the same market as AMETEK and that Parker-Hannifin also competes in that space. The available description does not identify a specific product overlap for either company.
AMETEK says it has strong market positions in a number of specialized markets. It invests in research, development and engineering and designs some aerospace products to customer specifications. The company also says its products are often designed into critical applications, creating switching costs. Its aerospace business has long-standing relationships with aircraft and engine manufacturers and system integrators.
Our reading: Specialized engineering and products designed into customer applications provide a meaningful potential competitive advantage, although its strength can vary by product and market. Our reading: Aerospace relationships and service capabilities support that position, but competitors also contest performance, innovation and price. Our reading: Patents appear less central to the company’s protection because AMETEK does not consider any patent or trademark, or group of them, essential to either segment or the business as a whole.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Allient | Shared market; specific product overlap not identified | Low |
| Parker-Hannifin | Shared market; specific product overlap not identified | Low |
Growth opportunities
AMETEK’s growth model combines operational improvements, acquisitions, expansion into markets and geographies, and new product development. The company’s goal over the business cycle is high single digit annual percentage sales growth and double digit annual percentage earnings-per-share growth, alongside cash generation and returns on capital.
From the beginning of 2021 through December 31, 2025, AMETEK completed 15 acquisitions with approximately $1.8 billion in annualized sales. In 2025, it acquired Kern Microtechnik, which makes precision machining and optical inspection products, and FARO Technologies, which provides measurement and imaging products. AMETEK completed its acquisition of Indicor in Q3 2026 and is integrating its businesses into different parts of the company.
New products are another growth route. AMETEK spent $382.8 million on research, development and engineering in 2025, and approximately 27% of that year’s sales came from products introduced in the past three years. The company has also expanded sales, service and engineering internationally.
In Q3 2026, AMETEK reported organic orders growth of 17%. It linked power orders growth to investment in power grids and data-center infrastructure. For 2026, the company expects overall sales to rise by a mid-teens percentage and organic sales to rise by high single digits compared with 2025.
- $5.5BFY2021
- $6.2BFY2022
- $6.6BFY2023
- $6.9BFY2024
- $7.4BFY2025
Structural risks
- Market cycles: Growth could suffer if AMETEK’s end markets decline, grow more slowly than anticipated or experience cyclicality. A general economic downturn could also adversely affect the business.
- Acquisition execution: AMETEK must find acceptable acquisition candidates, obtain financing on acceptable terms and integrate acquired management, technology, operations and controls. It may also assume contingent or unknown liabilities or lose key employees, customers or suppliers.
- International and trade exposure: Tariffs, trade barriers, foreign-exchange restrictions, regulatory changes and political instability can affect operations. Currency fluctuations may adversely affect financial statements. AMETEK says evolving tariffs could affect demand, costs, customers and suppliers.
- Supplies: Certain EMG base metals and steel components are available from a limited number of suppliers. AMETEK’s businesses also face potential tariff effects on their supply chains.
- Environmental liabilities: Operations use and dispose of hazardous substances and waste. Cleanup obligations, previously unknown contamination or new regulatory requirements could increase costs or liabilities.
- Acquired assets and debt: Goodwill and other indefinite-lived intangible assets were $8,274.1 million, or 51.5% of total assets, at December 31, 2025; future impairment is possible. Total debt rose to $6.7 billion at the end of Q3 2026, due to the Indicor acquisition.
Bottom line
Our reading
AMETEK is a collection of specialized instrument, component and service businesses whose products serve industrial, medical and aerospace applications. Its engineering capabilities and customer relationships support its market positions, while acquisitions and new products are central to growth. The trade-offs include cyclical end markets, integration demands and higher debt following Indicor; the durability of its advantages depends on execution across many individual businesses.