Aug 4, 2026 earnings call — Record quarter, strong orders, raised guidance
Second quarter sales were a record $2.04 billion, up 15% versus prior year.
Revenue $2.0B (est $2.0B) · EPS $2.09 (est $1.99)
Key quotes
"Overall orders were a record $2.3 billion, up 28% versus the prior year, with organic orders up sharply at 25%, leading to a record backlog of $4.11 billion."
"RTDS Technologies, a leader in real-time digital simulation of power system infrastructure and hardware-in-the-loop testing, recently received a key order from a data center hyperscaler to help derisk the power profile of a broader data center build-out."
"As Dave noted, we expect to deploy $5 billion on the acquisition of Indicor in the second half of the year."
Analyst Q&A 9
Which markets and regions grew
Q (Deane Dray · RBC): The analyst asked for details on end markets and regions, and whether growth is broadening beyond data center/AI into other industrial areas.
A: Process, Aerospace & Defense, Power, and Automation all showed strength. U.S. and Asia were strongest, Europe grew mid-single digits, and management said growth is broad-based across semiconductor, energy instrumentation, power grid build-out, and A&D.
"Overall sales for our Process businesses were up high teens, driven by contributions from recent acquisitions and excellent high single-digit organic sales growth." — David Zapico (CEO·CHAIR)
Backlog size and duration
Q (Matt Summerville · D.A. Davidson): He asked how the backlog is building, how long the backlog gives visibility compared to historical AMETEK, and then asked how much of the business ties to data center/AI and pricing power.
A: Backlog was $4.11 billion and book-to-bill was 1.12. Management said about 80% of the backlog will ship within the next 12 months, with the second half of the year filling nicely and some mid-/long-cycle business from recent acquisitions.
"Our backlog was now $4.11 billion, up about 21% from the end of the year." — David Zapico (CEO·CHAIR)
Order strength and July update
Q (Nicole DeBlase · Deutsche Bank): She asked whether the strong order results included large or lumpy orders and whether the strength looks sustainable into the second half; she also asked about July order activity and why guidance shows a decel in 3Q.
A: Orders were excellent: organic orders up 25% and book-to-bill 1.12, with June as the strongest month and July continuing to be very good. Management said there is some lumpiness but believes the order strength is durable due to multiyear infrastructure spend, and the H2 guide contains AMETEK prudence/conservatism.
"In terms of cadence, June was the strongest month for orders in the quarter in all time." — David Zapico (CEO·CHAIR)
Which markets accelerated most
Q (Daniel DiCicco · BMO): He asked which end markets showed the most acceleration in the quarter and whether any markets disappointed; he also asked for an update on internal AI pilot programs.
A: Semiconductor (especially in EIG) and MedTech (EMG, notably Paragon) were the standout accelerators; Aerospace and Power were also strong. On AI, AMETEK is using AI across functions to improve efficiency, accelerate growth, automate engineering/design, and enhance products like defect detection and predictive maintenance; deployment is decentralized with enterprise governance and a second wave of projects underway.
"If I had to point to a couple of markets, I'd point to the semiconductor market, especially in EIG." — David Zapico (CEO·CHAIR)
Margin drivers and Indicor deal
Q (Scott Graham · Seaport Research Partners): He asked what drove the 110 basis points of core margin expansion beyond organic growth, and then asked for an update on the Indicor acquisition and potential synergies.
A: Core margin expansion came from strong incrementals (~40%), productivity improvements (enterprise productivity target raised to $160 million), positive pricing offsetting inflation, and outsized EMG margin gains driven by Paragon's new products and leaner cost structure. On Indicor, integration planning and regulatory work are progressing, they see attractive high-quality businesses with recurring revenue and believe 10%–12% cost synergies are achievable.
"And EMG is benefiting from what I had talked about earlier in terms of Paragon with new products phasing in with leaned out cost structure." — David Zapico (CEO·CHAIR)
UAVs and life sciences demand
Q (Christopher Grenga · TD Cowen): He asked for more color on UAV program trends, which UAV sizes AMETEK is best suited for, and whether opportunities exist beyond unmanned aerial platforms; he also asked about life sciences/MedTech customer spending patterns.
A: AMETEK has won UAV programs supplying sensing, lightweight power distribution, and cooling, and management said the company is well positioned as UAVs grow and defense modernization continues. For life sciences, Automation businesses that build systems for life sciences are doing extremely well, and Paragon's MedTech strength reflects both market improvement and new program wins.
"And as this -- as the UAVs grow, we're well positioned to do well." — David Zapico (CEO·CHAIR)
Capacity, CapEx, and FARO update
Q (Andrew Obin · BofA): He asked current capacity utilization, how much of the CapEx guide is growth CapEx, and a follow-up about progress integrating FARO.
A: Management said about two-thirds of the planned CapEx is growth CapEx and that AMETEK is not at capacity limits given the IP-driven, low-fixed-asset nature of the business and recent plant additions. On FARO, integration is on plan, teams are working well, and management expects substantial margin upside over the next 6 to 12 months.
"I think the growth CapEx is probably about 2/3 of it." — David Zapico (CEO·CHAIR)
EMG orders and Automation role
Q (Christopher Glynn · Oppenheimer & Company): He asked to confirm the 35% organic orders for EMG and whether Automation or other areas contributed meaningfully; he also asked if U.S. and allied defense demand were comparable.
A: Automation contributed notably, with life sciences within Automation accelerating and being another big growth driver, though slightly lower than MedTech and Defense. Management said U.S. defense provides more input given its size, with notable increases from NATO allies off a smaller base, and tariff refunds did not impact margins.
"And it's what I mentioned, the life sciences part of our Automation business really accelerated." — David Zapico (CEO·CHAIR)
Power growth outlook and FARO impact
Q (Andrew Kaplowitz · Citi): He asked why mid-single-digit organic growth is the right guide for Power in 2026 and whether Power could grow faster; he also asked whether FARO improvement should help EIG/core margins.
A: Management said Power could grow faster and that orders momentum and a growing pipeline support a larger build-out of the power grid, with orders growth preceding sales growth. On FARO, the business will be included in core margins going forward after crossing the one-year ownership mark and management sees opportunity there.
"But it is -- the orders momentum and the growing pipeline are really in support of the growing build-out of the power grid." — David Zapico (CEO·CHAIR)