Q2 2025 AMETEK Inc Earnings Call
Tawanda: Hello, and welcome to AMETEK's second quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to turn the conference over to Kevin Coleman, Vice President of Investor Relations and Treasurer. Sir, you may begin.
Hello and welcome to ametek. Second quarter, 20125 earnings conference call.
At this time, all participants are in a listen-only mode.
After the speaker's presentation, there will be a question and answer session.
To ask the question during the session, you would need to press star 1 1 on your telephone.
You would then hear an automated message. Advising. Your hand is raised.
To withdraw your question please press start on 1 again.
I will now like to turn the conference over to Kevin Coleman, vice president of investor relations and Treasurer. Sir, you may begin
Kevin Coleman: Thank you, Tawanda. Good morning, and welcome to AMETEK's second quarter 2025 earnings conference call. Joining me today are David Zapico, Chairman and Chief Executive Officer, and Dalip Puri, Executive Vice President and Chief Financial Officer. During the course of today's call, we will be making forward-looking statements, which are subject to change based on various risk factors and uncertainties that may cause actual results to differ significantly from expectations. A detailed discussion of the risk and uncertainties that may affect our future results is contained in AMETEK's filings with the SEC. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.
Thank you to Wanda, good morning, and welcome to amatex second quarter 2025 earnings conference call.
Joining me today are Dave, zapico chairman and chief executive officer and dollop, puree, Executive Vice, President and Chief Financial Officer.
During the course of today's call. We will be making forward-looking statements, which are subject to change based on various risk factors and uncertainties, that may cause actual results to differ significantly from expectations.
A detailed discussion of the risks and uncertainties that may affect our future results is contained in AMETEK filings with the SEC.
Kevin Coleman: Any references made on this call, the 2024 or 2025 results will be on an adjusted basis, excluding after-tax acquisition-related intangible amortization and excluding the pre-tax $29.2 million or 10 cents per looted share charge in the first quarter of 2024 for integration costs related to the Paragon Medical Acquisition. Reconciliations between GAAP and adjusted measures can be found in our press release and on the investor section of our website. We'll begin today's call with prepared remarks, and then we'll open it up for your questions. I'll now turn the meeting over to Dave.
Amotec disclaims any intention or obligation to update or revise any forward-looking statements?
Any references made on this call to 2024 or 2025 results will be in an adjusted basis?
Excluding after tax acquisition related intangible amortization.
And excluding a pre-tax $29.2 million for 10 cents polluted.
Share charge in the first quarter of 2024 for integration costs related to the Paragon. Medical acquisition, reconciliations between gaap and adjusted measures can be found in our press release and on the investor section of our website.
We'll begin today's call with prepared remarks, and then we'll open it up for your questions. I'll now turn the meeting over to Dave.
David Zapico: Thank you, Kevin, and good morning, everyone. AMETEK delivered strong second quarter results highlighted by record-level sales and EBITDA, strong core margin expansion, and excellent earnings growth. We also raised our full-year sales and earnings guidance to reflect our second quarter results and the recent acquisition of Pharaoh Technologies. The addition of Pharaoh Technologies nicely complements our existing metrology and precision measurement businesses. Our ability to deliver strong operating performance is notable given the challenging macro environment and is a testament to the quality of our differentiated businesses, the strength of our operating capabilities, and the contribution from all AMETEK colleagues. Now, let me turn to our second quarter financial results. Sales were a record $1.78 billion, an increase of 2.5% from the second quarter of 2024. Organic sales were flat, acquisitions added one and a half points, and foreign currency translation was a one-point benefit.
Thank you, Kevin and good morning everyone.
Ametek delivered strong second quarter results.
Highlighted by record level sales and ibida.
Encore margin expansion and excellent earnings growth.
We also raised our foyer sales and earnings guidance to reflect our second quarter results and the recent acquisition of Faro Technologies.
The addition of Faro Technologies nicely complements our existing Metrology and precision measurement businesses.
Our ability to deliver strong operating performance is notable given the challenging macro environment and is a testament to the quality of our differentiated businesses, the strength of our operating capabilities, and the contributions from all AMETEK colleagues.
Now, let me turn to our second quarter financial results.
Sales were a record 1.78 billion, an increase of 2.5% from the second quarter of 2024.
Organic sales were flat Acquisitions, added 1 and a half points and foreign currency translation was a 1-point benefit.
David Zapico: Book-to-bill in the quarter was 1.00, and we ended the second quarter with a backlog of $3.47 billion, near record levels. Our operating performance in the quarter was excellent, leading to strong margin expansion and earnings growth. Operating income in the quarter was $462 million, a 3% increase over the second quarter of 2024. Operating margins were 26% in the quarter, up 20 basis points from the prior year. Core margins, excluding the dilutive impact from acquisitions and the impact of foreign currency, were very strong at 26.7%, up 90 basis points versus the prior year. EBITDA in the quarter was a record $565 million, up 4% versus the prior year, with EBITDA margins an impressive 31.8%. This operating performance led to earnings of $1.78 per diluted share, up 7% versus the second quarter of 2024. Now, let me provide some additional details at the operating group level.
Book to bill in the quarter was 1.00 and we ended the second quarter with the backlog of 3.47 billion Dollars near record levels.
Performance in the quarter was excellent. We needed a strong margin expansion and earnings growth.
Operating income in the quarter was 462 million, a 3%, increase over the second quarter of 2024.
Operating margins were 26% for the quarter, up 20 basis points from the prior year.
Core margins, excluding the dilutive impact from Acquisitions in the impact of foreign currency were very strong at 26.7% up, 90 basis points versus the prior year.
Even on the quarter was a record, 565 million up 4% versus the prior year with IBA margins and impressive 31.8%.
This operating performance that the earnings of a $1.78 per diluted share up 7% versus the second quarter of 2024.
Now, let me provide some additional details at the operating group level.
David Zapico: First, the Electronic Instruments Group. The Electronic Instruments Group delivered solid operating performance in the second quarter. EIG sales were $1.16 billion, up 1% from last year's second quarter. Organic sales were down 3%, acquisitions added two points, and foreign currency was a one-point tailwind. EIG operating income was $344 million, and operating margins were 29.7%, with core margins a very strong 30.7%, up 40 basis points versus the prior year. The Electromechanical Group had an excellent quarter with strong sales and orders growth, record operating income, and sizable margin expansion in the quarter. EMG's second quarter sales were a record $618 million, up 6% from the prior year. Organic sales were up 5%, and foreign currency was a one-point tailwind. Additionally, orders were again strong in the quarter with notable order strength within our Paragon and automation businesses.
First, the electronic instruments group.
The electronic instrument group delivered, solid operating performance in the second quarter.
EIG sales were 1.16 billion up 1% from last year's. Second quarter,
Organic sales were down 3%.
Acquisitions. Added 2 points and foreign currency was a 1-point Tailwind.
EIG, operating income was 344 million and operating margins were 29.7% with core margins. A very strong 30.7% up. 40 basis points versus the prior year.
Yeah. After mechanical roof had an excellent quarter with strong sales and orders growth record, operating income and sizable margin expansion in the quarter.
EMG second quarter sales were a record $618 million, up 6% from the prior year.
Organic sales were up 5% in foreign currency was a 1.10.
Additionally, orders were again strong in the quarter with notable order strength within our Paragon and automation businesses.
David Zapico: EMG's operating income in the second quarter was a record $144 million, up 17% compared to the prior year. EMG's operating margins were 23.3%, up 210 basis points from the second quarter of 2024, with core margins up an impressive 260 basis points. Our businesses continue to execute well, delivering strong operating results against the backdrop of a challenging macro environment. Our business model allows us to react quickly to changing economic conditions while ensuring we remain focused on delivering long-term sustainable growth. We're committed to making strategic growth of these investments across our businesses to help support and accelerate progress. For all of 2025, we continue to expect to invest an incremental $85 million in strategic growth initiatives across the company, with these investments focused on research, development, and engineering, and sales and marketing.
EMG is operating income in the second quarter was a record 144 million up, 17% compared to the prior year.
The EMG is operating margins. Were 23.3% up, 210 basis points from the second quarter of 2024 with core margins up and impressive 260 basis points.
Our businesses continue to execute well delivering strong operating results against the backdrop of a challenging macro environment.
Our business model allows us to react quickly to changing economic conditions. While ensuring, we remain focused on delivering long-term sustainable growth.
We are committed to making strategic growth of this Investments across our businesses to help support and accelerate progress.
For all the 2025, we continue to expect to invest in incremental, 85 million in strategic growth initiatives across the company.
With these Investments focused on Research development and engineering and sales and marketing.
David Zapico: These efforts and our commitment to innovation ensure a steady stream of new products that support our customers' critical applications and position us for continued success. Our Vitality Index, which was 26% in the quarter, continues to reflect the success of our technology innovation strategy. I want to take a moment to highlight a recent new product introduction from our Spectro Analytical Instruments business. Spectro Analytical Instruments is a leading global provider of advanced instrumentation solutions for highly precise and accurate elemental analysis. This new product, the Spectro Green MS, is their latest solution designed for high-performance elemental analysis. It addresses a key challenge in environmental and pharmaceutical laboratories by simplifying the process of analyzing complex samples for trace elements.
These efforts and our commitment to Innovation. Ensure a steady stream of new products that support our customers critical applications and position us for continued success.
Our Vitality index which was 26% in the quarter continues to reflect the success of our Technology Innovation strategy.
I want to take a moment to highlight a recent, new product introduction from our spectro analytical instruments business.
Precise and accurate Elemental analysis.
This new product, the spectro green Ms. Is their latest solution designed for high performance Elemental analysis?
IT addresses, a key challenge in environmental and pharmaceutical Laboratories by simplifying. The process of analyzing complex samples for Trace elements.
David Zapico: The new product incorporates several innovations that improve workflow and efficiency, including its ability to analyze both high concentration and trace elements in a single measurement, significantly reducing analysis time for busy labs. With this new product launch, Spectro Analytical continues to advance its technology leadership and provide customers with greater speed, accuracy, and ease of use for their critical applications. This is just one of the many innovative new product introductions across our business. Now, switching to capital deployment. As noted, we acquired Pharaoh Technologies subsequent to the end of the second quarter for approximately $920 million. Pharaoh is a leading provider of advanced 3D metrology and digital reality solutions.
The new product incorporates several innovations that improve workflow and efficiency including its ability to analyze. Both High concentration and Trace elements in a single measurement significantly reducing analysis time for busy lapse.
With this new product, launch Spectrum, analytical continues to advance as technology leadership and provide customers with greater speed, accuracy and ease of use for their critical applications.
This is just 1 of the many Innovative new product, introductions across our business.
Now switching to Capital deployment.
As noted, we acquired Faro, Technologies subsequent to the end of the second quarter for approximately 920 million.
David Zapico: Their technology solutions, which include measurement arms, laser scanners, and integrated software platforms, enable customers in end markets, including aerospace and defense, public safety, and architecture and engineering, to precisely measure and visualize physical environments for a wide range of critical applications. Pharaoh's product suite nicely complements our existing metrology and precision imaging capabilities, particularly within our Creaform business, providing the most comprehensive portfolio of automated 3D metrology, laser projection, and digital reality solutions. This acquisition provides AMETEK with a significant presence in the fast-growing digital reality market and has a strong recurring revenue profile through its service and cloud-based subscriptions. We see significant potential to expand operating margins through integration into AMETEK's global infrastructure and operating model. Pharaoh has annual sales of approximately $340 million. We're very pleased to welcome the Pharaoh team to AMETEK and excited for the future.
Pharaoh is a leading provider of advanced 3D Metrology and digital reality Solutions.
Their Technology Solutions which include measurement arms laser scanners and integrated software platforms. Enable customers and end markets, including Aerospace and Defence Public Safety and architecture and engineering to precisely measure and visualize physical environments for a wide range of critical applications.
Pharaoh's product Suite, nicely complements our existing Metrology and precision, Imaging capabilities.
Particularly within our creative form business. Providing the most comprehensive portfolio of automated 3D Metrology, laser projection and digital reality Solutions.
This acquisition provides ametek with a significant presence in the fast growing digital reality market and has a strong recurring Revenue profile.
Through his service and cloud-based subscriptions.
we see significant potential to expand operating margins through integration into amitex Global infrastructure and operating model
Pharaoh has annual sales of approximately $340 million.
For a very pleased to welcome the Pharaoh team to amitech and excited for the future.
David Zapico: Strategic acquisitions are a core component of the AMETEK growth model, and we are committed to deploying our strong cash flow to expand our portfolio in highly attractive market segments. Looking ahead, our acquisition pipeline remains robust, and Dalip will detail we have a very strong and flexible balance sheet. We anticipate remaining active in this area. Finally, a comment on the global trade landscape. While the situation remains fluid, our businesses have been proactive in addressing the potential impacts of tariffs. As we highlighted last quarter, we have well-defined mitigation plans that are being executed across the organization. These actions are multifaceted and include targeted pricing initiatives, strategic adjustments to our global supply chains, and leveraging our worldwide manufacturing footprint to localize production. Our teams are also identifying opportunities to utilize our US manufacturing presence to support global customers looking to localize or re-shore their supply chains.
Strategic Acquisitions are a core component of the amitech growth model and we are committed to deploying our strong cash flow to expand our portfolio and highly attractive market segments.
Looking ahead, our acquisition pipeline remains robust and dop will detail. We have a very strong and flexible balance sheet. We anticipate remaining active in this area.
Finally, a comment on the global trade landscape.
As we highlight the last quarter, we have well to find mitigation plans that are being executed across the organization.
These actions are multifaceted and include targeted pricing initiatives.
Strategic adjustments to our Global Supply, chains and leveraging, our worldwide manufacturing footprint to localized production.
Our teams are also identifying opportunities to utilize our us manufacturing presence to support Global customers looking to localize or reassure their supply chains.
David Zapico: AMETEK's diversification across end markets and geographies limits our dependence on any single region, and our decentralized structure allows for the flexibility needed to implement these mitigation actions quickly and effectively. We have a proven playbook for navigating through these uncertain environments, and we are making outstanding progress. Our focus remains on supporting our customers, delivering strong results, and utilizing our strong financial position to invest in our long-term growth initiatives and strategic acquisitions. Now, turning to our outlook for the remainder of the year. Given our results in the second quarter and the closing of Pharaoh Technologies, we now expect full-year sales to be up mid-single digits on a percentage basis compared to 2024. Diluted earnings per share for the year are now expected to be in the range of $7.06 to $7.20, up 3 to 5% versus the prior year.
Emitex diversification across land markets and geographies limits, our dependence on any single region and our decentralized structure allows for the flexibility need to implement these mitigation actions quickly and effectively.
We have a proven playbook for navigating through these uncertain environments and we are making outstanding progress.
Our Focus remains on supporting our customers.
Delivering strong results and utilizing our strong financial position to invest in our long-term growth initiatives and strategic acquisitions.
Now, turning to our outlook for the remainder of the year.
Given our results in the second quarter and the closing of Faro Technologies.
We now expect fully your sales to be up mid single digits on a percentage basis compared to 2024.
David Zapico: This is an increase from our previous guidance range of $7.02 to $7.18 per diluted share. For the third quarter, we anticipate overall sales to be up mid-single digits with earnings in the range of $1.72 to $1.76 per share, up 4 to 6% versus the prior year. Our full-year and third quarter guidance incorporates the expected contributions from the Pharaoh acquisition. In summary, AMETEK delivered strong second quarter results. Our businesses are well positioned with differentiated technology solutions serving a diverse set of growing niche markets. We have a durable operating model and an ability to react quickly to changing market dynamics. Our strong cash flows provide us with the opportunity to deploy meaningful capital on strategic acquisitions. AMETEK remains firmly positioned to deliver long-term sustainable growth and strong returns for our shareholders.
Diluted earnings per share for the year are now expected to be in the range of $7.66 to $7.20 Up 3 to 5% versus the prior year.
This is an increase from our previous guidance range of $7.02 to $7.18 per diluted share.
6 per share up 4 to 6% versus the prior year.
our full year in third, quarter guidance incorporates, the expected contributions from the Pharaoh acquisition
in summary, amitech delivered, strong second quarter results. Our businesses are well positioned with differentiated Technology Solutions, serving a diverse set of growing Niche markets,
We have a durable operating model and an ability to react quickly to changing market dynamics.
Our strong cash flows, provide us with the opportunity to, to deploy, meaningful capital on strategic acquisitions.
AMETEK remains firmly positioned to deliver long-term sustainable growth and strong returns for our shareholders.
David Zapico: I will now turn it over to Dalip Puri, who will cover some of the financial details of the quarter. Then we'll be glad to take your questions. Dalip.
I will now turn it over to dalip Puri, who will cover some of the financial details of the quarter.
Kevin Coleman: Thank you, Dave, and good morning, everyone. As Dave noted, AMETEK had a solid second quarter highlighted by excellent operating performance, robust core margin expansion, and strong earnings growth. Now, let me provide some additional financial highlights for the second quarter. Second quarter general and administrative expenses were $27 million, or 1.5% of sales, in line with last year's second quarter. Second quarter interest expense was $17 million. Second quarter other expense was higher by approximately $3 million versus the prior period due to lower pension income and foreign exchange movements. The effective tax rate in the quarter was 19%, in line with the second quarter of 2024. For 2025, we now anticipate our effective tax rate to be between 19 and 19.5%. As we have stated in the past, actual quarterly tax rates can differ dramatically, either positively or negatively, from this full-year estimated rate.
Then we'll be glad to take your questions. That help. Thank you Dave and good morning. Everyone as Dave noted, I'm a tech had a solid second quarter highlighted by excellent operating performance, robust core margin expansion and strong earnings growth
Now, let me provide some additional financial highlights for the second quarter.
Second quarter. General administrative. Expenses, were 27 million or 1.5% of sales in line with last year's. Second quarter.
Second quarter, interest, expense was 17 million.
In the second quarter, other expenses were higher by approximately $1 million versus the prior period due to lower pension income and foreign exchange movement.
The effective tax rate in the quarter was 19%, in line with the second quarter of 2024.
For 2025. We now anticipate our effective tax rate to be between 19 and 19 and a half percent.
Kevin Coleman: The recently enacted tax reconciliation bill aligns well with our US-based manufacturing footprint and innovation-led growth model. While we are continuing to assess the full implications, we expect it to favorably impact our cash tax position. Capital expenditures in the second quarter were $29 million, and we now expect capital expenditures to be approximately $160 million for the full year, or about 2% of sales. Depreciation and amortization expense in the quarter was $108 million. For the full year, we expect depreciation and amortization to be approximately $425 million, including after-tax acquisition-related intangible amortization of approximately $210 million, or 91 cents per diluted share. Operating working capital in the second quarter was 18.6% of sales, in line with the second quarter of 2024. Operating cash flow was $359 million in the quarter, and free cash flow was $330 million. Year-to-date free cash flow conversion was 102% of net income.
As we have stated in the past actual quarterly, tax rates can differ dramatically either positively or negatively from this full year estimated rate
The recently, enacted tax reconciliation, Bill aligns, well with our us-based manufacturing footprint and innovation-led growth model.
While we are continuing to assess the full implications, we expect it to favorably impact our cash tax position.
Capital expenditures in the second quarter were 29 million. And we, now expect Capital expenditures to be approximately 160 million for the full year or about 2% of sales.
Depreciation and amortization expense. In the quarter was 108 million.
for the full year, we expect appreciation and amortization to be approximately 425 million including after tax acquisition related intangible amortization of approximately 210 million or 91 cents per diluted share,
Operating working capital in the second quarter was 18.6% of sales in line with the second quarter of 2024.
Operating cash flow was 359 million in the quarter and free cash flow was 330 million.
Kevin Coleman: For 2025, we continue to expect strong free cash flow conversion of approximately 115% of net income. Total debt at June 30th was $1.9 billion, down from $2.1 billion at the end of 2024. Offsetting this debt was cash and cash equivalents of $620 million. At the end of the second quarter, our gross debt to EBITDA ratio was 0.85, and our net debt to EBITDA ratio was 0.6. Pro forma for the acquisition of Pharaoh, our gross debt to EBITDA ratio increases modestly from 0.85 to 1.25. With respect to our recent acquisition of Pharaoh, we will be excluding any one-time acquisition-related costs and restructuring charges from adjusted cash EPS starting in the third quarter. This approach will also be consistently applied to all future acquisitions, ensuring comparability and clarity in our non-GAAP financial reporting.
Year-to-date free cash flow conversion was 102% of net income.
For 2025, we continue to expect strong free, cash flow conversion of approximately 115% of net income.
Total debt at June 30th was 1.9 billion down from 2.1 billion at the end of 20.
Offsetting, this debt was cash and cash equivalents of 620 million.
at the end of the second quarter, our gross debt to ebitda ratio was 0.85,
And our net debt to i-bidder ratio was 0.6.
Pro-forma for the acquisition of pharaoh. Our gross debt i-bidder ratio increases modestly from 0.85 to 1.25.
With respect to our recent acquisition of pharaoh, we will be excluding any 1-time acquisition related costs and restructuring charges from adjusted cash, EPS starting in the third quarter.
Kevin Coleman: We continue to have significant financial capacity and flexibility with over $2 billion of cash and available credit facilities to support our growth initiatives and to further deploy on strategic acquisitions. In summary, AMETEK had a solid second quarter, delivering strong results, including robust margin expansion and earnings growth. Our leading positions across attractive market segments, combined with our strong balance sheet and outstanding global operating capabilities, leave us very well positioned to navigate the current environment and deliver on our growth strategies. Kevin?
This approach will also be consistently applied to all future Acquisitions ensuring comparability and Clarity in our non-gaap financial reporting.
We continue to have significant financial capacity and flexibility with over 2 billion dollars of cash and available credit facilities to support our growth initiatives and to further Deploy on strategic acquisitions.
In summary.
Ametek had a solid second quarter, delivering strong results, including robust, margin expansion, and earnings growth.
Market segments combined, with our strong balance sheet.
Outstanding global operating capabilities leave us very well positioned to navigate the current environment and deliver on our growth strategies.
David Zapico: Thanks, Dalip. Tawanda, could we please open the lines for questions?
Kevin.
Operator: Thank you. Ladies and gentlemen, as a reminder to ask a question, please press star 11 on your telephone, then wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Dean Dre with RBC. Your line is open.
Thanks dalop. Toana, could we please open the lines for questions?
Thank you.
Ladies and gentlemen, as a reminder, to ask a question, please press *11 on your telephone, then wait for your name to be announced.
To withdraw your question. Please press star 1. Again please stand by while we compile the Q&A roster.
David Zapico: Thank you. Good morning, everyone.
Our first question comes from the line of Dean Dre, with RBC, your line is open.
Kevin Coleman: Good morning, Dean.
Thank you. Good morning everyone.
David Zapico: Hey, can we start off with the end market and regional tour? And given all of the fluid trading environment, it's really interesting to get your perspective on kind of the puts and takes. And Dave, could you also include the cadence of the months? Because we've heard reports recently where it was choppy month to month, and I know you've got some perspective there. We heard June was down, but then July came back. I don't know if that was a pattern you saw. So, you know, a bit to unpack there. Thank you.
Kevin Coleman: Yeah, I'll try to hit all three of those, and I'll start with the tour around the company. Our overall sales for our process businesses were flat year over year, as a contribution from recent acquisitions, offset a 4% decline in organic sales. The trade dynamics and back-and-forth negotiations continued to create uncertainty and hesitation in project spending, but we remain very encouraged by a strong pipeline of underlying project activity across our businesses. And given this, we now expect organic sales for our process businesses to be flat to down low single digits for the full year. Switching to aerospace and defense, our aerospace businesses delivered another very strong quarter with both overall and organic sales growth increasing high single digits. Growth was broad-based across all subsegments in the quarter. All subsegments, I'll underline that, with the commercial OEM seeing the strongest growth.
Good morning Dean. Hey, can we start off with the N market and Regional tour and given all of the uh the fluid trading environment. It's uh it's really interesting and uh, to get your perspective on kind of the puts and takes. And Dave, could you also include the Cadence of the months because we've heard reports recently where it was choppy month-to-month and I know you've got some perspective there you know we heard June was down but then July came back. I don't know if that was a pattern you saw. So you know, a bit to unpack there. Thank you. Yeah. I I'll I'll try to hit all 3 of those and I'll start with the uh,
The tour around the company.
our, our our overall sales for our process, businesses were flat year-over-year as a contribution from recent acquisitions, offset of 4% decline in organic sales
The trade Dynamics and back and forth. Negotiations continued, to create uncertainty and hesitation in Project spending.
But we remain very encouraged by strong pipeline of underlying project activity across our businesses.
And, and give this. We, we now expect organic sales for our process businesses, to be flat to download those single digits for the full year.
Switching to Aerospace and defense our our Aerospace delivered businesses delivered, another very strong quarter.
With both overall and organic sales growth, increasing High single digits.
Growth was broad-based across all subsegments in the quarter.
Kevin Coleman: For the full year 2025, we now expect organic sales for our aerospace and defense businesses to be up high single digits. So we increased that from mid-single digits, feeling really good about that. Our power businesses reported a low single-digit increase in both overall and organic sales for the quarter. Given our strong position serving energy, grid modernization, and electrification applications, we're well positioned for long-term growth. And for the full year, we now expect organic sales for our power and industrial businesses to be up below single digits compared to the prior year. So we increased that also from flat. So good strength in our A&D business, good strength in our power and industrial businesses. And then finally, our automation and engineered solutions returned to growth this quarter with both overall and organic sales up low single digits.
all sub segments are on the line that with the commercial OEM seeing the strongest growth,
For the full year 2025. We now expect organic sales for our Aerospace and defense businesses to be up high single digits. So we increase that from Miss single digits of feeling feeling really good about that.
our our power businesses, um, the reported low single digit
increase in both overall and organic sales for the quarter.
Given our strong positions serving energy grid monitorization electrification applications were well positioned for long-term growth.
And for the full year, we now expect organic sales for our power and Industrial businesses to be upload a single digits compared to the prior year. So we increase that also from flat, so good strength on our AMD business, good strength, and our power and Industrial businesses. And then, finally our Automation and engineered Solutions
Uh, return to growth. This quarter with both overall and organic sales up below the single digits.
Kevin Coleman: Once again, we saw strong orders growth across our Paragon business and our automation businesses in the quarter. So we're excited about that. And we continue to expect mid-single-digit organic growth for the subsegment. So overall, that's a picture around the horn. Your second question was related to the trade environment and what's going on there. Our businesses responded quickly and developed tariff response plans to mitigate the impacts. And as a reminder, we have a comprehensive plan to go after it. We have select pricing increases. We have supply chain adjustments. We have some manufacturing localizations. We have some targeted cost reductions. And we saw direct benefits from these actions in the second quarter, including pricing, supply chain changes, and some of our localization efforts. And we expect to see these benefits throughout the year. And it's a testament to our operating capability.
We once again, we saw a strong orders growth across our Paragon, business and our automation businesses in the quarter. So excited about that. And we continue to expect mid single digit, organic growth for the sub segments. So
Overall, that's that's a picture around the horn.
uh, your second question was, uh,
related to the trade environment.
And uh, you know what? What's going on there?
You know, our businesses responded quickly and developed tariff, response plans to mitigate the impacts.
And as a reminder, we have a
Comprehensive plan to go after it. We have select pricing increases; we have...
supply chain adjustments. We have some manufacturing. Local was the localizations. We have some targeted cost reductions and we saw direct benefits from these. These actions in the second quarter.
Including, you know, pricing supply chain changes and some of our localization experts efforts and we expect to see these benefits for the, for the, throughout the year.
And and uh, you know, it's a a testament to our operating capability.
Kevin Coleman: We really are managing through it well. And I think in our last call, we noted we were confident in our ability to offset these direct costs. And now I just add very confident to it. And I think we're in good shape regarding tariffs. And then the last question was, how are we doing? How did the quarter play out? How did that all play out? And the cadences, I think you asked about, Dean. And the cadence for June was the strongest month for orders and for the year. So normally, we step through the quarters with the final month of the quarter being highest. So that was pretty typical. But June was strong. It was the strongest of the quarter, strongest year to date. And July was, it's not finished yet, but your month to date is looking very good.
uh, we really are managing through it well and uh,
I think the, uh,
uh,
you know, last call, uh, we we noted we're confident in our ability to offset these direct costs, and now I just had very confident to it.
You know.
I think, uh, we're in good shape in regarding tariffs.
And then the last question was, uh, you know, how are we doing? Um,
You know, how how, how the quarter play out, how did that all play out?
And the cadences. I think you asked about Dean. Yeah. The cadence for June was the strongest month for orders.
Kevin Coleman: So pretty typical quarter with June being the strongest of the quarter, both sales in order and no slowdown.
and and for the year. So so the you know, normally we have a we step through the quarter with the final month of the quarter being highest so that was pretty typical but June was strong. It was the strongest of the quarter strongest year to date and July was, it's not finished yet but you know, year month to date just looking very good. So pretty typical quarter with June being the strongest of the quarter.
Both sales and Order and those Slowdown.
David Zapico: Great, Dave. That was a comprehensive answer to a multi-part question, so I'll leave it there. Thank you.
Kevin Coleman: Thank you. Thank you, Dean.
Great. Dave, that was a comprehensive answer to multi-part question so I'll leave it there. Thank you, thank you, thank you, Dean.
Operator: Please stand by for our next question. Our next question comes from the line of Jeffrey Sprague with Vertical Research. Your line is open.
Please stand by for our next question.
Our next question comes from the line of Jeffrey Sprag with Vertical Research. Your line is open.
Dalip Puri: Hey, thanks. Good morning, everyone.
Kevin Coleman: Great, Jeff.
Dalip Puri: Dave, congrats on getting good morning. Congrats on getting Pharaoh done. I wonder if we could just talk about that a little bit more in terms of the integration plan. I believe you see a lot more synergies there than the typical AMETEK playbook given their margins coming in and the fit with Creaform and other things. So maybe you could just elaborate on what you see on synergies and then really tying it to the 2025 guide. Also, it doesn't look like really you're expecting much of a benefit in 2025. I know you'll be betting it down, but if you're excluding restructuring everything, you know I would think maybe you do get some contribution in '25.
Hey thanks. Good morning everyone. Um, good morning Dave, congrats on getting the good morning. Can you guys congrats on getting the arrow done. Um, I wonder if we could just uh talk about that a little bit more. In terms of the integration plan, I believe you see a lot more synergies there than the typical ametek Playbook given their margins coming in and the fit with pre.
Kevin Coleman: Yeah, that's a great question, Jeff. I'll start with we think it'll be a couple of penny benefit in 2025. So we have a partial quarter in Q3 and then Q4. So we think we'll pick up a couple of pennies there. When you take a step back and look at the acquisition, you know it's, as I mentioned in my repair remarks, it's an excellent fit with what we do. And you know we think we can add meaningful value to Pharaoh. You know they were a public company, so we have the elimination of the public company cost and the integration into AMETEK's global infrastructure. And we have a little higher than typical synergies. We have mid-teens cost synergy. So if you think about the Pharaoh, the last couple of quarters, it's been operating at about 15% EBITDA.
And and other things. So, um, maybe you could just elaborate on, you know, what, you see on synergies. And then really tying it to the, the 2025 guide. Also. It it doesn't look like really. You're expecting much of a, a benefit in 2025. I know you'll be betting it down, but if you're excluding restructuring everything, um, you know, I would think maybe we do get some contribution in 25,
Yeah, that's a great question, Jeff. I'll start with. We think it'll be a
Couple of Penny benefits and and 2025. So we have a partial quarter in Q3 and then Q4. So we think we'll pick up a couple pennies there.
uh, when you take a step back and, and, and look at the acquisition of
You know, it it's uh, as I, as I mentioned, in my prepared remarks, it's an, it's an excellent fit with, with what we do. And, uh,
You know, we think we can add meaningful value to Pharaoh.
Um, you know, they're, they, they were a public company. So, we have the elimination of the public company cost and the integration into amitex Global infrastructure and, um, we have a little higher than typical synergies. We have mid teens cost energy.
so, if you think about the, uh,
Kevin Coleman: And we think that'll be a 30% EBITDA in about three years. So a significant potential to expand operating margins through integration into the AMETEK infrastructure and operating model. And we're really pleased that we were able to add the highly differentiated adjacent products and technologies to AMETEK's Ultra Precision Technologies division. The products nicely complement ours. We have a leading market share now, number one or number two, in many key verticals: measurement arms, laser scanners, laser trackers. We have now a new presence in the fast-growing digital reality scanning market. We have an emerging SaaS solution enabling the digital reality capture workflow. And they have a good recurring revenue profile for service. About 60% of its hardware, 25% of its service, and 15% of its software. And the teams have come in and done a great job. We're working very well together. So we're excited about it.
Pharaoh, it's the last couple of quarters. It's been operating at about 15% IBA.
and we think that'll be a 30% IBA in about three years.
So a significant potential to expand operating margins through integration into the amitech infrastructure and operating model
and we're really pleased that we were able to add the highly differentiated adjacent products and Technologies to amitex ultra Precision, technology division.
The products nicely complement ours.
Um, we have a leading market share now. Number 1, or number 2 in many key. Verticals measurement arms. Laser scanners laser trackers.
Uh, we have a uh now a new presence and fast growing digital reality scanning Market.
We have an emerging SAS solution enabling digital reality that captures work workflow.
And and they have a good recurring Revenue profile for for service about the 60% of his Hardware 25% of its service and and 15% of his software. So,
Kevin Coleman: When I look at this business, it reminds me a lot of the Zygo acquisition, very similar. Zygo and Pharaoh in name, but also it went into our UPT division, the same as Zygo. And if you look at Zygo, it was a smaller public company. And they were always trying to swing for the fences, hit grand slams because they wanted to get noticed. And they took on some things that were outside of their core. And you have a very similar situation with Pharaoh. And you know if I look at what we did with Zygo, the sales averaged 9% CAGR over the first 10 years. EBITDA grew over five times. EBITDA margins increased two and a half times. And we reduced working capital by 50% over the first five years. So I think we have that kind of potential here. There's a lot of talent there.
And the teams have have come in and done a great job. We're working very well together. So we're excited about it when I, when I have to look at this business. Um,
It reminds me a lot of the, um, the Zygo acquisition.
Very similar, and zygo, and pharaoh, and the name, but also, uh, it went into our up division, the same as zygo. And if you look at zygo,
It was a smaller public company.
And they were always trying to swing for the fences hit Grand Slams because they want to get noticed and they they took on some things that were outside of their core.
And you have a very similar uh, situation with pharaoh and uh, you know, if I look at what we did with zyo, the sales averaged 9% casar over the first 10 years.
Ebata grew over 5 times.
Even with the margins increased 2 and a half times and we've reduced working capital by 50% over the first 5 years. So
Kevin Coleman: We need to give it some focus. The current management team did a good job, I'll call it cleaning up the business in the last 12 or 18 months. And we're extremely excited at what the future brings.
Last 12 or 18 months and and uh, we're extremely excited. What the future brings?
Dalip Puri: It's a pretty good algorithm if you can pull that off. That's great. And then maybe, yeah, absolutely. And then on Paragon, Dave, if you could. So it sounds, as you said, orders plumming up. Is that translated to the top line at Paragon yet? How do you see Paragon specifically performing here as we work through the back of the year?
So, pretty good algorithm if you can pull that off. Um, that's great. Um, and then maybe
Kevin Coleman: Yeah. I mean, you know Paragon had another excellent quarter, Jeff. Order growth was again robust. Sales were strong, and we continued to drive outstanding margin expansion. The orders were the largest increase in AMETEK by far. We also have a situation where the Paragon EBITDA margins are now in line with AMETEK's. So they're at 30-plus percent EBITDA margins, and we see meaningful margin runway ahead. So outstanding work by the entire Paragon team. The deep stock is over, and we are very, very excited about what we're seeing. So very pleased with what's going on there. They're in a good position with their customers in consumable surgical instruments, implantable components, and attractive market segments. And we're through the deep stock. We took some time to do some hard work cleaning up the business. It has excellent engineering capability.
Yeah. Absolutely. And then, and then on on Paragon, uh, Dave, if you could so it sounds, as you said, orders firming up is, is that translated to the Top Line at Paragon yet? How do you see Paragon, specifically performing here? As we work through the back of the year.
yeah, I mean, you know, Paragon had another excellent quarter, Jeff, um,
Orders growth was again robust.
Sales were strong and we can continue to drive outstanding margin expansion.
Uh, the orders were the largest increase in AMETEK by far.
um we also have a situation where the Paragon IBA markets are now in line with amatex
So so they're they're a 30 plus percent ebaum margins and we see meaningful margin Runway ahead.
So the outstanding work by the entire Paragon team that these stock is over. And, uh, we are very, very excited about what we're seeing. So, um, very pleased with what's going on there. They're, they're in a good position with their customers and consumable, surgical instruments, and plantable components and attractive market segments, and we're through the dto. We
Kevin Coleman: They have new programs wins, and we're really, really pleased with where we're at now.
Took some time to do some hard work cleaning up the business. It has excellent engineering capability. They have new programs when wins and uh really, really pleased with where we're at now.
Dalip Puri: Great. Thanks for that, Kellan. I'll pass the baton to someone else. Good luck out there.
Kevin Coleman: Okay. Thank you, Jeff.
Operator: Please stand by for our next question. Our next question comes from the line of Jamie Cook with Truist. Your line is open.
Great. Thanks for that color. I'll pass to the time to someone else. Good luck out there. Thank you.
Please stand by for our next question.
Jamie Cook: Hi. Good morning and nice quarter.
Our next question comes from Milan of Jamie cook with Choice, your line is open.
Kevin Coleman: Thank you, Jamie.
Jamie Cook: I guess two questions. Yes, thank you. Two questions. First, Dave, as I look at your guide, I'm just trying to understand the puts and takes and, I guess, level of conservatism in the guide because you're saying, you know, Pharaoh adds a couple of pennies. It sounds like tariffs should be more of a tailwind. So can you help us understand what you're assuming now relative to the 100 million in tariff costs that you talked about last quarter and then the 70 million from China? And is there any change, you know, sort of in the core business? I just want to understand the puts and takes of the guide today versus first quarter. And then my second question is, again, impressed with the EMG margins this quarter. Paragon, you're now saying the margins are in line with AMETEK.
Jamie Cook: Just the setup for EMG margins as we, as we, you know, exit the year, I would assume that would be one of your highest, you know, margin improvement segments. The margins in that segment should improve the most. Just trying to understand if I'm thinking about that correctly. Thank you.
Hi, good morning and nice quarter. Um, I guess 2 questions. Yeah, thank you. Uh, 2 questions for Dave is I look at your guide, um, I'm just trying to understand the puts and takes and I guess level of conservatism in the guy because you're saying, you know, farro adds a couple pennies. Um, it sounds like tariffs should be more of a Tailwind. So can you help us understand what you're assuming now relative to the 100 million? Um, in tariff costs that you talked about last quarter and then the 70 million from China? And is there any change, you know, sort of in the core business. I just want to understand the puts and takes of the guy today versus first quarter. And then my my second question is again impressed with the EMG margins, this quarter Paragon. You're now saying the margins are in line with with ametek just the setup for EMG margins. As we as as as we you know exit the year I would assume that would be 1 of your highest you know, margin Improvement.
Kevin Coleman: Yeah. I'll start with the margins, and I do think you're thinking about it correctly. I mean, there's excellent performance in the quarter, up 210 basis points on a reported basis, 260 on a core margin basis. So EMG really had a good quarter in margins. And in the back half of the year, I think it's going to stay the same way. There's good margin expansion there. And both our EIG and EMG businesses, core margin expanded 90 basis points. The reported margins were up 20, but core was up 90. We had a fantastic quarter. We were excellent at driving the operations of the business. There was excellent productivity. There was positive price cost and really strongly performing acquisitions. When I look at the OPEX, I mean, our people are getting it done. We raised our OPEX. We're going to work through the P&L to 155 million.
Uh, segment, the the margins in that segment should improve the most. Just trying to understand if I'm thinking about that correctly. Thank you. Yeah. I'll I'll, uh, I'll start with the, uh, the margins and
Kevin Coleman: That's about 25 million from where we started the year and up 5 million from last quarter. So the OPEX side of this thing is working extremely well, and we're pleased with that. Going back to the guide, we beat our earnings. We boosted our guide for the year, and we have a big boat on. And you know we talked about a couple of cents from Pharaoh, and that's all built into the model. You know I think there's a bit of conservatism in the Q3 guide. As we get through all these changing dynamics, we feel very confident, but there's a bit of conservatism in the near-term guide. I think that in terms of China, you mentioned the 70 million that we had flagged in the second quarter. We got a good portion of that. Later in the quarter, it opened up.
I do think you're you're thinking about it correctly. I mean there's uh excellent performance in the quarter up, 200 basis up, 210 basis points on a reported basis, 260 on a quarter margin basis so EMG really is uh had a good quarter in margins and in the back half of the year I think it's going to stay the same way. There's there's a good margin expansion there and and both are EIG and EMG businesses. Okay, core margin expanded to 90 basis points. The reported margins were up 20, but core was up. 90 we we had a fantastic quarter. We are excellent at, at driving, the operations of the business. That was excellent productivity. That was positive price cost and and really strongly performing the Acquisitions. And when I look at the Opex, I mean, our people are getting it done. We Rose, we raised our our Opex, uh, we're going to working through the pin out to 155 million.
That's about 25 million from where we started the year and up 5 million from last quarter. So the Opex side of this thing is working extremely well and and we're pleased with that.
Um, going back to the guide. Uh, we we um, you know, we we uh,
beat our own inks. We we uh, boosted our guy for the year and then we have a, a big boat on and um, you know, we we we talked about a couple of cents from from pharaoh and and that's all built into the the the, uh, the model. Uh, I, you know, I think there's a bit of conservative and conservatism in the Q3 guide as we get through all these changing Dynamics, we feel very confident but there's a bit of conservatism in the in the near-term guide.
um,
Kevin Coleman: We didn't get it all, but we got a good portion of that. And the 70 million that we identified as a tariff impact that we would offset, you know we're not going to constantly change the environment. We're not going to constantly update the exposure, but what I'm telling you in real time. But you know we got it, and we don't have a problem this year. So the 100 million that was a negative headwind is not a negative headwind. That's the best way I can explain it.
It opened up, we didn't get it all but we got a good portion of that and the the the 70 million that we identified as a tariff impact that we would offset. Um you know, we're not going to constantly change.
Would that change the environment? We're not going to constantly update the exposure but what I'm telling in real time but but you know, we got, we got it and we don't, we don't have a problem this year. So the the 100 million that was a negative headwind is not a negative headwind.
Operator: Thanks so much. Congrats on the next quarter.
That's the best way. I can explain it.
Kevin Coleman: Thank you, Jamie.
Operator: Please stand by for our next question. Our next question comes from the line of Matt Summerville with DA Davison. Your line is open.
Thanks so much. Congrats on a nice quarter.
Please stand by for our next question.
Our next question comes from the line of Maxx Somerville with da Davidson your line is open.
Dalip Puri: Excuse me. A couple of questions. You talked in detail about Paragon, which was very helpful. Can you go through the same kind of analysis on specifically the automation side of the business, where how that business is performing from a profitability standpoint, what you're seeing from an inbound order point of view, where you are with the inventory, sort of reductions you were seeing in the channel there? That's been one of the more challenged businesses for you guys, and then I have a follow-up. Thank you.
Excuse me. Um, couple questions.
Kevin Coleman: Yeah. Yeah. The automation business, it's in the same category as Paragon. The de-stock's over. And we're seeing strong growth in orders. There's Paragon and the automation business drove the profitability increase in EMG. So there's a continued upside there. But both Paragon and automation, the two AMETEK, which Paragon's in, and automation that dealt with the de-stock is done. So we're feeling good about that. It's driving profit growth, and that's why the EMG margins are up 260 basis points on a core basis.
Talked in detail about Paragon which was very helpful. Can you go through the same kind of analysis? Um, specifically the automation side of the business where how that business is performing from a profitability standpoint. What you're seeing from an inbound order point of view where you are with the inventory, sort of reductions you were seeing in the channel there is that's been 1 of the the more challenged businesses for you guys and then I have a follow-up. Thank you. Yeah. Yeah, the automation business, it's in the same category as Paragon, the the docks over.
And, uh, we're seeing, uh, strong growth in orders. Um, there's a, you know, Paragon and, and the automation business, drove, the profitability increase in EMG, so there's a continued upside there, but both Paragon and automation, the 2, the Medtech, and Par, which paragon's in and automation that dealt with the uh, the destock is, is is done. So so we feeling good about that. It's driving profit growth and that's why the EMG margins are up, 260 basis points on a core basis.
Dalip Puri: Okay. And if you think about those, if you think, yeah, yeah, if you think about those businesses specifically, what do you think the right go-forward organic algorithm looks like for that portion of AMETEK? And then, Dave, if you can just maybe comment a little more broadly what you're seeing from a go-forward actionability standpoint, M&A-wise, post-Pharo, what you're seeing in terms of deal size, multiples, etc. That would be helpful. Thank you. Yeah.
Okay. And the other thing about those is, you can
Kevin Coleman: Okay. Yeah. I think the EMG business is the automation and engineer part of EMG is inflecting up. So I think it's going to lead us in our next phase of growth. And I think we don't, you know, we're saying this year that we'll be up mid-single digits. So I think that's positive from last year. And obviously, if the order rates continue, there can be some upside there. In terms of the acquisition pipeline, you know, this year we got two deals done, deployed a billion dollars and acquired 400 million in revenue. And we're excited about these acquisitions. They're high-quality businesses that expand our presence in attractive growth markets. We have a clear path to add value in both the businesses. I talked about the recent acquisition of Pharaoh in detail. And to your question, our pipeline remains strong.
Yeah, yeah, if you think about those businesses, specifically, what do you think the right? Go forward or organic algorithm looks like for that portion of amotec and then Dave, if you can just maybe comment a little more broadly. What you're seeing from a go forward, action ability, standpoint m&a, wise post, Pharaoh, what you're seeing in terms of deal size, multiples, Etc. That would be helpful. Thank you. Yeah. Okay, yeah, I I think the, uh, the EMG business is, uh,
uh,
the the, uh,
Automation and the engineered part of EMG are inflecting up, so I think it's going to lead us into our next phase of growth. And I think, uh,
you know, we don't we don't uh,
You know, we're saying this year that we'll be up in this single digits. So I think that's positive from from last year and and obviously if the order rates continued, there can be some upside there.
uh, in terms of, uh,
Uh, the acquisition pipeline.
You know this year we got we got 2 deals done deployed a billion dollars in acquired 400 million 400 million in revenue and we're we're excited about these Acquisitions. They're high quality businesses. That expand our presence and attractive growth markets. We have a clear path to add value in both the businesses, I talked about the the recent acquisition, fair fair and detail.
And to your question. Um,
Kevin Coleman: We're very actively looking at a number of high-quality deals. As Dalip mentioned, we have 2 billion of existing cash and credit facilities. As always, we're going to remain disciplined, but you know we did some analysis, and if we lever it up to two and a half times, they got about four and a half to five billion dollars to spend. And I think that we have the opportunity to differentiate our performance with the M&A element of our growth strategy, combined with our balance sheet and combined with our strong cash flow. So you know we excel at this, and especially when markets are choppy. And the combination of our operational excellence and M&A, you know I think we're really focused on the pipeline, and the pipeline is strong.
our pipeline remains strong. We're we're very actively looking at a number of high-quality deals.
As developed mentioned, we have 2 billion of existing cash and credit facilities.
As always, we're going to remain disciplined. But but uh, you know we did some analysis and if we lever it up to 2 and a half times and they got about 4 and a half to 5 billion dollars to spend.
And and I think that we have the opportunity to differentiate our performance with the m&a, element of our growth strategy combined with our balance sheet, and combined with our strong cash flow. So, you know, we we excel at this and especially when when markets are choppy and the combination of our operational excellence and m&a, you know, I think I think, uh, we're, we're really focused on the pipeline and the pipeline is strong.
Dalip Puri: Great. Thanks, David.
Kevin Coleman: Yep. Thank you, Matt.
Operator: Please stand by for our next question. Our next question comes from the line of Chris Snyder with Morgan Stanley. Your line is open.
Great. Thank you. Yeah. Thank you, Matt.
Please stand by for our next question.
David Zapico: Thank you. I wanted to just kind of follow up on some of the commentary on back half growth. It seems like with Pharaoh and some of the prior M&A done that that M&A could be about almost a mid-single-digit tailwind. And I would imagine there's some FX tailwinds on top of that, you know, kind of pushing collectively maybe into that mid to high single-digit range in the back half. So I guess, is that right? And then what do you guys assume for organic growth into the back half of the year? Thank you.
Our next question comes from the line of Chris Snyder with Morgan Stanley. Your line is open.
Thank you. Um, I wanted to just kind of follow up on some of the commentary on back half growth.
Kevin Coleman: Yeah. The one thing, Chris, I talk about FX a little bit. And we're going to see for the year a top-line FX tailwind of about one percentage point. And we saw that same one percentage point in Q2. So on the top line, there's a little bit of a tailwind. But on the bottom line, we're largely naturally hedged. I mean, when the currencies go either way, you never hear us talking about it, and you never hear us as a positive from it, or you never hear a negative from it. And we run our businesses differently than most. And we have a natural hedge at the bottom line, given the general balance of revenues and costs across key currencies. So generally, we don't see a meaningful impact to our profit results from FX movements.
Is that right? And and and what what do you guys assume for organic growth into the back half of the Year? Thank you.
Yeah.
The uh, you know, the 1 Thing, Chris. I, um,
talk about FX a little bit, and
Uh we're going to see a a for the year, a Top Line FX Tailwind of about 1 percentage point and we saw that same 1 percentage point in Q2. So on the top line is a little bit of a Tailwind but on the bottom line, we're largely naturally hedged, I mean, when a currencies go either way, you never hear us talking about it. And you never hear us, uh, uh, as a positive from it or you're never hear a negative from it and we've, we've run our businesses differently.
Than most and and we have a natural hedge at the bottom line, given the general balance of revenues and costs across key currencies.
Kevin Coleman: Now, the FX is a dollar has weakened, and we do export quite a bit of high-technology products from the US. So I think the lower dollar, because we build our higher-tech technology products, many of them in the US, is going to make us more competitive. So we understand our competitive positions. We're very well positioned to deal with currency fluctuations. And it's a positive situation. Yeah, I think organic growth for the year is still plus LSD. So we're assuming positive LSD. We're assuming both groups are positive. And then we got the acquisitions that get us to MSD for the year. So that's where we are versus our prior guide. And we think that it's reflective of the situation that we're operating in.
So, so generally uh, we don't see, uh, meaningful impact or profit results from FX movements.
Now the the FX is is a dollar as weakened and we do export quite a bit of high technology products from the US.
So I I think the the lower uh dollar uh because we built our higher tech technology products, many of them in the US is going to make us more competitive. So we understand our competitive positions, um,
we're very well positioned to deal with currency fluctuations and and um,
You know, it's a positive situation.
Um,
yeah, I think organic growth for the year is, is still plus LSD. So we're assuming positive LSD. Uh, we're assuming, uh, both groups are positive.
And and then we got the Acquisitions that get us to MSD for the years. So that's, uh, that's where we are versus our prior guides. And, and, uh, we think that, uh, it's, it's reflective of the situation that we're operating in.
David Zapico: Thank you. I appreciate that. And then maybe just following up on Pharaoh, you know, I think the margin opportunity is pretty clear when we see the gross margin that they were running at. But I think if we look at the business, there really hasn't been much, if any, growth over the medium to long term. Could you just maybe talk about how Creaform has grown, you know, just to provide some color on the industry growth there? Thank you.
Um, thank you. I, I appreciate that. And then maybe just following up on Pharaoh, you know, I think the margin opportunity is pretty clear when when we see what the gross margin that they were running at. Um, but I think if we look at the business, there really hasn't been much if any, um, growth over the medium to long term, could you just maybe talk about how Korea form has grown? Um, you know, just to provide some color, um, on on, on the industry growth there. Thank you.
Kevin Coleman: Yeah. Creaform's grown like a wheat. When we acquired it, it was about a $40 million business, and it's grown at double digits since then. And the team has done an excellent job. So it's a much, much bigger business than when we acquired it. I made the analogy to our Zygo acquisition because I think it's really key. There's a lot of capability at Pharaoh and a lot of talent, and they were just unfocused. They went down a path and spent a lot of money and didn't get a return for it. And we're going to do the same thing we did with Zygo. We'll get the team together. We're going to focus on their core advantages. We're not going to swing for the fences. We're going to look for incremental wins, and that business is going to grow nicely for us.
Yeah. Uh, free forms grown like a weed.
Is we, we acquired it. It's, it was about a $40 million business and it's grown at double digits since then, and the team has done an excellent job. So it's it's a much, much bigger business than when we required it.
uh, I I I I made the analogy to our
Our zygo acquisition because I I think it's really key.
There's a lot of capability at pharaoh and a lot of talent and they were just on focused. They they went down a path and spent a lot of money and and didn't get a return for it and we're going to do the same thing we did.
With.
Kevin Coleman: So we have a bottom line chance to double the EBITDA margins in three years. And at the same time, with the technology and capability in that business, we're going to grow the top line too. And we have a good analogy with the Zygo acquisition.
David Zapico: Thank you, Dave. Appreciate that.
Was was zaga. We get the team together, we're going to focus on their core advantages. We're not going to swing for the fences. We're going to look for incremental wins and that business is going to grow nicely for it. So we have a a, a bottom line uh, chance to double the even the margins in 3 years. And at the same time, with the technology and capability, in that business, we're going to grow the Top Line too. And we have a good analogy with, with the zygo acquisition
Thank you Dave. Appreciate that.
Operator: Please stand by for our next question. Our next question comes from the line of Andrew Oben with Bank of America. Your line is open.
Please stand by for our next question.
David Zapico: Hi. Good morning.
Our next question comes from the line of Andrew Obin with Bank of America. Your line is open,
Dalip Puri: Good morning, Andrew.
Hi, yes. Good morning.
Good morning, Andrew.
David Zapico: Just two questions for me, and I'll stick them into one. In terms of China, was there any pull forward of demand on metrology equipment, given that there is still some uncertainty about punitive tariffs in the second half? And just overall on your organic growth, and I apologize, I might have missed some stuff, but as you went through the segments and where you were and where you're going, is it fair to say that, you know, generally you think short cycle industrial has bottomed and you've raised your organic growth expectations on the margins going forward? Just want to button up those two issues. Thank you.
Uh just uh, 2 questions for me. And I'll stick them into 1 uh, in terms of China. Uh, was there any pool forward of Demand on Metrology? Uh, equipment. Given that there's still some uncertainty about punitive tariffs in the second half and just overall on your organic growth as and I apologize, I might have missed some stuff, but as you went through,
The segments and where you wear and where you're going, is it fair to say that? You know generally you think short cycle industrial has bottomed and you've raised your organic growth expectations on the margins going forward. Just want to button up. Those 2 issues. Thank you.
Kevin Coleman: Yeah. In terms of China, yeah, the country was down low single digits for us for the quarter. So it was down a bit. I don't think there's really a pull ahead there. It's a situation where we're doing some projects, and the projects require funding, and the tariffs have just caused a lot of delays in getting the proper funding. So there's still strong demand for our projects. And we got a good portion of the stuff out in the second quarter that we flagged last time. So that was a positive. And you know there's still a bit of uncertainty in the market. But we're well positioned, and our customers are working with us. But I wouldn't characterize it as a pull ahead in metrology. No, I don't think we saw that. Your other question was related to.
yeah, the in terms of China,
um,
yeah, the the, the the country was download single digits for us for the, for the quarter.
So it was it was uh, down a bit.
I don't I don't I don't think um there's a really a pool head there. It's a situation where
And the projects require funding and the tariffs have just caused a lot of delays in getting the proper funding. So there's still strong demand for our projects and and we got, you know, a good portion of the stuff out in the second quarter that that, uh, we, we flagged last time. So that was a positive and, you know, there's still, you know, there, you know, there's still a bit of uncertainty in the market and, uh, but we're, we're well positioned and our customers are working with us and, and but I, I wouldn't I wouldn't characterize it as a as a pull ahead in Metrology. Now, I don't, I don't think we saw that.
David Zapico: Has the cycle bottomed? Then are you guys feeling better about organic growth?
um, your other question was related to
Kevin Coleman: Yeah. Yeah. I think, yeah, I don't characterize the med tech market and the automation market as short cycle. They're more mid-cycle. But we are seeing a specific de-stock end, and we're feeling really good about the orders there. So that's true. So yes. I mean, I think that where we're at is our strength and our A&D business, broad-based, improved outlook. Our power business is starting to accelerate with grid spending, improved outlook. I think we talked about the automation and engineering solutions, Paragon, strong growth, highest in the company. Also, our automation business now inflecting upward. And our process business, process and analytical, it's definitely not incrementally weakening, but the markets are still sluggish. And we have a pipeline of potential orders that are solid. We're beginning to see quotations there related to reshoring, related to new opportunities, related to existing opportunities.
as the cycle bottom that are you guys feeling better about organic growth? Yeah, I, I yeah, I think.
I I think, yeah.
I don't, I don't, I don't characterize, the, the Medtech market and the automation Market is short, cycled. They're they're more mid-cycle, uh, but we are seeing a, you know, specific bstock end and we're feeling really good about the orders there. So, so that's true. So yes, I mean, I, I think that where we're where we're at is our our our strength, and our A and D business broad-based, improved Outlook
Our power business is starting to accelerate with grid spending improved Outlook.
Kevin Coleman: But that's where the project business is dealing with a bit of uncertainty. So we have to work our way through that. But in the other three market segments, it feels like we're in a positive situation.
David Zapico: I'll take it. Thank you so much.
I think we talked about the Automation and engineer Solutions Paragon. Strong growth, highest in the company also our automation business. Now now inflecting upward and our process business and processing analytical. It's definitely not incrementally weakening but the markets are still sluggish, and we have a pipeline of potential orders of solid. We're beginning to see the quotations there. Um, related to reassuring related to to, uh, New Opportunities related to existing opportunities. But that's where those those, the project business is, is dealing with a bit of an uncertainty. So we have to work our way through that, but but the other the other 3 market segments it's uh, you know, feels like we're in a positive situation.
Kevin Coleman: Okay. Thank you, Andrew.
Operator: Please stand by for our next question. Our next question comes from the line of Brett Lindsey with Mizuho. Your line is open.
I'll take it. Thank you so much. Okay, thank you. Andrew.
Please stand by for our next question.
Our next question comes from the line of Brett Lindsay with Mizzou. Your line is open.
Dalip Puri: Hey, good morning, all.
Kevin Coleman: Morning, Brett.
Hey, good morning. All
Dalip Puri: Hey, wanted to come back just to this lower decision-making. I guess, are customers giving you any sense on the timing of that quotation activity and what the budgeting timeline might look like there? And then anything on that front to glean through July in terms of those discussions?
Morning, Brett.
Hey um wanted to come back just to the the slower decision-making, I I guess, our customers giving you any sense on the timing of that quotation activity? Uh and and you know what, the budgeting timeline might look like there and then anything, you know, on that front to glean through through July in terms of those discussions.
Kevin Coleman: Yeah. The timelines, yeah, they are, it's difficult. I mean, there are definitely some delayed shipments. I think the certainty around the trade back and forth is important to get it resolved. So we're seeing the high number of trade deals get negotiated, get concluded. That takes the uncertainty off the table, and we can go forward. So I don't think it's the level of the tariffs. It's the uncertainty of the tariffs. And I think as we've rapidly gotten some trade deals done, I think that uncertainty is reducing. So, but as those play through and we understand the impacts of them, I think the uncertainty is going to reduce. I mean, in the US, we have the overall positive outcomes, as Dalip mentioned, from the tax bill.
Yeah that's that's yeah the timelines. Yeah, they they are it's difficult. I mean there there are definitely some delayed shipments. Um,
I think the certainty around the trade back and forth is important to get it resolved. So we're seeing the uh High number of trade deals. Get negotiated, get concluded, that takes the uncertainty off the table with territory and we can go for it. So I I I, I don't think it's the, the level of the tariffs. It's the uncertainty of the tariffs and I think, as we, you know, as we rapidly, got some trade deals done. I think that uncertainties reducing so but it, uh, and as those played through and we understand the impacts of them, I think the uh
Kevin Coleman: So we have the, you know, it helped clarify those go-forward tax rules, but the immediate expensing of R&D, the capital for capital equipment purchases, the spur customer capital investments. And at the same time, we have the tariffs where we have people looking to reshort to the US, and we're in a very good position to help them do that. So, I mean, that's a positive. And you know, we have the, you know, but the tariffs have to get settled. And as we move through this and more of those get settled, I think the cloud is going to be removed from some of those projects.
Uncertainty is is is is going to reduce. I mean, in the US, we have the overall, you know, positive outcomes as as a doubt mentioned from the tax bill. So so we have the, you know, it helped clarify those go forward tax rules but the immediate expensing of R&D the the capital equipment for Capital Equipment purchases, the
uh, the spur customer Capital Investments and
At the same time we have the the tariffs where we have people looking to to reshore to the us and we're in a very good position to help them do that. So I mean that that's that's a positive and and you know we have the you know but the tariffs have to get settled and and as we move through this and more of those get settled, I think the cloud is going to be removed from some of those projects.
Dalip Puri: Thanks for that. And then just to follow up on the 70 million of the potential at-risk revenue that you had flagged on the last quarter call, I know that's direct US to China instrumentation. Maybe just a finer point on how much of that did ship in 2Q. And are you assuming that the remaining gets delivered as part of the framework, or is there still some contingency there?
Kevin Coleman: I'd say that a good majority of it shipped, and there's still some of it that's unresolved, and that'll get resolved in Q3 and Q4.
Thanks for that. And then just just to follow up on the the 70 million of the potential at risk Revenue that you had flagged on the last quarter. Call. I know that's that's direct us to China instrumentation. Maybe just a finer point on how much of that did ship into q and are you assuming that the remaining gets delivered as part of the framework or is there still some contingency there?
Uh, I I think, uh, I, I say that uh, a good majority of it shipped.
And there's still some of it. That's unresolved and that'll get resolved in Q3 and Q4
Dalip Puri: Okay. Great. Best of luck.
Kevin Coleman: Thank you.
Okay, great, best of luck.
Operator: Please stand by for our next question. Our next question comes from a line of Christopher Glynn with Oppenheimer and Company. Your line is open.
Thank you.
Please stand by for our next question.
Our next question comes from the line of Christopher Glenn with Oppenheimer company. Your line is open.
Dalip Puri: Thanks. Good morning.
Kevin Coleman: Hey, Chris.
Good morning.
Hey, Chris.
Dalip Puri: Hey, Dave. A question about the pipeline with a little bit more specificity on the aero defense market. It's been a while since you did Abaco four years ago. I'm curious about the pipeline there, maybe all the noise around the industry supply chain being kinked up, you know, is revealing some properties there that might be opportunistic in that space. How are you thinking about, and also how are you thinking about A&D more fundamentally in the context of all your businesses for long-term M&A?
Kevin Coleman: Yeah, I think the A&D market is certainly a market we would like to deploy more capital in. So we're actively looking at the market. We're actively looking at some deals. And from my viewpoint, it's been a great profit generator from AMETEK. We have unique differentiated positions. It's a really good management team. They continue to perform, and I'd love to deploy capital in that area.
Hey Dave, I have a question about the pipeline with a little bit more specificity on the error defense market. It’s been a while since you did have a Q4 4000.
Yeah, I think the, uh, the AMD Market is certainly a market. We would like to deploy more capital in, so we're actively looking at the the market. We're actively looking at some deals and
my viewpoint. It's been a great profit generator from generator from ametek. We have unique differentiated positions. It's a really good management team, they continue to perform, and I love to deploy capital in that area.
Dalip Puri: Okay. Great. And then for EMG, your automation is starting to accelerate here, and it sounds like some incremental inflection. So you know, with this cyclical momentum there in medical, would you expect more level-loaded first half, second half sales versus, you know, usually it's slightly tilted towards the first half on a seasonal basis?
Okay, great. And then um, for EMG
Kevin Coleman: Yeah, I'd say with the increase in orders, we're going to have a solid second half. So that might be a little bit of a different tilt than a typical year. You saw the orders coming in in the first half of the year, and you might have the shipments coming out three to six months later. So it might be a little bit different.
Uh, your automation is starting to accelerate here, and it sounds like some incremental inflection. So, you know, with this cyclical momentum there in medical, would you expect more level-loaded first half, second half sales versus, you know, usually it's slightly tilted towards the first half on a seasonal basis?
Yeah, I I'd say with the increase in orders. Um,
we're going to have a solid second half, so that might be a little bit of a
Dalip Puri: Makes sense. Thank you.
Different tilt than a typical year. You saw the uh, the order is coming in and and, and the you know, the first half of the year and you might have the shipments coming out, you know, 3 to 6 months later. So it might be a little bit different.
Kevin Coleman: Okay. Thanks, Chris.
Makes sense. Thank you.
Okay. Thanks. Chris.
Operator: Our next question comes from the line of Steve Bodger with KeyBank Capital Markets. Your line is open.
Our next question comes from the line of Steve bodger with keybanc. Capital markets, your line is open.
Dalip Puri: Hi. Good morning. This is Jacob Moore on Prestige. Thanks for taking the questions.
Kevin Coleman: Good morning.
Hi, good morning. This is Jacob Moore on for Steve. Thanks for taking the questions.
Dalip Puri: Just a two-parter from us as well, kind of staying on orders and backlog. They look pretty solid this quarter. Can you just help us understand the breakdown of orders and backlog between the segments? Are there any end markets you would call out showing notable strength or weakness in orders? And then the quick second is related to the tariff situation. Beyond the China metrology, do you think there's any level of pull forward more broadly up to this point? Any perspective you have there would be helpful.
Good morning.
Kevin Coleman: Yeah. In terms of the pull forward, we're typically manufacturing customized systems that are higher dollar value. So I'm sure there was a little bit of pull forward, but it's not of a meaningful quantifiable number in our respect. So we are probably less affected by pull forwards than most companies because of the nature of our product portfolio. In terms of the orders, overall orders were up 6% in the quarter. The EMG business was up double digits. EIG was up, you know, single digits. In terms of book-to-bill, it was one. EMG was a little above one, and EIG was a little below one. So, as I mentioned, the cadence of the orders, the June was the strongest month of the quarter and also the strongest month of the year.
Uh just a 2-part from us as well kind of staying on orders and backlogs. They look pretty solid. This quarter. Can you just help us understand the breakdown of orders and backlog between the segments? Are there any end markets? You would call option or a notable strength or weakness in orders. And then the quick second is related to the Tariff situation beyond the China Metrology, do you think there's any level of pull forward, more broadly up to this point. Any perspective, you have there would be helpful.
Yeah, in terms of the full forward, we're we're typically manufacturing customized systems that are higher dollar value. So I'm sure there was a little bit of pull forward, but it it's uh, not of a meaningful.
Quantifiable numbers in our, in our respect. So, we are probably less affected by pools for most companies because of the nature of our product portfolio.
and in terms of the, uh, orders
um, overall orders were up 6% in the quarter.
The EMG business was was uh up double digits EIG was up, you know, single digits.
Um, terms of book to bill was 1.
EMG was a little above 1 and EIG was a little below 1. So it's a
um, and as I mentioned, the Cadence of the orders, the uh June was the strongest
Quarter of the the uh, strongest month of the quarter and also the strongest month of the year.
Dalip Puri: Got it. Thank you very much.
Kevin Coleman: No, thank you.
Got it. Thank you very much. No, thank you.
Operator: Our next question comes from the line of Nigel Cole with Wolf Research. Your line is open.
Our next question comes from the line of Nigel, Co with wolf research, your line is open.
Nigel Cole: Thanks. Good morning, everyone.
Kevin Coleman: Nigel.
Nigel Cole: A lot of details already. Dave, thanks for the details by segment. So the EIG book-to-bill, I'm just curious, the aerospace and defense businesses within EIG, would they be still above one within that overall?
Kevin Coleman: Yeah, they'd be above one, but that's a backlog business, okay? So a lot of those orders are booked three, six, nine months, even a year in advance. But yes, they were above one.
Nigel Cole: Yeah. Okay. And then you called out, you know, obviously the process and analyticals, SBU, still, you know, I think you said sluggish. There's been a lot of concern around academic and government funding. So just curious, you know, what you're seeing in your Gatan and some of the other businesses that might be affected by those pressures.
Thanks, good morning, everyone. Um, Nigel a lot of details already, um Dave. Thanks for the details by by segments. So the EIG book to Bill, I'm just curious the the Aerospace and defense businesses within the IG. Will they be still above 1 uh, within that? Uh, overall, yeah. They they be above 1 but that's the backlog business. Okay. So a lot of those orders are, you know, booked, you know, 3 6 9 months even a year in advance. But yes, they were above 1.
Kevin Coleman: Yeah, that's a good question. If you just look at our verticals, the med tech was positive. A&D, as I talked about, was positive. Automation was positive, and food was positive. And the two negatives would be the semiconductor market and the research academia market. And it'll be in the US and globally. So that would be how I would look at it from the verticals. And obviously, our process business plays in a lot of those. But the semi and research were headwinds in the quarter.
So uh, that that would be how I I would look at it from the verticals and, and obviously our our process business plays in a lot of those. But uh, semi. And and research were were headwinds in the quarter.
Nigel Cole: Maybe just could you just cite that research exposure for AMETEK? And you know, do you view these pressures as temporary, or do you think it could be with us for some time?
Kevin Coleman: Yeah. Research market is about 10% of AMETEK. That's a good estimate for size. In the US, you had there is a redefining a little bit of the spend. And without getting into a lot of detail, the spend associated with the projects have been reduced, but they still want to go forward with the projects. So there are some delays, and those delays are happening. I think that those in the research market, there's some parts of the world where the research market's very strong. You know, about 25 to 30% of our research markets in the US, the balance of it is internationally. So we had a little issue in China there that we talked about. And a smaller part of it's in the US where there is some delay in research academia funding. And we're seeing that as a bit of a headwind to our process business.
Maybe just could you just size that research exposure for ametek and and you know, is do you do the, do you do these pressures of temporary or or do you think it could be with us for some time?
Yeah, I
Research Market is about 10% of of ametek, uh, that, that that, you know, a good estimate for size. Um, in the US you had there, there is a, uh,
the redefining a little bit of of, of, of the spend and, and the, uh,
Without getting into a lot of details to spend associated. With the projects have been reduced, what they still want to go for with the projects, there are some delays and and those delays are happening, um, I think that those in the research Market, um, there's some parts of the world where the research Market is very strong. Uh, you know, about 25 to 30% of our research markets in the US, the balance of is internationally.
Kevin Coleman: I think that'll be around for definitely quarter three. As we get into the fourth quarter, I'm not sure.
So we had a little little issue in China there that we talked about and the smaller part of it in the US where there, there is some delay in research Academia funding. And we're seeing that as a bit of a headwind to our process business.
I think, I think that'll be that'll be around for, for, you know,
Nigel Cole: Makes sense. Thanks, Dave.
Definitely, you know, quarter 3 as we get into the fourth quarter. I'm not sure.
Makes sense. Thanks bye.
Operator: Our next question comes from a line of Scott Graham with Seaport Research Partners. Your line is open.
Our next question comes from Milan of Scott, Graham with Seaport research Partners, your line is open.
Jamie Cook: Hey, good morning. I have, I'm sorry, I joined the call late. Dave, did you provide what the pricing was in the quarter? And then I'll ask maybe what your thinking is, you know, for the second half. And then with that, with tariffs coming down, how did you approach that with customers? Because I'm sure prices announced were, you know, a certain level, and then tariffs came down, and you might have had to adjust those. Could you just kind of walk us through all that?
Hey um, good morning.
I have, um, I'm sorry, I joined the call late. Dave, did you provide, um, what the pricing was in the quarter and then, um, I'll ask maybe what you're thinking is, you know, for the second half. And then,
With that, with tariffs coming down.
How did you approach that with customers? Because I'm sure
prices announced.
Kevin Coleman: Yeah, a lot of that's into the detailed discussions in our business units. I'll say that in the quarter, we had positive price cost spread. We didn't guide to a price exactly, but we had a positive price cost spread. I think we'll have that for the year. The price increases, I would define them as selective. We're trying to work with our customers. At the same time, you know, I'm confident that the impacts of tariff and inflation will be offset by price. And it speaks to the results related to the highly differentiated nature of the AMETEK product portfolio, our leadership position, and niche markets around the globe. So that's how I'd characterize it.
Were you know a certain level and then tariffs came down, you might have had to adjust. Those could you just kind of walk us through all that?
Yeah, a lot of that's into the detailed discussions in our business units. I'll say that in the quarter.
uh, we had positive uh, price cost spread we didn't uh
Guide to a a, a price. Exactly. But we had a positive.
Price-cost spread. I think we'll have that for the year.
Uh, the price increases. I would, I would uh,
To find them as selective.
Where where, where we're trying to work with our customers, uh, the same time? You know, I'm confident that that the uh, impacts of tariff and inflation will be offset by price.
And it speaks to the the results are related to the highly, differentiated nature of the amitech product portfolio, or leadership position and Niche markets around the globe.
Jamie Cook: Okay. I appreciate that. Thank you. Let me just maybe flip into process, which looked like it was, you know, softer than perhaps you were thinking internally. That sort of division, whatever we want to call that, has a lot of different end markets. Could you kind of tell us what the puts and takes were there?
So that's that's how I characterize it.
Okay, I appreciate that. Thank you. And this just may be flipping to process, which looks like it was, you know, softer than perhaps you were thinking internally that
Kevin Coleman: Yeah, I was going through that a little bit before. So it would be positives on the med tech space, like our Rowland businesses there. They had a really good quarter. Positive in the food business. You know, we have a MoCon business. We have about 3 or 4 percent of our businesses' food. That was very positive. You know, the oil and gas market, that was kind of just nothing really positive, nothing really negative. And then in the semiconductor and the research markets, those were headwinds. That's how I'd characterize it.
This sort of uh division what whatever we want to call. That has a lot of different end markets. Could you kind of tell us what the puts and takes were there? Yeah, that I was I was
Going going through that a little bit before. So it would be positives on, on the Medtech space like a rolling businesses there. They had a really good quarter, uh, positive in in the food business. You know, we have a, a moan business. That's a, you know, we have about 3 or 4% of our businesses who that was very positive. Um, you know, the the oil and gas market that was kind of
a um, you know, just a
Nothing really positive, nothing really negative. And then the, and the, and the semiconductor, and the research markets. Those, those were headwinds that that side, characterize it,
Jamie Cook: I appreciate that. Thank you.
Kevin Coleman: Thank you. Thank you, Scott.
I appreciate that. Thank you.
Thank you. Thank you, Scott.
Operator: Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back to Kevin for closing remarks.
Thank you.
Ladies and gentlemen, I'm showing no further questions in the queue. I will now like to turn the call back to Kevin for closing remarks.
Kevin Coleman: Thank you, Tawanda. And thanks, everyone, for joining our call today. And as a reminder, a replay of today's webcast can be accessed in the investor section of ametek.com. Have a great day.
Operator: Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now next.
Thank you to Wanda and thanks everyone for joining our call today. And as a reminder of replay of today's webcast can be accessed and the investor section of amitech Comm, have a great day.
Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect
Mhm.