Ametek (AME, Financial) has successfully concluded its acquisition of Faro Technologies, offering $44.00 per share in cash, amounting to an estimated $920 million, adjusted for cash on hand. This transaction was finalized following the approval by Faro's shareholders and the fulfillment of all regulatory conditions. With the merger completed, Faro's common stock has been delisted from Nasdaq. Faro Technologies will now become part of Ametek’s Ultra Precision Technologies Division within the broader Electronic Instruments Group. Prior to the acquisition, Faro Technologies reported annual revenues of about $340 million.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for AMETEK Inc (AME, Financial) is $196.21 with a high estimate of $225.00 and a low estimate of $158.00. The average target implies an upside of 9.71% from the current price of $178.85. More detailed estimate data can be found on the AMETEK Inc (AME) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, AMETEK Inc's (AME, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AMETEK Inc (AME, Financial) in one year is $176.27, suggesting a downside of 1.44% from the current price of $178.845. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AMETEK Inc (AME) Summary page.
AME Key Business Developments
Release Date: May 01, 2025
- Sales: $1.73 billion, flat compared to Q1 2024.
- Organic Sales: Down 1%; acquisitions added 1 point.
- Orders: Up 8% overall; organic orders up 3%.
- Operating Income: $455 million, a 2% increase over Q1 2024.
- Operating Margins: 26.3%, up 60 basis points from the prior year.
- EBITDA: $559 million, up 3% with margins at 32.2%.
- Free Cash Flow: $394 million, with a conversion rate of 112%.
- Diluted EPS: $1.75, up 7% from Q1 2024.
- Electronic Instruments Group Sales: $1.14 billion, down 1% from last year.
- Electronic Instruments Group Operating Margins: 31%, up 50 basis points.
- Electromechanical Group Sales: $588.3 million, up 2% year-over-year.
- Electromechanical Group Operating Margins: Up 120 basis points.
- General and Administrative Expenses: $28 million, up $1.5 million from the prior year.
- Interest Expense: $19 million.
- Effective Tax Rate: 19%.
- Capital Expenditures: $23 million for the quarter.
- Operating Cash Flow: $418 million, up 2% from Q1 2024.
- Total Debt: $1.9 billion as of March 31.
- Cash and Cash Equivalents: $399 million.
- Gross Debt-to-EBITDA Ratio: 0.9 times.
- Net Debt-to-EBITDA Ratio: 0.7 times.
- Dividend Increase: 11% increase to $0.31 per share.
- Share Repurchase Authorization: $1.25 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AMETEK Inc (AME, Financial) reported strong first-quarter 2025 results with robust margin expansion and earnings above expectations.
- The company generated strong free cash flow of $394 million, with a free cash flow to net income conversion of 112%.
- Orders were strong in the quarter, with overall orders up 8% and organic orders up 3% versus the prior year.
- AMETEK Inc (AME) maintained a near-record backlog of $3.47 billion, indicating strong future demand.
- The company is actively pursuing strategic acquisitions and has a robust pipeline of attractive acquisition candidates.
Negative Points
- Organic sales were down 1% in the first quarter, indicating some challenges in core business growth.
- The company faced a 10% decline in the China market, impacting overall international sales.
- There is increased uncertainty due to global trade dynamics and tariffs, which could affect future performance.
- The company did not provide specific guidance for the second quarter due to uncertainty around sales and potential shipping delays.
- Some delays in project timing were noted in the Process business, reflecting cautious customer behavior amid macroeconomic uncertainties.
