AMETEK, Inc. announced its financial results for the fourth quarter ended December 31, 2023.
AMETEK's fourth quarter 2023 sales were a record $1.73 billion, a 6.5% increase over the fourth quarter of 2022. Operating income increased 12% to a record $445.0 million and operating margins were 25.7%, up 120 basis points from the fourth quarter of 2022. Operating cash flow in the quarter was a record $540.7 million, up 40% versus the prior year.
On a GAAP basis, fourth quarter earnings per diluted share were $1.48. Adjusted earnings in the quarter were a record $1.68 per diluted share, up 11% from the fourth quarter of 2022. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.20 per diluted share. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.
"AMETEK's fourth quarter and full year performance was exceptional," noted David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Contributions from organic sales growth and recent acquisitions, along with tremendous operating performance, led to robust margin expansion, record earnings and impressive cash flow growth in the quarter and the full year. We also continued to strengthen our portfolio in 2023, deploying approximately $2.25 billion in capital on acquisitions, including our most recent acquisition, Paragon Medical."
For the full year, AMETEK's sales were a record $6.60 billion, an increase of 7% over 2022. Operating income was $1.71 billion, up 14% versus the prior year, and operating income margins were 25.9%, expanding 150 basis points over last year's margins.
On a GAAP basis, full year 2023 earnings were $5.67 per diluted share. Full year adjusted earnings were $6.38 per share, an increase of 12% over 2022's comparable adjusted earnings of $5.68 per share. AMETEK established annual records for sales, operating income, operating margin, and earnings per share.
Electronic Instruments Group (EIG)
EIG sales in the fourth quarter were a record $1.24 billion, up 7% from the same quarter in 2022. EIG's operating income in the quarter increased 17% to a record $359.0 million and operating income margins were 29.0%, an increase of 250 basis points compared to the fourth quarter of 2022.
"EIG delivered outstanding results in the fourth quarter," commented Mr. Zapico. "The sales growth was driven by continued solid organic growth and contributions from recent acquisitions. Our EIG businesses drove exceptional margin expansion, a testament to the quality of our businesses and our team's focus on driving continuous operational improvements."
Electromechanical Group (EMG)
EMG sales in the fourth quarter were $494.7 million, up 6% from the fourth quarter of 2022. EMG's fourth quarter operating income was $112.3 million, while operating income margins were 22.7% in the quarter.
"EMG also delivered a strong fourth quarter performance with continued excellent growth across our aerospace and defense businesses and solid core margin expansion in the quarter," stated Mr. Zapico.
2024 Outlook
"AMETEK's businesses delivered exceptional results in the fourth quarter and for the full year. The strength of the AMETEK Growth Model, alongside the outstanding contributions of our colleagues, allowed us to deliver strong, high-quality growth. The strength of our niche businesses, diverse market exposures, record backlog and robust operating capabilities position us for sustained growth. With a flexible balance sheet and strong cash flows, we are well positioned to invest in our organic growth initiatives and pursue strategic acquisitions to drive long-term value creation," noted Mr. Zapico.
"For 2024, we expect overall sales to be up low double digits on a percentage basis compared to 2023. Adjusted earnings per diluted share are expected to be in the range of $6.70 to $6.85, an increase of 5% to 7% over the comparable basis for 2023," he added.
"For the first quarter of 2024, overall sales are expected to be up low double digits on a percentage basis compared to the same period last year. Adjusted earnings in the quarter are anticipated to be in the range of $1.56 to $1.60 per share, up 5% to 7% compared to the first quarter of 2023," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its fourth quarter 2023 investor conference call on Tuesday, February 6, 2024, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.
