AMETEK(AME) - 2024 Q4 - Annual Report

Financial Performance - In 2024, the Company achieved record sales of $6,941.2 million, an increase of 5.2% from 2023[29]. - Diluted earnings per share for 2024 were a record$ 5.93, an increase of $0.26 or 4.5% compared to$ 5.67 per diluted share in 2023[29]. - The company's operating income for 2024 was $1,779.56 million, up from$ 1,707.46 million in 2023, reflecting a growth of 4.2%[224]. - Net income for 2024 reached $1,376.12 million, compared to$ 1,313.19 million in 2023, marking an increase of 4.8%[224]. - Basic earnings per share increased to $5.95 in 2024 from$ 5.70 in 2023, a rise of 4.4%[224]. - Consolidated net sales for 2024 reached $6,941.2 million, an increase from$ 6,596.9 million in 2023, representing a growth of approximately 5.2%[290][292]. - Net sales in the United States for 2024 were $3,649.4 million, compared to$ 3,468.8 million in 2023, reflecting a growth of approximately 5.2%[290][292]. - International net sales totaled $3,291.7 million in 2024, up from$ 3,128.2 million in 2023, marking an increase of about 5.2%[290][292]. - Cash provided by operating activities totaled $1,828,848 in 2024, compared to$ 1,735,296 in 2023, indicating an increase of 5.4%[234]. Acquisitions - In October 2024, the Company acquired Virtek Vision International for $117.5 million, enhancing its capabilities in advanced laser-based projection and inspection systems[30]. - The company acquired Virtek Vision International in October 2024, which constituted 0.9% of total assets and 0.2% of net sales for the year ended December 31, 2024[198]. - The company completed the acquisition of Paragon Medical in December 2023 for$ 1.9 billion, with $852.3 million allocated to intangible assets as of December 31, 2024[216][218]. - The total cash spent on acquisitions in 2023 amounted to$ 2,237.9 million, including Paragon Medical, Amplifier Research Corp., United Electronic Industries, and Bison Gear & Engineering Corp.[320]. - The Company finalized its acquisition of Paragon Medical, resulting in an increase of $62.2 million in goodwill and no material impact on the consolidated statement of income[319]. - The Company acquired Kern Microtechnik in January 2025, which has annual sales of approximately €50 million, further expanding its market presence[324]. Sales Composition - Process and analytical instrumentation sales represented 69% of EIG's 2024 net sales, serving industries such as power generation and pharmaceutical manufacturing[37]. - Aerospace and power instrumentation sales accounted for 31% of EIG's 2024 net sales, focusing on power monitoring and metering instruments[39]. - EMG's automation and engineered solutions markets represented 73% of its 2024 net sales, highlighting its focus on precision motion control solutions[51]. - Approximately 6% of EIG's 2024 net sales were made to its five largest customers, with no single customer comprising more than 2% of net sales[46]. - The Company’s major product segment, Process and Analytical Instrumentation, generated$ 3,232.9 million in sales for 2024, compared to $3,267.7 million in 2023, showing a slight decline of about 1.1%[294][296]. - Products transferred at a point in time accounted for$ 5,792.1 million of consolidated net sales in 2024, compared to $5,603.7 million in 2023, indicating an increase of approximately 3.4%[297]. International Presence - In 2024, 51% of EIG's net sales were to customers outside the United States, indicating a strong international presence[36]. - In 2024, 41% of EMG's net sales were to customers outside the United States, reflecting its global market reach[50]. Employee and Community Engagement - As of December 31, 2024, AMETEK has approximately 21,500 employees, with compensation programs designed to attract and retain a world-class workforce[77]. - The company actively engages in community support through the AMETEK Foundation, focusing on health, welfare, civic, and educational programs[73]. - The company has established a leadership development program for employees on track to become P&L leaders, involving both internal and external training[76]. - AMETEK's executive management team regularly reviews key talent to assess adequacy for future growth needs[75]. Financial Controls and Reporting - AMETEK's internal control over financial reporting was assessed as effective as of December 31, 2024, based on the COSO criteria[202]. - The company maintains a system of internal controls designed to provide reasonable assurance regarding the reliability of financial reporting[193]. - AMETEK's financial statements are prepared in conformity with U.S. generally accepted accounting principles, ensuring the integrity of financial information[191]. Sustainability and Innovation - AMETEK's commitment to sustainability includes a growing portfolio of clean technology solutions aimed at reducing carbon emissions and promoting renewable energy[72]. - The Company recorded research and development costs of$ 236.6 million in 2024, $220.8 million in 2023, and$ 198.8 million in 2022, indicating a year-over-year increase of approximately 7.9% from 2023 to 2024[273]. Asset and Liability Management - As of December 31, 2024, the total assets of AMETEK, Inc. were $14,631.17 million, a decrease from$ 15,023.53 million in 2023[229]. - Total liabilities decreased to $4,975.87 million in 2024 from$ 6,293.34 million in 2023, indicating a reduction of 20.9%[229]. - The fair value of long-term debt (including current portion) decreased to $1,778.7 million in 2024 from$ 2,087.6 million in 2023, a reduction of approximately 14.8%[309]. - The goodwill balance increased to $6,555.9 million as of December 31, 2024, reflecting recent acquisitions and adjustments[325]. - The balance of retained earnings at the end of 2024 was$ 11,057,684, compared to $9,940,343 at the end of 2023, marking an increase of 11.3%[232].