AMETEK, Inc.

Hello, and welcome to Alma Tech'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 the question during the session, you would need to press star 11 on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I will now like to turn the conference over to Kevin Coleman, Vice President of Investor Relations and Treasurer. Sir, you may begin.

Thank you, Tawanda. Good morning and welcome to Amatek's second quarter 2025 earnings conference call. Joining me today are Dave Zepico, Chairman and Chief Executive Officer, and Dala 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 AMETEC's filings with the SEC. AMETEC disclaims any intention or obligation to update or revise any forward-looking statements. Any references made on this call 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 for 10-cent-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.

Thank you, Kevin, and good morning, everyone. Amitek delivered strong second quarter results, highlighted by record-level sales on EBITDA, strong core margin expansion, and excellent earnings growth. We also raised our four-year sales and earnings guidance to reflect our second quarter results and the recent acquisition of Ferro Technologies. The addition of Ferro 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 one and a half points, and foreign currency translation was a one point benefit. 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 on 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. 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 quarter margins a very strong 30.7%, up 40 basis points versus the prior year. The Electro-Mechanical 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. 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 are committed to making strategic growth 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. 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. 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 Ferro Technologies subsequent to the end of the second quarter for approximately $920 million. FARO 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 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. Ferro'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. Faro has annual sales of approximately $340 million. We're very pleased to welcome the Faro team to Ametek and excited for the future. 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 and highly attractive market segments. Looking ahead, our acquisition pipeline remains robust. In valuable 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 U.S. manufacturing presence to support global customers looking to localize or reshore their supply chains. Ametek's diversification across end 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 Ferro 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. 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 at 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 FARO acquisition. In summary, Amitek 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. Ematech remains firmly positioned to deliver a long-term sustainable growth and strong returns for our shareholders. I will now turn it over to Dalit Puri, who will cover some of the financial details of the quarter. Then we'll be glad to take your questions. Dalit.