AMETEK, Inc.

Good day and thank you for standing by. Welcome to the Q2 2026 AMETEK 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 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. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your first speaker today, Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead.

Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead. Kevin Coleman, Vice President, Investor Relations and Treasurer. Please go ahead 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. Any references made on this call to historical results will be on an adjusted basis, excluding after-tax, acquisition-related and tangible amortization, and excluding acquisition-related cost. 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 questions. I'll now turn the meeting over to Dave.

Thank you, Kevin, and good morning, everyone. Ametek delivered fantastic results in the second quarter with double digit organic sales growth, excellent orders growth, strong core margin expansion, outstanding cash flow generation, and record earnings ahead of our expectations. We also raised our full year sales and earnings guidance to reflect our outstanding first half results and our positive outlook for the balance of the year. Second quarter sales were a record $2.04 billion, up 15% from the same period in 2025. Organic sales were up 10%. Acquisitions added five points with foreign currency flat. Orders were again exceptional in the quarter with continued broad-based growth across all Ametek divisions. Overall orders were a record $2.3 billion, up 28% versus the prior year. with organic orders up sharply at 25%, leading to a record backlog of $4.11 billion. This outstanding second quarter orders growth follows the first quarter's 22% organic growth, reflecting the strength across our attractive end markets. Operating income for the quarter was a record $544 million, an 18% increase over the second quarter of 2025. Operating margins were excellent in the quarter at 26.6%, up 60 basis points from the prior year. Core margins were 27.1%, up a very strong 110 basis points versus last year's second quarter. EBITDA was a record $644 million, up 14% versus the second quarter of 2025, with EBITDA margins in the press of 31.5%. We also generated strong cash flow in the quarter, with free cash flow up 37% to $452 million, and free cash flow to net income conversion a very strong 111%, reflecting our outstanding operating performance and working capital management. Diluted earnings per share were a record $2.09, up 17% versus the second quarter of 2025, and above our guidance range of $1.96 to $2 per share. Now we'll share some additional details at the operating group level, starting with the electronic instruments group. EIG generated outstanding second quarter results with excellent sales growth, strong operating performance, and robust orders growth. EIG sales in the quarter were $1.32 billion, up 14% from last year's second quarter. Organic sales were up 7%. and acquisitions added seven points with foreign currency flat. Orders for EIG were again outstanding with overall orders up 23% and organic orders up 20% in the quarter. Growth in both sales and orders was broad-based across all EIG divisions with our process instrumentation, aerospace and power businesses all benefiting from their strong positions in attractive markets. EIG's second quarter operating income was $385 million, up 12% versus the second quarter of 2025. Core operating margins were 30.1%, up 40 basis points from the prior year. The electromechanical group delivered exceptional results in the second quarter, with excellent sales growth, sizable orders growth, strong operating performance, and impressive core margin expansion. EMG's second quarter sales were a record, $723 million, up 17% versus the prior year. Organic sales were again up double digits at 15%, with acquisitions contributing approximately two points to growth. EMG sales growth in the quarter was balanced across our aerospace, defense, med tech, and automation businesses. EMG organic orders were once again exceptional, up 35% versus the prior year. EMG operating income for the second quarter was a record, $191 million, up 32% compared to the prior year. EMG's core operating margins were 26.2%, a 290 basis point increase versus the second quarter of 2025. Overall, I'm very pleased with our performance this quarter and in the first half of the year. Our colleagues continue to deliver exceptional high-quality results and position Ametek for continued growth. Together, we have delivered an exceptional long-term track record and have created meaningful shareholder value. I'm equally pleased with the work we have done to strategically position and align our portfolio with many powerful secular growth drivers. AI is driving sizable demand for advanced semiconductors that require ultra-precise optics 3G metrology systems and expanded power infrastructure. At the same time, recent geopolitical uncertainties and volatile energy prices are increasing the focus on defense modernization and energy security, creating broad-based demand for our businesses. In addition, innovation-led momentum in METEK, sustained strength in commercial aerospace, and improving demand across precision automation are complementing these secular tailwinds. Looking ahead, we believe these broader investment themes will continue to drive meaningful growth. With that said, I would like to spend a few minutes highlighting how Ametek's businesses are aligned with key areas of strong demand. RTDS Technologies, a leader in real-time digital simulation of power system infrastructure and hardware-in-the-loop testing, recently received a key order from a data center hyperscaler to help de-risk the power profile of a broader data center build-out. RTDS's real-time simulators enable detailed power system analysis, helping engineers anticipate system and device behaviors that can impact electrical system stability, resilience, and performance. As data center power ecosystems grow increasingly complex, operators must ensure their power architectures can meet of all the requirements across operating conditions, load cycles, and infrastructure changes. RTDS is well positioned to support this critical need. Additionally, our Zygo business, a provider of advanced metrology systems and optical components, is supporting accelerated investment in AI infrastructure with its precision metrology and optical solutions. These solutions are designed into leading semiconductor platforms used to manufacture advanced chips that power AI and next-generation computing. As semiconductor complexity increases, precision becomes more critical. Our customers rely on Zygos technology to meet tighter tolerances and improve manufacturing yields. Alongside this, demand across the broader semiconductor ecosystems, including memory, logic, advanced packaging, and photonics, remains strong Zygo is positioned to benefit from ongoing investment in these infrastructure enabling technologies. I also want to note the exceptional growth we are seeing within our Paragon medical business. Continued superb orders growth is being driven by attractive new design wins tied to orthopedics, drug delivery systems, and highly engineered medical components. More broadly, Paragon is performing extremely well in delivering outstanding growth and profitability. Excellent job by our RTDS, Zygo, and Paragon teams. Now turning to acquisitions and capital deployment. As I have regularly noted, our top capital deployment priority is strategic acquisitions. Our strong balance sheet and consistent, robust cash flow provide us the ability to deploy a meaningful amount of capital for acquisitions. We continue to maintain a robust pipeline of acquisition opportunities across deal sizes and expect to remain active in executing on these pipelines. We remain excited for the acquisition of Indicor instrumentation. Our teams are working through the integration planning, and we continue to expect the acquisition to close in the second half of the year. In addition to our acquisition and capital deployment strategy, we are committed to invest in our businesses to ensure they are well positioned for long-term sustainable growth. In the second quarter, our new product vitality was a strong 25%. These investments in new products help continue to drive our organic growth. Our used trailer business, a leading provider of advanced heat exchangers and thermal management solutions for mission critical aerospace and defense applications recently introduced MicroFoil, a next generation lightweight heat exchanger technology. This new product delivers a compelling combination of exceptional heat transfer performance and an ultra-low weight design, providing customers with a unique solution to address their most demanding applications. MicroFoil's innovative architecture can be easily adapted to curved and conformal spaces providing exceptional thermal performance for use in aerospace, defense, and industrial cooling applications. Congratulations to the used trailer team on this outstanding achievement. I would also like to congratulate our AlphaSense business for receiving AMETEK's Annual Innovation Award. The AMETEK Innovation Award recognizes our business's efforts to develop and advance Next-generation technology, products, and solutions for the markets we serve and celebrates the most innovative product development from across the company. AlphaSense, which is part of our process and analytical instruments division, is a leading provider of advanced sensors used in environmental, health, and safety applications. The latest product, the A2-GLF oxygen sensor, was named the recipient of our Innovation Award. This sensor, the world's first galvanic lead-free oxygen sensor, is designed for accurate oxygen gas measurement in demanding environments targeted to OEMs of portable and fixed gas detectors seeking regulatory compliance and environmental controls without sacrificing performance. The sensor is designed to retrofit a large installed base along with Next Generation Instrument Development. Well done to the AlphaSense team for this outstanding achievement. Now, shifting to our outlook for the balance of the year. Our increased sales and earnings guidance for the year incorporates our strong second quarter results and positive outlook for the balance of the year. For 2026, we now expect overall sales to be up approximately 10% on a percentage basis with organic sales now expected to be up mid to high single digits versus the prior year. Our diluted earnings per share for the year are now expected to be in the range of $8.20 to $8.30, up 10% to 12% compared to last year's results. This is an increase from our prior four-year guide of $7.94 to $8.14 per diluted share. For the third quarter, We anticipate overall sales to be up high single digits on a percentage basis with adjusted earnings of $2.08 to $2.10 per share, up 10% to 11% versus the prior year. To summarize, Emetech delivered an outstanding second quarter. Our exceptional results reflect our well-positioned portfolio and the disciplined approach of the Emetech growth model. to capitalize on a broadening infrastructure investment environment. AMETEK's mission-critical niche solution position us as a prime beneficiary of a changing macroeconomic environment and will enable us to continue to deliver superior growth for our shareholders. 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?