AMETEK INC/AME
AMETEK INC/ Revenue Disclosure
Revenues
The outstanding contract asset and liability accounts were as follows:
| 2025 | 2024 | ||||||||||
| (In thousands) | |||||||||||
| Contract assets – January 1 | $ | 136,432 | $ | 140,826 | |||||||
| Contract assets – December 31 | 159,896 | 136,432 | |||||||||
| Change in contract assets – (decrease) increase | 23,464 | (4,394) | |||||||||
| Contract liabilities – January 1 | 400,689 | 432,830 | |||||||||
| Contract liabilities – December 31 | 448,849 | 400,689 | |||||||||
| Change in contract liabilities – decrease (increase) | (48,160) | 32,141 | |||||||||
| Net change | $ | (24,696) | $ | 27,747 | |||||||
The net change in 2025 was primarily driven by customer advance payments from acquired businesses. The net change in 2024 was primarily driven by lower advance payments from customers on long term contracts. For the years ended December 31, 2025 and 2024, the Company recognized revenue of $328 million and $359 million, respectively, that was previously included in the beginning balance of contract liabilities.
Contract assets are reported as a component of Other current assets in the consolidated balance sheet. At December 31, 2025 and 2024, $52.7 million and $37.1 million, respectively, of Customer advanced payments (contract liabilities) were recorded in Other long-term liabilities in the consolidated balance sheet.
The remaining performance obligations exceeding one year as of December 31, 2025 and 2024 were $627.4 million and $541.8 million, respectively. Remaining performance obligations represent the transaction price of firm, non-cancelable orders, with expected delivery dates to customers greater than one year from the balance sheet date, for which the performance obligation is unsatisfied or partially unsatisfied. These performance obligations will be substantially satisfied within to three years.
Geographic Areas
Net sales were attributed to geographic areas based on the location of the customer. Information about the Company’s operations in different geographic areas was as follows for the year ended December 31:
| 2025 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| United States | $ | 2,381,766 | $ | 1,448,873 | $ | 3,830,639 | |||||||||||
International(1): | |||||||||||||||||
| United Kingdom | 115,496 | 146,437 | 261,933 | ||||||||||||||
| European Union countries | 639,377 | 450,153 | 1,089,530 | ||||||||||||||
| Asia | 1,237,055 | 251,733 | 1,488,788 | ||||||||||||||
| Other foreign countries | 545,406 | 184,820 | 730,226 | ||||||||||||||
| Total international | 2,537,334 | 1,033,143 | 3,570,477 | ||||||||||||||
| Consolidated net sales | $ | 4,919,100 | $ | 2,482,016 | $ | 7,401,116 | |||||||||||
_________________
(1)Includes U.S. export sales of $2,041.2 million.
| 2024 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| United States | $ | 2,302,951 | $ | 1,346,483 | $ | 3,649,434 | |||||||||||
International(1): | |||||||||||||||||
| United Kingdom | 106,678 | 126,846 | 233,524 | ||||||||||||||
| European Union countries | 549,446 | 427,239 | 976,685 | ||||||||||||||
| Asia | 1,213,403 | 218,770 | 1,432,173 | ||||||||||||||
| Other foreign countries | 487,437 | 161,927 | 649,364 | ||||||||||||||
| Total international | 2,356,964 | 934,782 | 3,291,746 | ||||||||||||||
| Consolidated net sales | $ | 4,659,915 | $ | 2,281,265 | $ | 6,941,180 | |||||||||||
_________________
(1)Includes U.S. export sales of $1,880.8 million.
| 2023 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| United States | $ | 2,377,316 | $ | 1,091,468 | $ | 3,468,784 | |||||||||||
International(1): | |||||||||||||||||
| United Kingdom | 99,718 | 114,770 | 214,488 | ||||||||||||||
| European Union countries | 518,758 | 426,219 | 944,977 | ||||||||||||||
| Asia | 1,175,703 | 202,425 | 1,378,128 | ||||||||||||||
| Other foreign countries | 452,755 | 137,818 | 590,573 | ||||||||||||||
| Total international | 2,246,934 | 881,232 | 3,128,166 | ||||||||||||||
| Consolidated net sales | $ | 4,624,250 | $ | 1,972,700 | $ | 6,596,950 | |||||||||||
_________________
(1)Includes U.S. export sales of $1,732.4 million
Major Products and Services
The Company’s major products and services in the reportable segments were as follows for the year ended December 31:
| 2025 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Process and analytical instrumentation | $ | 3,464,289 | $ | — | $ | 3,464,289 | |||||||||||
| Aerospace and power | 1,454,811 | 732,361 | 2,187,172 | ||||||||||||||
| Automation and engineered solutions | — | 1,749,655 | 1,749,655 | ||||||||||||||
| Consolidated net sales | $ | 4,919,100 | $ | 2,482,016 | $ | 7,401,116 | |||||||||||
| 2024 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Process and analytical instrumentation | $ | 3,232,918 | $ | — | $ | 3,232,918 | |||||||||||
| Aerospace and power | 1,426,997 | 624,570 | 2,051,567 | ||||||||||||||
| Automation and engineered solutions | — | 1,656,695 | 1,656,695 | ||||||||||||||
| Consolidated net sales | $ | 4,659,915 | $ | 2,281,265 | $ | 6,941,180 | |||||||||||
| 2023 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Process and analytical instrumentation | $ | 3,267,698 | $ | — | $ | 3,267,698 | |||||||||||
| Aerospace and power | 1,356,552 | 588,446 | 1,944,998 | ||||||||||||||
| Automation and engineered solutions | — | 1,384,254 | 1,384,254 | ||||||||||||||
| Consolidated net sales | $ | 4,624,250 | $ | 1,972,700 | $ | 6,596,950 | |||||||||||
Timing of Revenue Recognition
The Company’s timing of revenue recognition was as follows for the year ended December 31:
| 2025 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Products transferred at a point in time | $ | 3,894,773 | $ | 2,239,338 | $ | 6,134,111 | |||||||||||
| Products and services transferred over time | 1,024,327 | 242,678 | 1,267,005 | ||||||||||||||
| Consolidated net sales | $ | 4,919,100 | $ | 2,482,016 | $ | 7,401,116 | |||||||||||
| 2024 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Products transferred at a point in time | $ | 3,739,209 | $ | 2,052,862 | $ | 5,792,071 | |||||||||||
| Products and services transferred over time | 920,706 | 228,403 | 1,149,109 | ||||||||||||||
| Consolidated net sales | $ | 4,659,915 | $ | 2,281,265 | $ | 6,941,180 | |||||||||||
| 2023 | |||||||||||||||||
| EIG | EMG | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Products transferred at a point in time | $ | 3,831,321 | $ | 1,772,329 | $ | 5,603,650 | |||||||||||
| Products and services transferred over time | 792,929 | 200,371 | 993,300 | ||||||||||||||
| Consolidated net sales | $ | 4,624,250 | $ | 1,972,700 | $ | 6,596,950 | |||||||||||
Product Warranties
The Company provides limited warranties in connection with the sale of its products. The warranty periods for products sold vary among the Company’s operations, but the majority do not exceed one year. The Company calculates its warranty expense provision based on its historical warranty experience and adjustments are made periodically to reflect actual warranty expenses. Product warranty obligations are reported as a component of Accrued liabilities and other in the consolidated balance sheet.
Changes in the accrued product warranty obligation were as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands) | |||||||||||||||||
| Balance at the beginning of the year | $ | 38,555 | $ | 37,087 | $ | 26,487 | |||||||||||
| Accruals for warranties issued during the year | 20,700 | 24,775 | 23,308 | ||||||||||||||
| Settlements made during the year | (18,979) | (22,953) | (14,219) | ||||||||||||||
| Warranty accruals related to acquired businesses and other during the year | 4,462 | (354) | 1,511 | ||||||||||||||
| Balance at the end of the year | $ | 44,738 | $ | 38,555 | $ | 37,087 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.