Thank you, Stacy. Good morning, and welcome to AMETEK's first quarter 2026 earnings conference call.

Joining me today are David Zapico, Chairman and Chief Executive Officer, and Dalip 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 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 intangible amortization and excluding acquisition-related costs. Reconciliations between GAAP and adjusted measures can be found in our press release and on the Investors section of our website.

We'll begin today's call with prepared remarks, and then we'll open up the call for questions. I'll turn the meeting over to Dave.

Thank you, Kevin, and good morning, everyone. AMETEK delivered an excellent first quarter highlighted by double-digit sales growth, exceptional orders growth, robust core margin expansion, record EBITDA, and a high quality of earnings that exceeded our expectations.

We also raised our full year earnings guidance to reflect our first quarter results and the outlook for the balance of the year. Today, we also announced we signed a definitive agreement to acquire First Aviation Services, an attractive acquisition which strategically broadens our defense aftermarket capabilities.

I will provide more details on First Aviation shortly. Now let me turn to our first quarter financial results.

First quarter sales were $1.93 billion, up 11% from the same period in 2025. Organic sales were up 5%, acquisitions added 5 points, with foreign currency a tailwind.

Orders were outstanding in the quarter with broad-based and meaningful growth across all AMETEK divisions. Overall orders were a record $2.2 billion, up 23% versus the prior year, and organic orders were up 22%, leading to a record backlog of $3.87 billion.

Operating income in the quarter was $517 million, a 14% increase over the first quarter of 2025. Operating margins were 26.8% in the quarter, and core margins were an impressive 27.9%, up a robust 160 basis points versus the prior year.

EBITDA in the quarter was a record $620 million, up 11% versus the prior year, with EBITDA margins a strong 32.1%. Our excellent operating performance led to strong cash generation with free cash flow to net income conversion of 107%.

Diluted earnings per share were $1.97, up 13% versus the first quarter of 2025 and above our guidance range of $1.85 to $1.90 per share. Now let me provide some additional details at the operating group level.

First, the Electronic Instruments Group. EIG had an excellent first quarter with double-digit sales growth, strong operating performance, and a meaningful inflection in orders.

EIG sales in the quarter were $1.26 billion, up 11% from last year's first quarter. Organic sales were up 2%, and acquisitions added 7 points, with foreign currency the balance of the growth.

Organic orders for EIG were up an impressive 25% in the quarter. This growth was broad-based across all EIG divisions and end markets with notable growth within our defense, power, and semiconductor businesses.

EIG's first quarter operating income was $376 million, up 6% versus the prior year. Core operating margins were an outstanding 31.4%, up 40 basis points from the prior year.

The Electromechanical Group also delivered excellent results in the quarter with continued strong sales and orders growth along with exceptional operating performance leading to sizable core margin expansion. EMG's first quarter sales were a record $664 million, up 13% versus the prior year.

Organic sales were again up double digits at 11%, with foreign currency a 2-point tailwind. Sales growth was broad-based with our automation, engineered solutions, and aerospace and defense businesses all delivering excellent growth in the quarter.

Additionally, EMG organic orders were again outstanding, up 16% versus the prior year. EMG's operating income in the first quarter was $171 million, up 33% compared to the prior year period, while EMG's first quarter core operating margins were up sharply to 26%, a considerable 410 basis point increase versus the first quarter of 2025.

I wanted to take a moment to expand on the strength and breadth of AMETEK's order growth in the quarter. The 22% organic orders growth reflects the ongoing strength within our aerospace and defense markets as well as the continued strong growth across our automation and engineered solution markets.

Importantly, it also reflects a meaningful inflection in orders for our process instrumentation and power businesses in the quarter as the strong pipeline of opportunities we have been highlighting is translating into substantial orders growth. Contributing to the order strength were several large orders in the quarter which helped fill in our full year sales outlook.

These large orders are aligned with attractive market segments including defense, space, power, and semiconductor, all markets where AMETEK is poised to benefit from strong and growing demand. Within defense, we're seeing broad-based strength including within missile defense, UAVs, and naval applications.

The growth in defense budgets is being driven by modernization of defense capabilities and the ongoing geopolitical conflicts, creating a strong global growth outlook for defense spending including from NATO allies. Our aerospace and defense businesses was recently selected to provide a range of technologies in support of three UAV programs, one program in the US and two with NATO allies.

Products being provided on these programs include ruggedized thermal management systems, power distribution equipment, advanced sensors, and embedded computing app solutions. Our EMIP business also provides highly engineered, specialized fluid transfer solutions for critical military and defense applications, and in the first quarter, saw strong orders growth across many key defense platforms, including in support of nuclear submarines.

Within nuclear, we are also seeing strong commercial nuclear demand and orders. AMETEK businesses provide a range of highly specialized products to this market, including fluid transfer solutions, radiation detection equipment, and uninterruptible power solutions in support of nuclear power facilities.

Switching to space and satellite communications market, our Kern Microtechnik business recently received a sizable order to provide ultraprecision machining solutions and manufacturing services in support of critical RF components used in low Earth orbit satellites. Kern's advanced precision machining solutions are targeted for mission-critical applications which require maximum accuracy, stability, and repeatability.

Lastly, our Abaco business, a leading provider of ruggedized embedded computing solutions, continues to see strong demand with a significant win in the semiconductor capital equipment market. Abaco recently secured an agreement to provide advanced computing technology to support AI-driven demand for advanced semiconductor tools.

Abaco's orders were excellent in the quarter with strong defense orders in addition to strength in the semiconductor market. Overall, the breath and strength of our orders in the first quarter reflect the continued trust of our customers and our continued delivery of key technology-driven products that meet our customers' most critical needs.

Before we move too far off the topic of key programs and our ability to deliver in the most critical and demanding of applications, I want to take a moment to highlight a particularly timely example of our differentiated technology. AMETEK Sensors and Fluid Management Systems, a leader in advanced specialized sensing solutions for the aerospace, defense, and space markets, provided critical solutions used on the recent Artemis II mission that eclipsed the record for the furthest manned space mission.

Our SFMS business provided thin-film pressure transducers that supported mission-critical life support infrastructure on the Orion Multi-Purpose Crew Vehicle. This application demonstrates our ability to serve even the most demanding of applications and our ongoing commitment to reliability, precision, and accuracy.

Congratulations to the AMETEK Sensors and Fluid Management Systems team on this exciting success and also to the four other AMETEK businesses, FMH, EUI, NSI, and Zygo Pixelink, that also supported the Artemis platform with specialized technology. Now turning to acquisitions and capital deployment.

With our robust balance sheet, strong cash flows, and disciplined approach to capital deployment, AMETEK is well-positioned to continue driving long-term value through our disciplined acquisition strategy. We are managing a very strong pipeline of acquisition opportunities across a wide range of deal sizes and markets and are encouraged by the strong pipeline of high-quality acquisition candidates.

As Dalip will touch on, our significant financial capacity provides the opportunity to deploy well over $5 billion in capital while maintaining an investment-grade credit rating. Our top priority for capital deployment remains acquisitions, and we expect to remain active in this area.

We were pleased to announce this morning that we've signed a definitive agreement to acquire First Aviation Services, a leading provider of defense and aviation MRO services as well as proprietary part design and manufacturing. The combination of First Aviation with AMETEK's MRO business will provide attractive market expansion opportunities and additional scale for our A&D aftermarket businesses.

First Aviation is privately held and has six US-based Centers of Excellence. They have approximately $80 million in annual sales, and the acquisition is subject to customary closing conditions, including regulatory approvals.

Alongside this acquisition and capital deployment strategy, we continue to invest in our businesses to ensure AMETEK is strategically positioned for long-term sustainable growth. For 2026, we continue to expect to invest an incremental $100 million to support our growth initiatives, with the majority of this investment going into RD&E and sales and marketing initiatives.

These investments continue to deliver excellent returns. In the first quarter, our Vitality Index, which measures sales of new products introduced over the last three years, was an outstanding 25%.

Now, we'll take a moment to highlight an example of an exciting new product from our RTDS Technologies business. RTDS is a leader in real-time digital simulation of power systems, infrastructure, and hardware-testing-in-the-loop.

Their real-time electromagnetic transient simulators enable detailed studies of power systems, allowing engineers to anticipate system and device behaviors that threaten the stability, resilience, and performance of the power grid. RTDS recently updated their simulator platform with new features including a data center module and an updated workflow that provides more accurate representations of third-party power solutions.

This innovation helps data center operators model the power electronics required for key components such as the uninterruptible power supply systems and the variable frequency drives used in power and cooling systems. This new product led to two new notable orders in the first quarter in support of data center testing applications from large power equipment providers.

Congratulations to the RTDS Technologies team on this exciting new product development. I'd like to take a moment to discuss the conflict in the Middle East and how AMETEK is navigating this evolving dynamic.

AMETEK has only a small sales exposure to the region with approximately 2% of sales into the Middle East. Most of that small exposure is within our EIG process subsegment and is tied to energy markets.

We do not expect a meaningful direct impact on AMETEK given this small exposure. However, like everyone, we are not immune to the broader macroeconomic uncertainty.

We are continuing to monitor developments in the region, especially for impacts on the energy market and potential spillover effects. With all that said, I am confident that AMETEK will continue to navigate this period of increased uncertainty based on the flexibility and durability of our operating model and our proven track record of performing well in challenging environments.

Now shifting to our outlook for the balance of the year. For 2026, we now expect overall sales to be up high single digits on a percentage basis, with organic sales now expected to increase mid-single digits versus the prior year.

With the strong results from the first quarter, diluted earnings per share for the year are now expected to be in the range of $7.94 to $8.14, up 7% to 10% compared to last year's results. This is an increase from our prior full year guide of $7.87 to $8.07 per diluted share.

For the second quarter, we anticipate overall sales to be up high single digits on a percentage basis with adjusted earnings of $1.96 to $2.00 per share, up 10% to 12% versus the prior year. To summarize, AMETEK delivered an excellent first quarter.

Our outstanding results reflect the strength of our portfolio and the resilience of our operating model. Our businesses are aligned with attractive secular growth trends and are well-diversified across end markets, customers, technologies, and geographies.

We are leaders in niche markets where our differentiated technology solutions play a mission-critical role in our customers' most demanding applications. Our highly engineered products are designed into applications governed by strict regulatory and compliance requirements, creating high switching costs.

We primarily serve customers in long-cycle industries with long asset lifespans, resulting in a low obsolescence risk. Taken together, these advantages position AMETEK for sustained long-term success, and we see significant opportunities for continued value creation.

Our culture is deeply ingrained across the organization. Our competitive positions are strong and continuing to expand.

Our operating model is durable, flexible, and scalable. Finally, we are supported by an experienced and proven team that has consistently performed through a wide range of market conditions.

I will now turn it over to Dalip Puri, who will cover some of the financial details of the quarter. Then we will be glad to take your questions.

Dalip?

Thank you, Dave, and good morning, everyone. As Dave noted, AMETEK delivered an outstanding start to the year highlighted by excellent orders, sales, and earnings growth, robust core margin expansion, and strong cash flow generation.

Now let me provide some additional financial highlights for the first quarter. First quarter corporate general and administrative expenses were $30 million or 1.5% of sales.

For the full year, we continue to expect corporate general and administrative expenses to be approximately 1.5% of sales. First quarter other operating expenses were $1 million, largely in line with the first quarter of 2025.

First quarter interest expense was $21 million, up $2 million from the first quarter of 2025. The effective tax rate in the quarter was 19%.

For 2026, we continue to anticipate our effective tax rate to be between 18.5% and 19.5%. As we have stated in the past, actual quarterly tax rates can differ dramatically, either positively or negatively, from this full year estimated rate.

Capital expenditures in the first quarter were $25 million, and for the full year, we expect capital expenditures to be approximately $160 million or about 2% of sales. Depreciation and amortization expense in the quarter was $105 million.

For the full year, we expect depreciation and amortization to be approximately $430 million, including after-tax, acquisition-related intangible amortization of approximately $210 million or 91 cents per diluted share. For the quarter, operating working capital was 17.5%, a 60 basis point improvement versus 18.1% in last year's first quarter.

Operating cash flow was $452 million, up 8% versus the first quarter of 2025. Free cash flow was also up 8% year-over-year to $426 million.

Free cash flow conversion was strong at 107% for the quarter. For 2026, we continue to expect free cash flow conversion to be approximately 110% to 115% of net income.

Total debt at March 31st was $2.2 billion, down from $2.3 billion at the end of 2025. Offsetting this debt is cash and cash equivalents of $481 million.

At the end of the first quarter, our gross debt to EBITDA ratio was 0.9 times, and our net debt to EBITDA ratio was 0.7 times. We continue to have excellent financial capacity with flexibility to deploy well over $5 billion on growth initiatives and our active acquisition pipeline while retaining an investment-grade credit rating.

While acquisitions remain our number one capital allocation priority for use of our free cash flow, we also seek to provide our shareholders with opportunistic share buybacks and a consistently increasing dividend. In February, we announced a 10% increase in our quarterly cash dividend to 34 cents per share, our seventh consecutive year of 10% plus annual increases in our dividend payout.

I would also like to note that we have enhanced our financial reporting this quarter by including AMETEK's gross margin reporting and a related reconciliation on our Investor Relations website. With adjusted gross margin at a strong 51% in the quarter, this enhanced disclosure provides investors with greater visibility into AMETEK's margin performance and additional details to better understand our cost structure and the underlying drivers of our profitability.

Going forward, we will provide an updated gross margin disclosure quarterly on our website. In summary, our businesses had a great start to the year.

Our exceptional operating capabilities delivered excellent revenue and earnings growth, robust margin expansion, and strong free cash flow conversion. With a proven strategy, significant capital deployment capacity, and a strong track record of execution, we are confident in our ability to drive further growth and value creation in 2026.

I'll now pass it back to Kevin.

Great. Thank you, Dalip.

Stacy, could we please open the line for questions?

Thank you. Good morning, everyone.

Good morning, Deane.

Hey, Dave, you normally, at this point, take us for a tour of the key end markets, but your prepared remarks really covered that well, appreciated. Maybe just, and you also highlighted the really small exposure to the Middle East.

How about just the rest of the regions, and maybe the idea of are you seeing anything at the margin in terms of buying hesitancy? Certainly don't see it in the orders, but take us through the regions and any kind of sentiment in terms of macro pressures that you might be seeing.

Sure. I'll start with the performance around the geographies and really had balanced growth.

The US and international markets were both up mid-single digits. The strongest growth was in Asia.

In the US, we're up mid-single digits. Had very strong growth in our A&D and materials analysis business.

Europe was up low single digits. That's where we had the strength in power, strength in our automation businesses, but modest headwinds from the Middle East.

We had about I'd say $15 million of discrete orders that, due to safety reasons and disruptions, that didn't ship during the quarter. That would have ended up a little bit higher, but that occurred and we have not seen any cancellation in orders from the Middle East.

In fact, we're seeing quotations to really rebuild the energy infrastructure. There's going to be when this thing settles down.

In terms of getting back to the geographies and in terms of Asia, Asia was up low double digits driven by strong China. China was up high teens, and it was driven by our process and power markets.

Across the board, it was a balanced growth, solid, and all geographies really performing well.

All good to hear.

Good to hear. We're not seeing any cancellations or delays or anything at all.

In fact, March was an all-time record of any quarter for orders at AMETEK. It's strong.

It feels extremely good, and April's not over yet, but I just looked at it, and it's on target for another good month. We're full steam ahead.

Great to hear. Now, just a follow-up question, and you are likely limited in what you can say.

There were some unconfirmed media reports about a potential sizable deal you all are looking at. David, I don't often see your name in The Wall Street Journal.

This is an asset we're familiar with, but the size it would be bigger than what you typically do. We know you have that capacity.

Just implications on a larger deal for AMETEK, would it box you out of doing bolt-on deals over kind of the near term? Whatever you can share with us would be helpful.

There's a lot of interest.

AMETEK policy is not to comment on market rumors or speculation related to M&A activity. I just go back to what I said before.

Our pipeline is strong. There's a mix of larger, medium, and small technology deals, and we're looking to create great deals for our shareholders.

We announced the MRO deal today, First Aviation Services. We're really happy about that.

As Dalip said, we have significant financial capacity that provides the opportunity to deploy well over $5 billion in capital and still maintain an investment-grade credit rating. M&A is our top priority for capital deployment.

I mentioned a few quarters ago that that's the way we're going to differentiate our performance over the next few years. We are really engaged with a lot of different businesses and a lot of different opportunities.

We're going to make good, disciplined deals for our shareholders for sure. As at AMETEK, acquisitions are the combination of a set of processes, well-defined processes.

Integration is our secret sauce, and returns are very important for us.

That's all really good to hear. Best of luck.

Thank you.

Thank you.

Good morning.

Good morning, Andrew.

Pretty sporty growth in orders. Just a question.

You highlighted large orders, and I appreciate that maybe some of them fairly lumpy. Do you get a sense that there's any pull-forwards from second quarter in terms of orders, and there's going to be something unusually weak about second quarter orders given the strength in Q1?

I I don't think there was much pull ahead at all. In fact, if you go back and look at my last couple of calls, we were signaling that this was going to happen.

What you really saw is continued strength in in our EMG businesses, and EIG businesses just popped. We were talking about them usually following EMG about 6 months or 9 months, and it's happened.

I don't I don't, it's I I don't know some of the orders that we've got are for shipments to fill out the year. I don't I don't see a a any kind of pull-forward or any kind of slowdown.

Now, that doesn't mean that we're going to have a, a 25% 23% orders the next quarter. The the markets for us we we've created a business that's in niche markets where technology is really, really needed for for key infrastructure, for key technologies, for key key mission-critical platforms, and we're just in the right place.

We're feeling good about the business.

Dave, how do you think about, given your order cadence, your top-line outlook is fairly conservative, as it always is, that's what AMETEK does. What are you thinking about sort of risk, consumer risk, and just overall macro risk in the second quarter?

You said orders are good, but any red or yellow flags that you are seeing in your end markets so far quarter to date? Are you adjusting the behavior in business units, any sort of business plans to maybe prepare for some turbulence?

Thank you.

Yeah. That's a good question, and yeah, I'd start with we're obviously performing very well.

We've had strong execution, disciplined operation, and we're gaining momentum across the portfolio. We feel very good about our business's performing.

There's obviously some ongoing geopolitical uncertainty, and we're remaining prudent with our guidance. We have places in our business where we're laser-focused on material input costs.

We believe we're going to be able to offset any inflationary costs with pricing. We expect to offset inflation including tariffs with pricing.

We feel good. We're laser-focused on changes in the macro, and with our distributed structure, we have business leaders out there close to their customers, looking at everything, and we're making sure that we have the right focus on it.

From what we know now, it feels good to us. We're laser-focused on what could be a bigger change, and, but as I said, we're confident in our guide, and we feel really good about the momentum in the portfolio.

Thank you.

Thank you, Andrew.

Thanks for the question. Good morning, David and the whole team.

Good morning. I guess maybe just kind of piggybacking on the questions that were asked about orders already, sorry to dive into this further, David.

Just on the large orders, I think you mentioned that there were a few that came in during the quarter, but you're basically saying that you don't think that this order result should be viewed as one time. Does that mean that if we look at your pipeline of large order activity, it's similarly strong and you expect to book further large orders as we move forward?

Good morning, Nicole. I would expect the bookings to continue to reflect some larger orders, and I think that what we're seeing is we had a period where the industrial economy had below 50 PMIs for an extended period of time.

That's changing. We were signaling that that's changing, and our EMG business picked up, and historically EIG is picked up 6 or 9 months later, and we said that the last couple of quarters, and it's just happening like we thought it would.

EIG is just beginning to pick up. I think the order strength will continue.

I wanted to highlight some of the orders that are somewhat lumpy, and I wanted to highlight them both to let people understand the areas that we're in and their great technology and also to understand some of that is for shipments throughout the rest of the year.

Got it. Clear.

Then, I just wanted to spend a little bit of time on the medical end market. I don't think that was mentioned a whole lot in the prepared remarks.

Dave, could you just talk a little bit about what you're seeing there?

It's about a little over 20% of our exposure, and in Q1, we had a great quarter. It was up low double digits, and once again, it was led by Paragon.

Paragon is just performing extremely well. For that the full year, there's some tougher comps in the rest of the year.

We have the full year, we expect mid-single digits largely due to the comps. We have other business in there like our Reichert business.

It also had a very good quarter. Paragon and Reichert led us, and and the the strength in Paragon continuing is notable.

Thank you. I'll pass it on.

Thank you.

Hey, good morning everyone. [clears throat] Good

morning, Andrew.

I wanted to get your take on just kind of what's going on in the world related to your aerospace and defense businesses given the heightened geopolitics. I know you guys have a number of niche offerings, it's hard to know in real time what you see going forward.

Can you comment on any impacts, positive or negative, to A&D?

Yeah. I think what we saw in the quarter our A&D business continued strong activity.

High single-digit growth in the quarter. The growth was broad-based.

All segments continued strong demand with notable strength in our defense markets. Our A&D businesses are very well-positioned to benefit from growing demand given our broad portfolio of differentiated technologies.

Now we increased our outlook for the year. We increased it from high single digits to up approximately 10%.

That's with balanced commercial and defense activity. The way I look at it is if you look at our 18% of the in A&D, about 60% of that is defense and about 40% of that is commercial.

Defense is knocking it out of the park. The OE part of commercial and the business jet market are doing very good.

Our MRO businesses that service airlines had an excellent quarter for orders. The one area that we're watching closely is some of the international markets related to aviation fuel availability and fuel costs.

That's a small part of our portfolio, like less than 2%, but at the same time, we're watching it. Right now, we don't see we have good backlogs, good execution, and I think that if we see something, it'll come in the flying airlines, the flying public first.

Right now, we're not seeing it. The key thing is the vast majority of our aerospace portfolio, we're taking our whole portfolio up, and even the part that we're watching closely had a fantastic first quarter.

Great to hear. Along those lines, you make an acquisition in the quarter, First Aviation, on the MRO side, which is interesting.

I didn't see Did you disclose the price you paid or deal price? Then, is there any other details I think I saw $80 million in revenue.

Any other details you can disclose on that?

Yeah. Sure.

I'll provide some more details on it, Andrew. At the high level, our MRO businesses were largely commercial-biased.

We were looking for something that really added a defense aspect to it because of the strength in the market. We were really pleased to find First Aviation Services.

It's a engineering-driven provider of aftermarket services and proprietary parts. Their primary market is defense.

They also have some business jet and commercial pieces of it, but it's primarily a defense business. They have about two-thirds of their business are on MRO service, and they actually have about one-third of their business on proprietary parts that we have businesses that have the parts and the services together.

We typically do best with them. They're really into PMA and DER-approved repairs.

They add new capability to us. Rotorcraft and fixed-wing platforms.

They're on a lot of good military programs. It expands our military our MRO capabilities to additional critical systems, includes propeller blades, rotor assemblies, landing gear, some advanced electronics.

It's a sizable and growing proprietary aftermarket solutions business, strong engineering capabilities, nicely expands our defense MRO, and it just fits like a glove with our existing MRO capabilities. We're really excited getting this business to closing and welcoming the First Aviation team to AMETEK.

Thank you.

Hey, good morning. Congratulations on the quarter.

Dave, could you continue the matrix as you just did for A&D with first quarter organic and full year for process, power, and automation? Then secondarily, I don't know if this is possible to do this, but would you be able to maybe carve out some of the larger projects that were in the orders and maybe tell us what, sort of maybe the trend line for bookings was on that basis?

Yeah. I'll finish the walk around the company.

I did it for aerospace and defense and covered some of it in my opening remarks, but there's some details still that it's probably you're interested in. I'll start with the process business, and it was up mid-teens in the first quarter and driven by acquisitions and low single-digit organic growth.

We have a solid pipeline of orders. We highlighted it during our last earnings call.

These translated into broad-based orders growth in the quarter, and we remain encouraged by continued momentum and a growing pipeline of opportunities across our process markets. Now, for the full year 2026, we're increasing our guide for process.

We now expect organic sales for process segment to be up low to mid-single digits, increasing it from low to low to mid. We talked about aerospace.

We're increasing it from high single digits to approximately 10%. Go into power next.

Power subsegment delivered low single-digit sales growth with strong, record-level orders. Our power business continues to see strong demand across a growing pipeline of opportunities for power generation, backup power, data center microgrids, and power simulation systems.

I highlighted one of the new products and the orders received for power simulation systems in my prepared remarks. Looking to 2026, we continue to expect organic sales to be up mid-single digits for that subsegment.

Finally, our automation and engineered solutions, excellent quarter again with high single-digit organic sales growth. Broad-based both our automation and engineered solutions business and our EMIP business, and demand across attractive niche markets remains solid, and we continue to expect organic sales for automation and engineered solutions business to be up mid-single digits.

In terms of digging in on the orders, I was trying to in my prepared remarks do that a little bit. We talked about a big order in the semiconductor market from Abaco.

We're providing computing solutions. That's We talked about the space satellite market that is really doing well.

We have specialized machining solutions that can make precision components like no one else. We're actually building machines, and we're doing some contract manufacturing for the lower orbit satellite systems.

Talked a bit about defense and what's going on in defense and our strength in UAVs and our strength in missile defense systems. I talked about the nuclear industry and both on the commercial and the civil and the defense, very strong for us.

We got a substantial order for the submarine program. These programs are things we're winning because of our technology, because we work with customers.

These are highly engineered technologies. There's not a lot of people that can do these things, and we just think we're well-positioned for where the world's gone.

We're in the right places, and we feel really optimistic right now.

If I could just add, in terms of the order strength, as we said, it was broad-based. Yes, there were some large orders in the aerospace and defense area, but every subsegment saw double-digit organic orders growth, and every division was up at least 5%.

Automation was very strong, and really in process, our metrology and material analysis businesses also strong, really strong order growth. It's really broad-based, and it really wasn't driven by lumpiness in orders in certain areas.

Thanks a lot.

good morning, guys.

Good morning, Joe.

There seems to be emerging concerns that potentially aerospace aftermarket, I guess on the commercial side, is peaking. It doesn't seem like there's real evidence in your business of that, but what are you kind of hearing, seeing, and what would you really be looking at to see if something like that was starting to form?

As I mentioned before, that's a third-party aftermarkets the smallest part of our MRO businesses. We watch it very closely, and we have some specialized capability, and the US is extremely strong right now.

We're involved in some retrofit programs that are driving the business, it may be a bit of a counter-market there. In Europe, Europe and Asia, the MRO, if there's a place that turns down, it'll probably be that area, we're watching that closely.

Again, this is less than 2% of our sales, and the fact is we had an incredibly strong first quarter. The order rates are continuing to have strength.

As the conflict goes on in the Gulf and there's a bit of a shortage in aviation fuel, we think the weakness may show up first in Asia, second in Europe, and the US seems pretty insulated right now, but it'll be last. That can all change in a week.

We're making the call the best we can, and right now, we feel good. If we think there's any downside, it's extremely modest.

Then,

I was interested you mentioned Abaco, the ruggedized computers into semiconductors. I tend to think of that more as like defense-oriented field applications.

Can you talk about what they're what you guys are doing there on semis and how that business is sitting in?

Yeah. Abaco makes advanced computing solutions, and when you have the most precision applications that have to work in the most durable environments, you'll use the Abaco equipment.

Along with the needs in the data explosion in defense right now, where everybody's more data to process and in RF systems and things like that, it's a great demand driver. Abaco also has a business where we're selling that technology to the semiconductor market.

Really in the quarter, there was a semiconductor tool manufacturer that's using the semiconductor tool manufacturer is dealing with a ramp-up in demand from AI and everything that's going on in the semiconductor market, and they're using the Abaco computing technology to control their tools. We were pleased to book that order in the quarter.

Thank you.

Thank you, Joe.

Thanks. Good morning.

Obviously, a lot of ground covered here, but thanks for the question. The guide increase, from mid to high singles to high singles, and obviously the bump in the core as well, is that in the realm of two points of sales accretion versus the prior plan?

That's how I think about it. Where I'm going with this is twofold.

One, the seven-cent increase in the guide, obviously, a nice surprise, but seemed light if it is a two-point increase in sales. Then, secondly, with the EIG, I'm just curious, given the order strength and the broad-based nature of the order strength, I'm just wondering how we should think about the second half core growth profile for EIG.

The first point is it probably an increase more like a point and a half, and it was really driven by process and aero. That kind of puts that in the bucket.

Really I'd go back to my original comments. It's a conservative guide.

We have a strong start to the year, excellent execution, orders were outstanding, but then you have the geopolitical uncertainty. Then, we balanced it all, and we're very confident in our guide.

We think it's prudent to do what we did.

Okay. No, it certainly does seem conservative.

Then, maybe going back to Dean's question at the front end. Obviously, you don't speculate on press rumors, but I'm just curious, AMETEK's evolved from doing a lot of bolt-on deals to much larger deals under your leadership.

I'm just wondering how you view the risk-reward of larger deals versus small bolt-ons. I'll leave it open like that.

I think there's an important risk-reward, and you have to make sure what you're buying matches our strategy, matches what we're trying to do, and we can add value to it. We've naturally increased the size of deals over the past 10 years.

We're still focused on niche markets. We're still focused on the areas that we're currently operating in, and I plan on continuing to expand a lot.

We've got an unblemished record. We've never had a write-off of goodwill.

We're very conservative. We look to get a return on every deal.

Returns on capital are very very strong for us. It's part of our basic operating model.

That's what we do. Our growth model is to add M&A to our portfolio of niche businesses.

We don't have any over-dependency on any one market, any one technology, any one customer. We just think we have a bulletproof model that's robust, and we'll continue to add acquisitions.

No way are we going to add an acquisition that's the size of AMETEK, and no way will we add an acquisition that's half the size of AMETEK. We're still looking at these, I call them bite-sized deals that are a small percentage of our market capitalization.

We're going to continue to do that, and the environment for us is providing a lot of opportunities for us. We're assessing a lot of opportunities.

We haven't made a decision on any of them, but we're going to pick the ones that we add the most value for our shareholders.

Got it. Thanks, Dave.

Appreciate that.

Hi, thanks. Good morning.

Maybe just moving away from the top line for a second, looking at operating leverage and kind of incremental margins. Is the sort of guide based off a steady improvement year-on-year in operating leverage as you go through 2026?

Just wanted to clarify that. If you see any movement in kind of price net of cost within the year moving around?

Right. If you want to dig into margins, Julian, in the first quarter, we had an excellent operating quarter.

Our reported margins were up 50 basis points, but our core margins, we take out acquisitions and we take out FX, they were up 160 basis points. They were just outstanding.

If you look at both of our groups, EIG had core margins up 40 basis points, driven by excellent productivity. EMG reported core margins up 410 basis points, they got excellent productivity plus leverage from the excellent sales growth.

If you want to dig into that and say, on a dollar of sales, what were the incrementals, our incrementals were greater than 50% for the company, core incrementals. When you back out the acquisitions and you back out FX, core incrementals were up 50% both on the whole company, EIG core incrementals were greater than 50, and EMG core incrementals were greater than 50.

Really strong. Related to the guide for the year, we're expecting 35% incrementals, and core margins will be up around 50 basis points.

Again, I'll go back to it's a prudent guide. There's a lot of uncertainty right out here related to potential inflation and things like that where we're laser-focused on.

Performing extremely well, plan to continue performing very well for the year, and those are the numbers, and they're outstanding in the quarter. We plan to continue driving it forward, and we have a track record of being able to navigate through changing conditions, and we're laser-focused on what we think we need to do.

That's very helpful. Thank you.

Then just to circle back to the EMG segment and the top-line outlook there. As you noted earlier, for medical specifically, you've got tough comps later in the year, and the overall EMG segment, the comps get very tough on sales in the second half.

At the same time, your orders, they're growing double-digit organic still. Just wondered sort of are you kind of baking in a mid-single-digit exit rate on organic growth for EMG just because of the comps?

Is that the right way to look at it?

You're in the ballpark. That's the way I'd look at it.

Great. Thank you.

Thank you.

Thanks, everyone, for joining our call today. As a reminder, a replay of today's webcast can be accessed in the Investors section of ametek.com.

Have a great day.