AME · 10-Q · 2026Q2 · Full report
Operating Margin Drivers
AMETEK INC/ · 2026-08-04 · Importance 60 · Surprise 40 · No source text
First-half segment operating income increased 13.7% to $1,103.7 million, while segment margin rose to 27.8% from 27.7% despite $17.8 million of acquisition-related integration costs. Recent acquisitions reduced first-half segment margin by 80 basis points, but excluding acquisition dilution and integration costs, margin expanded 130 basis points because of higher sales and Operational Excellence initiatives. EIG’s first-half margin declined to 28.8% from 30.3%, reflecting $16.6 million of integration costs and 130 basis points of acquisition dilution; excluding those effects, EIG margin increased 40 basis points. EMG margin increased to 26.0% from 22.6%, a 340-basis-point improvement, despite $1.2 million of First Aviation integration costs.
Key facts
- EMG’s operating income for the first six months of 2026 was $360.1 million, an increase of $87.5 million or 32.1%, compared with $272.6 million for the first six months of 2025; EMG's operating margins were 26.0% vs 22.6% and included $1.2 million of acquisition-related integration costs related to First Aviation. source
- EMG’s operating income for Q2 2026 was a record $189.3 million, an increase of $45.4 million or 31.6%, compared with $143.9 million for Q2 2025. source
- Segment operating income for three months ended June 30, 2026: EIG $369,722 and EMG $189,317; total segment operating income $559,039; corporate G&A $30,846; consolidated operating income $528,193. source
- Segment operating margins decreased to 27.3% for Q2 2026, compared with 27.5% for Q2 2025, and operating income and margins for Q2 2026 included $16.2 million of acquisition-related integration costs which negatively impacted operating margins by 80 basis points. source
- EIG's operating margins were 28.0% of net sales for Q2 2026, compared with 29.7% for Q2 2025, and included $15.0 million of acquisition-related integration costs which negatively impacted EIG's operating margins by 110 basis points; EIG's operating margins were negatively impacted 120 basis points in Q2 2026 by the dilutive impact of recent acquisitions. source
- EMG’s operating margins were 26.2% of net sales for Q2 2026, compared with 23.3% for Q2 2025, and included $1.2 million of acquisition-related integration costs related to the First Aviation acquisition which negatively impacted operating margins by 10 basis points; excluding acquisition-related costs, EMG's operating margins increased 300 basis points vs Q2 2025. source
- Segment operating margins for the first six months of 2026 increased to 27.8% of net sales, compared with 27.7% for the first six months of 2025; operating income and margins included $17.8 million of acquisition-related integration costs related to the FARO, LKC, and First Aviation acquisitions which negatively impacted operating margins by 40 basis points, and segment operating margins were negatively impacted 80 basis points in the first six months of 2026 by the dilutive impact of recent acquisitions. source
- EIG's operating margins were 28.8% for the first six months of 2026, compared with 30.3% for the first six months of 2025; EIG's results included $16.6 million of acquisition-related integration costs which negatively impacted margins by 60 basis points, and were negatively impacted 130 basis points by the dilutive impact of recent acquisitions. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +6.5% | Segment operating income for the first six months of 2026 was $1,103.7 million, an increase of $132.6 million or 13.7%, compared with… |
| operating_income | positive | realized | +6.2% | Consolidated operating income was $1,043.1 million or 26.3% of net sales for the first six months of 2026, an increase of $126.6 million… |
| operating_income | positive | realized | +4.3% | EMG’s operating income for the first six months of 2026 was $360.1 million, an increase of $87.5 million or 32.1%, compared with $272.6… |
| margin | positive | realized | +3.4% | EMG’s operating income for the first six months of 2026 was $360.1 million, an increase of $87.5 million or 32.1%, compared with $272.6… |
| operating_income | positive | realized | +3.3% | Consolidated operating income was $528.2 million or 25.8% of net sales for Q2 2026, an increase of $66.6 million or 14.4%, compared with… |
| operating_income | positive | realized | +2.2% | EMG’s operating income for Q2 2026 was a record $189.3 million, an increase of $45.4 million or 31.6%, compared with $143.9 million for Q2… |
| margin | negative | realized | -1.3% | EIG's operating margins were 28.8% for the first six months of 2026, compared with 30.3% for the first six months of 2025; EIG's results… |
| operating_income | positive | realized | +1.2% | EIG’s operating income for Q2 2026 was $369.7 million, an increase of $25.3 million or 7.3%, compared with $344.4 million for Q2 2025. |
| margin | negative | realized | -1.2% | EIG's operating margins were 28.0% of net sales for Q2 2026, compared with 29.7% for Q2 2025, and included $15.0 million of… |
| margin | negative | realized | -1.1% | EIG's operating margins were 28.0% of net sales for Q2 2026, compared with 29.7% for Q2 2025, and included $15.0 million of… |
| operating_income | negative | realized | -0.9% | Segment operating margins for the first six months of 2026 increased to 27.8% of net sales, compared with 27.7% for the first six months… |
| operating_income | negative | realized | -0.8% | EIG's operating margins were 28.8% for the first six months of 2026, compared with 30.3% for the first six months of 2025; EIG's results… |