AME · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

AMETEK INC/ · 2026-08-04 · Importance 39 · Surprise 50 · No source text

The second-quarter effective tax rate decreased to 17.4% from 19.0% in the prior-year quarter. The 160-basis-point reduction primarily reflected favorable international tax-planning initiatives and favorable return-to-provision adjustments. AMETEK recorded $12.5 million of Pillar Two top-up tax in income tax expense during the first six months where jurisdictional effective tax rates were below 15%. Gross uncertain tax benefits increased to $243.3 million at June 30, 2026 from $229.3 million at December 31, 2025, with $192.6 million potentially affecting the effective tax rate.

Key facts

• At June 30, 2026, the Company had gross uncertain tax benefits of $243.3 million, of which $192.6 million, if recognized, would impact the effective tax rate. source
• Balance of liability for uncertain tax positions at December 31, 2025: $229.3 million; additions for tax positions: $23.5 million; reductions for tax positions: ($9.5) million; balance at June 30, 2026: $243.3 million. source
• The effective tax rate for Q2 2026 was 17.4%, compared with 19.0% for Q2 2025; the decrease was primarily driven by favorable international tax planning initiatives and favorable return to provision adjustments. source
• The effective tax rate for the first six months of 2026 was 18.2%, compared with 19.0% for the first six months of 2025; the lower rate was primarily attributable to favorable international tax planning initiatives and favorable return to provision adjustments. source
• The effective tax rate for the three months ended June 30, 2026 was 17.4%, compared with 19.0% for the three months ended June 30, 2025. source

Impact estimates