Ametek forecasts weak 2025 profit on tepid demand for test and measurement systems

Reuters
04 Feb
Ametek forecasts weak 2025 profit on tepid demand for test and measurement systems

Feb 4 (Reuters) - Industrial technology solutions provider Ametek AME.N forecast lower-than-expected annual profit on Tuesday amid weakness in demand for some of its test and measurement systems, sending its shares down 4.5% in early trading.

Ametek expects 2025 adjusted profit per share to be between $7.02 to $7.18, below analysts' average expectation of $7.39 per share, according to data compiled by LSEG.

The Berwyn, Pennsylvania-based company makes testing and measurement instruments, medical devices and automation solutions.

In the third-quarter, Ametek had warned that its customers were delaying spending on test and measurement products made by its Electronic Instruments Group $(EIG)$ business, citing economic, geopolitical and election uncertainties.

For the fourth quarter, Ametek said sales in the EIG business, which caters to aerospace, medical, power and industrial markets, fell 2% from a year ago to $1.21 billion.

"We remain cautious as we start the year given ongoing macroeconomic uncertainties," an Ametek executive said during an analyst call on Tuesday.

Separately, the company also announced the acquisition of Germany-based ultra-precision manufacturing solutions maker Kern Microtechnic to strengthen its EIG business.

The company posted an adjusted profit per share of $1.87 for fourth quarter ended Dec. 31, in line with Wall Street expectations.

Its quarterly net sales rose 2% to $1.76 billion, but fell short of expectations of $1.82 billion.

(Reporting by Anandita Mehrotra in Bengaluru; Editing by Sahal Muhammed)

((Anandita.Mehrotra@thomsonreuters.com;))

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