AMETEK AME · USD

Reportable Segments and Geographic Areas Information Descriptive Information about Reportable Segments The Company has two reportable segments, EIG and EMG. The Company’s operating segments are determined based on information utilized by the Chief Executive Officer, its chief operating decision maker ("CODM"). Certain of the Company’s operating segments have been aggregated for segment reporting purposes primarily on the basis of product type, production processes, distribution methods and similarity of economic characteristics. EIG manufactures advanced instruments for the process, power and industrial, and aerospace markets. It provides process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries. EIG also provides instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets. It makes power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility test equipment and gas turbines sensors. EIG also provides dashboard instruments for heavy trucks and other vehicles, as well as instrumentation and controls for the food and beverage industries. It supplies the aerospace and defense industry with aircraft and engine sensors, embedded computing systems, monitoring systems, power supplies, fuel and fluid measurement systems, and data acquisition systems. EMG designs and manufactures highly engineered medical components and devices, automation solutions, thermal management systems, specialty metals and electrical interconnects. EMG products include single-use and consumable surgical instruments, implantable components, and drug delivery systems used across a wide range of medical applications. It also manufactures highly engineered electrical connectors and electronic packaging used to protect sensitive electronic devices. EMG makes precision motion control products for data storage, medical devices, business equipment, automation and other applications. It supplies high-purity powdered metals, strip and foil, specialty clad metals and metal matrix composites. EMG also manufactures motors used in commercial appliances, food and beverage machines, hydraulic pumps and industrial blowers.

Revenues The outstanding contract asset and liability accounts were as follows: 20252024(In thousands)Contract assets – January 1$136,432 $140,826 Contract assets – December 31159,896 136,432 Change in contract assets – (decrease) increase23,464 (4,394)Contract liabilities – January 1400,689 432,830 Contract liabilities – December 31448,849 400,689 Change in contract liabilities – decrease (increase)(48,160)32,141 Net change$(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 two 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: 2025EIGEMGTotal(In thousands)United States$2,381,766 $1,448,873 $3,830,639 International(1):United Kingdom115,496 146,437 261,933 European Union countries639,377 450,153 1,089,530 Asia1,237,055 251,733 1,488,788 Other foreign countries545,406 184,820 730,226 Total international2,537,334 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.

Leases and Other Commitments Leases The Company has commitments under operating leases for certain facilities, vehicles and equipment used in its operations. Cash used in operations for operating leases was not materially different from operating lease expense for the years ended December 31, 2025 and 2024. Our leases have initial lease terms ranging from 1 month to 15 years.The components of lease expense were as follows: 202520242023(In thousands)Operating lease cost$78,596 $76,315 $63,049 Variable lease cost14,296 11,730 11,384 Total lease cost$92,892 $88,045 $74,433 Supplemental balance sheet information related to leases was as follows: December 31,20252024(In thousands)Right of use assets, net$273,142 $235,666 Lease liabilities included in Accrued liabilities and other61,133 54,736 Lease liabilities included in Other long-term liabilities227,066 190,017 Total lease liabilities$288,199 $244,753 Supplemental cash flow information and other information related to leases was as follows for the year ended December 31,: 20252024(In thousands)Right-of-use assets obtained in exchange for new operating liabilities$45,953 $44,079 Weighted-average remaining lease terms – operating leases (years)6.586.49Weighted-average discount rate – operating leases4.88 %4.74 %Maturities of lease liabilities as of December 31, 2025 were as follows: Lease Liability Maturity AnalysisOperating Leases(In thousands)2026$71,442 202760,150 202848,078 202940,037 203032,999 Thereafter84,734 Total lease payments337,440 Less: imputed interest49,241 $288,199 The Company does not have any significant leases that have not yet commenced. Other Commitments As of December 31, 2025, and 2024, the Company had $715.6 million and $761.9 million, respectively, in purchase obligations outstanding, which primarily consisted of contractual commitments to purchase certain inventories at fixed prices. The Company does not provide significant guarantees on a routine basis. The Company primarily issues guarantees, stand-by letters of credit and surety bonds in the ordinary course of its business to provide financial or performance assurance to third parties on behalf of its consolidated subsidiaries to support or enhance the subsidiary’s stand-alone creditworthiness. The amounts subject to certain of these agreements vary depending on the covered contracts outstanding at any particular point in time.

Debt Long-term debt, net consisted of the following at December 31: 20252024(In thousands)U.S. dollar 3.91% senior notes due June 2025$— $50,000 U.S. dollar 3.96% senior notes due August 2025— 100,000 U.S. dollar 4.18% senior notes due December 2025— 275,000 U.S. dollar 3.83% senior notes due September 2026100,000 100,000 U.S. dollar 4.32% senior notes due December 2027250,000 250,000 U.S. dollar 4.37% senior notes due December 202850,000 50,000 U.S. dollar 3.98% senior notes due September 2029100,000 100,000 U.S. dollar 4.45% senior notes due August 203550,000 50,000 British pound 2.59% senior note due November 2028201,665 187,803 British pound 2.70% senior note due November 2031100,847 93,917 Euro 1.34% senior notes due October 2026352,017 310,514 Euro 1.71% senior notes due December 202788,008 77,628 Euro 1.53% senior notes due October 2028234,701 207,011 Revolving credit facility borrowings18,775 230,000 Commercial paper borrowings740,000 — Other, principally foreign— 1,906 Less: Debt issuance costs(2,704)(4,058)Total debt, net2,283,309 2,079,721 Less: Current portion, net(1,208,975)(654,346)Total long-term debt, net$1,074,334 $1,425,375 Maturities of long-term debt borrowings outstanding at December 31, 2025 were as follows: $338.0 million in 2027; $486.4 million in 2028; $100.0 million in 2029; none in 2030; $100.8 million in 2031; and $49.1 million in 2032 and thereafter.The weighted average interest rate on total debt borrowings outstanding at December 31, 2025 and 2024 was 3.2% and 3.4%, respectively.Senior Note RepaymentsIn the fourth quarter of 2025, the Company paid in full, at maturity, a $275.0 million in aggregate principal amount of 4.18% senior notes. In the third quarter of 2025, the Company paid in full, at maturity, a $100.0 million in aggregate principal amount of 3.96% senior notes. In the second quarter of 2025, the Company paid in full, at maturity, a $50.0 million in aggregate principal amount of 3.91% senior notes. In the third quarter of 2024, the Company paid in full, at maturity, a $300.0 million in aggregate principal amount of 3.73% senior notes.Senior NotesIn December 2018, the Company completed a private placement agreement to sell $575 million and 75 million Euros in senior notes to a group of institutional investors (the “2018 Private Placement”) utilizing two funding dates. The first funding occurred in December 2018 for $475 million and 75 million Euros ($88.0 million at December 31, 2025).

Income Taxes The components of income before income taxes and the details of the provision for income taxes were as follows for the years ended December 31: 202520242023(In thousands)Income before income taxes:Domestic$1,062,732 $991,681 $1,026,113 Foreign735,607 669,858 580,299 Total$1,798,339 $1,661,539 $1,606,412 Provision for income taxes:Current:Federal$167,392 $120,367 $206,477 Foreign197,051 155,055 144,476 State24,470 22,936 34,173 Total current388,913 298,358 385,126 Deferred:Federal(32,883)(437)(69,956)Foreign(26,329)(14,317)(15,113)State(11,504)1,811 (6,833)Total deferred(70,716)(12,943)(91,902)Total provision$318,197 $285,415 $293,224 Significant components of the deferred tax (asset) liability were as follows at December 31: 20252024(In thousands)Non-current deferred tax (asset) liability:Differences in basis of property and accelerated depreciation (1)$44,913 $49,513 Reserves not currently deductible(127,953)(117,420)Pensions102,992 89,508 Differences in basis of intangible assets and accelerated amortization838,916 849,768 Net operating loss carryforwards(159,047)(116,611)Share-based compensation(14,973)(14,614)Foreign Tax Credit Carryforwards(9,375)(2,840)Unremitted earnings20,127 13,906 Other(54,295)(19,626)641,305 731,584 Less: Valuation allowance33,547 21,305 674,852 752,889 Portion included in non-current assets114,063 78,141 Gross non-current deferred tax liability$788,915 $831,030 ______________________(1)Presented net of deferred tax assets of approximately $59.5 million and $48.8 million at December 31, 2025 and 2024, respectively, resulting from lease obligations.The Company’s effective tax rate reconciles to the U.S. Federal statutory rate as follows for the years ended December 31 (amounts in thousands): 202520242023AmountPercentAmountPercentAmountPercentU.S. Federal statutory tax rate$377,651 21.0 %$348,923 21.0 %$337,346 21.0 %State and local income taxes, net of federal income tax effects(1)7,286 0.4 22,876 1.4 20,431 1.3 Foreign Tax EffectsLuxembourgNontaxable or Nondeductible items Treaty Exempt Earnings(36,704)(2.0)(31,542)(1.9)(21,435)(1.3)Other Adjustments Pillar Two Min. Tax17,300 0.9 3,000 0.2 — — Other1,435 0.1 — — — — Other foreign jurisdictions13,826 0.8 25,650 1.5 17,192 1.0 Effect of changes in tax laws or rates enacted in the current period— — — — — — Effect of Cross-Border tax lawsGlobal intangible low-taxed income / Subpart F3,140 0.1 9,754 0.6 1,553 0.1 Foreign-derived intangible income(34,515)(1.9)(35,937)(2.

Share-Based Compensation Under the terms of the Company’s stockholder-approved share-based plans, performance restricted stock units (“PRSUs”), incentive and non-qualified stock options and restricted stock have been, and may be, issued to the Company’s officers, management-level employees and members of its Board of Directors. Stock options granted generally vest at a rate of one-third on each of the first three anniversaries of the grant date and have a maximum contractual term of ten years. Restricted stock granted to employees generally vests one-third on each of the first three anniversaries of the grant date. Restricted stock granted to non-employee directors generally vests two years after the grant date (cliff vesting) and is subject to accelerated vesting due to certain events, including doubling of the grant price of the Company’s common stock as of the close of business during any five consecutive trading days. Share Based Compensation Expense The Company measures and records compensation expense related to all stock awards by recognizing the grant date fair value of the awards over their requisite service periods in the financial statements. For grants under any of the Company’s plans that are subject to graded vesting based on a service condition, the Company recognizes expense on a straight-line basis over the requisite service period for the entire award. Total share-based compensation expense was as follows for the years ended December 31: 202520242023(In thousands)Stock option expense$11,820 $13,892 $14,284 Restricted stock expense21,149 20,422 20,792 PRSU expense14,798 13,549 11,123 Total pre-tax expense$47,767 $47,863 $46,199 Pre-tax share-based compensation expense is included in the consolidated statement of income in either Cost of sales or Selling, general and administrative expenses, depending on where the recipient’s cash compensation is reported. Stock Options The fair value of each stock option grant is estimated on the date of grant using a Black-Scholes-Merton option pricing model. The following weighted average assumptions were used in the Black-Scholes-Merton model to estimate the fair values of stock options granted during the years indicated:202520242023Expected volatility22.7 %28.2 %26.0 %Expected term (years)5.05.05.0Risk-free interest rate4.07 %4.31 %3.54 %Expected dividend yield0.70 %0.62 %0.72 %Black-Scholes-Merton fair value per stock option granted$46.21 $56.42 $38.

AcquisitionsThe Company spent $933.2 million in cash, net of cash acquired, to acquire Kern Microtechnik ("Kern") in January 2025 and to acquire all outstanding shares of FARO Technologies ("FARO") common stock in July 2025. Kern is a leading manufacturer of high-precision machining and optical inspection solutions supporting a wide range of applications within the medical, semiconductor, research, and space markets. Kern has annual sales of approximately 50 million Euros. Kern is part of EIG. FARO is a leading provider of 3D measurement and imaging solutions, including portable measurement arms, laser scanners and trackers, software solutions, and comprehensive service offerings. FARO has annual sales of approximately $340 million. The transactions was completed following the approval of FARO's stockholders and receipt of all regulatory approvals. FARO is part of EIG.The following table represents the allocation of the purchase price for the net assets of the FARO and Kern acquisitions based on the estimated fair values at acquisition (in millions):FAROKernTotalProperty, plant and equipment$23.1 $10.8 $33.9 Goodwill452.9 60.2 $513.1 Other intangible assets395.7 52.8 448.5 Convertible debt(1)(90.0)— (90.0)Deferred income taxes2.1 (17.2)(15.1)Net working capital and other(2)239.9 6.4 246.3 Total purchase price$1,023.7 $113.0 $1,136.7 Less: Acquisition date fair value of cash acquired and convertible debt assumed(194.6)— (194.6)Less: Acquisition date fair value of contingent consideration liability— (8.9)(8.9)Total cash paid$829.1 $104.1 $933.2 ______________________(1)Acquired $90.0 million of convertible debt, which was converted and paid in the third quarter of 2025.(2)Includes $93.0 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal.The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the acquisitions. Kern's design and engineering capabilities complement the company's existing ultra precision technologies business. FARO's 3D metrology and digital reality solutions expand and enhance the Company's existing ultra precision technologies business. At December 31, 2025, the purchase price allocated to other intangible assets of $448.5 million consists of $63.3 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $385.2 million of other intangible assets consists of $250.

AMETEK’s cybersecurity risk management practices are based on the widely recognized National Institute of Standards and Technology Framework for Improving Critical Infrastructure Cybersecurity (The NIST Cybersecurity Framework and the NIST 800-171 Revision 2 Standard). This guidance was developed with private sector input and provides a framework and toolkit for organizations to manage cybersecurity risk.We utilize a broad team of in-house information technology and security personnel, as well as third-party consultants, services and software, to help manage our cybersecurity efforts and initiatives. We regularly assess our threat landscape and monitor our systems and other technical security controls. Additionally, we maintain information security policies and procedures, including a breach response plan and maintenance of backup and protective systems. We regularly review our policies, practices, and plans with assistance from third-party experts and advisors. Our Chief Information Officer is responsible for corporate-wide data security. Our management team is actively engaged in regular reviews of cyber risks. Additionally, our full Board of Directors receives quarterly briefings on enterprise-wide cybersecurity risk management and our overall cybersecurity risk environment. We have implemented two risk management groups, the Enterprise Risk Management Committee, and the Cybersecurity Steering Committee. These committees meet quarterly. They are responsible for the overall governance of our cyber management. The implementation of the Cyber polices and strategy is the responsibility of the Chief Information Officer and the Director of Cyber Security. The CIO reports to the Chief Administrative Officer and the Director of Cyber Security reports to the CIO. We also have a team of full-time cybersecurity specialists who hold various industry technology accreditations. The CIO has more than 20 years in Senior IT Leadership positions, and the Director of Cyber Security has more than 30 years IT experience overall, 15 of which are in leadership roles. Operationally, we deploy multiple layers of cyber defenses including multiple tools and processes that identify security risks across our global networks, largely in real time. We also maintain good relationships with law enforcement agencies to remain informed on potential cyber risks. Mandatory cybersecurity training is conducted eight times a year for all of AMETEK’s employees with email access.