Ametek raises annual profit forecast on steady demand in electromechanical unit
Industrial tools maker Ametek 
AME raised its annual profit forecast on Thursday, after beating second-quarter estimates, benefiting from steady demand in its electromechanical segment (EMG) and its recent acquisition of FARO Technologies.
Shares of Ametek, which makes testing and measurement instruments, medical devices as well as automation solutions, rose about 6% in early trading following the results.
Quarterly sales at the electromechanical unit, which produces specialized motors, sensors and motion control systems used across industrial and aerospace markets, rose 6% to $618.5 million from a year ago.
The segment has been a key growth driver for the Berwyn, Pennsylvania-based company as manufacturers ramp up automation and efficiency investments despite a mixed macroeconomic backdrop.
"EMG had an excellent quarter highlighted by strong organic sales and orders growth, record-level operating income and robust margin expansion," CEO David Zapico said.
Ametek's purchase of FARO Technologies, which closed earlier this month, also helped the firm expand its market.
The company forecast 2025 adjusted profit in the range of $7.06 to $7.20 per share, above its prior view of $7.02 to $7.18.
It expects annual overall sales to be up mid-single digits, compared with its previous forecast of low-single digit percentage growth.
Ametek earned second-quarter profit of $1.78 per share on an adjusted basis, beating analysts' average estimate of $1.69 per share, according to data compiled by LSEG.
The company's quarterly net sales rose to $1.78 billion from $1.74 billion a year ago. Analysts were expecting revenue of $1.73 billion.
