AME – Quick Take – Takeaways from the Truist Securities Industrials & Services Conference

研报英文原文证据摘录

AME – Quick Take – Takeaways from the Truist Securities Industrials & Services Conference

uarter reflects a combination of broad-

based demand improvement, easier comparisons, and the release of previously delayed

(not canceled) projects in EIG. Notably, strength was not driven by any single large program,

5 Page Document but instead represents a synchronized improvement across end markets—the first time in

several years when all major verticals are moving in the same direction. However, this level

of order growth does not translate directly into near-term revenue due to the company’s

Reasons for this report significant long-cycle exposure. Approximately 47% of backlog is next twelve months (NTM)

revenue, and only about 80% of that ships within a year, with a meaningful portion of backlog

✓ Quick Reaction to Newsflow/Volatility extending beyond 12 months. As a result, orders booked in Q1 will be recognized across a

✓ Truist Securities Conference Takeaways multi-quarter (and in some cases multi-year) horizon. This dynamic explains the divergence

between strong order growth and more moderate near-term revenue guidance (high single-

digit for Q2).

Broad-based end market momentum led by A&D, with FARO integration driving

margin accretion: Across end markets, AME is seeing a notably improved and more

synchronized demand environment. Aerospace and Defense (A&D), representing ~18% of

revenues (~10% defense and ~8% commercial aerospace), is still anticipated to grow 10%

organically in 2026, with no signs of deterioration in the commercial aftermarket business.

AME’s defense business is poised to benefit next year from a growing defense budget. In

addition, space, which represents 20% of defense, could see a more sustainable revenue

stream tied to satellites.