Hello, and welcome to the AMETEK Third Quarter 2024 Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. It is now my pleasure to introduce, Vice President of Investor Relations and Treasurer, Kevin Coleman.

Thank you, Andrew. Good morning and thank you for joining us for AMETEK's Third Quarter 2024 Earnings Conference Call. With me today are Dave Zapico, Chairman and Chief Executive Officer; and Dalip Puri, Executive Vice President and Chief Financial Officer. During the course of today's call, we will be making forward-looking statements which are subject to change based on various risk factors and uncertainties that may cause actual results to differ significantly from expectations. A detailed discussion of the risks and uncertainties that may affect our future results is contained in AMETEK's filings with the SEC. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements. Any references made on this call to 2023 or 2024 results or to 2024 guidance will be on an adjusted basis excluding after tax acquisition-related intangible amortization and excluding a pretax of $29.2 million or $0.10 per diluted share charge in the first quarter of 2024 for integration costs related to the Paragon Medical acquisition. Reconciliations between GAAP and adjusted measures can be found in our press release and on the Investors section of our website. We'll begin today's call with prepared remarks and then open it up for questions. I'll now turn the meeting to Dave.

Thank you, Kevin and good morning everyone. AMETEK delivered strong results in the third quarter. Our business has executed extremely well, resulted in earnings per share above our expectations, solid margin performance, outstanding cash flow conversion and double-digit growth in overall orders with positive growth in organic orders. Additionally, during the quarter, we deployed approximately $60 million on share repurchases. Subsequent to the end of the quarter, we acquired Virtek Vision, an excellent strategic fit with our Creaform business. I am very pleased with our team's performance. Our businesses remain focused on managing through short-term macro headwinds, while ensuring we are positioned for long-term growth. We have a proven successful growth model, and efficient operating structure, robust cash flows, a strong balance sheet and leading positions across a diverse set of niche markets. Now, let me turn to our third quarter financial results. Third quarter sales were $1.71 billion, up 5% from the same period in 2023. Organic sales were down 2%, acquisitions added 7.5 points and foreign currency was flat. Overall, orders in the quarter were up 12%. Book-to-bill was 1.02 and organic orders were up 2%. Additionally, we saw a solid sequential growth in orders. We ended the quarter with a strong backlog of $3.44 billion near record levels. AMETEK's operational performance in the third quarter was excellent. Our disciplined approach to cost management and operational efficiency resulted in strong margins. Operating income in the quarter was $446 million, a 2% increase over the third quarter of 2023 and operating margins were 26.1% in the quarter. Core margins, excluding the dilutive impact from acquisitions and the impact of foreign currency were very strong at 27.4%, up 40 basis points versus the prior year. EBITDA in the quarter was $553 million, up 4% versus the prior year with EBITDA…

Thank you, Dave, and good morning, everyone. As Dave noted, AMETEK delivered strong results in the third quarter with excellent operating performance and high free cash flow conversion. Now let me provide some additional financial highlights for the quarter. Third quarter general and administrative expenses were $25 million, essentially unchanged from the prior year. As a percentage of sales, G&A expense came in at 1.4% of sales down from 1.5% in last year's third quarter. For fiscal year 2024 general and administrative expenses are expected to be approximately 1.5% of sales. Third quarter interest expense was $25 million up $7 million from the third quarter of 2023, due to higher debt balances following recent acquisitions. Third quarter other operating expenses were down $4 million versus the prior period due largely to higher pension income and lower acquisition-related due diligence expense in the quarter. The effective tax rate in the quarter was 18.8% up from 17.7% in the third quarter of 2023. For 2024, we anticipate our effective tax rate to be between 17% and 17.5% driven by a lower fourth quarter tax rate due to statute expirations. As we have stated in the past actual quarterly tax rates can differ dramatically, either positively or negatively from the full year estimated rate. Capital expenditures in the third quarter were $26 million and we expect capital expenditures to be approximately $135 million for the full year or about 2% of sales. Depreciation and amortization expense in the quarter was $90 million. For the full year, we expect depreciation and amortization to be approximately $395 million, including after tax acquisition-related intangible amortization of approximately $188 million or $0.81 per diluted share. Operating working capital in the third quarter was 19% of sales. Cash flow generation in the third quarter was excellent. Operating cash…

Thank you, Dalip. Andrew, could we please open the lines for questions?

Certainly. [Operator Instructions] Our first question comes from the line of Matt Summerville with D.A. Davidson.

Good morning guys.

Morning, Matt.

David, could you maybe do a little bit more of a detailed update specifically on what you're seeing in your medical and life sciences facing end markets across both EIG and EMG and work in some commentary on what you're seeing in those businesses specifically around destocking? And then I have a follow-up.

Yeah, sure. We saw -- in terms of the destock, we saw demand largely in line with our expectations in the quarter. Actually as both our OEM customers and our automation and Paragon businesses continue to work down excess levels of inventory. And the destocking headwinds are going to continue. We remain well-positioned on a range of attractive programs within both the automation business and the Paragon business. And we're really encouraged by the trend in recent order rates. We had the -- in EMG where the main destocking areas was up plus 12 organically. Again we had a positive book-to-bill of 1.02. And if you just look at the trends, the trends are heading in the right direction. So we stabilized we saw solid sequential growth in orders and we're feeling pretty good about that.

And then as a follow-up you mentioned in your prepared remarks when talking about EIG that you're still seeing a little bit of customer tentativeness with respect to some delays in that portion of the business. Can you just talk through maybe, which divisions are being most impacted by that, which end markets, et cetera? And if you're able at all to kind of ring fence and quantify the impact?

Sure. Yeah, I'll do that Matt. In terms of the project lease we spoke about last quarter this quarter played out largely as expected. Customers remain cautious given the impact of various economic, geopolitical and election uncertainties. And these project delays are specifically in our EIG test and measurement businesses. That's what we talked about last quarter. And the key point here is our new opportunity funnel remains strong. So things are definitely not getting worse. In fact, the EIG orders trend went from minus 11 organic in Q1 to minus four organic in Q2 to minus two organic in Q3. So we're feeling pretty good about the -- encouraged by the positive trend there.

Got it. Thanks David.

Thank you, Matt.

And our next question comes from the line of Deane Dray with RBC Capital Markets.

Thank you. Good morning, everyone.

Good morning, Deane.

Dave maybe you can take us through the end markets geographies? And to the extent that you can some comments on China, I don't think there's ever been more mixed messages, most of them negative, but each company has got different views based upon their exposures, but maybe we can start there. Thanks.

Great set of questions. I'll try to get them all, and if I forget anything, pull me back to it. I'll go around the one first, and talk about our process business. Both, overall and organic sales for our process businesses, declined low single digits in the quarter. Growth, remains solid across our energy businesses. We had a good quarter in energy. And also our high-end research business, we talked about CAMECA also had a very strong growth in the quarter. And looking ahead, we continue to expect organic sales for our process businesses to be flat to up low single digits for the full year. Next switching the Aerospace & Defense. Aerospace & Defense is about 18% of AMETEK, delivered strong performance in the quarter, both overall and organic sales were up mid-single digits. Growth was strongest across our commercial OEM and commercial aftermarket businesses. A reminder, we have a good balance between sales and defense and we have a good balance between OEM products and aftermarket. And additionally, we're on a wide range of applications and not dependent on any one platform. So, we're positioned well to benefit from the long-term growth across these markets. And for the full year, we continue to expect high single-digit organic growth for our aerospace and defense businesses. Next, I'll go to power and industrial. Power and industrial businesses were up mid-single digits in the quarter driven by the contributions of Amplifier Research and UEI, recent acquisitions both of them. Organic sales were down low single digits in the quarter. We expect organic sales for our power and industrial businesses to be down low single digits for the full year. Then, finally our Automation & Engineered Solutions market segment. Overall, sales there increased in the low 20% range, driven primarily by the contributions of Paragon Medical. Organic sales were down, high single digits due to continued normalization of inventory across our OEM customer base. And for the full year, we continue to expect organic sales to decline mid-single digits as the headwinds from destocking continue. Talking about the geographies, yes, a little different in the mix there. We had strong growth in Europe and Asia, offset by some declines in the US. You talked specifically about China. Our Asia business did well, and China was actually up 10%. We had strong growth in our UPT or Ultra Precision Technology division, AMETEK products are used by our customers in China to improve their manufacturing processes, automate processes, make the environment cleaner, produce energy. So, very well positioned. But that market will remain choppy and there's been some stimulus announced, but the results that we're seeing now aren't from stimulus or just from market share wins and making good headway in the markets. But it's very difficult to predict, what's happening in China. So it's just wait and see what happens each quarter.

That's really helpful. And it is remarkable, how -- it really depends on what your exposures are in China. You just can't paint it all, with the negative brush there. And just as a quick follow-up, the context of destocking the longer it lasts, I always get this impression that it's really a lower demand as opposed to just an inventory correction. So, what's your sense? Is there a reset, let's say, at Paragon? Or is it still you can see sell-in versus sell-through and that there is really like an inventory work down coming through? Just kind of, how do you separate those two dynamics?

Yes. That's a great question, and it's obviously difficult to parse, but we're pretty confident that we're working through a supply chain crisis level of inventory that -- and we have some math you can see, when we work through that and then there's the same kind of growth on the other end of it. And same thing is happening in the medical space as the automation space. So, we're seeing -- the other factor that influences our decision, is the new business activity the pipeline activity. Our customers are very active. We're working on new programs and they're getting delayed but there's no program cancellations and there's some uncertainty when they're going to go forward, but we're full out working on tremendous number of opportunities. So, we think it's a destocking issue and it's not an overall demand issue and we think we'll work through it. And you can see some of that starting to happen with the order trends in our business.

Excellent. I'll leave it there. Just a quick shout out. That was a nice free cash flow this quarter. thank you.

Thank you, Deane. The team did a great job.

Our next question comes from the line of Jeff Sprague with Vertical Research Partners.

Hey thanks. Good morning everyone.

Good morning Jeff.

Hey good morning. Hey David I was on a little late, so I don't know if you just listening to your answer to Deane, I don't know if you already specifically commented on Paragon. But just in terms of the sales trajectory there if you wouldn't mind repeating it. And then just on EMG overall right? It's certainly kind of an interesting set of cross currents right with destock going on but orders up 12% organically? Maybe you could just unpack a little bit more kind of the moving pieces inside that if you haven't already.

Yes, I haven't gone deeper, but I can say that every division at EMG was up substantially in orders. So, it wasn't one area. So it was across the board all parts of EMG are up in order. So, we're really encouraged by that. Speaking of Paragon, again, it's a single-use and consumable surgical instruments business implantable components in attractive med tech markets with solid growth rates. And we continue to be excited about the future growth opportunities, excellent engineering capability, leading additive manufacturing capability. Many, many new program wins which will provide upside as these things get phased in. And the business is really well-positioned when the destocking headwinds abate. At the same time we're working on substantial efficiency improvements in the business. And the team is really doing an excellent job of doing that because of some difficult things that are going on. And -- but that process is proceeding well. So, I'm very pleased. I mean Paragon met its expectations for Q3. They had a similar sequential order improvement that we talked about in our other businesses and overall very pleased with it.

Dave then on sort of the margin recovery plan itself obviously the restructuring in Q1 and I guess if there's a silver lining in the drawdown right maybe it allows you to accelerate some things on restructuring and the like. Can you give us a sense of sort of the likely tailwind into 2025 as we work through some of these things and arguably sales start to kind of stabilize pick back up into the new year?

Yes, I think the scenario you're talking about is something that has a high likelihood of happening. But when you talk about 2025, we don't give guidance at this time of the year. So, we're going to stay away from that and talking about next year. But the things that you're pointing to are correct. I mean it's a tough time. We're improving the business significantly. There are some plant closures in there and we're continuing to fund all the new product phases in. So, it's going to be a very, very positive scenario as we move forward with that business.

Great. Thank you for in the insights. Appreciate it.

Thank you, Jeff.

Our next question comes from the line of Rob Wertheimer with Melius Research.

Hey, I had a couple of cleanups. Just to kind of put a bow on the destocking. I mean you guys were clear that destocking should continue through the end of the year. I think you mentioned that it continues again now Dave. The orders seem to indicate that we're getting there. I don't know whether your comment was implied was intended to imply any continuation in the next year?

Yes, I think we've definitely stabilized in the last couple of orders we're seeing quarters we're seeing incremental orders growth. We're encouraged by that. We're seeing it in EMG where the destocking was occurring. We're seeing it in all of our businesses. So, that's all positive. But this destock isn't like a switch. There's going to be -- we're going to slowly improve. As we get into next year, we'll give you the guidance for next year. But whether the destock occurs or not, we're going to make money. And that's what we're working on the operations side. So my point is there's positive trends now. We haven't given guidance for next year. We go through our standard process with sitting down with each business and go through a comprehensive budgeting process. We look at market conditions and sales opportunities and cost reduction opportunities and decide what investments to fund. And it's very important to follow this process right now given all the macro geopolitical and election uncertainty, because -- that's why we're firm on doing -- working through our process and giving you a good look at the best information we have at the beginning of next year.

Perfect. Thank you. And then if I may on the acquisition pipeline, your balance sheet looks great. Obviously, the pipeline is robust. Are you seeing any similar hesitation to commit amongst your potential inquiries is slowing things down? Or should we just assume things come on stock as normal process? Thank you.

Yes, that's a good question. Excellent question, Rob. And this is just my subjective read on the market, but I feel like things are coming on stock. We were in a period where things were -- everybody was dealing with higher interest rates and trying to get their businesses in order. But our pipeline is robust and we're talking to a lot of people about a lot of things. So I feel like sometime next year -- sometime early next year. It feels like things are moving and it feels like they're moving at an accelerated pace.

Thank you.

Thank you.

Our next question comes from the line of Scott Graham with Seaport Research Partners.

Hey. Good morning. Thanks for taking the question, guys. Really just a couple of them. You're doing a lot of investing internally. The Vitality is up to 28%. Dave you mentioned that you're really heavily focused on some differentiated products. Could you maybe unbundle that a little bit more? And I know Vitality the percentage is always a tricky thing, because it's a three-year trail. But nevertheless is that a number that you think can go even higher? And maybe which businesses -- I know that you're single titers. I get all that. But is there anything that's standing out to you in certain business units? And where can that index go?

Yes. I think -- we think the right level for our business is between 20% and 30%. And we're at 28% and it could go down to 20% or go up to 30% and that's probably the right range. As you mentioned, it's very distributed across our company. We're spending incrementally $90 million on projects. They're good projects. They're going to result in good sales in the future. In some cases they're coming in at lower price points too. There's been a good job of cost reductions through the new development processes. So, it's -- and when you have the fresh up-to-date product line and you're a leader in the niche markets that we're in it enables you to justify premium pricing for the new products. So, that all feels good. It all feels -- it's working well and it's part of our core. So, we've -- as you know you've followed us for a long time whether the market is good or the market is bad, we fund the R&D spending consistently and it's paid off for us in the long run and we plan to continue it.

Thank you. I just wanted to ask something that's a little bit more forward-looking to the extent that you can answer it. One of your two very large aerospace customers is struggling in various parts of their portfolio in production. I'm just wondering does that dampen your potential outlook for 2025 in your Aerospace business.

Yes. We haven't done the detailed work on 2025. And related to the situation, we did see some minor delays in the quarter but we were able to work around them. And we factored in the impact that we know of for Q4, and it's a fluid situation obviously but we feel confident in our guide for Q4. Our Aerospace businesses have diverse exposures across a wide range of platforms a very healthy mix of OEM and aftermarket sales. There's no overexposure to any single platform or any single customer. So we're feeling good about that. And there's a strong demand and we're well positioned to benefit from it. And we're not selling as much up on the value chain. We focus on what we do well, the technologies in the niche markets that we focus on. And we really feel that, we're in a good position going forward. And hopefully, some of the larger customers can work through some of the situations that we're in, but we think we have a call properly for the rest of this year.

Great. Thank you.

Thank you, Scott.

Our next question comes from the line of Brett Linzey with Mizuho.

Hey, good morning, all.

Hello, Brett.

Hey. Just wanted to come back to the OEM dynamic and the destock once more. So you noted some of the internal exercises or the math the teams were doing to gauge that pressure. I guess, is there any way to quantify in revenue dollars or order percent? How much of the pressure on results this year has been related to OEM destock?

I'd say that -- yes, if you go back to Q2, we talked about it, it's pretty significant. It's significant. So if that reverses, that's clearly not -- it's a headwind that's not there for next year. So yeah, it was -- in our automation business and with Paragon, that de-stock was substantial.

Okay. Got it. And then just on the project delays. So I think you noted it was various verticals. I guess what are you hearing from customers in terms of project readiness and when these might return? Are you contemplating any catch-up in the fourth quarter as part of the guide? Or have you slid that expectation to 2025?

I think our Q4 guide for our project businesses and EIG assumes a normal calendar Q4 that's pretty strong. So we'll see a sequential increase from Q3 to Q4 related to seasonality, related to projects in that business. So it feels like there's definitely some year-end spending going on. So that's positive.

Okay. Great. Best of luck.

Thank you.

Our next question comes from the line of Nigel Coe with Wolfe Research.

Thanks. Good morning, everyone. Just wanted to come back to orders. Plus 2% organic, I think, is what you said. So that's great news. I don't think you were signaling the return to growth until the fourth quarter, if I'm not mistaken. So just anything happened during September that changed that? Any call out? Was there some aerospace -- just any color there? And then maybe on sort of the back end of that, if we kind of like look at the implied organic orders, it seems like there's about $140 million or thereabout $140 million, $150 million of backlog growth that's not organic that's a big number. So I'm just wondering, what the book-to-bill was for Paragon? And whether this Virtek acquisition has influence as well?

Yeah. The first point is we don't give guidance on orders. So I don't know how you got your information on the Q3 being a quarter late. But in any event, it's what it was. The second point was -- A - Kevin Coleman Backlog build.

The backlog build, yeah, we don't have that number in front of us. It's something we look at. It was $3.44 billion for the company and pretty healthy. And it's -- and the orders turn positive. So I think it's -- I wouldn't read too much into it. It's just positive. We're just encouraged by the positive trends and maybe it did occur earlier than you thought it would be. And we think we're going to have a good quarter in Q4.

Okay. Okay. Maybe I'm just mistaken there. And then looking at Paragon, obviously, I think you asked about the -- seen in sales this year is really inventory draw. Should we consider that to be sort of one-time in nature and therefore, we spring back to original plan in 2025? Or do you think it might take a little bit longer to achieve that?

So Nigel, your question broke up on our end, and we couldn't hear you. But we...

Okay. Paragon the inventory impact has reversed basically in 2025?

Yes. I mean as that inventory situation abates it's definitely going to improve in 2025. And hopefully it improves in 2025 and we have a low cost -- lower cost structure and we also have a lot of new products that we're phasing in. It's going to take some time like I said you don't throw a switch. But yes I really think it is going to improve in 2025.

Thank you. And our next question comes from the line of Christopher Glynn with Oppenheimer.

Thank you. Good morning, everybody. A lot of time spent on the EMG orders. And Dave you gave the kind of sequential improvement in the year-over-year for EIG. But wondering if we could go a little further into the sequential 3Q over 2Q orders pattern for EIG maybe anything on book-to-bill there?

Yes. The book-to-bill for the whole company was 1.02 and it was above one for both of the groups. That's what I can give you there.

Okay. That covers all that. And then last quarter you talked about defense delays and you had a couple of mid single-digit quarters for A&D versus the high single-digit guide. Is -- what's the status update on the defense? And is that something that you have factored in pretty strong in the fourth quarter?

Yes. Yes we had -- Q2 and Q3 there's a little bit of project timing on that and we think that's going to reverse and there's some good things scheduled for us in Q4. That business is excellent because it's growing. The defense business is growing, but it is project based. So it can be lumpy but -- it's lumpy and headed in the right direction. So you're looking at it the right way.

Great. Thanks. Lastly, I'm not sure if it was asked multiple companies coming through here. But the deal pipeline just curious mix of small larger actionability?

Yes. The deal pipeline remains strong. We're actively looking at a high number of quality deals. We obviously have got the cash and the credit facilities to execute. That's recognized by sellers. The pipeline is a variety of deal sizes and we're very active. And what I mentioned before it feels like things are starting to move a little bit more in that area than they were maybe in the last six or nine months.

Great. Thanks a lot.

Thanks, Chris.

[Operator Instructions] Our next question comes from the line of Andrew Obin with Bank of America.

Good morning. Can you hear me?

Good morning, Andrew. Yes.

Hi. How are you? Look I appreciate Dave that you don't give guide on orders. But just checking if my math is correct. If I do look on a two-year stack just third quarter of last year organically was the easiest comp in the year. And I think sort of right it was minus 10 and it just goes to minus two by Q4. And if I look at Q2 and Q3 on a two-year stack, for orders, I'm just wondering, is it reasonable to assume that we've bottomed and by fourth quarter, we could return to growth is just arithmetically, it would suggest that we'll probably continue to be -- we'll go back to order decline. And I know you don't guide it, but we're just getting a lot of questions from investors, when do orders impact for these short-cycle names? And look, I get it, it's macro. You don't have a specialty crystal ball. I appreciate all these things.

Yes, that's right. Our crystal ball is no better than anyone else's. But we don't look at the two-year stack numbers, so I can't comment on your numbers. What I can comment is that there's been healthy sequential increases from Q2 to Q3. So and we also saw a sequential increase from Q1 to Q2. So, along with the two-year stack on the year-over-year and we gave the organic numbers already, the sequential numbers are -- they were up mid single digits in the quarter. So that's an encouraging fact from our viewpoint.

No. Really appreciate it, more than I expected. And just a follow-up question on Paragon and it's a different business. I mean, it's med tech, right? So a lot more regulation. Could you just give us an update on the time line of your restructuring? And obviously, AMETEK playbook is as good as anyone's in the industrial world. But how do you apply this playbook on timing of the restructuring and getting things out fast in terms of costs in a regulated environment where you can't just move production from one facility to another. You can't. It's all subject to regulatory approval. Can you just -- what lessons are being learned? And what has the speed of restructuring been relative to -- I'm sure, very high expectations? Thank you.

Yes, because the environment is regulated, and we know that because we have another business in the space that we moved factories. So our EMC business is a sister business to Paragon. So we're very experienced with the regulatory environment and our timing is adjusted for it, and you have to move slow and you have to be careful when it takes a bit longer, just like moving an aerospace business, or just like moving a defense business, or just like moving a utility business. So we operate in a lot of regulated markets. That's really our focus. We like regulated markets. This isn't new for us. It's kind of core. If you look at our whole portfolio. And -- but you're right, it does take time, and we're going to do it right.

So on time. Really appreciate it.

Yes. Thank you.

Our next question comes from the line of Joe Giordano with TD Cowen.

Hey, guys. Good morning.

Good morning, Joe.

Just curious on the aero, you mentioned like you're taking everything into consideration. I know you're a very balanced there, but is your Boeing OE exposure like are you essentially assuming zero in the fourth quarter? Or are you still selling to like maybe Tier 1s or something where you can still ship?

Yes, I think you've got it right. I mean, the -- where we have confirmed orders to lower levels of the supply chain is zero. And if there was anything direct, that's removed.

Got it. And then apologies if I missed this, I had joined a little bit late. But on Paragon, did you give an updated 2024 like revenue number that you expect from them or a contribution number?

No, we didn't give the number. And the number that we gave last quarter still holds, and Paragon executed in line with what they thought they did for this quarter. It was a good quarter for them. We also talked about the sequential orders growing in Paragon too.

Thank you. Our next question comes from the line of Jeff Sprague with Vertical Research Partners.

Hey. Thanks for let me back. And just a really quick follow-up, Dave can you just give us an update on price and then what you're seeing on kind of price cost spread in the quarter? And do you think that changing any -- as we move into Q4 the early part of 2025?

Yeah. That's a good question, Jeff. I mean price -- it seems we're getting back to more normal patterns. In the quarter we got three points of price pretty consistent across the portfolio and we got about 100 basis points of positive spread to the P&L from it. So I think the days of the high inflation the higher price are abating. And I think we're in the normal -- if you look into the next year normal price/cost spread where we are always positive by 50 basis points and the number is like 2% to 3%.

Right. Thanks again.

Thanks Jeff.

And our next question comes from the line of Steve Barger with KBCM.

Hi Steve.

Hey. Thanks. Good morning.

Good morning.

I'll just ask a question on the semi-cap cycle. It feels like expectations are moderating a bit due to slower recovery in some consumer products, but I know there's still a lot of optimism around leading-edge investments coming through. I think you're in deep back to detection and more leading edge. But based on how your portfolio is positioned can you match or outgrow whatever the equipment market does, as the cycle improves?

Yeah. I think we can. I mean, in the -- for example in the quarter, our semiconductor businesses were up mid-single digits and that was -- we had growth and it was driven by the uniqueness of the product portfolio. And the one thing about our portfolio is that we have a lot of laboratory semiconductor stuff that gets worked on during the -- between the cycles and then the production stuff that happens. So there's a natural balance in there. And we usually don't have large swings either way that kind of compensate or they're not correlated with each other. So it's a positive market. I mean you have some dynamics with China. We have some dynamics with new technology. We have a product in our CAMECA business that's been developed is very unique and best-in-class that's we're selling quite well now. So yeah, we were up mid-single digits. We think we'll be up mid-single digits for the year in semiconductor. That's about 6% of our portfolio. And we haven't done the planning for 2025. But if anything or -- that's a market that buys technology and our technology is getting better.

That's great.

In fact, a small acquisition that we did Polygon Physics was related to an ion source technology that is specifically used in EUV manufacturing and gives us some capability in the advanced semiconductor space.

Understood. And so does it feel like the cycle itself -- and I know you do have some lab exposure but for the more high-volume production cycle does it feel like we're inflecting?

Yeah. I mean you read all the industry things out there, and it feels like there's some inflection points, but then you got some geopolitical dynamics and …

Yeah.

…kind of sit back and see what happens on that one.

Got it. Thanks.

Thank you Steve.

Thank you. I'll now hand the call back over to Vice President of Investor Relations and Treasurer Kevin Coleman, for any closing remarks.

Thank you, Andrew, and thanks everyone for joining our call today. And as a reminder a replay of the webcast can be accessed in the Investors section of ametek.com. Have a great day.

Ladies and gentlemen, thank you for participating. This does conclude today's program. And you may now disconnect.