Mettler-Toledo International Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported sales for the third quarter increased 6% year-over-year to $1.094 billion; local currency sales also increased 6%.
• GAAP diluted earnings per share (EPS) were $12.29, up from $10.57 in the prior year period.
• Adjusted diluted EPS was $12.57, an increase of 13% compared to $11.15 in the prior year.
• Earnings before taxes were $300.2 million for the quarter, compared to $269.2 million in the prior year.
• Adjusted operating profit was $333.5 million for the quarter, an 8% increase from $309.9 million in the prior year.
• For the nine months ended September 30, 2026, reported sales increased 6% to $3.069 billion; local currency sales increased 5% (or 4% before acquisitions).
• Nine-month GAAP diluted EPS was $32.14, up from $28.12 in the prior year.
• Nine-month Adjusted EPS was $32.91, an increase of 12% compared to $29.41 in the prior year.
• Nine-month earnings before taxes were $799.3 million, compared to $719.8 million in the prior year.
• Nine-month Adjusted operating profit was $889.0 million, up from $829.9 million in the prior year.
• Net cash provided by operating activities for the nine months was $758.8 million, compared to $730.2 million in the prior year.
• Adjusted free cash flow for the nine months was $651.9 million, compared to $689.5 million in the prior year.
• Cash and cash equivalents were $52.2 million as of September 30, 2026, down from $66.9 million as of December 31, 2025.
• Long-term debt was $1.963 billion as of September 30, 2026, down from $2.088 billion as of December 31, 2025.

Guidance and Future Outlook:

• Management anticipates local currency sales for the fourth quarter of 2026 will increase approximately 5%.
• Adjusted EPS for the fourth quarter of 2026 is forecast to be $14.84 to $15.04, representing growth of 11% to 13%.
• For the full year 2026, management anticipates local currency sales will increase approximately 5% (excluding tariff refunds to customers).
• Full-year 2026 Adjusted EPS is forecast to be $47.70 to $47.90, representing growth of approximately 12%.
• Previous full-year guidance was local currency sales growth of 4% to 5% (excluding tariff refunds) and Adjusted EPS of $47.15 to $47.50.
• Management anticipates local currency sales growth of approximately 5% for 2027.
• 2027 Adjusted EPS is expected to be in the range of $52.50 to $53.50, representing growth of approximately 10% to 12%.
• The company does not provide forward-looking GAAP financial measures due to the inability to predict the timing and amount of future restructuring and other non-recurring items.

Business Segments and Product Lines:

• Performance was particularly strong in the Asia/Rest of World region.
• Third quarter reported sales growth by region: Americas +3%, Europe flat, Asia/Rest of World +16%.
• Third quarter local currency sales growth by region: Americas +3%, Europe +2%, Asia/Rest of World +14%.
• Nine-month reported sales growth by region: Americas +1%, Europe +6%, Asia/Rest of World +13%.
• Nine-month local currency sales growth by region: Americas +1%, Europe +2%, Asia/Rest of World +8% (excluding acquisitions and tariff refunds).
• The company has accelerated innovation and expanded digital capabilities.
• The company has enhanced its Spinnaker sales and marketing excellence program.
• The company has evolved its global supply chain setup for increased resilience and agility.

Market and Competitive Landscape:

• The company holds global number-one market positions in most of its businesses.
• The company is recognized as an innovation leader with solutions critical for R&D, quality control, and manufacturing processes in life sciences, food, and chemicals industries.
• The company's sales and service network is one of the most extensive in the industry, with products sold in more than 140 countries and a direct presence in approximately 40 countries.
• Market conditions are described as uncertain and could change quickly.

Risks and Challenges:

• Risks include ongoing developments related to global trade disputes and tariffs, governmental policies, the geopolitical environment, inflation, the conflict in Ukraine, and continuing instability in the Middle East.
• The company faced one-time impacts from IEEPA tariff refunds, including a $52 million benefit to Cost of Sales and a $28 million refund to customers that reduced Net Sales in the second quarter of 2026.
• The company recorded an $8.4 million charge to increase acquisition contingent consideration liabilities related to previously completed acquisitions during the nine months ended September 30, 2026.

Management Commentary and Tone:

• Patrick Kaltenbach, President and CEO, described the third quarter as "excellent," citing relatively broad-based growth and capitalizing on improving market demand.
• Management stated that improved sales volume and strong execution of strategic initiatives resulted in robust growth in Adjusted EPS.
• Kaltenbach concluded that investments in recent years have strengthened the competitive position and prepared the company for future growth opportunities.
• Management expressed confidence that as market conditions improve, the company is well-positioned to deliver strong financial performance going forward.

Other Key Points:

• The company entered into an agreement in December 2025 with the government of Xuhui, China, to increase production automation and capacity, with expected proceeds of approximately $31 million.
• For the nine months ended September 30, 2026, the company received $6.2 million in government grant proceeds.
• Net cash used in financing activities for the nine months included $638.7 million in repurchases of common stock.
• The company will host a conference call on Friday, November 6, at 8:30 a.m. Eastern Time to discuss results.
• Adjusted operating profit for the nine months reflects a percentage of net sales excluding one-time customer tariff refunds.
• Local currency net sales for the nine months increased 5%, including an increase of 3% in the Americas, before one-time tariff refunds to customers.
• Organic local currency net sales for the nine months, excluding acquisitions and one-time tariff refunds, increased 4%.