Mettler-Toledo International, Inc.
MTD · NYSE
Next quarter
Consensus is $12.11 EPS for Sep 2026 across 3 estimates, ranging $12.08 to $12.15.
MTD Jun 2026
- 6.31%
- +2.59%
- $10.78
- $11.46
- —
- $1.03B
Reported results
- $1.03B
- 63.29%
- $232.90M
- $11.55
Highlights
- Adjusted EPS was $11.46, up 14% year over year and 6.3% above the supplied $10.78 consensus; GAAP diluted EPS was $11.55 versus $9.76 a year ago.
- Organic growth was stronger than reported sales suggested: local-currency sales rose 6% before customer tariff refunds and 4% excluding acquisitions and refunds; reported sales increased 4% to $1.027 billion.
- Margins and operating profit improved: adjusted operating profit rose 9% to $309.3 million, with a 29.3% margin excluding customer tariff refunds versus 28.8% a year ago.
- Tariff refunds added a net $24.6 million before tax: a $52.4 million government refund benefit was partly offset by $27.8 million returned to customers; adjusted EPS excludes the net benefit.
- Regional mix was led by Asia/Rest of World, where organic local-currency sales grew 9%, including 9% growth in China; Europe grew 4% and the Americas 1%.
- Outlook raised: FY2026 adjusted EPS guidance increased to $47.15–$47.50 from $46.30–$46.95, with local-currency sales growth expected at 4%–5% excluding customer tariff refunds.
- Cash generation and repurchases: first-half operating cash flow was $450.2 million, including $42.9 million of tariff-refund proceeds; the company repurchased $412.5 million of stock in the half.
Analysis
Mettler-Toledo delivered a strong second quarter, with adjusted EPS of $11.46 beating the supplied $10.78 consensus by 6.3%. Adjusted EPS grew 14% from $10.09 a year ago, while GAAP diluted EPS was $11.55 versus $9.76. Revenue reached $1.027 billion, up 4% reported and 6% in local currency before customer tariff refunds. Sequentially, revenue rose from $947.1 million in Q1 and GAAP EPS from $8.33 to $11.55; the company did not provide a comparable prior-quarter adjusted EPS figure in the supplied materials.
The print combined improving underlying demand with meaningful but non-recurring tariff effects. Organic local-currency sales grew 4%, with particularly strong momentum in Asia/Rest of World and China, while adjusted operating profit increased 9% to $309.3 million and its margin expanded to 29.3%. A $52.4 million government tariff refund was partly offset by $27.8 million of customer refunds, for a $24.6 million net pre-tax benefit excluded from adjusted results. Management raised full-year adjusted EPS guidance to $47.15–$47.50 from $46.30–$46.95, maintaining a cautious view of market conditions and forecasting 4%–5% local-currency sales growth excluding customer refunds.
Organic sales and regions
Underlying demand improved across much of the portfolio, but reported results were affected by the customer tariff refund and regional divergence. Local-currency sales grew 6% before those refunds; stripping out acquisitions and refunds, growth was 4%, compared with 3% organic growth in the first half.
- By region: organic local-currency sales rose 9% in Asia/Rest of World, including 9% growth in China, and 4% in Europe; the Americas increased 1%.
- By offering: organic local-currency service sales grew 7%, ahead of product sales at 3%. Laboratory sales grew 4% organically and industrial sales 3%; food retailing local-currency sales rose 11% before customer refunds, supported by projects in Europe and Asia/Rest of World.
- Reported geography: sales in U.S. dollars decreased 3% in the Americas and increased 7% in Europe and 12% in Asia/Rest of World.
Earnings and tariff effects
Adjusted EPS rose 14% year over year to $11.46, above the supplied consensus, while GAAP EPS increased 18% to $11.55. Earnings before taxes rose to $289.4 million from $248.7 million. Adjusted operating profit reached $309.3 million, up 9%, and the adjusted margin excluding customer refunds improved to 29.3% from 28.8%.
- One-time refunds: the company recorded a $52.4 million government tariff refund that reduced cost of sales and committed $27.8 million in customer refunds that reduced sales. The net pre-tax benefit was $24.6 million; the adjusted EPS reconciliation removes $0.92 per share for tariff refunds.
- Underlying gross margin: reported gross margin expanded to 63.3% from 59.0%, but excluding both government and customer refunds it was 59.3%. Management attributed the underlying improvement primarily to price realization, lower tariff costs, and productivity initiatives, partly offset by foreign currency and higher transportation costs.
Raised full-year outlook
Management lifted its FY2026 adjusted EPS range while keeping its local-currency sales outlook at 4%–5% excluding customer tariff refunds. The company cited strong execution and improving market conditions but cautioned that trade policy and broader market conditions remain uncertain.
- FY2026: adjusted EPS guidance increased to $47.15–$47.50, implying approximately 10%–11% growth, from the prior $46.30–$46.95 range. Local-currency sales growth is expected at approximately 4%–5% excluding customer refunds.
- Q3 2026: local-currency sales are forecast to increase approximately 4%; adjusted EPS is expected to be $12.00–$12.15, up 8%–9% year over year.
Cash flow and repurchases
Cash generation remained substantial, though first-half operating cash flow included tariff-refund proceeds. The company continued to direct considerable cash toward share repurchases while maintaining access to its revolving credit facility.
- Operating cash flow: first-half cash from operations was $450.2 million versus $430.8 million a year earlier, including $42.9 million of government tariff-refund proceeds. Capital expenditures were $45.2 million.
- Capital returns and liquidity: the company repurchased $412.5 million of stock in the first half. At June 30, cash was $51.4 million, long-term debt was $2.045 billion, and $562.7 million remained available under its credit agreement.
