Mettler-Toledo International Inc. Q3 FY2025 earnings call

• Lab had good growth in the quarter, with innovations like the NineFocus pH Meter and InMotion autosampler. - Industrial business had strong core growth, especially in the Americas, but global conditions are soft with low single-digit expected growth in Q4. - Product Inspection had strong sales growth despite challenging food manufacturing conditions. - Food Retail sales grew 5% against easy comps. - Geographically, Americas had good growth, Europe had very good results better than expected, Asia/Rest of the World grew modestly, and China had modest growth with industrial business growth for the first time in over 2 years. - Emphasized agility, innovation, and operational excellence, leveraging Spinnaker program and digitalization. - Recent acquisitions broadened distribution, service capabilities, and life science equipment offering.

For the third quarter, Laboratory sales increased 4%, with strong results in bioprocessing but softer demand from academia, biotech, and chemical sectors. Industrial sales grew 9%, with core Industrial up 10% excluding acquisitions and Product Inspection up 7%. Food Retail sales grew 5%, and Service sales grew 8%. Revenue contributions: Laboratory likely around a certain percentage, Industrial around another, etc. (Detailed breakdown as per transcript: Lab 4%, Industrial 9% (core 10% ex-acquisitions, PID 7%), Food Retail 5%, Service 8%).

• Q4 2025: Local currency sales expected to grow ~3%, operating margin to decrease ~200 basis points (or 130 basis points currency-neutral), adjusted EPS range $12.68-$12.88 (2%-4% growth). - Full year 2025: Local currency sales growth ~2% (3.5% ex-shipping delays), adjusted EPS range $42.05-$42.25 (2%-3% growth ex-shipping delays). - 2026: Local currency sales expected to increase ~4%, adjusted EPS range $45.35-$46 (8%-9% growth). Also, free cash flow expected $865M in 2025 and $900M in 2026, share repurchases planned $800M in 2025 and $825M-$875M in 2026.

• Uncertainties in global trade disputes and governmental policies. - Tariff impacts on operating margin. - Market uncertainties affecting customer confidence and spending.

Q: Luke Sergott asked about 2026 segment breakdown, particularly industrial and PID.

A: Shawn Vadala said lab expected low to mid-single-digit growth, core industrial and PID low to mid-single digit, retail flat; Americas mid-single digit, Europe and China low single digit.

Q: Vijay Kumar asked about 2026 growth vs back half 2025.

A: Patrick Kaltenbach said 2026 guidance is prudent due to market uncertainties, Shawn Vadala mentioned more pricing in back half 2025 than 2026, organic volume growth modest in 2026.

Q: Daniel Arias asked about onshoring demand for 2026.

A: Patrick Kaltenbach said onshoring will have gradual effect, moderate in 2026, more in 2027, and Mettler is ready to help customers with labs and manufacturing floors.

Q: Brandon Couillard asked about acquisitions.

A: Patrick Kaltenbach said acquisitions expanded distribution, service capabilities, and life science equipment portfolio, adding less than 1% to sales.

Q: Michael Ryskin asked about tariffs in 2026.

A: Shawn Vadala said organization has been effective in offsetting tariffs, with strong value propositions and supply chain efforts to mitigate, expecting full offset by 2026.