Mettler-Toledo International (MTD) Q4 2024 Earnings Call February 07, 2025 08:30 AM ET Company Participants Adam Uhlman - Investor RelationsPatrick Kaltenbach - President & CEOShawn Vadala - Chief Financial OfficerVijay Kumar - Senior Managing DirectorTycho Peterson - Managing Director Conference Call Participants Dan Arias - AnalystJack Meehan - Equity Research AnalystMatt Sykes - AnalystRachel Vatnsdal - AnalystJoshua Waldman - Senior Equity Research AnalystPatrick Donnelly - AnalystCatherine Schulte - Se ...

Core Insights - Mettler-Toledo reported quarterly earnings of $12.41 per share, exceeding the Zacks Consensus Estimate of $11.69 per share, and showing an increase from $9.40 per share a year ago, resulting in an earnings surprise of 6.16% [1] - The company achieved revenues of $1.05 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.51% and up from $934.99 million year-over-year [2] - Mettler-Toledo has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Mettler-Toledo's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $8.06 on revenues of $929.46 million, while for the current fiscal year, it is $41.94 on revenues of $3.94 billion [7] Industry Context - The Medical - Instruments industry, to which Mettler-Toledo belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Mettler-Toledo's stock may also be influenced by the overall industry outlook, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5][8] Competitor Insights - Edwards Lifesciences, another company in the same industry, is expected to report quarterly earnings of $0.55 per share, reflecting a year-over-year decline of 14.1%, with revenues anticipated to be $1.36 billion, down 11.2% from the previous year [9][10]

Core Insights - Mettler-Toledo (MTD) is expected to report quarterly earnings of $11.69 per share, reflecting a 24.4% increase year-over-year, with revenues projected at $1.01 billion, an 8% increase from the previous year [1] - The consensus EPS estimate has been revised 1.5% lower in the last 30 days, indicating a reevaluation by analysts [1][2] - Analysts have provided various estimates for Mettler-Toledo's key metrics, which can offer a more comprehensive view of the company's performance [3] Revenue Estimates - Analysts forecast 'Net sales- Products' to reach $776.33 million, indicating a 9.5% increase from the prior-year quarter [4] - 'Net sales- Service (Point in Time+Over Time)' is expected to be $232.69 million, reflecting a 3% increase year-over-year [4] - 'Net sales- Retail' is projected to decline to $46.93 million, suggesting an 8.7% decrease from the previous year [4] Additional Sales Projections - 'Net sales- Industrial' is anticipated to reach $393.45 million, marking a 6.2% increase from the year-ago quarter [5] - 'Net sales- Laboratory' is expected to be $568.55 million, indicating a 10.8% increase year-over-year [5] - Over the past month, Mettler-Toledo shares have gained 10.2%, outperforming the Zacks S&P 500 composite's 2.7% increase [5]

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Core Viewpoint - Mettler-Toledo International (MTD) experienced a 7.19% decline in share price following the release of its third-quarter 2024 results, despite reporting adjusted earnings and net sales that exceeded consensus estimates [1][2]. Financial Performance - MTD reported adjusted earnings of $10.21 per share, beating the Zacks Consensus Estimate by 2.1%, and reflecting a year-over-year increase of 4.2% [1]. - Net sales reached $954.5 million, surpassing the Zacks Consensus Estimate of $942 million, with a reported increase of 1.3% and a local currency increase of 1% compared to the previous year [1][3]. Segment Performance - Revenue breakdown for the third quarter included: Laboratory Instruments at $534.8 million (56% of net sales), Industrial Instruments at $365.5 million (38.3%), and Food Retail at $54.2 million (5.7%) [3]. - The Laboratory segment grew by 5% year-over-year, while the Industrial and Food Retail segments remained flat, with the Food Retail segment declining by 20% on a local currency basis [3]. Geographic Performance - Sales distribution was as follows: Americas at $393.6 million (41.2% of net sales), Europe at $260 million (27.2%), and Asia/Rest of World at $300.9 million (31.5%) [4]. - Year-over-year sales growth in Europe and Asia/Rest of World was 1% and 4% respectively, while sales in the Americas decreased by 1% [4]. Operating Results - MTD's gross margin was reported at 60%, an increase of 60 basis points year-over-year [5]. - Research & Development (R&D) expenses were $47.1 million, up 2.1% from the previous year, while Selling, General & Administrative (SG&A) expenses rose by 5.2% to $228.8 million [5]. - The adjusted operating margin contracted by 30 basis points to 31.1% compared to the prior year [6]. Balance Sheet & Cash Flow - As of September 30, 2024, Mettler-Toledo had cash and cash equivalents of $71.6 million, an increase from $70.8 million as of June 30, 2024 [7]. - Long-term debt rose to $1.89 billion from $1.75 billion, while cash generated from operating activities was $254.7 million, slightly down from $257.5 million in the previous quarter [7]. Guidance - For Q4 2024, Mettler-Toledo expects sales to increase by 8% in local currency compared to the previous year, with a consensus estimate of $1.01 billion [9]. - Adjusted earnings are projected to be between $11.63 and $11.78 per share, indicating a growth of 24-25% year-over-year [9]. - For the full year 2024, sales in local currency are anticipated to rise by 2%, with a consensus estimate of $3.83 billion, reflecting a year-over-year increase of 0.98% [10][11].

Financial Data and Key Metrics Changes - Sales for Q3 2024 were $954.5 million, representing a 1% increase in both local currency and U.S. dollars [9] - Gross margin increased by 60 basis points to 60%, driven by positive price realization and benefits from the SternDrive program [12] - Adjusted EPS for the quarter was $10.21, a 4% increase over the prior year, while reported EPS was $9.96 compared to $9.21 in the prior year [14] Business Line Data and Key Metrics Changes - Laboratory sales increased by 5% in Q3, while Industrial sales were flat, with core Industrial down 1% and product inspection up 1% [11] - Food Retail sales declined by 20% in Q3 compared to significant project activity last year [11] - Year-to-date, Laboratory sales increased by 2%, while Industrial decreased by 2%, with Food Retail down 14% [12] Market Data and Key Metrics Changes - Local currency sales grew 1% in Europe, declined 1% in the Americas, and grew 4% in Asia/Rest of the World for Q3 [9] - Year-to-date local currency sales decreased by 15% in China [10] - Sales in China returned to growth in Q3, but underlying demand remained soft due to weak economic growth [31] Company Strategy and Development Direction - The company is focused on leveraging business diversity and innovation to capture growth opportunities and gain market share [8] - Investments in automation, digitalization, and service expansion are key components of the company's growth strategy [17][34] - The company aims to grow its Service business, which represents approximately 25% of sales and has grown 7% year-to-date [35] Management's Comments on Operating Environment and Future Outlook - Management noted that market conditions remain soft, particularly in China, but expect gradual improvement throughout 2025 [17] - The company anticipates local currency sales growth of approximately 8% for Q4 2024, benefiting from prior-year shipping delays [19] - For 2025, local currency sales are expected to increase approximately 3%, with adjusted EPS forecasted to be in the range of $41.85 to $42.50 [20][21] Other Important Information - Adjusted free cash flow for the first nine months was $671 million, a 7% increase on a per-share basis [16] - The company plans to make targeted investments in innovation and service to strengthen competitive advantages [33] Q&A Session Summary Question: What are the assumptions for Labs versus Industrials in fiscal '25? - Management expects Services to continue growing in the mid- to high single digits, while Labs are projected to grow low to mid-single digits on a reported basis [44][45] Question: What is the outlook for operating margin expansion for fiscal '25? - Operating margin is expected to be flattish to slightly up, with Service margins above corporate average [47] Question: How is the company preparing for potential changes in the tariff environment? - The company has expanded its production footprint globally, including in Mexico, to provide more manufacturing flexibility [70][71] Question: What are the growth expectations for the Process Analytics business? - The Process Analytics business has returned to solid growth, with destocking behind the company [73] Question: What are the assumptions for Q4 growth by segment and geography? - For Q4, Lab is expected to be up low double digits, while core Industrial is expected to be up low single digits [90]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024, OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ________________ Commission File Number: 1-13595 Mettler Toledo International Inc _____________________________________ ...

Company Performance - Mettler-Toledo reported quarterly earnings of $10.21 per share, exceeding the Zacks Consensus Estimate of $10 per share, and up from $9.80 per share a year ago, representing an earnings surprise of 2.10% [1] - The company posted revenues of $954.54 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.34%, compared to $942.46 million in the same quarter last year [2] - Over the last four quarters, Mettler-Toledo has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Mettler-Toledo shares have increased approximately 15.3% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is $11.81 on revenues of $1.01 billion, and for the current fiscal year, it is $40.34 on revenues of $3.83 billion [7] Industry Outlook - The Instruments - Scientific industry, to which Mettler-Toledo belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Mettler-Toledo's stock performance [5][6]

FOR IMMEDIATE RELEASE Exhibit 99.1 METTLER-TOLEDO INTERNATIONAL INC. REPORTS THIRD QUARTER 2024 RESULTS COLUMBUS, Ohio, USA – November 7, 2024 – Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2024. Provided below are the highlights: • Reported and local currency sales increased 1% compared with the prior year. • Net earnings per diluted share as reported (EPS) were $9.96, compared with $9.21 in the prior-year period. Adjusted EPS was $10.21, an increase of 4% over th ...