Mettler-Toledo(US:MTD)2025-11-07 18:00Financial Performance - Net sales for the three months ended September 30, 2025, were $1.03 billion, an increase of 8% compared to $954.5 million in the same period of 2024[110] - For the nine months ended September 30, 2025, net sales reached $2.90 billion, up 2% from $2.83 billion in 2024[110] - Net sales in the Americas increased by 10% in U.S. dollars for the three months ended September 30, 2025[113] - Service revenue increased by 10% in U.S. dollars for the three months ended September 30, 2025, benefiting from acquisitions[115] - Net sales of laboratory products, representing 55% of total net sales, increased by 6% in U.S. dollars for the three months ended September 30, 2025[116] - Industrial products and services net sales increased by 11% in U.S. dollars for the three months ended September 30, 2025[117] - U.S. Operations reported net sales of $421.6 million in Q3 2025, a 9% increase from $388.5 million in Q3 2024, with net sales to external customers rising 10%[134] - Swiss Operations saw a 12% increase in segment net sales to $270.7 million in Q3 2025, while net sales to external customers decreased by 3%[136] - Western European Operations achieved a 14% increase in segment net sales to $279.2 million in Q3 2025, with net sales to external customers rising 13%[140] - Chinese Operations reported a 5% increase in segment net sales for Q3 2025, with net sales to external customers increasing by 2%[145] - Segment net sales increased by 10% in U.S. dollars for the three months ended September 30, 2025, and by 7% for the nine months ended September 30, 2025, compared to the same periods in 2024[150] - Net sales to external customers rose by 8% in U.S. dollars for the three months ended September 30, 2025, and by 5% for the nine months ended September 30, 2025, compared to the corresponding periods in 2024[150] Profitability and Expenses - Gross profit margin for the three months ended September 30, 2025, was 59.2%, down from 60.0% in 2024, primarily due to increased tariff costs[120] - Research and development expenses increased by 9% in U.S. dollars for the three months ended September 30, 2025, totaling $51.1 million[124] - Selling, general and administrative expenses rose by 9% in U.S. dollars for the three months ended September 30, 2025, amounting to $248.4 million[125] - Amortization expense for Q3 2025 was $20.0 million, up from $18.2 million in Q3 2024, and for the nine months ended September 30, 2025, it was $54.8 million compared to $54.6 million in the same period of 2024[126] - Interest expense decreased to $17.7 million in Q3 2025 from $18.6 million in Q3 2024, and for the nine months ended September 30, 2025, it was $51.1 million compared to $56.8 million in 2024[127] - Restructuring charges increased to $6.0 million in Q3 2025 from $2.6 million in Q3 2024, and for the nine months ended September 30, 2025, they were $13.3 million compared to $17.6 million in 2024[128] - The reported tax rate for Q3 2025 was 19.2%, up from 18.3% in Q3 2024, and for the nine months ended September 30, 2025, it was 18.9% compared to 15.5% in 2024[130] - Segment profit for U.S. Operations decreased by $14.3 million for the nine months ended September 30, 2025, compared to the same period in 2024[135] - Segment profit for Western European Operations increased by $13.3 million in Q3 2025 compared to Q3 2024, driven by increased net sales and margin expansion initiatives[142] - Segment profit increased by $5.2 million and $11.0 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[151] Cash Flow and Capital Expenditures - Cash provided by operating activities totaled $730.2 million during the nine months ended September 30, 2025, compared to $702.2 million in the same period in 2024[154] - Capital expenditures amounted to $65.6 million for the nine months ended September 30, 2025, compared to $62.6 million in the corresponding period in 2024[155] - The company spent $656.2 million on share repurchases during the nine months ended September 30, 2025, repurchasing 542,416 shares[157] Debt and Borrowings - As of September 30, 2025, total debt was $2.21 billion, with $1.2 billion in long-term debt[159] - The company had $472.4 million of additional borrowings available under its Credit Agreement as of September 30, 2025[160] Other Considerations - The company estimates incurring approximately $50 million in costs due to incremental tariffs in 2025[108] - A 1% strengthening of the Swiss franc against the euro is estimated to reduce earnings before tax by approximately $2.6 million to $2.9 million annually[166] - The company acquired several businesses during the third quarter of 2025, with initial cash payments totaling $72.6 million and potential additional consideration of up to $31.2 million[156]