Mettler-Toledo Q4 Earnings Top Estimates, Sales Rise Y/Y

Core Insights - Mettler-Toledo International (MTD) reported fourth-quarter 2025 adjusted earnings of $13.36 per share, exceeding the Zacks Consensus Estimate by 4.67%, with an 8% year-over-year increase in earnings [1][8] - Net sales reached $1.13 billion, surpassing the Zacks Consensus Estimate by 2.53%, reflecting an 8% increase on a reported basis and a 5% increase on a local currency basis compared to the previous year [1][8] Revenue Breakdown - MTD's revenues were segmented into Laboratory ($638 million, 56.5% of net sales), Industrial ($437 million, 38.7% of net sales), and Food Retail ($54 million, 4.8% of net sales), with year-over-year local currency growth of 3%, 7%, and 19% respectively [2][8] - Total sales from the Americas ($456 million, 40.4% of net sales), Europe ($346 million, 30.6%), and Asia/Rest of the World ($328 million, 29.1%) showed year-over-year local currency increases of 7%, 4%, and 4% respectively [3] Operating Performance - The gross margin for Q4 was 59.8%, a contraction of 140 basis points year over year [6] - Research and development (R&D) expenses were $52.6 million, up 5.1% year over year, while selling, general & administrative (SG&A) expenses increased 9.5% year over year to $259.8 million [7] - The adjusted operating margin was 32.2%, declining by 150 basis points year over year [9] Cash Flow and Balance Sheet - As of December 31, 2025, Mettler-Toledo's cash and cash-equivalent balance was $66.9 million, down from $69.1 million as of September 30, 2025 [10] - The company generated $225.6 million in cash from operating activities during the reported quarter, with free cash flow amounting to $188.1 million [10] Guidance - For Q1 2026, Mettler-Toledo anticipates a sales increase of approximately 3% in local currency year over year, with adjusted earnings expected between $8.60 and $8.75 per share, reflecting a growth rate of 5% to 7% year over year [11] - For the full year 2026, the company expects local currency sales to increase approximately 4% over 2024, with adjusted earnings projected between $46.05 and $46.70 per share, representing an 8-9% growth over 2025 [11]