filings.toolsItem 1. Financial Statements
102K characters. Original on sec.gov · Markdown
Item 1. Financial Statements
METTLER-TOLEDO INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Three months ended June 30, 2026 and 2025
(In thousands, except share data)
(unaudited)
| June 30, 2026 | June 30, 2025 | ||||||||||
| Net sales | |||||||||||
| Products | $ | 753,003 | $ | 734,244 | |||||||
| Service | 274,311 | 248,977 | |||||||||
| Total net sales | 1,027,314 | 983,221 | |||||||||
| Cost of sales | |||||||||||
| Products | 253,275 | 289,314 | |||||||||
| Service | 123,821 | 114,031 | |||||||||
| Gross profit | 650,218 | 579,876 | |||||||||
| Research and development | 52,989 | 49,285 | |||||||||
| Selling, general and administrative | 263,334 | 247,298 | |||||||||
| Amortization | 19,426 | 17,581 | |||||||||
| Interest expense | 17,246 | 16,779 | |||||||||
| Restructuring charges | 5,450 | 3,557 | |||||||||
| Other charges (income), net | 2,372 | (3,281) | |||||||||
| Earnings before taxes | 289,401 | 248,657 | |||||||||
| Provision for taxes | 56,502 | 46,309 | |||||||||
| Net earnings | $ | 232,899 | $ | 202,348 | |||||||
| Basic earnings per common share: | |||||||||||
| Net earnings | $ | 11.57 | $ | 9.78 | |||||||
| Weighted average number of common shares | 20,121,564 | 20,687,312 | |||||||||
| Diluted earnings per common share: | |||||||||||
| Net earnings | $ | 11.55 | $ | 9.76 | |||||||
| Weighted average number of common and common equivalent shares | 20,166,298 | 20,738,699 | |||||||||
| Comprehensive income, net of tax (Note 9) | $ | 256,841 | $ | 131,806 |
The accompanying notes are an integral part of these interim consolidated financial statements.
- 3 -
METTLER-TOLEDO INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Six months ended June 30, 2026 and 2025
(In thousands, except share data)
(unaudited)
| June 30, 2026 | June 30, 2025 | ||||||||||
| Net sales | |||||||||||
| Products | $ | 1,437,257 | $ | 1,384,194 | |||||||
| Service | 537,184 | 482,771 | |||||||||
| Total net sales | 1,974,441 | 1,866,965 | |||||||||
| Cost of sales | |||||||||||
| Products | 521,863 | 539,088 | |||||||||
| Service | 246,544 | 222,122 | |||||||||
| Gross profit | 1,206,034 | 1,105,755 | |||||||||
| Research and development | 104,264 | 95,631 | |||||||||
| Selling, general and administrative | 521,660 | 490,097 | |||||||||
| Amortization | 39,038 | 34,774 | |||||||||
| Interest expense | 34,253 | 33,432 | |||||||||
| Restructuring charges | 12,720 | 7,324 | |||||||||
| Other charges (income), net | (4,957) | (6,102) | |||||||||
| Earnings before taxes | 499,056 | 450,599 | |||||||||
| Provision for taxes | 96,703 | 84,664 | |||||||||
| Net earnings | $ | 402,353 | $ | 365,935 | |||||||
| Basic earnings per common share: | |||||||||||
| Net earnings | $ | 19.92 | $ | 17.61 | |||||||
| Weighted average number of common shares | 20,203,339 | 20,777,591 | |||||||||
| Diluted earnings per common share: | |||||||||||
| Net earnings | $ | 19.87 | $ | 17.56 | |||||||
| Weighted average number of common and common equivalent shares | 20,251,532 | 20,836,768 | |||||||||
| Comprehensive income, net of tax (Note 9) | $ | 440,810 | $ | 290,152 |
The accompanying notes are an integral part of these interim consolidated financial statements.
- 4 -
METTLER-TOLEDO INTERNATIONAL INC.
INTERIM CONSOLIDATED BALANCE SHEETS
As of June 30, 2026 and December 31, 2025
(In thousands, except share data)
(unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 51,383 | $ | 66,888 | |||||||
| Trade accounts receivable, less allowances of $17,706 at June 30, 2026 | |||||||||||
| and $16,857 at December 31, 2025 | 731,480 | 778,243 | |||||||||
| Inventories | 411,563 | 387,228 | |||||||||
| Other current assets and prepaid expenses | 152,961 | 130,308 | |||||||||
| Total current assets | 1,347,387 | 1,362,667 | |||||||||
| Property, plant and equipment, net | 831,941 | 845,636 | |||||||||
| Goodwill | 735,214 | 739,225 | |||||||||
| Other intangible assets, net | 266,258 | 278,910 | |||||||||
| Deferred tax assets, net | 41,268 | 41,380 | |||||||||
| Other non-current assets | 448,876 | 444,828 | |||||||||
| Total assets | $ | 3,670,944 | $ | 3,712,646 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Trade accounts payable | $ | 229,801 | $ | 266,628 | |||||||
| Accrued and other liabilities | 285,517 | 237,482 | |||||||||
| Accrued compensation and related items | 171,919 | 199,516 | |||||||||
| Deferred revenue and customer prepayments | 257,482 | 229,378 | |||||||||
| Taxes payable | 188,492 | 201,181 | |||||||||
| Short-term borrowings and current maturities of long-term debt | 67,290 | 63,931 | |||||||||
| Total current liabilities | 1,200,501 | 1,198,116 | |||||||||
| Long-term debt | 2,044,673 | 2,088,241 | |||||||||
| Deferred tax liabilities, net | 145,514 | 151,784 | |||||||||
| Other non-current liabilities | 267,433 | 298,141 | |||||||||
| Total liabilities | 3,658,121 | 3,736,282 | |||||||||
| Commitments and contingencies (Note 14) | |||||||||||
| Shareholders’ equity: | |||||||||||
| Preferred stock, $0.01 par value per share; authorized 10,000,000 shares | — | — | |||||||||
| Common stock, $0.01 par value per share; authorized 125,000,000 shares; issued 44,786,011 and 44,786,011 shares; outstanding 20,036,559 shares and 20,359,353 shares at June 30, 2026 and December 31, 2025, respectively | 448 | 448 | |||||||||
| Additional paid-in capital | 947,927 | 936,276 | |||||||||
| Treasury stock at cost (24,749,452 shares at June 30, 2026 and 24,426,658 shares at December 31, 2025) | (10,255,168) | (9,839,399) | |||||||||
| Retained earnings | 9,640,316 | 9,238,196 | |||||||||
| Accumulated other comprehensive loss | (320,700) | (359,157) | |||||||||
| Total shareholders' equity | 12,823 | (23,636) | |||||||||
| Total liabilities and shareholders’ equity | $ | 3,670,944 | $ | 3,712,646 |
The accompanying notes are an integral part of these interim consolidated financial statements.
- 5 -
METTLER-TOLEDO INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Six months ended June 30, 2026 and 2025
(In thousands, except share data)
(unaudited)
| Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||
| Common Stock | Treasury Stock | Retained Earnings | |||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | 20,949,461 | $ | 448 | $ | 897,025 | $ | (9,049,925) | $ | 8,371,420 | $ | (345,858) | $ | (126,890) | ||||||||||||||||||||||||||||
| Exercise of stock options and restricted stock units | 4,282 | — | 896 | 1,318 | (16) | — | 2,198 | ||||||||||||||||||||||||||||||||||
| Repurchases of common stock | (170,957) | — | — | (218,749) | — | — | (218,749) | ||||||||||||||||||||||||||||||||||
| Excise tax on net repurchases of common stock | (2,026) | (2,026) | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 5,139 | — | — | — | 5,139 | ||||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | — | 163,587 | — | 163,587 | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | (5,241) | (5,241) | ||||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | 20,782,786 | $ | 448 | $ | 903,060 | $ | (9,269,382) | $ | 8,534,991 | $ | (351,099) | $ | (181,982) | ||||||||||||||||||||||||||||
| Exercise of stock options and restricted stock units | 13,307 | — | 2,705 | 4,159 | — | — | 6,864 | ||||||||||||||||||||||||||||||||||
| Repurchases of common stock | (197,053) | — | — | (218,748) | — | — | (218,748) | ||||||||||||||||||||||||||||||||||
| Excise tax on net repurchases of common stock | (2,115) | (2,115) | |||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 5,382 | — | — | — | 5,382 | ||||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | — | 202,348 | — | 202,348 | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | (70,542) | (70,542) | ||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | 20,599,040 | $ | 448 | $ | 911,147 | $ | (9,486,086) | $ | 8,737,339 | $ | (421,641) | $ | (258,793) | ||||||||||||||||||||||||||||
| Balance at December 31, 2025 | 20,359,353 | $ | 448 | $ | 936,276 | $ | (9,839,399) | $ | 9,238,196 | $ | (359,157) | $ | (23,636) | ||||||||||||||||||||||||||||
| Exercise of stock options and restricted stock units | 1,211 | — | 278 | 394 | (52) | — | 620 | ||||||||||||||||||||||||||||||||||
| Repurchases of common stock | (152,963) | — | — | (206,250) | — | — | (206,250) | ||||||||||||||||||||||||||||||||||
| Excise tax on net repurchases of common stock | — | — | — | (2,055) | — | — | (2,055) | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 5,469 | — | — | — | 5,469 | ||||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | — | 169,454 | — | 169,454 | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | 14,515 | 14,515 | ||||||||||||||||||||||||||||||||||
| Balance at March 31, 2026 | 20,207,601 | $ | 448 | $ | 942,023 | $ | (10,047,310) | $ | 9,407,598 | $ | (344,642) | $ | (41,883) | ||||||||||||||||||||||||||||
| Exercise of stock options and restricted stock units | 1,343 | — | 533 | 443 | (181) | — | 795 | ||||||||||||||||||||||||||||||||||
| Repurchases of common stock | (172,385) | — | — | (206,250) | — | — | (206,250) | ||||||||||||||||||||||||||||||||||
| Excise tax on net repurchases of common stock | — | — | — | (2,051) | — | — | (2,051) | ||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | 5,371 | — | — | — | 5,371 | ||||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | — | 232,899 | — | 232,899 | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | — | — | — | — | — | 23,942 | 23,942 | ||||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | 20,036,559 | $ | 448 | $ | 947,927 | $ | (10,255,168) | $ | 9,640,316 | $ | (320,700) | $ | 12,823 |
The accompanying notes are an integral part of these interim consolidated financial statements.
- 6 -
METTLER-TOLEDO INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended June 30, 2026 and 2025
(In thousands)
(unaudited)
| June 30, 2026 | June 30, 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net earnings | $ | 402,353 | $ | 365,935 | |||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
| Depreciation | 26,460 | 25,334 | |||||||||
| Amortization | 39,038 | 34,774 | |||||||||
| Deferred tax benefit | (177) | (2,840) | |||||||||
| Share-based compensation | 10,840 | 10,521 | |||||||||
| Proceeds from government grant | 6,240 | — | |||||||||
| Increase (decrease) in cash resulting from changes in: | |||||||||||
| Trade accounts receivable, net | 40,024 | 39,216 | |||||||||
| Inventories | (27,965) | (18,062) | |||||||||
| Other current assets | (19,338) | (2,326) | |||||||||
| Trade accounts payable | (37,417) | (8,675) | |||||||||
| Taxes payable | (11,106) | 22,241 | |||||||||
| Accruals and other | 21,258 | (35,303) | |||||||||
| Net cash provided by operating activities | 450,210 | 430,815 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchase of property, plant and equipment | (45,206) | (41,132) | |||||||||
| Acquisitions | (2,242) | (2,915) | |||||||||
| Other investing activities | 14,158 | (10,510) | |||||||||
| Net cash used in investing activities | (33,290) | (54,557) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from borrowings | 955,995 | 1,122,578 | |||||||||
| Repayments of borrowings | (966,911) | (1,063,372) | |||||||||
| Proceeds from stock option exercises | 1,415 | 9,062 | |||||||||
| Repurchases of common stock | (412,500) | (437,497) | |||||||||
| Payments of excise tax on repurchases of common stock | (7,555) | — | |||||||||
| Acquisition contingent consideration payment | (2,476) | — | |||||||||
| Other financing activities | (50) | (920) | |||||||||
| Net cash used in financing activities | (432,082) | (370,149) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (343) | (3,646) | |||||||||
| Net increase (decrease) in cash and cash equivalents | (15,505) | 2,463 | |||||||||
| Cash and cash equivalents: | |||||||||||
| Beginning of period | 66,888 | 59,362 | |||||||||
| End of period | $ | 51,383 | $ | 61,825 |
The accompanying notes are an integral part of these interim consolidated financial statements.
- 7 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
**1.**BASIS OF PRESENTATION
Mettler-Toledo International Inc. (Mettler-Toledo or the Company) is a leading global supplier of precision instruments and services. The Company manufactures weighing instruments for use in laboratory, industrial, packaging, logistics and food retailing applications. The Company also manufactures several related analytical instruments and provides automated chemistry solutions used in drug and chemical compound discovery and development. In addition, the Company manufactures metal detection and other end-of-line inspection systems used in production and packaging and provides solutions for use in certain process analytics applications. The Company's primary manufacturing facilities are located in China, Germany, Mexico, Switzerland, the United Kingdom and the United States. The Company's principal executive offices are located in Columbus, Ohio and Greifensee, Switzerland.
The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include all entities in which the Company has control, which are its wholly-owned subsidiaries. The interim consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
The accompanying interim consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year ending December 31, 2026. As further described in Note 14, the Company’s operating results for the three and six months ended June 30, 2026 include a one-time benefit of $52.4 million from U.S. government International Emergency Economic Powers Act ("IEEPA") tariff refunds that reduced cost of sales, offset in part by tariff-related customer refunds of $27.8 million that reduced net sales.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. These financial statements were prepared using information reasonably available as of June 30, 2026 and through the date of this report. Actual results may differ from those estimates due to uncertainty around ongoing developments related to global trade/tariffs, and the conflicts in Ukraine, Iran, and the Middle East, as well as other factors.
All intercompany transactions and balances have been eliminated.
**2.**SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Trade Accounts Receivable
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for expected credit losses represents the Company’s best estimate based on historical information, current information, and reasonable and supportable forecasts of future events and circumstances.
- 8 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
Inventories
Inventories are valued at the lower of cost or net realizable value. Cost, which includes direct materials, labor and overhead, is generally determined using the first in, first out (FIFO) method. The estimated net realizable value is based on assumptions for future demand and related pricing. Adjustments to the cost basis of the Company’s inventory are made for excess and obsolete items based on usage, orders and technological obsolescence. If actual market conditions are less favorable than those projected by management, reductions in the value of inventory may be required in the future.
Inventories consisted of the following:
| June 30, 2026 | December 31, 2025 | ||||||||||
| Raw materials and parts | $ | 181,705 | $ | 171,600 | |||||||
| Work-in-progress | 88,784 | 77,146 | |||||||||
| Finished goods | 141,074 | 138,482 | |||||||||
| $ | 411,563 | $ | 387,228 |
Goodwill and Other Intangible Assets
Goodwill, representing the excess of purchase price over the net asset value of companies acquired, and indefinite-lived intangible assets are not amortized, but are reviewed for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that an asset might be impaired. The annual evaluation for goodwill and indefinite-lived intangible assets are generally based on an assessment of qualitative factors to determine whether it is more likely than not that the fair values of the assets are less than their carrying amounts.
Other intangible assets include indefinite-lived assets and assets subject to amortization. Where applicable, amortization is charged on a straight-line basis over the expected period to be benefited. The straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. The Company assesses the initial acquisition of intangible assets in accordance with the provisions of ASC 805 "Business Combinations" and the continued accounting for previously recognized intangible assets and goodwill in accordance with the provisions of ASC 350 "Intangibles - Goodwill and Other" and ASC 360 "Property, Plant and Equipment."
Other intangible assets consisted of the following:
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Gross Amount | Accumulated Amortization | Intangibles, Net | Gross Amount | Accumulated Amortization | Intangibles, Net | ||||||||||||||||||||||||||||||
| Customer relationships | $ | 330,138 | $ | (142,133) | $ | 188,005 | $ | 331,229 | $ | (133,460) | $ | 197,769 | |||||||||||||||||||||||
| Proven technology and patents | 133,411 | (95,972) | 37,439 | 132,247 | (93,025) | 39,222 | |||||||||||||||||||||||||||||
| Tradenames (finite life) | 9,402 | (7,068) | 2,334 | 8,476 | (6,555) | 1,921 | |||||||||||||||||||||||||||||
| Tradenames (indefinite life) | 34,783 | — | 34,783 | 35,795 | — | 35,795 | |||||||||||||||||||||||||||||
| Other | 14,211 | (10,514) | 3,697 | 14,285 | (10,082) | 4,203 | |||||||||||||||||||||||||||||
| $ | 521,945 | $ | (255,687) | $ | 266,258 | $ | 522,032 | $ | (243,122) | $ | 278,910 |
- 9 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
The Company recognized amortization expense associated with the above intangible assets of $7.2 million and $6.6 million for the three months ended June 30, 2026 and 2025, respectively, and $14.5 million and $13.2 million for the six months ended June 30, 2026 and 2025, respectively. The annual aggregate amortization expense based on the current balance of other intangible assets is estimated to be $28.9 million for 2026, $27.9 million for 2027, $25.4 million for 2028, $23.5 million for 2029, $22.2 million for 2030, and $19.8 million for 2031. Purchased intangible amortization was $6.9 million, $5.3 million after tax, and $6.5 million, $5.0 million after tax, for the three months ended June 30, 2026 and 2025, respectively, and $14.0 million, $10.7 million after tax, and $12.8 million, $9.9 million after tax, for the six months ended June 30, 2026 and 2025, respectively.
In addition to the above amortization, the Company recorded amortization expense associated with capitalized software of $12.2 million and $10.9 million for the three months ended June 30, 2026 and 2025, respectively, and $24.4 million and $21.4 million for the six months ended June 30, 2026 and 2025, respectively.
Revenue Recognition
Product revenue is recognized from contracts with customers when a customer has obtained control of a product. The Company considers control to have transferred based upon shipping terms. To the extent the Company’s arrangements have a separate performance obligation, revenue related to any post-shipment performance obligation is deferred until completed. Shipping and handling costs charged to customers are included in total net sales and the associated expense is a component of cost of sales. Certain products are also sold through indirect distribution channels whereby the distributor assumes any further obligations to the end customer. Revenue is recognized on these distributor arrangements upon transfer of control to the distributor. Contracts do not contain variable pricing arrangements that are retrospective, except for rebate programs. Rebates are estimated based on expected sales volumes and offset against revenue at the time such revenue is recognized. The Company generally maintains the right to accept or reject a product return in its terms and conditions and also maintains appropriate accruals for outstanding credits. The related provisions for estimated returns and rebates are immaterial to the interim consolidated financial statements.
Certain of the Company’s product arrangements include separate performance obligations, primarily related to installation. Such performance obligations are accounted for separately when the deliverables have stand-alone value and the satisfaction of the undelivered performance obligations is probable and within the Company's control. The allocation of revenue between the performance obligations is based on the observable stand-alone selling prices at the time of the sale in accordance with a number of factors including service technician billing rates, time to install, and geographic location.
Software is generally not considered a distinct performance obligation with the exception of a limited number of software applications. The Company primarily sells software products with the related hardware instrument as the software is embedded in the product. The Company’s products typically require no significant production, modification, or customization of the hardware or software that is essential to the functionality of the products.
Service revenue not under contract is recognized upon the completion of the service performed. Revenue from spare parts sold on a stand-alone basis is recognized when control is transferred to the customer, which is generally at the time of shipment or delivery. Revenue from service contracts is recognized ratably over the contract period using a time-based method. These contracts represent an obligation to perform repair and other services including regulatory compliance qualification, calibration, certification, and preventative maintenance on a customer’s pre-defined equipment over the contract period.
- 10 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
Share-Based Compensation
The Company recognizes share-based compensation expense within selling, general, and administrative in the consolidated statements of operations and other comprehensive income with a corresponding offset to additional paid-in capital in the consolidated balance sheet. The Company recognized $5.4 million and $10.8 million of share-based compensation expense for the three and six months ended June 30, 2026, respectively, compared to $5.4 million and $10.5 million for the corresponding periods in 2025.
Research and Development
Research and development costs primarily consist of salaries, consulting and other costs. The Company expenses these costs as incurred.
Business Combinations and Asset Acquisitions
The Company accounts for business acquisitions under the accounting standards for business combinations using the acquisition method of accounting. The results of each acquisition are included in the Company's consolidated results as of the acquisition date. The purchase price of an acquisition is generally allocated to tangible and intangible assets and assumed liabilities based on their estimated fair values and any consideration in excess of the net assets acquired is recognized as goodwill. The determination of the fair values of the acquired assets and assumed liabilities, including goodwill and intangible assets, requires significant judgment. Acquisition transaction costs are expensed when incurred.
In circumstances where an acquisition involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the expected contingent payments as of the acquisition date. Subsequent changes in the fair value of the contingent consideration are recorded to other charges (income), net.
Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03: Disaggregation of Income Statement Expenses, which requires disclosures about the nature of expenses presented on the face of the income statement. The Company will adopt the annual disclosure requirements prospectively in 2027 and is currently evaluating the impact of this guidance on the consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06: Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for internal-use software costs. The guidance is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The Company plans to adopt prospectively and is currently evaluating the potential impact, if any, on the consolidated financial statements.
In December 2025, the FASB issued ASU 2025-12: Codification Improvements, which updates U.S. GAAP for a broad range of topics arising from technical corrections, unintended application of the codification, clarifications, and other minor improvements. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company plans to adopt prospectively and is currently evaluating the potential impact, if any, on the consolidated financial statements.
- 11 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
**3.**REVENUE
The Company disaggregates revenue from contracts with customers by product, service, timing of revenue recognition and geography. As further described in Note 14, revenue for the three and six months ended June 30, 2026 includes a one-time reduction of net sales of $27.8 million for tariff-related customer refunds, which is included in the U.S. Operations segment. A summary of revenue by the Company’s reportable segments for the three and six months ended June 30, 2026 and 2025 follows:
| For the three months ended June 30, 2026 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations | Total | |||||||||||||||||||||||||||||
| Product Revenue | $ | 241,276 | $ | 43,852 | $ | 151,087 | $ | 170,421 | $ | 146,367 | $ | 753,003 | |||||||||||||||||||||||
| Service Revenue: | |||||||||||||||||||||||||||||||||||
| Point in time | 81,319 | 9,192 | 46,479 | 11,618 | 41,510 | 190,118 | |||||||||||||||||||||||||||||
| Over time | 29,882 | 3,432 | 29,411 | 5,210 | 16,258 | 84,193 | |||||||||||||||||||||||||||||
| Total | $ | 352,477 | $ | 56,476 | $ | 226,977 | $ | 187,249 | $ | 204,135 | $ | 1,027,314 |
| For the three months ended June 30, 2025 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations | Total | |||||||||||||||||||||||||||||
| Product Revenue | $ | 271,782 | $ | 37,462 | $ | 139,573 | $ | 146,635 | $ | 138,792 | $ | 734,244 | |||||||||||||||||||||||
| Service Revenue: | |||||||||||||||||||||||||||||||||||
| Point in time | 74,334 | 8,732 | 46,663 | 10,913 | 37,446 | 178,088 | |||||||||||||||||||||||||||||
| Over time | 26,400 | 3,361 | 25,680 | 4,469 | 10,979 | 70,889 | |||||||||||||||||||||||||||||
| Total | $ | 372,516 | $ | 49,555 | $ | 211,916 | $ | 162,017 | $ | 187,217 | $ | 983,221 |
| For the six months ended June 30, 2026 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations | Total | |||||||||||||||||||||||||||||
| Product Revenue | $ | 481,234 | $ | 82,227 | $ | 290,817 | $ | 310,474 | $ | 272,505 | $ | 1,437,257 | |||||||||||||||||||||||
| Service Revenue: | |||||||||||||||||||||||||||||||||||
| Point in time | 161,517 | 18,144 | 94,547 | 20,231 | 78,511 | 372,950 | |||||||||||||||||||||||||||||
| Over time | 58,273 | 6,864 | 56,996 | 10,067 | 32,034 | 164,234 | |||||||||||||||||||||||||||||
| Total | $ | 701,024 | $ | 107,235 | $ | 442,360 | $ | 340,772 | $ | 383,050 | $ | 1,974,441 |
| For the six months ended June 30, 2025 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations | Total | |||||||||||||||||||||||||||||
| Product Revenue | $ | 518,849 | $ | 73,760 | $ | 264,423 | $ | 274,832 | $ | 252,330 | $ | 1,384,194 | |||||||||||||||||||||||
| Service Revenue: | |||||||||||||||||||||||||||||||||||
| Point in time | 147,664 | 16,980 | 89,139 | 19,735 | 67,361 | 340,879 | |||||||||||||||||||||||||||||
| Over time | 51,761 | 6,117 | 48,723 | 8,618 | 26,673 | 141,892 | |||||||||||||||||||||||||||||
| Total | $ | 718,274 | $ | 96,857 | $ | 402,285 | $ | 303,185 | $ | 346,364 | $ | 1,866,965 |
- 12 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
A breakdown of net sales to external customers by geographic customer destination for the three and six months ended June 30 follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Americas | $ | 402,294 | $ | 414,092 | $ | 791,633 | $ | 792,008 | |||||||||||||||
| Europe | 293,737 | 274,103 | 572,423 | 522,078 | |||||||||||||||||||
| Asia / Rest of World | 331,283 | 295,026 | 610,385 | 552,879 | |||||||||||||||||||
| Total | $ | 1,027,314 | $ | 983,221 | $ | 1,974,441 | $ | 1,866,965 |
The Company's global revenue mix by product category is laboratory (55% of sales), industrial (40% of sales) and retail (5% of sales). The Company's product revenue by reportable segment is proportionately similar to the Company's global revenue mix, except the Company's Swiss Operations is largely comprised of laboratory products while the Company's Chinese Operations has a slightly higher percentage of industrial products. A breakdown of the Company’s sales by product category for the three and six months ended June 30 is as follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Laboratory | $ | 552,553 | $ | 537,916 | $ | 1,077,134 | $ | 1,038,140 | |||||||||||||||
| Industrial | 417,697 | 394,628 | 792,337 | 735,828 | |||||||||||||||||||
| Retail | 57,064 | 50,677 | 104,970 | 92,997 | |||||||||||||||||||
| Total | $ | 1,027,314 | $ | 983,221 | $ | 1,974,441 | $ | 1,866,965 |
The payment terms in the Company’s contracts with customers do not exceed one year and therefore contracts do not contain a significant financing component. In most cases, after appropriate credit evaluations, payments are due in arrears and are recognized as receivables. Unbilled revenue is recorded when performance obligations have been satisfied, but not yet billed to the customer. Unbilled revenue as of June 30, 2026 and December 31, 2025 was $49.0 million and $32.3 million, respectively, and is included within accounts receivable. Deferred revenue and customer prepayments are recorded when cash payments are received or due in advance of the performance obligation being satisfied. Deferred revenue primarily includes prepaid service contracts, as well as deferred installation.
Changes in the components of deferred revenue and customer prepayments during the six month periods ended June 30, 2026 and 2025 are as follows:
| 2026 | 2025 | |||||||||||||
| Beginning balances as of January 1 | $ | 229,378 | $ | 204,166 | ||||||||||
| Customer pre-payments/deferred revenue | 444,056 | 363,588 | ||||||||||||
| Revenue recognized | (413,322) | (335,082) | ||||||||||||
| Foreign currency translation | (2,630) | 11,154 | ||||||||||||
| Ending balance as of June 30 | $ | 257,482 | $ | 243,826 |
The Company generally expenses sales commissions when incurred because the contract period is one year or less. These costs are recorded within selling, general, and administrative expenses. The value of unsatisfied performance obligations other than customer prepayments and deferred revenue associated with contracts greater than one year is immaterial.
- 13 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
4. FINANCIAL INSTRUMENTS
The Company has limited involvement with derivative financial instruments and does not use them for trading purposes. The Company enters into certain interest rate swap agreements in order to manage its exposure to changes in interest rates. The amount of the Company's fixed obligation interest payments may change based upon the expiration dates of its interest rate swap agreements and the level and composition of its debt. The Company also enters into certain foreign currency forward contracts to limit the Company's exposure to currency fluctuations on the respective hedged items. For additional disclosures on derivative instruments regarding balance sheet location, fair value, and the amounts reclassified into other comprehensive income and the effective portion of the cash flow hedges, also see Note 5 and Note 9 to the interim consolidated financial statements. As also described in Note 7, the Company has designated its euro-denominated debt as a hedge of a portion of its net investment in euro-denominated foreign subsidiaries.
Cash Flow Hedges
The Company has entered into a number of cross currency swaps designated as cash flow hedges. The agreements convert borrowings under the Company’s credit facility into synthetic Swiss franc debt, which allows the Company to effectively change the floating rate SOFR-based interest payments, excluding the credit spread, to a fixed Swiss franc income or expense as follows:
| Agreement Date | Amount Converted | Effective Swiss Franc Interest Rate | Maturity Date | |||||||||||||||||
| June 2021 | $50 million | (0.59)% | June 2025 | |||||||||||||||||
| December 2023 | $50 million | 1.04% | November 2026 | |||||||||||||||||
| November 2023 | $50 million | 1.16% | November 2026 | |||||||||||||||||
| June 2023 | $50 million | 1.55% | June 2027 | |||||||||||||||||
| June 2024 | $50 million | 1.15% | June 2027 | |||||||||||||||||
| June 2025 | $50 million | (0.21)% | June 2028 |
The Company's cash flow hedges are recorded gross at fair value in the consolidated balance sheet at June 30, 2026 and December 31, 2025, respectively. A derivative gain of $4.3 million based upon interest rates at June 30, 2026, is expected to be reclassified from other comprehensive income (loss) to earnings in the next twelve months. The cash flow hedges remain effective as of June 30, 2026.
Other Derivatives
The Company enters into foreign currency forward contracts in order to economically hedge short-term trade and non-trade intercompany balances largely denominated in Swiss franc, other major European currencies, and the Chinese renminbi with its foreign businesses. In accordance with U.S. GAAP, these contracts are considered “derivatives not designated as hedging instruments.” Gains or losses on these instruments are reported in current earnings. The foreign currency forward contracts are recorded at fair value in the consolidated balance sheet at June 30, 2026 and December 31, 2025, as disclosed in Note 5. The Company recognized in other charges (income) a net gain of $11.4 million and a net loss of $12.6 million during the three months ended June 30, 2026 and 2025, respectively, and a net gain of $18.6 million and a net loss of $11.3 million during the six months ended June 30, 2026 and 2025, respectively, which offset the related transaction gains (losses) associated with these contracts. At June 30, 2026 and December 31, 2025, these contracts had a notional value of $1.1 billion and $1.2 billion, respectively.
- 14 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
5. FAIR VALUE MEASUREMENTS
At June 30, 2026 and December 31, 2025, the Company had derivative assets totaling $4.9 million and $3.2 million respectively, and derivative liabilities totaling $28.3 million and $37.4 million, respectively. The Company has limited involvement with derivative financial instruments and therefore does not present all the required disclosures in tabular format. The fair values of the cross-currency swap agreements and foreign currency forward contracts that economically hedge short-term intercompany balances are estimated based upon inputs from current valuation information obtained from dealer quotes and priced with observable market assumptions and appropriate valuation adjustments for credit risk. The Company has evaluated the valuation methodologies used to develop the fair values by dealers in order to determine whether such valuations are representative of an exit price in the Company’s principal market. In addition, the Company uses an internally developed model to perform testing on the valuations received from brokers. The Company has also considered both its own credit risk and counterparty credit risk in determining fair value and determined these adjustments were insignificant at June 30, 2026 and December 31, 2025.
Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement consists of observable and unobservable inputs that reflect the assumptions that a market participant would use in pricing an asset or liability.
A fair value hierarchy has been established that categorizes these inputs into three levels:
Level 1: Quoted prices in active markets for identical assets and liabilities
Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities
Level 3: Unobservable inputs
The following table presents the Company's assets and liabilities, which are all categorized as Level 2, that are measured at fair value on a recurring basis. The Company does not have any assets or liabilities which are categorized as Level 1:
| June 30, 2026 | December 31, 2025 | Balance Sheet Classification | ||||||||||||||||||
| Foreign currency forward contracts not designated as hedging instruments | $ | 4,906 | $ | 3,167 | Other current assets and prepaid expenses | |||||||||||||||
| Total derivative assets | $ | 4,906 | $ | 3,167 | ||||||||||||||||
| Foreign currency forward contracts not designated as hedging instruments | $ | 2,865 | $ | 5,237 | Accrued and other liabilities | |||||||||||||||
| Cash Flow Hedges: | ||||||||||||||||||||
| Cross currency swap agreement | 24,792 | 14,287 | Accrued and other liabilities | |||||||||||||||||
| Cross currency swap agreement | 640 | 17,889 | Other non-current liabilities | |||||||||||||||||
| Total derivative liabilities | $ | 28,297 | $ | 37,413 |
The Company had $1.4 million and $5.1 million of cash equivalents at June 30, 2026 and December 31, 2025, respectively, the fair value of which is determined using Level 2 inputs, through quoted and corroborated prices in active markets. The fair value of cash equivalents approximates cost.
The fair value of the Company's debt is less than the carrying value by approximately $187.0 million as of June 30, 2026. The fair value of the Company's fixed interest rate debt was estimated using Level 2 inputs, primarily utilizing discounted cash flow models based on estimated current rates offered for similar debt under current market conditions for the Company.
- 15 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
6. INCOME TAXES
The Company's reported tax rate was 19.5% and 18.6% during the three months ended June 30, 2026 and 2025, respectively and 19.4% and 18.8% during the six months ended June 30, 2026 and 2025, respectively. The provision for taxes is based upon using the Company's projected annual effective tax rate of 19.0% before non-recurring discrete tax items during 2026 and 2025. The difference between the Company's projected annual effective tax rate and the reported tax rate is primarily related to the timing of excess tax benefits associated with stock option exercises, as well as the one-time tariff-related government and customer refunds.
7. DEBT
Debt consisted of the following at June 30, 2026:
| U.S. Dollar | Other Principal Trading Currencies | Total | |||||||||||||||
| 3.91% $75 million ten-year Senior Notes due June 25, 2029 | 75,000 | — | 75,000 | ||||||||||||||
| 5.45% $150 million ten-year Senior Notes due March 1, 2033 | 150,000 | — | 150,000 | ||||||||||||||
| 2.83% $125 million twelve-year Senior Notes due July 22, 2033 | 125,000 | — | 125,000 | ||||||||||||||
| 3.19% $50 million fifteen-year Senior Notes due January 24, 2035 | 50,000 | — | 50,000 | ||||||||||||||
| 2.81% $150 million fifteen-year Senior Note due March 17, 2037 | 150,000 | — | 150,000 | ||||||||||||||
| 2.91% $150 million fifteen-year Senior Note due September 1, 2037 | 150,000 | — | 150,000 | ||||||||||||||
| 1.47% Euro 125 million fifteen-year Senior Notes due June 17, 2030 | — | 142,313 | 142,313 | ||||||||||||||
| 1.30% Euro 135 million fifteen-year Senior Notes due November 6, 2034 | — | 153,698 | 153,698 | ||||||||||||||
| 1.06% Euro 125 million fifteen-year Senior Notes due March 19, 2036 | — | 142,313 | 142,313 | ||||||||||||||
| 3.80% Euro 100 million 10 1/2-year Senior Notes due July 9, 2035 | — | 113,850 | 113,850 | ||||||||||||||
| Debt issuance costs, net | (1,947) | (1,657) | (3,604) | ||||||||||||||
| Total Senior Notes | 698,053 | 550,517 | 1,248,570 | ||||||||||||||
| $1.35 billion Credit Agreement, interest at benchmark plus 87.5 basis points (a) | 402,444 | 380,669 | 783,113 | ||||||||||||||
| Other local arrangements | 20,218 | 60,062 | 80,280 | ||||||||||||||
| Total debt | 1,120,715 | 991,248 | 2,111,963 | ||||||||||||||
| Less: current portion | (7,601) | (59,689) | (67,290) | ||||||||||||||
| Total long-term debt | $ | 1,113,114 | $ | 931,559 | $ | 2,044,673 |
(a) The benchmark interest rate is determined by the borrowing currency. The benchmark rates by borrowing currency are as follows: SOFR for U.S. dollars (plus a 10 basis points spread adjustment), SARON for Swiss franc, EURIBOR for Euro and SONIA for Great British pounds.
On May 30, 2024, the Company entered into a $1.35 billion Credit Agreement (the Credit Agreement), which amended its $1.25 billion Amended and Restated Credit Agreement (the Prior Credit Agreement). As of June 30, 2026, the Company had $562.7 million of additional borrowings available under its Credit Agreement, and the Company maintained $51.4 million of cash and cash equivalents.
The Credit Agreement is provided by a group of financial institutions (similar to the Company's Prior Credit Agreement) and has a maturity date of May 30, 2029. It is a revolving credit facility and is not subject to any scheduled principal payments prior to maturity. The obligations under the Credit Agreement are unsecured.
- 16 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
Borrowings under the Credit Agreement bear interest at current market rates plus a margin based on the Company’s consolidated leverage ratio. The Company must also pay facility fees that are tied to its leverage ratio. The Credit Agreement contains covenants that are similar to those contained in the Prior Credit Agreement, with which the Company was in compliance as of June 30, 2026. The Company is required to maintain (i) a ratio of net funded indebtedness to EBITDA of 3.5 to 1.0 or less, except in certain circumstances and (ii) an interest coverage ratio of 3.0 to 1.0 or greater. The Credit Agreement also places certain limitations on the Company, including limiting the ability to incur liens or indebtedness at a subsidiary level. In addition, the Credit Agreement has several events of default, with customary grace periods applicable.
In January 2025, the Company entered into an agreement to issue and sell EUR 100 million 10 1/2-year Senior Notes with a fixed interest rate of 3.8% (3.8% Euro Senior Notes) in a private placement, which will mature in July 2035. The 3.8% Euro Senior Notes are unsecured obligations of the Company, and the terms are consistent with the previous Notes as disclosed in Note 10 to the Company's consolidated financial statements for the year ended December 31, 2025. The Company used the proceeds from the sale of the notes to refinance existing indebtedness and for other general corporate purposes.
The Company has designated the EUR 125 million 1.47% Euro Senior Notes, the EUR 135 million 1.30% Euro Senior Notes, the EUR 125 million 1.06% Euro Senior Notes, and the EUR 100 million 3.80% Euro Senior Notes as a hedge of a portion of its net investment in euro-denominated foreign subsidiaries to reduce foreign currency risk associated with the net investment. Changes in the carrying value of this debt resulting from fluctuations in the euro to U.S. dollar exchange rate are recorded as foreign currency translation adjustments within other comprehensive income (loss). The Company recorded in other comprehensive income (loss) related to this net investment hedge an unrealized gain of $6.0 million and unrealized loss of $44.6 million for the three months ended June 30, 2026 and 2025, respectively, and an unrealized gain of $17.2 million and unrealized loss of $63.8 million for the six month periods ended June 30, 2026 and 2025, respectively. The Company has an unrealized loss of $6.1 million recorded in accumulated other comprehensive income (loss) as of June 30, 2026.
Other Local Arrangements
In April 2018, two of the Company's non-U.S. pension plans issued loans totaling $39.6 million (Swiss franc 38 million) to a wholly owned subsidiary of the Company. The loans have the same terms and conditions, which include an interest rate of SARON plus 87.5 basis points. The loans were renewed for one year in April 2026.
8. SHARE REPURCHASE PROGRAM AND TREASURY STOCK
The Company has $3.2 billion of remaining availability for its share repurchase program as of June 30, 2026. The share repurchases are expected to be funded from cash generated from operating activities, borrowings, and cash balances. Repurchases will be made through open market transactions, and the amount and timing of purchases will depend on business and market conditions, the stock price, trading restrictions, the level of acquisition activity, and other factors.
The Company has purchased 33.3 million shares at an average price per share of $330.16 since the inception of the program in 2004 through June 30, 2026. During the six months ended June 30, 2026 and 2025, the Company spent $412.5 million and $437.5 million on the repurchase of 325,348 shares and 368,010 shares at an average price per share of $1,267.85 and $1,188.80, respectively. The Company also reissued 2,554 shares and 17,589 shares held in treasury upon the exercise of stock options and vesting of restricted stock units during the six months ended June 30, 2026 and 2025, respectively. In addition, the Company incurred $2.0 million and $2.1 million of excise tax during the three months ended June 30, 2026 and 2025, respectively, and $4.1 million of excise tax during both the six months ended June 30,
- 17 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
2026 and 2025 related to the Inflation Reduction Act which is reflected as a reduction in shareholders' equity in the Company's consolidated financial statements.
9. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss), net of tax consisted of the following as of June 30:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net earnings | $ | 232,899 | $ | 202,348 | $ | 402,353 | $ | 365,935 | |||||||||||||||
| Other comprehensive income (loss), net of tax | 23,942 | (70,542) | 38,457 | (75,783) | |||||||||||||||||||
| Comprehensive income, net of tax | $ | 256,841 | $ | 131,806 | $ | 440,810 | $ | 290,152 |
The following table presents changes in accumulated other comprehensive income by component for the six months ended June 30, 2026 and 2025:
| Currency Translation Adjustment, Net of Tax | Net Unrealized Gain (Loss) on Cash Flow Hedging Arrangements, Net of Tax | Pension and Post-Retirement Benefit Related Items, Net of Tax | Total | ||||||||||||||||||||
| Balance at December 31, 2025 | $ | (184,525) | $ | (2,735) | $ | (171,897) | $ | (359,157) | |||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Unrealized gains (losses) on cash flow hedging arrangements | — | 7,936 | — | 7,936 | |||||||||||||||||||
| Foreign currency translation adjustment | 32,315 | — | 1,878 | 34,193 | |||||||||||||||||||
| Amounts recognized from accumulated other comprehensive income (loss), net of tax | — | (7,239) | 3,567 | (3,672) | |||||||||||||||||||
| Net change in other comprehensive income (loss), net of tax | 32,315 | 697 | 5,445 | 38,457 | |||||||||||||||||||
| Balance at June 30, 2026 | $ | (152,210) | $ | (2,038) | $ | (166,452) | $ | (320,700) |
| Currency Translation Adjustment, Net of Tax | Net Unrealized Gain (Loss) on Cash Flow Hedging Arrangements, Net of Tax | Pension and Post-Retirement Benefit Related Items, Net of Tax | Total | ||||||||||||||||||||
| Balance at December 31, 2024 | $ | (133,503) | $ | (3,920) | $ | (208,435) | $ | (345,858) | |||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
| Unrealized gains (losses) on cash flow hedging arrangements | — | (20,337) | — | (20,337) | |||||||||||||||||||
| Foreign currency translation adjustment | (56,366) | — | (23,030) | (79,396) | |||||||||||||||||||
| Amounts recognized from accumulated other comprehensive income (loss), net of tax | — | 17,722 | 6,228 | 23,950 | |||||||||||||||||||
| Net change in other comprehensive income (loss), net of tax | (56,366) | (2,615) | (16,802) | (75,783) | |||||||||||||||||||
| Balance at June 30, 2025 | $ | (189,869) | $ | (6,535) | $ | (225,237) | $ | (421,641) |
- 18 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
The following table presents amounts recognized from accumulated other comprehensive income (loss) for the three and six month periods ended June 30:
| Three Months Ended | ||||||||||||||||||||
| June 30, | ||||||||||||||||||||
| 2026 | 2025 | Location of Amounts Recognized in Earnings | ||||||||||||||||||
| Effective portion of (gains) losses on cash flow hedging arrangements: | ||||||||||||||||||||
| Cross currency swap agreement | $ | (5,221) | $ | 17,844 | (a) | |||||||||||||||
| Provision for taxes | (992) | 3,390 | Provision for taxes | |||||||||||||||||
| Total, net of taxes | $ | (4,229) | $ | 14,454 | ||||||||||||||||
| Recognition of defined benefit pension and post-retirement items: | ||||||||||||||||||||
| Recognition of actuarial losses and prior service cost, before taxes | $ | 2,228 | $ | 4,015 | (b) | |||||||||||||||
| Provision for taxes | 445 | 792 | Provision for taxes | |||||||||||||||||
| Total, net of taxes | $ | 1,783 | $ | 3,223 |
(a) The cross currency swap reflects an unrealized gain of $3.6 million for the three months ended June 30, 2026 recorded in other charges (income) that was offset by the underlying unrealized gain on the hedged debt. The cross currency swap also reflects a realized gain of $1.6 million recorded in interest expense for the three months ended June 30, 2026.
(b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and post-retirement cost. See Note 11 for additional details for the three months ended June 30, 2026 and 2025.
| Six Months Ended | ||||||||||||||||||||
| June 30, | ||||||||||||||||||||
| 2026 | 2025 | Location of Amounts Recognized in Earnings | ||||||||||||||||||
| Effective portion of (gains) losses on cash flow hedging arrangements: | ||||||||||||||||||||
| Cross currency swap agreement | $ | (8,937) | $ | 21,879 | (a) | |||||||||||||||
| Provision for taxes | (1,698) | 4,157 | Provision for taxes | |||||||||||||||||
| Total, net of taxes | $ | (7,239) | $ | 17,722 | ||||||||||||||||
| Recognition of defined benefit pension and post-retirement items: | ||||||||||||||||||||
| Recognition of actuarial losses and prior service cost, before taxes | $ | 4,456 | $ | 7,760 | (b) | |||||||||||||||
| Provision for taxes | 889 | 1,532 | Provision for taxes | |||||||||||||||||
| Total, net of taxes | $ | 3,567 | $ | 6,228 |
(a) The cross currency swap reflects an unrealized gain of $5.7 million for the six months ended June 30, 2026 recorded in other charges (income) that was offset by the underlying unrealized gain on the hedged debt. The cross currency swap also reflects a realized gain of $3.3 million recorded in interest expense for the six months ended June 30, 2026.
(b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and post-retirement cost. See Note 11 for additional details for the six months ended June 30, 2026 and 2025.
- 19 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
10. EARNINGS PER COMMON SHARE
In accordance with the treasury stock method, the Company has included the following common equivalent shares in the calculation of diluted weighted average number of common shares outstanding for the three and six months ended June 30, relating to outstanding stock options and restricted stock units:
| 2026 | 2025 | |||||||||||||
| Three months ended | 44,734 | 51,387 | ||||||||||||
| Six months ended | 48,193 | 59,177 |
Outstanding options and restricted stock units to purchase or receive 83,831 and 100,446 shares of common stock for the three month period ended June 30, 2026 and 2025, respectively, have been excluded from the calculation of diluted weighted average number of common and common equivalent shares as such options and restricted stock units would be anti-dilutive. Options and restricted stock units to purchase or receive 59,718 and 92,116 shares for the six month period ended June 30, 2026 and 2025, respectively, have been excluded from the calculation of diluted weighted average of common and common equivalent shares as such options and restricted stock units would be anti-dilutive.
11. NET PERIODIC BENEFIT COST
Net periodic pension cost for the Company’s defined benefit pension plans and U.S. post-retirement medical plan includes the following components for the three months ended June 30:
| U.S. Pension Benefits | Non-U.S. Pension Benefits | Other U.S. Post-retirement Benefits | Total | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Service cost, net | $ | 144 | $ | 233 | $ | 5,364 | $ | 4,661 | $ | — | $ | — | $ | 5,508 | $ | 4,894 | |||||||||||||||||||||||||||||||
| Interest cost on projected benefit obligations | 1,063 | 1,201 | 4,491 | 3,823 | 1 | 6 | 5,555 | 5,030 | |||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets | (1,450) | (1,428) | (12,374) | (11,029) | — | — | (13,824) | (12,457) | |||||||||||||||||||||||||||||||||||||||
| Recognition of prior service cost | — | — | (739) | (1,045) | (125) | (19) | (864) | (1,064) | |||||||||||||||||||||||||||||||||||||||
| Recognition of actuarial losses/(gains) | 346 | 393 | 2,660 | 4,689 | 70 | 8 | 3,076 | 5,090 | |||||||||||||||||||||||||||||||||||||||
| Net periodic pension cost/(credit) | $ | 103 | $ | 399 | $ | (598) | $ | 1,099 | $ | (54) | $ | (5) | $ | (549) | $ | 1,493 |
Net periodic pension cost for the Company’s defined benefit pension plans and U.S. post-retirement medical plan includes the following components for the six months ended June 30:
| U.S. Pension Benefits | Non-U.S. Pension Benefits | Other U.S. Post-retirement Benefits | Total | ||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Service cost, net | $ | 288 | $ | 466 | $ | 10,730 | $ | 9,156 | $ | — | $ | — | $ | 11,018 | $ | 9,622 | |||||||||||||||||||||||||||||||
| Interest cost on projected benefit obligations | 2,126 | 2,402 | 8,984 | 7,374 | 1 | 12 | 11,111 | 9,788 | |||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets | (2,901) | (2,856) | (24,750) | (21,216) | — | — | (27,651) | (24,072) | |||||||||||||||||||||||||||||||||||||||
| Recognition of prior service cost | — | — | (1,478) | (2,004) | (249) | (38) | (1,727) | (2,042) | |||||||||||||||||||||||||||||||||||||||
| Recognition of actuarial losses/(gains) | 692 | 786 | 5,320 | 9,013 | 140 | 16 | 6,152 | 9,815 | |||||||||||||||||||||||||||||||||||||||
| Net periodic pension cost/(credit) | $ | 205 | $ | 798 | $ | (1,194) | $ | 2,323 | $ | (108) | $ | (10) | $ | (1,097) | $ | 3,111 |
As previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, the Company expects to make employer contributions of approximately $29.9 million to its non-U.S. pension plans during the year ended December 31, 2026. This estimate may change based
- 20 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
upon several factors, including fluctuations in currency exchange rates, actual returns on plan assets and changes in legal requirements.
12. OTHER CHARGES (INCOME), NET
Other charges (income), net includes non-service pension costs (benefits), (gains) losses from foreign currency transactions and related hedging activities, interest income and other items. Non-service pension benefits were $6.0 million and $3.4 million for the three month periods ended June 30, 2026 and 2025, respectively, and $12.0 million and $6.5 million for the six month periods ended June 30, 2026 and 2025, respectively. Other charges for the three and six month periods ended June 30, 2026 also includes a net expense of $8.4 million related to additional contingent consideration associated with previous acquisitions.
13. SEGMENT REPORTING
As disclosed in Note 18 to the Company's consolidated financial statements for the year ended December 31, 2025, the Company has determined there are five reportable segments: U.S. Operations, Swiss Operations, Western European Operations, Chinese Operations and Other.
Our reportable segments comprise the structure used by our Chief Executive Officer, who is our Chief Operating Decision Maker (CODM), to make key operating decisions and assess performance. The Company evaluates performance based on segment profit for segment reporting (gross profit less research and development and selling, general, and administrative expenses, before amortization, interest expense, restructuring charges, other charges (income), net, and taxes).
As further described in Note 14, the Company’s operating results for the three and six months ended June 30, 2026 include a one-time benefit of $52.4 million from U.S government IEEPA tariff refunds that reduced cost of sales, offset in part by tariff-related customer refunds of $27.8 million that reduced net sales. This is reflected in the U.S. Operations segment.
The following tables show the operations of the Company’s operating segments:
| Three Months ended June 30, 2026 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations**(a)** | Eliminations and Corporate**(b)** | Total | |||||||||||||||||||||||||||||||||||||
| Net sales to external customers | $ | 352,477 | $ | 56,476 | $ | 226,977 | $ | 187,249 | $ | 204,135 | $ | — | $ | 1,027,314 | ||||||||||||||||||||||||||||||
| Net sales to other segments | 40,386 | 210,813 | 49,580 | 87,682 | 10,681 | (399,142) | — | |||||||||||||||||||||||||||||||||||||
| Total net sales | 392,863 | 267,289 | 276,557 | 274,931 | 214,816 | (399,142) | 1,027,314 | |||||||||||||||||||||||||||||||||||||
| Segment cost of sales(c) | 123,040 | 129,969 | 128,483 | 120,845 | 116,705 | |||||||||||||||||||||||||||||||||||||||
| Segment period expense(d) | 140,257 | 68,438 | 99,130 | 51,961 | 64,935 | |||||||||||||||||||||||||||||||||||||||
| Unallocated expense / eliminations | (48,798) | |||||||||||||||||||||||||||||||||||||||||||
| Segment profit | $ | 129,566 | $ | 68,882 | $ | 48,944 | $ | 102,125 | $ | 33,176 | $ | (48,798) | $ | 333,895 |
- 21 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
| Six Months ended June 30, 2026 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations**(a)** | Eliminations and Corporate**(b)** | Total | |||||||||||||||||||||||||||||||||||||
| Net sales to external customers | $ | 701,024 | $ | 107,235 | $ | 442,360 | $ | 340,772 | $ | 383,050 | $ | — | $ | 1,974,441 | ||||||||||||||||||||||||||||||
| Net sales to other segments | 74,183 | 402,770 | 100,019 | 168,861 | 21,656 | (767,489) | — | |||||||||||||||||||||||||||||||||||||
| Total net sales | 775,207 | 510,005 | 542,379 | 509,633 | 404,706 | (767,489) | 1,974,441 | |||||||||||||||||||||||||||||||||||||
| Segment cost of sales(c) | 282,177 | 248,712 | 246,430 | 224,983 | 217,767 | |||||||||||||||||||||||||||||||||||||||
| Segment period expense(d) | 275,640 | 137,346 | 198,087 | 97,649 | 126,219 | |||||||||||||||||||||||||||||||||||||||
| Unallocated expense / eliminations | (106,810) | |||||||||||||||||||||||||||||||||||||||||||
| Segment profit | $ | 217,390 | $ | 123,947 | $ | 97,862 | $ | 187,001 | $ | 60,720 | $ | (106,810) | $ | 580,110 |
(a)Other Operations includes reporting units in Eastern Europe, Latin America, Southeast Asia and other countries.
(b)Eliminations and Corporate includes the elimination of inter-segment transactions and certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments.
(c)Segment cost of sales includes variable production and other costs.
(d)Segment period expense includes certain manufacturing, field service costs, research and development, and selling, general and administrative costs.
| Three Months ended June 30, 2025 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations**(a)** | Eliminations and Corporate**(b)** | Total | |||||||||||||||||||||||||||||||||||||
| Net sales to external customers | $ | 372,516 | $ | 49,555 | $ | 211,916 | $ | 162,017 | $ | 187,217 | $ | — | $ | 983,221 | ||||||||||||||||||||||||||||||
| Net sales to other segments | 39,173 | 199,323 | 50,547 | 83,316 | 9,520 | (381,879) | — | |||||||||||||||||||||||||||||||||||||
| Total net sales | 411,689 | 248,878 | 262,463 | 245,333 | 196,737 | (381,879) | 983,221 | |||||||||||||||||||||||||||||||||||||
| Segment cost of sales(c) | 187,249 | 116,806 | 114,982 | 110,991 | 107,634 | |||||||||||||||||||||||||||||||||||||||
| Segment period expense(d) | 131,740 | 61,491 | 95,601 | 45,004 | 58,000 | |||||||||||||||||||||||||||||||||||||||
| Unallocated expense / eliminations | 52,309 | |||||||||||||||||||||||||||||||||||||||||||
| Segment profit | $ | 92,700 | $ | 70,581 | $ | 51,880 | $ | 89,338 | $ | 31,103 | $ | (52,309) | $ | 283,293 |
| Six Months ended June 30, 2025 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations**(a)** | Eliminations and Corporate**(b)** | Total | |||||||||||||||||||||||||||||||||||||
| Net sales to external customers | $ | 718,274 | $ | 96,857 | $ | 402,285 | $ | 303,185 | $ | 346,364 | $ | — | $ | 1,866,965 | ||||||||||||||||||||||||||||||
| Net sales to other segments | 73,266 | 375,829 | 95,634 | 160,392 | 17,686 | (722,807) | — | |||||||||||||||||||||||||||||||||||||
| Total net sales | 791,540 | 472,686 | 497,919 | 463,577 | 364,050 | (722,807) | 1,866,965 | |||||||||||||||||||||||||||||||||||||
| Segment cost of sales(c) | 350,171 | 219,030 | 219,049 | 210,469 | 195,104 | |||||||||||||||||||||||||||||||||||||||
| Segment period expense(d) | 264,373 | 122,080 | 183,945 | 87,753 | 113,352 | |||||||||||||||||||||||||||||||||||||||
| Unallocated expense / eliminations | 104,419 | |||||||||||||||||||||||||||||||||||||||||||
| Segment profit | $ | 176,996 | $ | 131,576 | $ | 94,925 | $ | 165,355 | $ | 55,594 | $ | (104,419) | $ | 520,027 |
(a)Other Operations includes reporting units in Eastern Europe, Latin America, Southeast Asia and other countries.
(b)Eliminations and Corporate includes the elimination of inter-segment transactions and certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments.
(c)Segment cost of sales includes variable production and other costs.
(d)Segment period expense includes certain manufacturing, field service costs, research and development, and selling, general and administrative costs.
- 22 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
A reconciliation of earnings before taxes to segment profit for the three and six month periods ended June 30 follows:
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Segment profit | $ | 333,895 | $ | 283,293 | $ | 580,110 | $ | 520,027 | |||||||||||||||
| Amortization | (19,426) | (17,581) | (39,038) | (34,774) | |||||||||||||||||||
| Interest expense | (17,246) | (16,779) | (34,253) | (33,432) | |||||||||||||||||||
| Restructuring charges | (5,450) | (3,557) | (12,720) | (7,324) | |||||||||||||||||||
| Other income, net | (2,372) | 3,281 | 4,957 | 6,102 | |||||||||||||||||||
| Earnings before taxes | $ | 289,401 | $ | 248,657 | $ | 499,056 | $ | 450,599 |
The following tables show the additional disclosures for the Company’s reportable segments:
| Three Months ended June 30, 2026 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations**(a)** | Eliminations and Corporate**(b)** | Total | |||||||||||||||||||||||||||||||||||||
| Depreciation | $ | 4,418 | $ | 1,758 | $ | 1,496 | $ | 2,368 | $ | 1,586 | $ | 1,674 | $ | 13,300 | ||||||||||||||||||||||||||||||
| Total assets | $ | 4,484,213 | $ | 4,124,208 | $ | 1,742,841 | $ | 1,159,390 | $ | 532,821 | $ | (8,372,529) | $ | 3,670,944 | ||||||||||||||||||||||||||||||
| Purchase of property, plant, and equipment | $ | (3,822) | $ | (1,261) | $ | (1,870) | $ | (8,130) | $ | (2,789) | $ | (9,920) | $ | (27,792) | ||||||||||||||||||||||||||||||
| Goodwill | $ | 568,684 | $ | 28,873 | $ | 104,626 | $ | 653 | $ | 32,378 | $ | — | $ | 735,214 |
| Six Months ended June 30, 2026 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations**(a)** | Eliminations and Corporate**(b)** | Total | |||||||||||||||||||||||||||||||||||||
| Depreciation | $ | 8,718 | $ | 3,527 | $ | 2,985 | $ | 4,707 | $ | 3,166 | $ | 3,357 | $ | 26,460 | ||||||||||||||||||||||||||||||
| Purchase of property, plant, and equipment | $ | (6,145) | $ | (2,760) | $ | (3,176) | $ | (9,689) | $ | (4,870) | $ | (18,566) | $ | (45,206) |
(a)Other Operations includes reporting units in Southeast Asia, Latin America, Eastern Europe, and other countries.
(b)Eliminations and Corporate includes the elimination of intersegment transactions as well as certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments.
| Three Months ended June 30, 2025 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations**(a)** | Eliminations and Corporate**(b)** | Total | |||||||||||||||||||||||||||||||||||||
| Depreciation | $ | 4,150 | $ | 1,681 | $ | 1,472 | $ | 2,331 | $ | 1,636 | $ | 1,600 | $ | 12,870 | ||||||||||||||||||||||||||||||
| Total assets | $ | 4,201,913 | $ | 4,465,399 | $ | 1,644,299 | $ | 1,005,376 | $ | 442,946 | $ | (8,359,468) | $ | 3,400,465 | ||||||||||||||||||||||||||||||
| Purchase of property, plant, and equipment | $ | (3,506) | $ | (1,579) | $ | (1,232) | $ | (2,658) | $ | (1,393) | $ | (13,509) | $ | (23,877) | ||||||||||||||||||||||||||||||
| Goodwill | $ | 532,394 | $ | 28,920 | $ | 108,380 | $ | 611 | $ | 13,817 | $ | — | $ | 684,122 |
| Six Months ended June 30, 2025 | U.S. Operations | Swiss Operations | Western European Operations | Chinese Operations | Other Operations**(a)** | Eliminations and Corporate**(b)** | Total | |||||||||||||||||||||||||||||||||||||
| Depreciation | $ | 8,321 | $ | 3,346 | $ | 2,800 | $ | 4,659 | $ | 3,117 | $ | 3,091 | $ | 25,334 | ||||||||||||||||||||||||||||||
| Purchase of property, plant, and equipment | $ | (5,804) | $ | (2,282) | $ | (2,429) | $ | (4,375) | $ | (2,702) | $ | (23,540) | $ | (41,132) |
(a)Other Operations includes reporting units in Southeast Asia, Latin America, Eastern Europe, and other countries.
(b)Eliminations and Corporate includes the elimination of intersegment transactions as well as certain corporate expenses and intercompany investments, which are not included in the Company’s operating segments.
- 23 -
METTLER-TOLEDO INTERNATIONAL INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(In thousands, except share data, unless otherwise stated)
14. COMMITMENTS AND CONTINGENCIES
In February 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). During the three months ended June 30, 2026, the Company received refunds, including interest, from the U.S. Customs and Border Protection of $42.9 million and concluded the remaining $9.5 million of refunds were realizable and such amounts have been subsequently received. The $9.5 million refund receivable is included in other current assets and prepaid expenses in the interim consolidated balance sheet as of June 30, 2026. This has resulted in a one-time gross benefit of $52.4 million that has reduced cost of sales for the three and six months ended June 30, 2026. In addition, the Company committed to refund approximately $27.8 million to customers, which reduced net sales for the three and six months ended June 30, 2026. This is included in accrued and other liabilities on the interim consolidated balance sheet as of June 30, 2026. The Company anticipates distributing tariff-related refunds to customers during the third quarter of 2026.
The Company is also party to various legal proceedings, including certain environmental matters, incidental to the normal course of business. Management does not expect that any of such proceedings, either individually or in the aggregate, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
- 24 -
Previous: Cover and table of contents · Next: Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations