# METTLER TOLEDO INTERNATIONAL INC/ (MTD)

Informational only - not investment advice.

CIK: 0001037646
SIC: 3826 Laboratory Analytical Instruments
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3826 Laboratory Analytical Instruments](/industry/3826/)
Latest 10-K filed: 2026-02-06
SEC page: https://www.sec.gov/edgar/browse/?CIK=1037646
Filing source: https://www.sec.gov/Archives/edgar/data/1037646/000103764626000011/mtd-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-06 · accession 0001037646-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001037646.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,026,399,000 USD | 2025 | verified |
| Net income | 869,193,000 USD | 2025 | verified |
| Assets | 3,712,646,000 USD | 2025 | verified |
| Free cash flow | 848,648,000 USD | 2025 | computed |
| Net margin | 21.59% | 2025 | computed |
| Revenue YoY | +3.98% | 2025 | computed |

Stockholders' equity was not positive at FY2025 year-end (-23,636,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only).

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MTD | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 21.6% | 4.1% | 85 | 14 |
| Revenue growth | 4.0% | 2.9% | 69 | 14 |
| FCF margin | 21.1% | 11.0% | 92 | 14 |
| ROA | 23.4% | 0.9% | 100 | 14 |
| Current ratio | 1.14 | 2.46 | 0 | 14 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3826 Laboratory Analytical Instruments, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4026399000 | USD | 2025 | 2026-02-06 |
| Net income | 869193000 | USD | 2025 | 2026-02-06 |
| Assets | 3712646000 | USD | 2025 | 2026-02-06 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001037646.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 2,378,972,000 |  | 2,725,053,000 | 2,935,586,000 | 3,008,652,000 | 3,085,177,000 | 3,717,930,000 | 3,919,709,000 | 3,788,309,000 | 3,872,361,000 | 4,026,399,000 |
| Net income |  | 306,094,000 |  | 375,972,000 | 512,611,000 | 561,109,000 | 602,739,000 | 768,985,000 | 872,502,000 | 788,778,000 | 863,140,000 | 869,193,000 |
| Gross profit |  | 1,282,026,000 |  | 1,575,751,000 | 1,684,378,000 | 1,741,211,000 | 1,801,031,000 | 2,171,553,000 | 2,308,042,000 | 2,241,286,000 | 2,325,583,000 | 2,390,646,000 |
| Diluted EPS |  | 9.96 |  | 14.24 | 19.88 | 22.47 | 24.91 | 32.78 | 38.41 | 35.90 | 40.48 | 42.05 |
| Operating cash flow |  | 345,928,000 |  | 516,325,000 | 565,005,000 | 603,450,000 | 724,699,000 | 908,825,000 | 859,067,000 | 965,874,000 | 968,346,000 | 955,772,000 |
| Capital expenditures |  | 82,349,000 |  | 127,426,000 | 142,726,000 | 97,341,000 | 92,494,000 | 107,580,000 | 121,241,000 | 105,323,000 | 103,898,000 | 107,124,000 |
| Share buybacks |  | 294,976,000 |  | 399,997,000 | 474,999,000 | 774,999,000 | 774,998,000 | 999,998,000 | 1,099,998,000 | 900,000,000 | 849,997,000 | 799,995,000 |
| Assets |  | 2,152,819,000 |  | 2,549,805,000 | 2,618,847,000 | 2,789,321,000 | 2,814,549,000 | 3,326,798,000 | 3,492,395,000 | 3,355,555,000 | 3,239,999,000 | 3,712,646,000 |
| Liabilities | 1,195,069,000 | 1,217,767,000 |  |  | 2,028,784,000 | 2,368,541,000 | 2,531,874,000 | 3,155,377,000 | 3,467,602,000 | 3,505,493,000 | 3,366,889,000 | 3,736,282,000 |
| Stockholders' equity |  |  | 434,943,000 | 547,280,000 | 590,063,000 | 420,780,000 | 282,675,000 | 171,421,000 | 24,793,000 | -149,938,000 | -126,890,000 | -23,636,000 |
| Free cash flow |  | 263,579,000 |  | 388,899,000 | 422,279,000 | 506,109,000 | 632,205,000 | 801,245,000 | 737,826,000 | 860,551,000 | 864,448,000 | 848,648,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 12.87% |  | 13.80% | 17.46% | 18.65% | 19.54% | 20.68% | 22.26% | 20.82% | 22.29% | 21.59% |
| Return on assets |  | 14.22% |  | 14.75% | 19.57% | 20.12% | 21.42% | 23.11% | 24.98% | 23.51% | 26.64% | 23.41% |
| Current ratio | 1.54 | 1.62 |  |  | 1.42 | 1.47 | 1.26 | 1.11 | 1.20 | 1.04 | 1.02 | 1.14 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/MTD/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-31. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001037646.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2020-Q2 | 2020-06-30 |  |  | 5.22 | reported discrete quarter |
| 2020-Q3 | 2020-09-30 |  |  | 6.68 | reported discrete quarter |
| 2021-Q1 | 2021-03-31 |  |  | 6.32 | reported discrete quarter |
| 2021-Q2 | 2021-03-31 |  | 149,663,000 |  | reported discrete quarter |
| 2021-Q2 | 2021-06-30 | 924,351,000 |  | 7.85 | reported discrete quarter |
| 2021-Q3 | 2023-03-31 |  | 188,426,000 |  | reported discrete quarter |
| 2022-Q1 | 2023-03-31 | 928,738,000 | 188,426,000 | 8.47 | reported discrete quarter |
| 2021-Q3 | 2023-06-30 | 982,117,000 |  | 9.69 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 213,927,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 942,462,000 |  | 9.21 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 934,992,000 | 184,794,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q3 | 2024-06-30 |  | 221,814,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 954,535,000 |  | 9.96 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,045,127,000 | 252,301,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2025-03-31 | 883,744,000 | 163,587,000 | 7.81 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 202,348,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,029,699,000 |  | 10.57 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,129,735,000 | 285,765,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q2 | 2026-03-31 |  | 169,454,000 |  | reported discrete quarter |
| 2026-Q1 | 2026-03-31 | 947,127,000 | 169,454,000 | 8.33 | reported discrete quarter |
| 2024-Q2 | 2026-06-30 | 1,027,314,000 |  | 11.55 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MTD's latest 10-K: [/company/MTD/business/](/company/MTD/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MTD's latest 10-K: [/company/MTD/risk-factors/](/company/MTD/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1037646/000103764626000051/mtd-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-31
Report date: 2026-06-30

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the Unaudited Interim Consolidated Financial Statements included herein.

General

Our interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. 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.

Changes in local currencies exclude the effect of currency exchange rate fluctuations. Local currency amounts are determined by translating current and previous year consolidated financial information at an index utilizing historical currency exchange rates. We believe local currency information provides a helpful assessment of business performance and a useful measure of results between periods. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We present non-GAAP financial measures in reporting our financial results to provide investors with an additional analytical tool to evaluate our operating results.

We also include in the discussion below disclosures of immaterial qualitative factors that are not quantified. Although the impact of such factors is not considered material, we believe these disclosures can be useful in evaluating our operating results.

Results of Operations – Consolidated

The following tables set forth certain items from our interim consolidated statements of operations and comprehensive income for the three and six month periods ended June 30, 2026 and 2025 (amounts in thousands).

[[GREPCENT_TABLE]]
[["","Three months ended June 30,","","Six months ended June 30,"],["","2026","","2025","","2026","","2025"],["","(unaudited)","","%","","(unaudited)","","%","","(unaudited)","","%","","(unaudited)","","%"],["Net sales","$","1,027,314","","","100.0","","","$","983,221","","","100.0","","","$","1,974,441","","","100.0","","","$","1,866,965","","","100.0"],["Cost of sales","377,096","","","36.7","","","403,345","","","41.0","","","768,407","","","38.9","","","761,210","","","40.8"],["Gross profit","650,218","","","63.3","","","579,876","","","59.0","","","1,206,034","","","61.1","","","1,105,755","","","59.2"],["Research and development","52,989","","","5.2","","","49,285","","","5.0","","","104,264","","","5.3","","","95,631","","","5.1"],["Selling, general and administrative","263,334","","","25.6","","","247,298","","","25.2","","","521,660","","","26.4","","","490,097","","","26.3"],["Amortization","19,426","","","1.9","","","17,581","","","1.8","","","39,038","","","2.0","","","34,774","","","1.8"],["Interest expense","17,246","","","1.7","","","16,779","","","1.7","","","34,253","","","1.7","","","33,432","","","1.8"],["Restructuring charges","5,450","","","0.5","","","3,557","","","0.3","","","12,720","","","0.6","","","7,324","","","0.4"],["Other charges (income), net","2,372","","","0.2","","","(3,281)","","","(0.3)","","","(4,957)","","","(0.2)","","","(6,102)","","","(0.3)"],["Earnings before taxes","289,401","","","28.2","","","248,657","","","25.3","","","499,056","","","25.3","","","450,599","","","24.1"],["Provision for taxes","56,502","","","5.5","","","46,309","","","4.7","","","96,703","","","4.9","","","84,664","","","4.5"],["Net earnings","$","232,899","","","22.7","","","$","202,348","","","20.6","","","$","402,353","","","20.4","","","$","365,935","","","19.6"]]
[[/GREPCENT_TABLE]]

Note: As further described below, our operating results for the three and six months ended June 30, 2026 include a one-time benefit of $52.4 million from IEEPA tariff-related refunds that reduced cost of sales, offset in part by related customer refunds of $27.8 million that reduced net sales.

Recent developments in global trade disputes/tariffs

In 2025, the U.S. government enacted incremental tariff rates on U.S. imports from certain foreign countries. In response to the U.S. tariffs, the Chinese government implemented an additional tariff on imports from the U.S. We estimate that we incurred costs before mitigation actions from the 2025 incremental tariffs of approximately $50 million in 2025, and we implemented various actions to fully offset the effect of the current incremental tariffs in 2026. At

- 25 -

Table of Contents

the beginning of 2026, incremental tariffs rates were 15% on imports from Switzerland, 25% on non-USMCA imports from Mexico, 30% on imports from China, 15% on imports from the European Union, and 10% on imports from the United Kingdom.

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, we 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 due were realizable and such amounts have been subsequently received. This resulted in a one-time gross benefit of $52.4 million that reduced cost of sales for the three and six months ended June 30, 2026. In addition, we committed to issue $27.8 million to customers for tariff-related refunds, which reduced net sales for the three and six months ended June 30, 2026. We anticipate distributing refunds to our customers during the third quarter of 2026.

Following the U.S. Supreme Court’s decision in February 2026, the U.S. government effectively replaced IEEPA tariffs with a temporary Section 122 tariff that included a 10% tariff on imports from most countries that expired near the end of July 2026. In April 2026, the U.S. government also issued an update to the definition of Section 232 tariffs, which is not expected to have a significant effect on our ongoing tariff obligations.

On July 23, 2026, the U.S. government imposed new Section 301 tariffs to effectively replace the expired Section 122 tariffs. The new Section 301 tariffs include a 12.5% rate on imports from Switzerland and China, and a 10% rate on imports from the European Union, United Kingdom, and non-USMCA imports from Mexico. The U.S. government has also discussed the potential of additional tariffs on certain countries, as well as a potential ending of USMCA on imports from Mexico that are currently not subject to tariffs. Any additional changes to tariff rates in the future could adversely impact our financial results.

Global trade disputes/tariffs create economic uncertainty in our end markets and the overall global economic environment and market conditions may change quickly.

Recent developments in Iran

In February 2026, tensions between the U.S. and Iran escalated to an armed conflict (the “Iran War”) that has expanded to include much of the Middle East region. This has led to transportation restrictions in the region, resulting in volatility in global energy markets, commodities pricing, transportation costs, and foreign currency exchange rates. While we do not have significant direct exposure to the Middle East, recent events have increased global economic uncertainty and may affect customer demand in certain markets and contribute to higher global inflation.

While it is difficult to estimate the impact of the Iran War on the global economy, including increased inflation and higher energy and transportation costs, the Iran War could adversely impact our financial results and presents several risks to our business as further described in Part I, Item 1A, “Risk Factors” of our Annual Report for the year ended December 31, 2025. Uncertainties remain related to the Iran War and the resulting impact on the global economy, and market conditions can change quickly.

Net sales

Net sales were $1.0 billion and $983.2 million for the three months ended June 30, 2026, and 2025, respectively, and $2.0 billion and $1.9 billion for the six months ended June 30, 2026, and 2025, respectively. Sales in U.S. dollars increased 4% for the three months and increased 6% for the six months ended June 30, 2026, respectively. Excluding the effect of currency exchange fluctuations, or in local currencies, net sales increased 6% for the three months and 4% for the six months ended June 30, 2026, respectively, before the previously described one-time tariff-related customer refunds. Organic local currency net sales, which exclude acquisitions and the one-time tariff-related customer refunds, increased 4% for the three months and 3% for the six months ended June 30, 2026, respectively.

- 26 -

Table of Contents

Market conditions have improved, and we continue to benefit from the execution of our global sales and marketing programs, our innovative product portfolio, and investments in our field organization, particularly surrounding digital tools and techniques. However, ongoing developments in Iran and the Middle East, as well as global trade disputes/tariffs, create uncertainty in our end markets and the global economic environment and market conditions may change quickly. The ongoing developments related to global trade disputes/tariffs, Ukraine, and the conflicts in Iran and the Middle East also present several risks to our business as further described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. These topics could adversely impact our financial results in future periods.

Net sales by geographic destination for the three months ended June 30, 2026 in U.S. dollars decreased 3% in the Americas, and increased 7% in Europe and 12% Asia/Rest of World. In local currencies, our net sales by geographic destination decreased 3% in the Americas and increased 4% in Europe and 10% in Asia/Rest of World. Local currency net sales by geographic destination increased 3% in the Americas, 4% in Europe, and 10% in Asia/Rest of World before the effect of one-time tariff-related customer refunds. Organic local currency net sales by geographic destination increased 1% in the Americas, 4% in Europe, and 9% in Asia/Rest of World. Organic local currency net sales in Asia/Rest of World includes an increase of 9% in China during the three months ended June 30, 2026.

Net sales by geographic destination for the six months ended June 30, 2026 in U.S. dollars were flat in the Americas and increased 10% in both Europe and Asia/Rest of World. Local currency net sales by geographic destination increased 3% in the Americas, 3% in Europe, and 8% in Asia/Rest of World before the effect of one-time tariff-related customer refunds. Organic local currency net sales by geographic destination were flat in the Americas and increased 3% in Europe and 6% in Asia/Rest of World. Organic local currency net sales in Asia/Rest of World includes an increase of 7% in China during the six months ended June 30, 2026. A discussion of sales by operating segment is included below.

As described in Note 18 to our consolidated financial statements for the year ended December 31, 2025, our net sales comprise product sales of precision instruments and related services. Service revenues are primarily derived from repair and other services, including regulatory compliance qualification, calibration, certification, preventative maintenance, and spare parts.

Net sales of products increased 3% and 4% in U.S. dollars for the three and six months ended June 30, 2026, respectively. Local currency product net sales increased 4% and 3% for the three and six months ended June 30, 2026, respectively, before the one-time tariff-related customer refunds. Organic local currency product net sales increased 3% and 2% for the three and six months ended June 30, 2026, respectively, compared to the corresponding periods in 2025.

Service net sales (including sp

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1037646/000103764626000011/mtd-20251231.htm
Complete FY 2025 MD&A: /company/MTD/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-06
Report date: 2025-12-31

Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements.

Changes in local currencies exclude the effect of currency exchange rate fluctuations. Local currency amounts are determined by translating current and previous year consolidated financial information at an index utilizing historical currency exchange rates. We believe local currency information provides a helpful assessment of business performance and a useful measure of results between periods. We do not, nor do we suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We present non-GAAP financial measures in reporting our financial results to provide investors with an additional analytical tool to evaluate our operating results.

We also include in the discussion below disclosures of immaterial qualitative factors that are not quantified. Although the impact of such factors is not considered material, we believe these disclosures can be useful in evaluating our operating results.

34

Table of Contents

Overview

We operate a global business with sales that are diversified by geographic region, product range, and customer. We hold leading positions worldwide in many of our markets and attribute this leadership to several factors, including the strength of our brand name and reputation, our comprehensive offering of innovative instruments and solutions, our Spinnaker sales and marketing program, and the breadth and quality of our global sales and service network.

Net sales in U.S. dollars increased 4% in 2025 and 2% in 2024. Excluding the effect of currency exchange rate fluctuations, or in local currencies, net sales increased 3% in both 2025 and 2024. We estimate local currency net sales increased 4% in 2025 and were flat in 2024 excluding the impact of previously disclosed delayed shipments in 2023 and acquisitions.

We faced a difficult environment in 2025 due to global trade disputes/tariffs, governmental policies and geopolitics that increased uncertainty in our end markets and the global economy, while having a negative impact on customer behavior and our import costs. Our team's resilience and agility, and our pricing, supply chain, productivity and cost savings initiatives, were critical to our ability to mitigate these challenges. We also continue to benefit from our strong global leadership positions, diversified customer base, innovative product offering, investment in emerging markets, significant installed base, and the impact of our sophisticated global sales and marketing programs. Over the past few years, we also accelerated our digital capabilities to identify and pursue growth opportunities, while increasing the effectiveness of our global sales organization. We also have continued to increase engagement with our customers with our Go-to-Market and digital approaches. Our market-leading solutions and ability to leverage our innovative portfolio have also allowed us to quickly capitalize on our customers' demand for automation and digitalization solutions and faster growing segments. We are well positioned and have continued to make investments to further strengthen our portfolio and capture future growth opportunities. Our service business also delivered strong results in 2025 as we have been able to support our customers’ ability to maintain uptime, improve productivity, and comply with regulatory requirements.

As we enter 2026, we expect to continue to benefit from market trends toward automation and digitalization. We also anticipate future opportunities with customer replacement cycles and investments in on/near-shoring activities. However, timing remains unclear and many of our end-markets, including pharma/biopharmaceutical, food, and chemical, remain challenged and continue to face uncertainty.

Our laboratory sales grew modestly in 2025 including improved bioprocessing market conditions, while biotech research and academia market conditions were softer. We believe we will benefit from favorable pharma/biopharma market trends in the future. We also believe we will continue to benefit from increased customer demand for automation, digitalization, and safety; new facility investments; and continued focus on regulatory compliance including data integrity requirements. Overall, we believe we are well positioned to continue to capture growth and gain market share in our laboratory business.

Our industrial sales had good growth in 2025 with increases in both product inspection and core industrial. We continue to benefit from our strong product offering and focus on the more attractive, faster-growing segments of the market and strong execution of our growth initiatives in each region. We also continue to benefit from market trends in automation and digitalization and also expect to benefit from customer on/near-shoring activities in the future. Our core industrial-related products are also especially sensitive to changes in economic growth. China and emerging market economies have historically been an important source of growth based upon the expansion of their domestic economies, and we expect this to also be a source of long-term growth. Product inspection experienced strong growth in 2025, and we expect our product inspection end-market to continue to benefit from our customers’ focus on brand protection, food safety, and productivity.

35

Table of Contents

Our food retailing sales improved during 2025 primarily due to increased project activity, especially in the Americas. Traditionally, the spending levels in this sector have experienced more volatility than our other end-markets due to the timing of customer project activity and new regulations.

In 2026, we will continue to pursue the overall business growth strategies which we have followed in recent years:

Gaining Market Share. Innovation is essential to gaining market share and is fundamental in all aspects of our business including sales and marketing and technology leadership. Our global sales and marketing initiative, Spinnaker, continues to be an important growth strategy. We aim to gain market share by implementing sophisticated sales and marketing programs, leveraging our extensive customer databases, product offering, and installed base. While this initiative is broad-based, efforts to improve these processes include the use of digitalization and advanced data analytics to identify, prioritize, and pursue growth opportunities; the implementation of effective pricing related to value-based selling strategies and processes; improved sales force guidance, training, and effectiveness; cross-selling; increased segment marketing; and leads generation and nurturing activities. We also have added resources to pursue under-penetrated market opportunities and continue to adapt our Go-to-Market approaches with additional inside and telesales resources, while also increasing digital customer interaction. We continue to benefit from digitalization tools to gain efficiencies and increase the effectiveness of our field sales force.

In addition, our comprehensive service offerings, and our initiatives to globalize and harmonize these offerings, help us further penetrate developed markets. We estimate that we have the largest installed base of weighing instruments in the world, and we continue to leverage advanced data analytics and invest in sales and marketing activities to increase the proportion of our installed base that is under service contract, or sell new products that replace old products in our installed base. In addition to traditional repair and maintenance, our service offerings continue to expand into value-added services for a range of market needs, including regulatory compliance. We have also improved our service model to incorporate remote service, depot drop-off/pickup, and other approaches.

Faster-Growing Markets. Emerging markets, comprising Asia (excluding Japan), Eastern Europe, Latin America, the Middle East, and Africa, account for approximately 33% of our total net sales of which 16% relates to China. We have a two-pronged strategy in emerging markets: first, to capitalize on long-term growth opportunities in these markets, and second, to leverage our low-cost manufacturing operations in China which was recently designated a Lighthouse site by the World Economic Forum's Global Lighthouse Network. We have a nearly 40-year track record in China, and our sales in Asia have grown more than 10% on a compound annual growth basis in local currencies since 2000. Over the years, we also have broadened our product offering to the Asian markets. India has also been a source of emerging market sales growth in past years due to increased life science research activities. Overall, versus the prior year, we experienced a 3% increase in emerging market local currency sales by destination during 2025, which included a local currency sales increase of 1% in China and 5% in other emerging markets, respectively. Going forward, we continue to redeploy resources and sales and marketing efforts to pharma/biopharmaceutical, food manufacturing, chemical, and new energy. We believe the long-term growth of these segments will be favorably impacted by the Chinese government’s emphasis on science, high-value industries, product quality, and food safety. We expect both our laboratory and industrial businesses to benefit from our focus on these segments. We also continue to pursue growth in under-penetrated emerging markets. However, emerging market sales can be volatile as we experienced in China over the past several years. China has historically been volatile, and market conditions may change unfavorably due to various factors. In addition to China and emerging markets, we also pursue other faster-growth vertical markets. While rather small, these markets present outsized growth potential. Segments include semiconductors, advanced materials, and new energy. The

36

Table of Contents

components of these faster-growing segments will change as various markets develop, and we will continue to leverage the breadth and scope of our product offering as new opportunities emerge.

Extending Our Technology Lead. We continue to focus on product innovation. In the last three years, we spent a total of $574 million on research and development, reflecting approximately 5% of net sales. We seek to improve our product offerings and their capabilities with additional integrated technologies and software, which we believe supports our pricing differentiation and accelerates product replacement cycles. In addition, we aim to create value for our customers by having thorough knowledge of their processes via our significant installed product base.

Expanding Our Margins. We continue to strive to improve our margins by enhancing our value proposition via innovation, more effectively pricing our products and services, optimizing our cost structure, and improving our mix in higher-margin businesses such as service. For example, sophisticated digital tools to provide us new insights to further refine our price strategies and processes. We have also implemented productivity and cost savings initiatives over recent years to mitigate our reduced volume, while also focusing on reallocating resources to better align our cost structure to support our investments in market penetration initiatives, higher-growth/profitable areas, and opportunities for margin improvement.

We also have implemented global procurement and supply chain management programs over the last several years aimed at lowering costs and have increased our focus on these programs with our SternDrive initiative. SternDrive is our global operational excellence program for continuous improve

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/MTD/mda/fy2025/
All MD&A years: /company/MTD/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/MTD/mda/fy2024/): filed 2025-02-07; accession 0001037646-25-000012 (https://www.sec.gov/Archives/edgar/data/1037646/000103764625000012/mtd-20241231.htm)
- [FY 2023 MD&A](/company/MTD/mda/fy2023/): filed 2024-02-09; accession 0001037646-24-000007 (https://www.sec.gov/Archives/edgar/data/1037646/000103764624000007/mtd-20231231.htm)
- [FY 2022 MD&A](/company/MTD/mda/fy2022/): filed 2023-02-10; accession 0001037646-23-000005 (https://www.sec.gov/Archives/edgar/data/1037646/000103764623000005/mtd-20221231.htm)
- [FY 2021 MD&A](/company/MTD/mda/fy2021/): filed 2022-02-11; accession 0001037646-22-000008 (https://www.sec.gov/Archives/edgar/data/1037646/000103764622000008/mtd-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3826 Laboratory Analytical Instruments) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MTD.md · JSON record: /company/MTD.json · verified financials: /company/MTD/financials.json / /company/MTD/financials.csv · machine TOC for the whole site: /llms.txt