01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
Mettler-Toledo International Inc. reported net sales of $947.1 milliona for the three months ended March 31, 2026, up from $883.7 million a year earlier, with net earnings of $169.5 million compared with $163.6 million.
Diluted earnings per share were $8.33b versus $7.81. Gross profit was $555.8 million, or 58.7% of net sales, down from 59.5% in the prior-year period, which the company attributes primarily to higher tariff costs, unfavorable foreign currency, and business mix, partially offset by favorable price realization and benefits from its SternDrive program. Sales rose 7% in U.S. dollars and 3% in local currencies, and growth excluding 2025 acquisitions was 1% in local currencies.
Cash provided by operating activities was $139.8 millionc, down from $194.4 million, which the company primarily attributes to the timing of income tax payments. The company repurchased 152,963 shares for $206.3 million during the quarter and had $3.5 billion of remaining share repurchase authorization. Total debt was $2.23 billion at March 31, 2026, with $453.3 million of additional borrowings available under its Credit Agreement, and cash and cash equivalents of $60.6 million.
Total shareholders' equity was a deficit of $41.9 milliond. The filing also discusses a $53 million tariff refund claim related to IEEPA tariffs invalidated by the U.S. Supreme Court in February 2026.
These potential refunds are unrecognized gain contingencies, and a significant portion is expected to be passed to customers. The company also cites ongoing uncertainty from global trade tariffs and the conflicts involving Iran and the Middle East.
02—Key points
Key Highlights
- Net sales were $947.1 million, up from $883.7 million; sales rose 7% in U.S. dollars and 3% in local currencies.
- Gross margin declined to 58.7% from 59.5%, driven by higher tariff costs, unfavorable foreign currency and business mix.
- Net earnings rose to $169.5 million from $163.6 million; diluted EPS was $8.33 versus $7.81.
- Operating cash flow fell to $139.8 million from $194.4 million, primarily due to the timing of income tax payments.
- The company repurchased $206.3 million of stock (152,963 shares) and has $3.5 billion of remaining authorization.
- Potential $53 million IEEPA tariff refund claims are unrecognized gain contingencies pending government approval and appeals.
- Total debt was $2.23 billion, with $453.3 million available under the Credit Agreement; shareholders' equity was a deficit of $41.9 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $947.13M$883.74M | +7.2% |
| Gross Profit | $555.82M$525.88M | +5.7% |
| R&D Expenses | $51.27M$46.35M | +10.6% |
| SG&A Expenses | $258.33M$242.80M | +6.4% |
| Interest Expense | $17.01M$16.65M | +2.1% |
| Net Income | $169.45M$163.59M | +3.6% |
| EPS (Basic) | $8.35$7.84 | +6.5% |
| EPS (Diluted) | $8.33$7.81 | +6.7% |
| Shares Outstanding (Basic) | 20.29M20.87M | −2.8% |
| Shares Outstanding (Diluted) | 20.34M20.95M | −2.9% |
05—Questions
Frequently Asked Questions
How did Mettler-Toledo perform in the first quarter of 2026?
Net sales were $947.1 million, compared with $883.7 million in the first quarter of 2025, and net earnings were $169.5 million compared with $163.6 million. Diluted EPS was $8.33 versus $7.81.
What drove the decline in gross margin?
The company attributes the decline in gross profit as a percentage of net sales, from 59.5% to 58.7%, primarily to higher tariff costs, unfavorable foreign currency, and business mix, partially offset by favorable price realization and benefits from its SternDrive program.
Why did operating cash flow decrease?
Net cash provided by operating activities was $139.8 million versus $194.4 million in the prior year period. The company states the decrease is primarily related to the timing of income tax payments.
What is the status of the tariff refund claims?
The company submitted refund claims of approximately $53 million to U.S. Customs and Border Protection for IEEPA tariffs paid in 2025 and 2026, excluding interest. These are gain contingencies not recognized in the financial statements because approval, appeals and final liquidation amounts remain uncertain. A significant portion is expected to be refunded to customers.
How is the company's balance sheet and capital allocation positioned?
Total debt was $2.23 billion at March 31, 2026, and the company was in compliance with its debt covenants. It had $60.6 million of cash and $453.3 million of additional availability under its Credit Agreement. Shareholders' equity was a deficit of $41.9 million, and the company had $3.5 billion remaining under its share repurchase program.
06—Continue