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Mettler-Toledo International Inc. Reports Fourth Quarter 2024 Results

1. MTD's Q4 sales rose 12%, reaching $1.045 billion. 2. Q4 Adjusted EPS increased 32% to $12.41, boosting financial health. 3. Management forecasts a decline in Q1 2025 local currency sales by 3-4%. 4. Market conditions remain uncertain amid shipping delays impacting sales. 5. Long-term growth is prioritized, focusing on automation and digitalization.

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Strong earnings and sales growth generally lead to positive investor sentiment. Past examples include MTD's rising stock post strong earnings reports.

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Earnings reports significantly influence stock prices, particularly with positive growth signals.

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Immediate effects expected from quarterly results but cautious forecasts temper optimism. Similar past quarters showed short-term volatility against adjusted earnings.

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MTD
COLUMBUS, Ohio--(BUSINESS WIRE)--Mettler-Toledo International Inc. (NYSE: MTD) today announced fourth quarter results for 2024. Provided below are the highlights: Reported and local currency sales increased 12% compared with the prior year. Net earnings per diluted share as reported (EPS) were $11.96, compared with $8.52 in the prior-year period. Adjusted EPS was $12.41, an increase of 32% over the prior-year amount of $9.40. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules. Fourth Quarter Results Patrick Kaltenbach, President and Chief Executive Officer, stated, “We had a strong finish to the year as we capitalized on very good customer demand for Laboratory products, especially in Europe. Strong sales growth and solid execution of our margin improvement initiatives contributed to excellent Adjusted EPS and cash flow.” GAAP Results EPS in the quarter was $11.96, compared with the prior-year amount of $8.52. Compared with the prior year, total reported sales rose 12% to $1.045 billion. By region, reported sales increased 6% in the Americas, 18% in Europe, and 15% in Asia/Rest of World. Earnings before taxes amounted to $314.5 million, compared with $232.6 million in the prior year. Non-GAAP Results Adjusted EPS was $12.41, an increase of 32% over the prior-year amount of $9.40. Compared with the prior year, total sales in local currency increased 12%. By region, local currency sales increased 7% in the Americas, 19% in Europe, and 14% in Asia/Rest of World. Excluding the impact from delayed fourth quarter 2023 shipments, sales in local currency increased 6%, including sales growth of 3% in the Americas, 8% in Europe, and 10% in Asia/Rest of World. Adjusted Operating Profit amounted to $351.9 million, compared with the prior-year amount of $281.8 million. Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules. Full Year Results GAAP Results EPS was $40.48, compared with the prior-year amount of $35.90, and included a non-cash discrete tax benefit of $1.07 per share. Compared with the prior year, total reported sales increased 2% to $3.872 billion. By region, reported sales increased 2% in the Americas and 8% in Europe and declined 3% in Asia/Rest of World. Earnings before taxes amounted to $1.037 billion, compared with $973.7 million in the prior year. Non-GAAP Results Adjusted EPS was $41.11, an 8% increase from the prior-year amount of $38.03. Compared with the prior year, total sales in local currency grew 3% as currency reduced sales growth by 1%. By region, local currency sales increased 3% in the Americas and 8% in Europe and declined 1% in Asia/Rest of World. Excluding the impact from delayed fourth quarter 2023 shipments, local currency sales in 2024 were flat, including sales growth of 1% in the Americas and 2% in Europe and a decline of 3% in Asia/Rest of World. Adjusted Operating Profit amounted to $1.200 billion, a 4% increase compared with the prior-year amount of $1.152 billion. Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules. Outlook Management cautions that market conditions are uncertain and could change quickly. Based on today's assessment, management anticipates local currency sales for the first quarter of 2025 will decline approximately 3% to 4%, which includes a headwind of approximately 6% from the previously disclosed shipping delays in the fourth quarter of 2023 that benefited the first quarter of 2024. Adjusted EPS is forecast to be $7.75 to $7.95, a decline of 11% to 13%, which includes headwinds of approximately 18% from the previously mentioned shipping delays and an estimated 2% due to adverse currency. For the full year 2025, management anticipates local currency sales will increase approximately 3%, which includes a headwind of approximately 1.5% from the previously disclosed shipping delays in the fourth quarter of 2023 that benefited the first quarter of 2024. Adjusted EPS is forecast to be in the range of $42.35 to $43.00, representing growth of approximately 3% to 5%, and includes headwinds of approximately 4% from the previously mentioned shipping delays and an estimated 2% due to adverse currency. This compares with previous local currency sales growth guidance of approximately 3% and Adjusted EPS guidance of $41.85 to $42.50. The Company does not provide GAAP financial measures on a forward-looking basis because we are unable to predict with reasonable certainty and without unreasonable effort the timing and amount of future restructuring and other non-recurring items. Conclusion Kaltenbach concluded, “We achieved good results in 2024 despite soft market conditions and continue to benefit from our strong culture of execution and continuous improvement. At the same time, we stayed focused on our long-term strategy of delivering innovative solutions and extending our market leadership. Driving growth is our top priority in 2025, and we will continue to build on our competitive strengths and take advantage of opportunities in automation, digitalization, and high-growth areas to further expand our market share and deliver good earnings growth.” Other Matters The Company will host a conference call to discuss its quarterly results tomorrow morning (Friday, February 7) at 8:30 a.m. Eastern Time. To listen to a live webcast or replay of the call, visit the investor relations page on the Company’s website at investor.mt.com. The presentation referenced on the conference call will be located on the website prior to the call. METTLER TOLEDO (NYSE: MTD) is a leading global supplier of precision instruments and services. We have strong leadership positions in all of our businesses and believe we hold global number-one market positions in most of them. We are recognized as an innovation leader and our solutions are critical in key R&D, quality control, and manufacturing processes for customers in a wide range of industries including life sciences, food, and chemicals. Our sales and service network is one of the most extensive in the industry. Our products are sold in more than 140 countries and we have a direct presence in approximately 40 countries. With proven growth strategies and a focus on execution, we have achieved a long-term track record of strong financial performance. For more information, please visit www.mt.com. Forward-Looking Statements Disclaimer You should not rely on forward-looking statements to predict our actual results. Our actual results or performance may be materially different than reflected in forward-looking statements because of various risks and uncertainties, including statements about expected revenue growth, inflation, ongoing developments related to Ukraine, and the conflict in the Middle East. You can identify forward-looking statements by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” or “continue.” We make forward-looking statements about future events or our future financial performance, including earnings and sales growth, earnings per share, strategic plans and contingency plans, growth opportunities or economic downturns, our ability to respond to changes in market conditions, planned research and development efforts and product introductions, adequacy of facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, customer demand, our competitive position, pricing, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions, and the impact of inflation, ongoing developments related to Ukraine, and the conflict in the Middle East on our business. Our forward-looking statements may not be accurate or complete, and we do not intend to update or revise them in light of actual results. New risks also periodically arise. Please consider the risks and factors that could cause our results to differ materially from what is described in our forward-looking statements, including inflation, ongoing developments related to Ukraine, and the conflict in the Middle East. See in particular “Factors Affecting Our Future Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”   METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited)   Three months ended Three months ended December 31, 2024 % of sales December 31, 2023 % of sales   Net sales $ 1,045,127 (a) 100.0 $ 934,992 100.0 Cost of sales 405,812 38.8 383,354 41.0 Gross profit 639,315 61.2 551,638 59.0   Research and development 50,054 4.8 46,435 5.0 Selling, general and administrative 237,340 22.7 223,427 23.9 Amortization 18,220 1.8 18,078 1.9 Interest expense 17,850 1.7 19,655 2.1 Restructuring charges 2,147 0.2 13,055 1.4 Other charges (income), net (843 ) (0.1 ) (1,568 ) (0.2 ) Earnings before taxes 314,547 30.1 232,556 24.9   Provision for taxes 62,246 6.0 47,761 5.1 Net earnings $ 252,301 24.1 $ 184,795 19.8   Basic earnings per common share: Net earnings $ 12.00 $ 8.56 Weighted average number of common shares 21,024,024 21,593,616   Diluted earnings per common share: Net earnings $ 11.96 $ 8.52 Weighted average number of common 21,101,360 21,687,577 and common equivalent shares   Note: (a) Local currency sales increased 12% as compared to the same period in 2023.   RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT Three months ended Three months ended December 31, 2024 % of sales December 31, 2023 % of sales   Earnings before taxes $ 314,547 $ 232,556 Amortization 18,220 18,078 Interest expense 17,850 19,655 Restructuring charges 2,147 13,055 Other charges (income), net (843 ) (1,568 ) Adjusted operating profit $ 351,921 (b) 33.7 $ 281,776 30.1   Note: (b) Adjusted operating profit increased 25% as compared to the same period in 2023.   METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited) Twelve months ended Twelve months ended December 31, 2024 % of sales December 31, 2023 % of sales   Net sales $ 3,872,361 (a) 100.0 $ 3,788,309 100.0 Cost of sales 1,546,778 39.9 1,547,023 40.8 Gross profit 2,325,583 60.1 2,241,286 59.2   Research and development 189,357 4.9 185,284 4.9 Selling, general and administrative 936,303 24.2 904,106 23.9 Amortization 72,869 1.9 72,213 1.9 Interest expense 74,631 1.9 77,366 2.0 Restructuring charges 19,771 0.5 32,735 0.9 Other charges (income), net (4,571 ) (0.1 ) (4,146 ) (0.1 ) Earnings before taxes 1,037,223 26.8 973,728 25.7   Provision for taxes 174,083 4.5 184,950 4.9 Net earnings $ 863,140 22.3 $ 788,778 20.8   Basic earnings per common share: Net earnings $ 40.67 $ 36.10 Weighted average number of common shares 21,221,839 21,848,122   Diluted earnings per common share: Net earnings $ 40.48 $ 35.90 Weighted average number of common 21,320,641 21,971,528 and common equivalent shares   Note: (a) Local currency sales increased 3% as compared to the same period in 2023.   RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT   Twelve months ended Twelve months ended December 31, 2024 % of sales December 31, 2023 % of sales   Earnings before taxes $ 1,037,223 $ 973,728 Amortization 72,869 72,213 Interest expense 74,631 77,366 Restructuring charges 19,771 32,735 Other charges (income), net (4,571 ) (4,146 ) Adjusted operating profit $ 1,199,923 (b) 31.0 $ 1,151,896 30.4   Note: (b) Adjusted operating profit increased 4% as compared to the same period in 2023.   METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) (unaudited)     December 31, 2024 December 31, 2023   Cash and cash equivalents $ 59,362 $ 69,807 Accounts receivable, net 687,112 663,893 Inventories 342,274 385,865 Other current assets and prepaid expenses 105,158 110,638 Total current assets 1,193,906 1,230,203   Property, plant and equipment, net 770,280 803,374 Goodwill and other intangibles assets, net 926,057 955,537 Other non-current assets 349,756 366,441 Total assets $ 3,239,999 $ 3,355,555   Short-term borrowings and maturities of long-term debt $ 182,623 $ 192,219 Trade accounts payable 215,843 210,411 Accrued and other current liabilities 769,727 778,452 Total current liabilities 1,168,193 1,181,082   Long-term debt 1,831,265 1,888,620 Other non-current liabilities 367,431 435,791 Total liabilities 3,366,889 3,505,493   Shareholders’ equity (126,890 ) (149,938 ) Total liabilities and shareholders’ equity $ 3,239,999 $ 3,355,555     METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (unaudited)   Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023   Cash flow from operating activities: Net earnings $ 252,301 $ 184,795 $ 863,140 $ 788,778 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 12,643 12,545 50,352 48,951 Amortization 18,220 18,078 72,869 72,213 Deferred tax benefit (155 ) (8,918 ) (5,216 ) (13,373 ) One-time non-cash discrete tax benefit - - (22,982 ) - Other 6,357 5,478 19,979 17,928 Increase (decrease) in cash resulting from changes in operating assets and liabilities (23,179 ) 69,528 (9,796 ) 51,377 Net cash provided by operating activities 266,187 281,506 968,346 965,874   Cash flows from investing activities: Proceeds from sale of property, plant and equipment 898 167 1,631 835 Purchase of property, plant and equipment (41,276 ) (32,416 ) (103,898 ) (105,323 ) Proceeds from government funding (a) - 3,498 - 6,094 Acquisitions (7,618 ) (5,198 ) (10,091 ) (5,811 ) Other investing activities (3,056 ) (1,552 ) (7,104 ) (27,489 ) Net cash used in investing activities (51,052 ) (35,501 ) (119,462 ) (131,694 )   Cash flows from financing activities: Proceeds from borrowings 594,916 556,824 2,156,565 2,126,797 Repayments of borrowings (598,429 ) (629,795 ) (2,175,291 ) (2,097,023 ) Proceeds from exercise of stock options 1,380 - 23,719 19,234 Repurchases of common stock (212,500 ) (176,002 ) (849,997 ) (900,000 ) Payments of excise tax on repurchases of common stock (8,089 ) - (8,089 ) - Acquisition contingent consideration payment - - - (7,767 ) Other financing activities (971 ) - (2,884 ) (826 ) Net cash used in financing activities (223,693 ) (248,973 ) (855,977 ) (859,585 )   Effect of exchange rate changes on cash and cash equivalents (3,654 ) 3,100 (3,352 ) (754 )   Net increase (decrease) in cash and cash equivalents (12,212 ) 132 (10,445 ) (26,159 )   Cash and cash equivalents: Beginning of period 71,574 69,675 69,807 95,966 End of period $ 59,362 $ 69,807 $ 59,362 $ 69,807   RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW   Net cash provided by operating activities $ 266,187 $ 281,506 $ 968,346 $ 965,874 Payments in respect of restructuring activities 3,986 10,877 23,752 25,818 Proceeds from sale of property, plant and equipment 898 167 1,631 835 Purchase of property, plant and equipment, net (a) (41,276 ) (32,416 ) (103,898 ) (97,593 ) Acquisition payments (b) - - - 4,775 Transition tax payment - - 10,723 8,042 Adjusted free cash flow $ 229,795 $ 260,134 $ 900,554 $ 907,751 Notes: (a) In September 2021, the Company entered into an agreement with the U.S. Department of Defense to increase the domestic production capacity of pipette tips and enhance manufacturing automation and logistics. The Company has received funding of $35.8 million in prior years, which offset capital expenditures. Funding proceeds of $3.5 million during the three months ended December 31, 2023 is excluded from Adjusted free cash flow. Funding proceeds of $6.1 million and the related purchase of property, plant and equipment of $7.7 million for the twelve months ended December 31, 2023 are excluded from Adjusted free cash flow.   (b) Includes $4.4 million of the PendoTECH contingent consideration payment that was reported in net cash provided by operating activities as required by U.S. GAAP for the twelve months ended December 31, 2023. METTLER-TOLEDO INTERNATIONAL INC. OTHER OPERATING STATISTICS     SALES GROWTH BY DESTINATION (unaudited)   Americas Europe Asia/RoW Total   U.S. Dollar Sales Growth Three Months Ended December 31, 2024 6% 18% 15% 12% Twelve Months Ended December 31, 2024 2% 8% -3% 2% Local Currency Sales Growth Three Months Ended December 31, 2024 7% 19% 14% 12% Twelve Months Ended December 31, 2024 3% 8% -1% 3%   Note: (a) The Company estimates net sales for the three and twelve months ended December 31, 2024 benefited by 6% and 3%, respectively, from previously delayed shipments from the fourth quarter of 2023. By geographic destination, net sales benefited approximately 4% and 2% in the Americas, 11% and 6% in Europe, and 4% and 2% in Asia/Rest of World for the three and twelve months ended December 31, 2024, respectively. RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS (unaudited)   Three months ended Twelve months ended December 31, December 31, 2024 2023 % Growth 2024 2023 % Growth   EPS as reported, diluted $ 11.96 $ 8.52 40 % $ 40.48 $ 35.90 13 %   Purchased intangible amortization, net of tax 0.24 (a) 0.23 (a) 0.94 (a) 0.93 (a) Restructuring and other, net of tax 0.09 (b) 0.49 (b) 0.76 (b) 1.20 (b) Income tax expense 0.12 (c) 0.16 (c) (1.07 ) (c) - (c)   Adjusted EPS, diluted $ 12.41 $ 9.40 32 % $ 41.11 $ 38.03 8 %   Notes: (a) Represents the EPS impact of purchased intangibles amortization of $6.4 million ($5.0 million net of tax) and $6.5 million ($5.0 million net of tax) for the three months ended December 31, 2024 and 2023, and $25.9 million ($20.1 million net of tax) and $26.4 million ($20.4 million net of tax) for the twelve months ended December 31, 2024 and 2023, respectively.   (b) Represents the EPS impact of restructuring charges of $2.1 million ($1.7 million after tax) and $13.1 million ($10.6 million after tax) for the three months ended December 31, 2024 and 2023, and $19.8 million ($16.0 million after tax) and $32.7 million ($26.5 million after tax) for the twelve months ended December 31, 2024 and 2023, respectively, which primarily include employee related costs; and other costs of $0.3 million ($0.3 million after tax) for the three and twelve months ended December 31, 2024.   (c) Represents the EPS impact of the difference between our quarterly and estimated annual tax rate before non-recurring discrete items during the three and twelve months ended December 31, 2024 and 2023 due to the timing of excess tax benefits associated with stock option exercises. Also includes a reported EPS reduction of $1.07 for the twelve months ended December 31, 2024 for a non-cash discrete tax benefit resulting from the reduction of uncertain tax position liabilities related to the settlement of a tax audit.

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