Mettler-Toledo delivered 6% third-quarter sales growth and raised its full-year adjusted EPS outlook after a sharp improvement in Asia and Rest of World demand. The company also issued its first 2027 earnings forecast, though tariff refunds complicate the year-to-date comparison.
- Third-quarter sales rose 6% to US$1.094 billion
- GAAP diluted EPS increased 16% to US$12.29
- Adjusted EPS climbed 13% to US$12.57
- Full-year 2026 adjusted EPS guidance lifted to US$47.70-US$47.90
- 2027 adjusted EPS forecast at US$52.50-US$53.50
Asia and the Rest of World supplied the spark as Mettler-Toledo International Inc. (NYSE:MTD) raised its 2026 earnings outlook after third-quarter sales rose 6% to US$1.094 billion. Reported diluted EPS increased 16% to US$12.29, while adjusted EPS, a non-GAAP measure, rose 13% to US$12.57.
Asia leads the regional sales recovery
The regional split was notably uneven. Reported sales increased 16% in Asia and Rest of World, compared with 3% in the Americas and no growth in Europe. On a local-currency basis, the same regions grew 14%, 3% and 2%, respectively.
Management attributed the quarter to relatively broad-based growth, improving market demand, higher sales volume and execution of strategic initiatives. Adjusted operating profit reached US$333.5 million, up from US$309.9 million, with the margin increasing to 30.5% from 30.1% on the company’s measure.
Higher 2026 target sets a stronger earnings floor
Mettler-Toledo now expects full-year local-currency sales growth of approximately 5%, excluding tariff refunds paid to customers, compared with its previous guidance of about 4% to 5%. Adjusted EPS is forecast at US$47.70 to US$47.90, up from the earlier range of US$47.15 to US$47.50.
The fourth-quarter target calls for local-currency sales growth of about 5% and adjusted EPS of US$14.84 to US$15.04, implying growth of 11% to 13%. The company also expects 2027 local-currency sales growth of approximately 5%, with adjusted EPS forecast at US$52.50 to US$53.50, or growth of roughly 10% to 12%.
Tariff refunds cloud nine-month comparisons
The year-to-date numbers remain less clean than the quarter. Nine-month reported sales rose 6% to US$3.069 billion and GAAP diluted EPS increased to US$32.14 from US$28.12. Adjusted EPS rose 12% to US$32.91, but the comparison includes a one-time US$52 million government tariff refund and US$28 million of related refunds paid to customers in the second quarter.
Excluding those customer refunds, local-currency sales growth was 5% for the nine months, or 4% before acquisitions. Adjusted free cash flow, another non-GAAP measure, fell to US$651.9 million from US$689.5 million, despite operating cash flow increasing to US$758.8 million from US$730.2 million. That distinction matters: the company’s adjusted measure excludes or adjusts for several items, including tariff refunds, restructuring and acquisition-related payments.
The immediate test is whether the unusually strong Asia and Rest of World performance can persist while Europe remains subdued and tariff effects roll out of the comparison. Mettler-Toledo’s new 2027 target gives investors a longer runway to assess that question, but it also makes regional demand and the quality of earnings growth more important than the headline EPS upgrade alone.
Bottom Line?
The upgraded outlook is encouraging, but the durability of Asia-led growth and the performance after tariff benefits fade will shape the next leg of the story.
Questions in the middle?
- Can Asia and Rest of World sustain double-digit local-currency growth into 2027?
- How much of the higher earnings outlook depends on operating momentum rather than one-time tariff effects?
- Will subdued European demand improve enough to support the company’s 5% sales-growth target?