Mettler-Toledo Adjusts 2025 EPS Guidance to $41.70-$42.20 Amid 39% Swiss Tariff Hike

Mettler-Toledo International Inc. adjusted its 2025 EPS guidance to $41.70-$42.20 due to a 39% Swiss tariff hike. The company targets full mitigation by 2026. Despite challenging market conditions, Mettler-Toledo experienced growth throughout most of its businesses. The team demonstrated agility in navigating uncertainty and implementing mitigation actions.

Mettler-Toledo International Inc. (MTD) has adjusted its 2025 EPS guidance to $41.70-$42.20 due to a 39% Swiss tariff hike. The company aims to fully mitigate the tariff impact by 2026. Despite challenging market conditions, Mettler-Toledo experienced growth throughout most of its businesses, demonstrating agility in navigating uncertainty and implementing mitigation actions [1].

In its Q2 2025 earnings call, CEO Patrick K. Kaltenbach highlighted the company's ability to grow despite challenging market conditions. He noted that the 39% tariff on Switzerland would negatively impact the EPS guidance for the year by approximately $0.40. Kaltenbach expressed confidence in the company's strong positioning and innovative portfolio, while CFO Shawn P. Vadala reported that sales increased by 4% on a U.S. dollar reported basis, reaching $983 million [1].

Vadala also stated that adjusted EPS for the quarter was $10.09, a 5% increase over the prior year. Gross margin was 59.0%, down 70 basis points, with a net headwind impact from tariffs and lower volume. Adjusted operating profit was $283.3 million, flat versus the prior year. For the third quarter of 2025, local currency sales are expected to grow approximately 3% to 4%, with operating margin expected to decrease around 130 basis points at the midpoint. Adjusted EPS is projected in the range of $10.55 to $10.75 [1].

For the full year 2025, the company adjusted its local currency sales growth forecast to 1% to 2% (or up 2.5% to 3.5%, excluding shipping delays). Full-year adjusted EPS guidance is now $41.70 to $42.20, lowered by $0.40 due to the 39% tariffs on Swiss imports, compared to the earlier range of $42.10 to $42.60. Vadala stated that the company continues to make excellent progress with its mitigation actions and expects to fully offset these costs next year [1].

Financial results showed local currency sales increased 3% in the Americas, were flat in Europe, and grew 3% in Asia/Rest of the World, with a decline of 2% in China. Laboratory sales increased 1%, industrial sales increased 4% (core industrial up 2%, product inspection up 8%), and food retail was flat. Gross margin was 59.0%, with incremental tariff costs reducing operating margin by about 130 basis points. Adjusted EPS for the quarter reached $10.09; on a reported basis, EPS was $9.76, impacted by $0.24 in purchased intangible amortization, $0.14 in restructuring costs, and a $0.05 tax benefit [1].

Management flagged global trade disputes, rapidly changing tariff regimes, and governmental policy uncertainties as key risks. Vadala noted "incremental global tariff costs at approximately $95 million on an annualized basis," and described the potential for "new tariffs or retaliatory tariffs that we have not factored into our guidance." China’s market remains soft with no expected near-term recovery, and European demand was flat [1].

Despite the challenges, Mettler-Toledo demonstrated resilience and maintained a proactive approach to mitigate tariff impacts. The company's strong performance in product inspection and digital analytics highlights its ability to adapt to market conditions and capitalize on growth opportunities. The stock price fell 4.76% to $1233.68 post-earnings announcement, reflecting investor concerns over margin contraction and broader market challenges [2].

References:
[1] https://seekingalpha.com/news/4476748-mettler-toledo-adjusts-2025-eps-guidance-to-41_70-42_20-amid-39-percent-swiss-tariff-hike
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-mettlertoledo-beats-q2-2025-earnings-estimates-93CH-4166226