AI Takeaway
MTD delivered steady FY2025 growth with revenue rising 4.0% to $4.03B and EPS (diluted) up 3.9% to $42.05, though margins faced modest pressure and the company continues to operate with negative stockholders' equity driven by aggressive share buybacks.
Revenue
$4.03B
++3.98% YoY
EPS (Basic)
$42.17
++3.69% YoY
Gross Margin
59.4%
-0.68% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
MTD grew total revenue 4.0% year-over-year to $4.03B in FY2025 (from $3.87B in FY2024), reflecting continued demand across its precision instrument and laboratory equipment segments despite a challenging macroeconomic backdrop.
Source: Source: 10-K Income Statement
Gross margin declined modestly by approximately 68 basis points to 59.4% (from 60.1%), suggesting slight cost pressures on the revenue base, potentially from input costs or product mix shifts, even as gross profit grew 2.8% to $2.39B.
Source: Source: 10-K Income Statement / Key Ratios
SG&A expenses rose 6.6% to $998.3M and R&D increased 5.3% to $199.4M, both outpacing revenue growth of 4.0%, indicating MTD is investing more heavily in sales infrastructure and product innovation, which pressured operating leverage.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockMTD carries negative stockholders' equity of -$23.6M and a debt-to-equity ratio that is deeply negative (-158x), driven by cumulative share repurchases exceeding retained earnings. Long-term debt stands at $2.09B, creating significant interest burden and financial covenant risk if earnings deteriorate.
Source: Source: 10-K Balance Sheet / Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $13.36 versus the $12.93 analyst consensus — a +3.3% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.03B | $3.87B | +3.98% |
Gross Profit | $2.39B | $2.33B | +2.80% |
Net Income | $869.19M | $863.14M | +0.70% |
EPS (Basic) | $42.17 | $40.67 | +3.69% |
EPS (Diluted) | $42.05 | $40.48 | +3.88% |
R&D Expense | $199.37M | $189.36M | +5.29% |
SG&A Expense | $998.31M | $936.3M | +6.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $3.71B | $3.24B | +14.59% |
Current Assets | $1.36B | $1.19B | +14.14% |
Total Liabilities | $3.74B | $3.37B | +10.97% |
Current Liabilities | $1.2B | $1.17B | +2.56% |
Stockholders' Equity | $-23.64M | $-126.89M | +81.37% |
Long-Term Debt | $2.09B | $1.83B | +14.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $955.77M | $968.35M | -1.30% |
Investing Cash Flow | $-193.87M | $-119.46M | -62.29% |
Financing Cash Flow | $-755.17M | $-855.98M | +11.78% |
Share Buybacks | $800M | $850M | -5.88% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 59.4% | 60.1% | -0.68% |
Net Margin | 21.6% | — | — |
ROE | -3677.4% | — | — |
ROA | 23.4% | — | — |
Current Ratio | $1.137 | — | — |
Debt to Equity | $-158.076 | — | — |
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MTD's revenue grew 4.0% year-over-year to $4.03B in FY2025, up from $3.87B in FY2024. This steady growth reflects continued demand for the company's precision instruments and laboratory equipment across its end markets.
MTD delivered solid but measured FY2025 results: revenue rose 4.0% to $4.03B, diluted EPS grew 3.9% to $42.05, and net income increased 0.7% to $869.2M. However, gross margin compressed slightly to 59.4% and SG&A costs grew faster than revenue, signaling modest pressure on operating leverage.
MTD's negative stockholders' equity of -$23.6M is the result of cumulative share repurchases that have exceeded retained earnings over time — the company spent approximately $800M on buybacks in FY2025 alone. This is a deliberate capital allocation strategy and does not indicate financial distress, as the company generates nearly $956M in annual operating cash flow.
Based on the financial data, key risks include MTD's high leverage with $2.09B in long-term debt and negative equity, operating cash flow declining 1.3% despite revenue growth, and SG&A expenses growing 6.6% — faster than revenue — which could compress margins if sustained. Elevated investing outflows (up 62.3% to $193.9M) also reduce near-term free cash flow flexibility.
Yes — MTD's negative equity is a structural feature of its aggressive buyback program rather than a sign of financial distress. The company generated $955.8M in operating cash flow in FY2025, maintains a current ratio of 1.14, and earns a 23.4% return on assets, all of which point to a fundamentally profitable and cash-generative business.