Josh Heinen

Josh Heinen asked if Mettler-Toledo has observed any change in sentiment from pharma customers since the announcements of Most Favored Nation (MFN) deals. He also inquired whether the replacement cycle opportunity, which may be ramping up, is baked into the 2026 guidance and its potential longer-term impact.

Answer

Patrick Kaltenbach, CEO, stated that while MFN discussions initially created some uncertainty, the pharma segment performed well, and customers are now primarily focused on addressing re- and onshoring opportunities and commitments to the U.S. government, rather than MFN topics. Regarding the replacement cycle, Mr. Kaltenbach noted two years of subdued replacement business and an aging install base, considering it an upside potential that has not been fully factored into the 2026 guidance.

Josh Heinen asked about any changes in sentiment from pharma customers following recent Most Favored Nation (MFN) deals. He also inquired if the replacement cycle opportunity, which may be starting to ramp up, is factored into the 2026 guidance and its potential longer-term impact.

Answer

Patrick Kaltenbach, Chief Executive Officer, stated that while MFN discussions initially created some uncertainty, the pharma segment performed well, and customers are now primarily focused on addressing reshoring/onshoring opportunities and underlying demand for biopharmaceuticals. MFN is not a primary topic in customer conversations. Regarding the replacement cycle, Mr. Kaltenbach acknowledged two years of subdued replacement business and an aging installed base, suggesting it represents upside potential that has not been fully factored into the 2026 guidance.