MT

Mettler-Toledo International Inc. stock research

Dec 31, 2024

FY2024 Q4

Mettler-Toledo International (MTD) Gross Margin — Quarter Ended Dec 31, 2024

Revenue increased sequentially and year over year, while cost of revenue also rose but at a slower pace, leading to gross profit growth and gross margin improvement. The current quarter's gross margin strengthened compared to both the prior quarter and the same quarter last year.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue increased sequentially and year over year, while cost of revenue also rose but at a slower pace, leading to gross profit growth and gross margin improvement. The current quarter's gross margin strengthened compared to both the prior quarter and the same quarter last year.

  • The gross margin improved versus both the preceding quarter and the year-ago quarter, driven by revenue growth outpacing the increase in cost of revenue. This resulted in a higher proportion of revenue converting to gross profit.
  • Compared to the prior quarter, revenue and gross profit were higher, with gross margin strengthening from improved. Versus the same quarter one year earlier, revenue and gross profit also increased, and gross margin was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

61.2%

Gross profit

$639.3M

Revenue

$1.0B

Cost of revenue

$405.8M

Quarter-over-quarter change

+1.2 pts

Year-over-year change

+2.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$925.9M$548.1M$377.8M59.2%
Jun 30, 2024$946.8M$565.7M$381.1M59.7%
Sep 30, 2024$954.5M$572.5M$382.1M60.0%
Dec 31, 2024$1.0B$639.3M$405.8M61.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

+1.2 pts

Year-over-year change

Dec 31, 2023

+2.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved versus both the preceding quarter and the year-ago quarter, driven by revenue growth outpacing the increase in cost of revenue. This resulted in a higher proportion of revenue converting to gross profit.

Compared to the prior quarter, revenue and gross profit were higher, with gross margin strengthening from improved. Versus the same quarter one year earlier, revenue and gross profit also increased, and gross margin was higher.

Monitor the trend of cost of revenue relative to revenue to assess whether the gross margin improvement can be sustained.