Catherine Schulte

Management outlined multiple conservative assumptions: no A&G/drug discovery recovery, mid-single-digit China (vs 9% actual), chemistry at 6% (vs 12% actual), Empower headwinds baked in, no reshoring revenue.

CFO described low single-digit Q1 decline improving through the year as headwinds enter baseline, particularly China DRG in Q3-Q4.

CFO noted A&G trends in line with their 40% U.S. A&G decline assumption; cited Wyatt integration resilience as precedent for adaptation.

CFO explained Q4 chemistry guide reflects standard 7% assumption with Q2 pull-forward payback adjustment, not carrying Q3 momentum.

Management attributed 100bps of 180bps gap to pricing (fixable with BACTEC launch) and 80bps to operational initiatives.

CFO noted instrument replacement mostly biosciences while e-commerce and service attach spread across both businesses.

Management assumed low single-digit China growth for balance of year despite 5% Q1, with stimulus wins as upside.

Management said reshoring is early days with no detailed plans from customers yet; not included in guidance.

Management characterized Q4 pharma budget flush as normalizing to pre-pandemic patterns.

CFO noted 55% is a good target with progress being made in remaining areas like China, and pivoting to lead generation.

Shawn declined specifics on the funnel but said orders are being pushed out, not cancelled, supporting H2 confidence.

Patrick attributed chemical softness to higher energy costs from the Ukraine and Middle East conflicts pressuring customer investment.

Shawn confirmed mid-to-high single digit service growth for Q1 and FY2026. Q1 more mid-single digit organic with acquisition benefit. Service reached $1 billion milestone. Currently penetrating ~1/3 of $3 billion serviceable installed base.

Shawn noted industrial had strong Q4 growth in China with more positive energy from team. Pharma end market improving while chemical under pressure. Both lab and industrial expected low single digit for 2026. Long-term optimistic on China 5-year plan and GLP-1 investments.

Shawn confirmed $250M US imports from Europe/ROW with significant Swiss portion but declined to break down individual countries beyond China and Mexico.

Shawn confirmed buyback assumptions unchanged at $875M for year. MTD does not try to time the market on repurchases.

Patrick dismissed other policy risks, framing uncertainty as opportunity for agile companies like MTD to gain market share.

Patrick confirmed confidence in high-end service growth, citing new acceleration program, broader portfolio, and larger installed base addressable market.

Max confirmed cost actions completing by end of Q2 2026 will provide annualization benefit in H1 2027, supporting robust margin expansion. 28.4% is new baseline exiting 2026.

Prahlad confirmed no other significant pruning needed. Active M&A pipeline for tuck-ins to fill portfolio gaps. Share buyback remains biggest capital deployment opportunity.

Max detailed extra week: ~100bps OG tailwind in Q1 (~20bps full year), mostly from LS reagents extra selling days. Margin headwind from extra week of labor costs. ~$0.06 EPS headwind in Q1. Organic growth expected relatively consistent 2-3% each quarter.

Max directed to midpoint math implying 2-3% Q4 organic growth.

Max reported US academic and government down mid-single digits in Q3. Government shutdown impact baked into Q4 guidance primarily on the reagent side, described as modest.

Max provided clear breakdown: 75-80% supply chain/manufacturing, remainder split between supplier changes, selective pricing, and belt-tightening.

Max noted TB business is predominantly outside US, so immigration policy impact would not be material.

Prahlad maintained balanced assumption of steady 3-5% throughout the year, not committing to H2 acceleration.

Jim noted no observable change in academic purchasing behavior despite the government shutdown. Encouraged by continued academic stabilization even through the shutdown period.

Jim explained H2 improvement is primarily from easier comps as these customers ordered less in the prior-year second half. Not assuming much buying from these two programs, but headwind will be less severe. Kim added customers will need to validate manufacturing processes.

Jim noted RUO reagent performance was relatively comparable across biopharma and academic, slightly stronger in Europe, with US and Europe growth totals within a point or two of each other.

Jim noted growth was relatively comparable between instruments and reagents in China at low single digit declines, expecting similar pattern as region turns positive in Q3.

Management attributed food decline to delayed government spending in Asia while Americas and Europe grew together in high single digits. Guide lowered to low single digit decline due to China stimulus comp headwind and Middle East conflict pressure on food testing.

Padraig quantified China dynamics: -700bps from reduced stimulus offset by +800bps favorable Lunar New Year timing. Q2 will see meaningful negative Lunar New Year impact with tougher comp. Balances out across quarters. Direct.

Jacob cited strong MiSeq i100 momentum (>1,000 placements) in low-throughput and continued macro-driven softness in mid-throughput that should recover with the research market.

Jacob and Ankur noted research volumes largely transitioned to X and GBs still grew, though below the 30% rate, with the funding environment keeping demand muted.