Siemens Healthineers again clearly increases revenue and margin in the third quarter

Original from: Siemens Healthineers

Siemens Healthineers AG today announces its results for the third quarter of fiscal year 2025 ended June 30, 2025.

Q3 Fiscal Year 2025

·  Good equipment book-to-bill ratio of 1.09

·  Very strong comparable revenue growth of 7.6%

·  Imaging shows excellent comparable revenue growth of 11.7%; adjusted EBIT margin 21.0%

·  Diagnostics posts slight comparable revenue decline of 0.6%; adjusted EBIT margin 9.2%

·  Varian comparable revenue growth 8.7%; adjusted EBIT margin 18.8%

·  Advanced Therapies comparable revenue growth 4.5%; adjusted EBIT margin 10.5%

·  Overall adjusted EBIT margin 16.8%, clearly above prior-year quarter

·  Free cash flow up by more than 50% from prior-year quarter to around €840 million

·  Adjusted basic earnings per share €0.64, clearly above prior-year quarter

Updated Outlook for Fiscal Year 2025

As a result of the latest geopolitical developments, in particular the agreements on trade tariffs, we narrow the ranges for comparable revenue growth and adjusted basic earnings per share in our outlook for fiscal year 2025. We also raise the midpoints of the ranges, mainly due to our performance year to date.

We now expect comparable revenue growth of between 5.5% and 6% over fiscal year 2024 (previously between 5% and 6%) and adjusted basic earnings per share of between €2.30 and €2.45 (previously between €2.20 and €2.50).

Bernd Montag, CEO of Siemens Healthineers AG:

”We had a very good quarter with high revenue growth, another increase in profitability and strong free cash flow. Therefore we are raising the midpoints of our outlook. While volatility in the geopolitical environment remains high, our performance shows the value of our healthcare innovations for more and more patients around the world.”

Revenue rose by 7.6% on a comparable basis in the third quarter of fiscal year 2025 to just under €5.7 billion. The Imaging and Varian segments, in particular, contributed to this very strong revenue development.

From a geographical perspective, comparable revenue growth was significant in the Americas and very strong in the Asia Pacific Japan region. Against the backdrop of a significant revenue decline in the prior-year quarter, the China region achieved strong growth. The EMEA region posted a slight increase in revenue, after strong growth in the prior-year quarter.

Equipment order intake in the third quarter clearly exceeded equipment revenue. The equipment book-to-bill ratio was good, at 1.09.

Adjusted EBIT rose by 15% to €953 million in the third quarter from the prior-year period. This resulted in an adjusted EBIT margin of 16.8%, also clearly higher than in the prior-year quarter. The negative effects from higher trade tariffs, which had an impact on all segments, were more than offset by contributions from very strong revenue development, cost reductions in connection with the transformation program of the Diagnostics business, and a more favorable business mix than in the previous year.

Net income was €556 million, up 18% year-over-year. The tax rate was 24%, higher than the tax rate in the prior-year quarter.

Adjusted basic earnings per share of €0.64 were clearly higher than the prior-year figure of €0.52. The increase was attributable to higher earnings contributions from the operating business, as well as higher financial income, in particular due to the positive change in the fair market valuation of an investment.

Free cash flow of €844 million was more than 50% higher than in the prior-year quarter.

Outlook

As a result of the latest geopolitical developments, in particular the agreements on trade tariffs, we narrow the ranges for comparable revenue growth and adjusted basic earnings per share in our outlook for fiscal year 2025. We also raise the midpoints of the ranges, mainly due to our performance year to date.

We now expect comparable revenue growth of between 5.5% and 6% over fiscal year 2024 (previously between 5% and 6%).

For adjusted basic earnings per share, we now assume a range of between €2.30 and €2.45 (previously between €2.20 and €2.50).

The outlook is based on several assumptions. This includes the expectation that the current macroeconomic environment, including the regulations with regards to trade tariffs currently in force and planned for implementation as well as the interest rate level, will remain largely unchanged.

In addition, the outlook is based on assumptions about exchange rate developments, which currently lead to a slightly negative currency effect on the expected adjusted basic earnings per share for fiscal year 2025 compared with fiscal year 2024.

Furthermore, this outlook excludes potential portfolio measures. The outlook is based on the number of shares outstanding at the end of fiscal year 2024. This outlook also excludes additional charges from legal, tax and regulatory issues and framework conditions.

Source: Siemens Healthineers again clearly increases revenue and margin in the third quarter