Q2 2025 Getinge AB Earnings Call Transcript
Key Points
- Getinge AB (GNGBF) reported a solid quarter with net sales growing by 4.1% organically, driven by positive development across all business areas and regions.
- The company achieved a significant increase in sales from recurring revenue, now at 65%, and high-margin products make up about two-thirds of sales.
- Adjusted gross and EBITDA margins improved due to acquisitions, healthy price increases, and a positive mix, despite tariffs and currency headwinds.
- The financial position remains strong with financial leverage well below 2.5 times EBITDA, even after the acquisition of Paragonix.
- Getinge AB (GNGBF) continues to invest in new products and solutions, such as the Servo-c ventilator with neonatal options and the Zen disinfection chemistry portfolio, enhancing its market offerings.
- Tariffs and currency fluctuations negatively impacted the EBITDA margin, with tariffs costing approximately SEK110 million in the second quarter.
- The Life Science segment experienced softer performance due to high comparative figures from the previous year.
- There are ongoing elevated costs related to quality improvements, particularly in the balloon pump and cardiopulmonary categories.
- The company faces challenges in maintaining market share in certain categories, such as intra-aortic balloon pumps, due to restrictions on actively selling and marketing these products.
- Despite positive trends, the company anticipates more difficult comparisons in the second half of the year, particularly in ventilator sales.
Welcome to the Getinge, the Q2 report 2025 presentation. (Operator Instructions) Now I will hand the conference over to the speaker, CEO, Mattias Perjos, and CFO, Agneta Palmer. Please go ahead.
Welcome everyone to today's call. This is Mattias Perjos. With me, I have our CFO, Agneta Palmer. In today's conference, we'll first look into our performance in the second quarter of 2025 and then also talk a bit about the current market situations and our expectations for 2025. So we can move directly over to page number 2, please.
And I wanted to start with a quick repetition of our overall ambitions and how to get there. And as you already know, our financial targets for 2024 to 2028 is to have a -- at least 12% adjusted EPS growth on average.
We believe we have a study that is well crafted to get us to this goal. It's really based on our market positions and leading categories and the strength that we have in the different key geographies, globally as well.
And
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