Q4 2025 Varex Imaging Corp Earnings Call Transcript
Key Points
- Varex Imaging Corp (VREX) reported a strong finish to the year with fourth-quarter revenue of $229 million, up 11% year over year, reaching the high end of their guidance.
- The Industrial segment posted its highest revenue quarter ever at $77 million, driven by strong demand for security inspection systems and components.
- Non-GAAP gross margin in the fourth quarter was 34%, above the high end of guidance, benefiting from higher volume and favorable product sales mix.
- Non-GAAP earnings per share in the fourth quarter was $0.37, up $0.21 compared to last year, indicating strong profitability growth.
- Varex Imaging Corp (VREX) advanced key growth initiatives, including the introduction of innovative technologies like Photon Counting for CT and expansion in India, which are expected to drive future growth.
- The company ended the year with $155 million in cash, cash equivalents, and marketable securities, down from $213 million last year, primarily due to debt retirement.
- Operating expenses increased by $94 million compared to fiscal year 2024, driven by a noncash goodwill impairment charge.
- The Medical segment saw some softness, with oncology modality sales below their sales trend.
- The geopolitical situation has led to challenges in maintaining consistency between China and ex-China sales within the Medical segment.
- Tariffs continue to impact gross margins, with an estimated negative effect of 100 to 150 basis points.
Greetings, and welcome to the Varex fourth-quarter fiscal year 2025 earnings conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded.
It's now my pleasure to turn the call over to Christopher Belfiore, Director of Investor Relations. Please go ahead, sir.
Good afternoon, and welcome to Varex Imaging's earnings conference call for the fourth quarter and fiscal year 2025. With me today are Sunny Sanyal, our President and CEO; and Sam Maheshwari, our CFO.
Please note that the live webcast of this conference call includes a supplemental slide presentation that can be accessed at Varex's website at vareximaging.com. The webcast and supplemental slide presentation will be archived on Varex's website.
To simplify our discussion, unless otherwise stated, all references to the quarter are for the fourth quarter of fiscal year 2025 and to the year are for fiscal year 2025. In addition, unless otherwise stated, quarterly
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