Siemens Healthineers ((DE:SHL)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Siemens Healthineers Q1 2025 Earnings Call Highlights Robust Growth Amid Challenges
Siemens Healthineers delivered a positive earnings call for the first quarter of 2025, showcasing strong financial performance and order intake. The company highlighted substantial growth across its segments and notable progress in transforming its Diagnostics unit. Despite these achievements, challenges persist in the Chinese market, and special items have affected the Imaging margin. The company remains optimistic about its future prospects, cautiously assessing potential risks such as tariffs.
Strong Revenue and Earnings Growth
Siemens Healthineers reported an impressive revenue growth of nearly 6% in Q1 2025, aligning well within its full-year guidance. The growth was attributed to an increase in adjusted earnings per share, driven by top-line growth and margin expansion.
Excellent Order Intake
The company achieved an equipment book-to-bill ratio of 1.21, indicating robust order intake across all business segments and markets. The Imaging and Varian segments were particularly strong contributors to this success.
Varian and Advanced Therapies Performance
Varian continued its impressive growth with a margin exceeding 17% in Q1. Advanced Therapies also demonstrated positive growth and margin stability, despite experiencing some quarterly volatility.
Diagnostics Segment Transformation
Significant progress was made in the transformation of the Diagnostics segment, achieving an 8% margin in Q1. This marks a noteworthy advancement in the segment’s ongoing restructuring efforts.
Record Free Cash Flow
Siemens Healthineers reported a remarkable increase in free cash flow, more than tripling year-over-year to reach €810 million. This improvement was largely driven by enhanced operating working capital.
Photon-Counting CT and Innovation Leadership
The expansion of the photon-counting CT fleet and the demonstration of innovation leadership at the RSNA conference further solidified Siemens Healthineers’ market position.
Imaging Margin Impacted by Special Items
The Imaging segment’s margin was negatively impacted by special items, including valuation impacts related to spare parts inventory and provisions, which reduced the margin by approximately 100 basis points.
Continued Challenges in China
While orders and revenue in China remained stable, they were at a low level, consistent with expectations of a high to mid-single-digit decline in the first half of the fiscal year.
Potential Impact of U.S. Tariffs
Siemens Healthineers anticipates minor impacts from potential U.S. tariffs on imports from Mexico, Canada, and China. However, the company acknowledges the risk of broader disruptions in the event of a global trade war.
Forward-Looking Guidance
The company reaffirmed its fiscal year 2025 guidance, expecting 5% to 6% comparable growth and adjusted EPS of €2.35 to €2.50. Despite potential tariff impacts, which are anticipated to be manageable, Siemens Healthineers remains committed to its growth targets.
In conclusion, Siemens Healthineers’ Q1 2025 earnings call reflected strong growth and strategic advancements across its segments. While challenges remain, particularly in China and the Imaging segment, the company’s optimistic outlook and solid financial performance provide a strong foundation for continued success.
