Oil prices steady near 1-mth high on US-Iran sanctions; OPEC+ meeting awaited
Introduction & Market Context
Medistim ASA (OB:MEDI) continued its growth trajectory in the second quarter of 2025, building on the momentum established in Q1. The company’s stock is currently trading at 230 NOK, up 2.22% and approaching its 52-week high of 240 NOK, reflecting investor confidence in the company’s performance and strategic direction.
Following a stellar first quarter that saw a 17.85% stock price surge after reporting 35.7% revenue growth, Medistim has maintained strong performance in Q2, albeit at a more moderate pace. The company’s long-term track record shows consistent growth in sales, profits, and dividends over nearly two decades.
As shown in the following chart of Medistim’s historical performance:
Quarterly Performance Highlights
Medistim reported Q2 2025 revenue of 169.1 MNOK, representing a 16.7% increase compared to Q2 2024. More impressively, operating profit (EBIT) reached 54.1 MNOK, a substantial 31.2% year-over-year improvement. Currency effects had minimal impact, contributing just 1.0% to the results.
The quarterly performance data is illustrated in this slide:
For the first half of 2025, Medistim’s results were even more robust, with revenue of 350.6 MNOK (+25.8% YoY) and EBIT of 113.3 MNOK, representing a remarkable 54.5% increase compared to H1 2024. This performance builds on the company’s strong Q1 results, where revenue grew by 35.7% and EPS increased by 78%.
The half-year performance metrics are detailed here:
Detailed Financial Analysis
Medistim maintained impressive profitability metrics in Q2 2025, with a gross margin of 81.9% and an EBIT margin of 32.0%. For the first half of 2025, these figures improved slightly to 82.5% and 32.3%, respectively, demonstrating the company’s ability to maintain high margins while growing revenue.
The company’s balance sheet remains strong with an equity share of 71.7% and cash and cash equivalents of 96,351 MNOK at the end of the period. Earnings per share reached 2.35 NOK, continuing the positive trend seen in Q1 2025.
A key strength in Medistim’s business model is its high proportion of recurring revenue, which accounts for 76% of total revenue on a last twelve months basis. This provides stability and predictability to the company’s financial performance.
The breakdown of recurring versus capital revenue is shown here:
Geographic and Product Performance
Medistim’s growth strategy includes geographic diversification, with operations across the Americas, Asia-Pacific (APAC), and Europe, Middle East, and Africa (EMEA). The United States remains a crucial market for the company, with continued growth in both capital sales and procedural revenue.
The geographic sales breakdown reveals balanced growth across regions:
Particularly noteworthy is the strong performance in the vascular surgery segment, which saw a 40.9% increase, significantly outpacing the overall company growth rate. This highlights Medistim’s successful expansion beyond its traditional cardiac surgery focus.
The product segment breakdown is illustrated in this slide:
Further analysis of sales by product type shows healthy growth across both flow and imaging products:
Strategic Initiatives
Medistim’s management emphasized that now is "the perfect time to strengthen our commercial efforts," signaling increased investment in sales and marketing activities. The company has outlined four strategic imperatives focusing on commercial excellence, innovation, operational efficiency, and organizational development.
The strategic framework is detailed here:
To execute this strategy, Medistim has reorganized its commercial operations by region, with dedicated leadership for the Americas, APAC, and EMEA markets. This structure aims to accelerate growth and market penetration across diverse geographic regions.
The commercial operations structure is illustrated in this slide:
Forward-Looking Statements
While Medistim’s presentation focused primarily on positive results and growth opportunities, investors should note some potential challenges mentioned in previous communications. The Q1 earnings report highlighted potential margin pressure from new US tariffs, which could impact profitability in the American market.
The company’s slogan, "One team. Bold Moves. Excellence redefined," reflects its ambitious growth strategy. With the stock trading near its 52-week high, market expectations remain elevated, and the company will need to maintain its growth trajectory to justify current valuations.
Medistim’s continued investment in commercial operations and product innovation, combined with its strong recurring revenue base and healthy margins, positions the company well for sustained growth. However, investors should monitor the impact of potential tariffs and competitive pressures, particularly in the strategically important US market.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.