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Investing.com -- Siemens (ETR:SIEGn) Healthineers (ETR:SHLG) on Wednesday reported its third consecutive quarterly beat and raised its full-year forecast after reporting stronger-than-expected third-quarter results, supported by growth in its Imaging and Varian businesses and reduced tariff-related costs.
For the quarter ended June 30, revenue rose 7.6% on a comparable basis to €5.662 billion, from €5.423 billion in the prior-year period.
Adjusted EBIT increased 15% to €953 million, with the adjusted EBIT margin rising to 16.8% from 15.2%.
Net income grew 18% to €556 million, while adjusted basic earnings per share rose to €0.64 from €0.52. Free cash flow climbed 54% year over year to €844 million.
Imaging posted an 11.7% increase in comparable revenue to €3.24 billion. Adjusted EBIT for the segment rose to €680 million, with the margin improving to 21% from 20%.
Molecular Imaging and Computed Tomography were cited as primary growth drivers. Revenue increased across the Americas, China and Asia Pacific Japan, with moderate growth in the EMEA region.
Varian reported comparable revenue growth of 8.7% to €978 million. Adjusted EBIT increased 20% to €184 million, with the margin expanding to 18.8% from 16.6%.
Gains were attributed to volume growth, business mix, and positive currency effects. Revenue rose in all major regions except EMEA, which recorded a slight decline.
Diagnostics revenue declined 0.6% to €1.059 billion on a comparable basis. The segment saw adjusted EBIT rise to €97 million, with the margin improving to 9.2% from 7.4%, driven in part by cost reductions from a business transformation program.
Revenue grew in EMEA and the Americas, while China and Asia Pacific Japan declined. China was affected by centralized public procurement.
Advanced Therapies posted a 4.5% increase in comparable revenue to €484 million. Adjusted EBIT declined to €51 million from €66 million, and the margin fell to 10.5% from 13.9%, as revenue growth was offset by higher tariffs and negative currency effects.
The segment reported growth in Asia Pacific Japan, China and the Americas, with a high single-digit percentage decline in EMEA.
Regionally, comparable revenue rose 12% in the Americas, 9% in Asia Pacific Japan, 6% in China, and 1% in the EMEA region. The equipment book-to-bill ratio was 1.09, indicating that order intake exceeded revenue.
Siemens Healthineers raised its fiscal year 2025 outlook, now expecting comparable revenue growth of 5.5% to 6%, up from the previous range of 5% to 6%. Adjusted basic earnings per share is forecast to be between €2.30 and €2.45, compared with a prior range of €2.20 to €2.50.
Analysts at Jefferies described the quarter as a “clean beat,” noting that sales and EBIT came in 1% and 8% above estimates, respectively.
The brokerage flagged margin gains in Imaging, Varian and Diagnostics, as well as a one-time benefit in Diagnostics.
Jefferies estimated 8% to 10% order growth based on the book-to-bill ratio and noted a reduction in estimated tariff impact to €200–250 million from €250–300 million.
“Another strong print on FCF allows for net debt to EBITDA to pass below 3.0x, which should be warmly welcomed by investors,” Jefferies added.