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Investing.com -- Siemens (ETR:SIEGn) Healthineers (ETR:SHLG) on Thursday reaffirmed its financial outlook for fiscal year 2025 following a strong start, with net income rising by 11% in the first quarter.
The company reported a net income of €478 million, up from €432 million in the same period last year, supported by higher earnings contributions from its core operations.
Revenue increased by 5.7% on a comparable basis, reaching €5.48 billion, with notable growth in the Imaging and Varian segments.
Imaging revenue climbed 7.6% to approximately €3 billion, fueled by strong demand for computed tomography and molecular imaging solutions.
The Varian division, specializing in cancer care, also posted a solid 6.2% growth, generating nearly €1.0 billion in revenue.
Meanwhile, revenue in the Diagnostics and Advanced Therapies segments rose 1.6% and 5.1%, respectively.
The company’s adjusted earnings before interest and taxes grew by 11% to €822 million, resulting in an improved EBIT margin of 15.0%.
Siemens Healthineers attributed this to overall strong revenue development and cost reductions from its ongoing transformation initiatives.
Free cash flow surged to €810 million, more than tripling from the prior-year figure of €238 million.
Despite economic uncertainties, the company remains confident in its full-year projections. Siemens Healthineers expects comparable revenue growth of 5% to 6% for fiscal year 2025, with adjusted basic earnings per share forecasted between €2.35 and €2.50.
Regional performance was mixed, with strong revenue growth in the Americas and Asia-Pacific, while the EMEA region remained stable, and China faced a mid-single-digit revenue decline due to ongoing order delays.
The company’s equipment order intake continued to exceed revenue, with a book-to-bill ratio of 1.21, indicating sustained demand.