Latest news with #GNGBF
Yahoo
4 days ago
- Business
- Yahoo
Getinge AB (GNGBF) Q2 2025 Earnings Call Highlights: Strong Organic Growth and Margin ...
Organic Net Sales Growth: 4.1% in Q2 2025. Order Intake Growth: 4.4% organically. Recurring Revenue: 65% of total sales. High Margin Products: Comprise about 2/3 of sales. Adjusted Gross Profit: SEK4.183 billion. Gross Margin Increase: Up by 0.8 percentage points. Adjusted EBITDA: SEK989 million, margin improved by 0.2 percentage points to 12%. Tariff Costs: Approximately SEK110 million in Q2. Free Cash Flow: SEK0.5 billion in Q2. Net Debt: SEK11.7 billion, leverage at 1.7 times adjusted EBITDA. Cash Position: Approximately SEK1.9 billion at the end of Q2. 2025 Outlook: Organic net sales growth expected to be 2% to 5%. Warning! GuruFocus has detected 6 Warning Signs with GNGBF. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Getinge AB (GNGBF) reported a solid quarter with net sales growing by 4.1% organically, driven by positive development across all business areas and regions. The company achieved a significant increase in sales from recurring revenue, now at 65%, and high-margin products make up about two-thirds of sales. Adjusted gross and EBITDA margins improved due to acquisitions, healthy price increases, and a positive mix, despite tariffs and currency headwinds. The financial position remains strong with financial leverage well below 2.5 times EBITDA, even after the acquisition of Paragonix. Getinge AB (GNGBF) continues to invest in new products and solutions, such as the Servo-c ventilator with neonatal options and the Zen disinfection chemistry portfolio, enhancing its market offerings. Negative Points Tariffs and currency fluctuations negatively impacted the EBITDA margin, with tariffs costing approximately SEK110 million in the second quarter. The Life Science segment experienced softer performance due to high comparative figures from the previous year. There are ongoing elevated costs related to quality improvements, particularly in the balloon pump and cardiopulmonary categories. The company faces challenges in maintaining market share in certain categories, such as intra-aortic balloon pumps, due to restrictions on actively selling and marketing these products. Despite positive trends, the company anticipates more difficult comparisons in the second half of the year, particularly in ventilator sales. Q & A Highlights Q: Can you explain the implications of tariffs and FX on your long-term guidance and whether you've found new mitigation strategies? A: Our long-term guidance is based on the current tariff situation. We haven't found new mitigation strategies but are utilizing existing productivity improvements and regional supply chain strategies. The impact of tariffs and FX is significant, but we are managing it within our existing frameworks. - Mattias Perjos, CEO Q: What are your current assumptions regarding EU tariffs, and how do you expect them to impact your full-year results? A: We currently assume a 10% EU tariff for the full year. If tariffs increase, we would need to recalibrate our calculations. We don't provide specific guidance on future tariffs or FX impacts. - Agneta Palmer, CFO Q: How is the demand for ventilators expected to evolve, and can you disclose the number of ventilators you anticipate selling this year? A: Ventilator demand remains strong, but we expect more challenging comparisons in the second half of the year. We do not disclose specific sales numbers for ventilators. - Mattias Perjos, CEO Q: Could you provide more details on the tariff payments and their regional impact? A: Tariff payments began in the second half of April, primarily affecting EU to US flows. We have taken measures to manage our supply chain in response to these tariffs. - Agneta Palmer, CFO Q: What is driving the positive development of Paragonix, and can you provide any margin details? A: The margin expansion for Paragonix is volume-driven, and it is now accretive to group margins. The growth is supported by a successful product portfolio, including the KidneyVault launch. - Mattias Perjos, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Inicia sesión para acceder a tu portafolio
Yahoo
4 days ago
- Business
- Yahoo
Schindler Holding AG (SHLAF) (H1 2025) Earnings Call Highlights: Navigating Growth and Challenges
Order Growth: Over 5% in local currencies, with modernization business growing 22% in the first half. Revenue Growth: Muted, but backlog up 4% in local currencies. Operating Margin: 12.3% for the first half of 2025. Operating Cash Flow: CHF703 million in the first half, up from last year. EBIT Margin: Reported EBIT margin at 12.6%, adjusted EBIT margin at 13.5%. Net Profit: CHF531 million for the first half of 2025. Backlog Growth: Up 3.8% in local currency, driven by modernization and service. Guidance: Low single-digit revenue growth in local currency and a reported EBIT margin of 12% for full year 2025. Warning! GuruFocus has detected 6 Warning Signs with GNGBF. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Schindler Holding AG (SHLAF) reported over 5% order growth in local currencies, with a significant 22% growth in their modernization business. The company achieved a strong operating margin of 12.3% for the first half of 2025, supported by SG&A efficiency initiatives and robust procurement and supply chain operations. Operating cash flow was strong at CHF703 million, up from last year's levels, indicating solid financial health. The new US mid-rise product launch received overwhelmingly positive customer feedback, with successful initial installations. Modernization markets are projected to experience continued growth worldwide, with double-digit growth in China due to government programs facilitating upgrades. Negative Points Revenue growth was muted due to a steep decline in new installations in China, which fell by almost 30% in the quarter. Currency headwinds are impacting Schindler Holding AG (SHLAF) as the Swiss franc strengthens, posing challenges to financial performance. The company faces external headwinds from tariffs, with a gross impact estimated at approximately CHF20 million, which may not be fully offset in 2025. The global new installations market is anticipated to decline by high single digits, mainly due to a low-teens contraction in China. The company has increased its restructuring charges for 2025 to CHF70 million, up from the prior view of CHF50 million, impacting reported EBIT margins. Q & A Highlights Q: Could you elaborate on the margin improvement in the quarter and the factors driving it? A: Carla De Geyseleer, CFO, explained that the margin improvement was due to operational efficiencies, particularly from SG&A cost reductions and procurement savings. There were no nonrecurring items, and the improvements are expected to continue as more efficiency initiatives take effect. Q: Can you discuss the modernization business and its impact on group margins? A: Paolo Compagna, CEO, noted that modernization is a growing business line and is included in efficiency measures. While modernization margins are currently below group average, they are improving and contributing positively to overall profitability. Q: What is the outlook for the China market, particularly regarding new installations and service growth? A: Paolo Compagna stated that the new installation market in China remains challenging, with no significant short-term growth expected. However, the service market is expected to continue growing at a significant level due to the large installed base. Q: How do you view the competitive landscape, particularly regarding independent service providers (ISPs)? A: Paolo Compagna mentioned that ISPs are visible in some markets, especially in service and modernization. In certain regions, midsized ISPs are increasingly present, but Schindler continues to focus on its strengths in these areas. Q: Can you provide more details on the restructuring efforts in China and their expected impact? A: Carla De Geyseleer highlighted that restructuring in China is focused on realigning the organization to better capture opportunities in modernization and service. This includes streamlining leadership and adjusting the organizational structure to improve efficiency and margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Getinge AB (GNGBF) Q2 2025 Earnings Call Highlights: Strong Organic Growth and Margin ...
Organic Net Sales Growth: 4.1% in Q2 2025. Order Intake Growth: 4.4% organically. Recurring Revenue: 65% of total sales. High Margin Products: Comprise about 2/3 of sales. Adjusted Gross Profit: SEK4.183 billion. Gross Margin Increase: Up by 0.8 percentage points. Adjusted EBITDA: SEK989 million, margin improved by 0.2 percentage points to 12%. Tariff Costs: Approximately SEK110 million in Q2. Free Cash Flow: SEK0.5 billion in Q2. Net Debt: SEK11.7 billion, leverage at 1.7 times adjusted EBITDA. Cash Position: Approximately SEK1.9 billion at the end of Q2. 2025 Outlook: Organic net sales growth expected to be 2% to 5%. Warning! GuruFocus has detected 6 Warning Signs with GNGBF. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Getinge AB (GNGBF) reported a solid quarter with net sales growing by 4.1% organically, driven by positive development across all business areas and regions. The company achieved a significant increase in sales from recurring revenue, now at 65%, and high-margin products make up about two-thirds of sales. Adjusted gross and EBITDA margins improved due to acquisitions, healthy price increases, and a positive mix, despite tariffs and currency headwinds. The financial position remains strong with financial leverage well below 2.5 times EBITDA, even after the acquisition of Paragonix. Getinge AB (GNGBF) continues to invest in new products and solutions, such as the Servo-c ventilator with neonatal options and the Zen disinfection chemistry portfolio, enhancing its market offerings. Negative Points Tariffs and currency fluctuations negatively impacted the EBITDA margin, with tariffs costing approximately SEK110 million in the second quarter. The Life Science segment experienced softer performance due to high comparative figures from the previous year. There are ongoing elevated costs related to quality improvements, particularly in the balloon pump and cardiopulmonary categories. The company faces challenges in maintaining market share in certain categories, such as intra-aortic balloon pumps, due to restrictions on actively selling and marketing these products. Despite positive trends, the company anticipates more difficult comparisons in the second half of the year, particularly in ventilator sales. Q & A Highlights Q: Can you explain the implications of tariffs and FX on your long-term guidance and whether you've found new mitigation strategies? A: Our long-term guidance is based on the current tariff situation. We haven't found new mitigation strategies but are utilizing existing productivity improvements and regional supply chain strategies. The impact of tariffs and FX is significant, but we are managing it within our existing frameworks. - Mattias Perjos, CEO Q: What are your current assumptions regarding EU tariffs, and how do you expect them to impact your full-year results? A: We currently assume a 10% EU tariff for the full year. If tariffs increase, we would need to recalibrate our calculations. We don't provide specific guidance on future tariffs or FX impacts. - Agneta Palmer, CFO Q: How is the demand for ventilators expected to evolve, and can you disclose the number of ventilators you anticipate selling this year? A: Ventilator demand remains strong, but we expect more challenging comparisons in the second half of the year. We do not disclose specific sales numbers for ventilators. - Mattias Perjos, CEO Q: Could you provide more details on the tariff payments and their regional impact? A: Tariff payments began in the second half of April, primarily affecting EU to US flows. We have taken measures to manage our supply chain in response to these tariffs. - Agneta Palmer, CFO Q: What is driving the positive development of Paragonix, and can you provide any margin details? A: The margin expansion for Paragonix is volume-driven, and it is now accretive to group margins. The growth is supported by a successful product portfolio, including the KidneyVault launch. - Mattias Perjos, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
