Getinge (GETI) Q1 2025 earnings summary

Executive summary

• Net sales grew 10.7% year-over-year, with 6.2% organic growth and order intake up 7.1% (2.9% organic), driven by Acute Care Therapies and strong Americas performance.

• Margins improved due to higher volumes, acquisitions, pricing, and favorable product mix, despite currency headwinds.

• Financial leverage returned to last year's level, with net debt/adjusted EBITDA at 1.4x (1.1x excluding pensions), maintaining a solid financial position post-acquisition.

• Sustainability and quality KPIs improved, with fewer regulatory findings, reduced field corrections, and a lower CO2 footprint from increased renewable energy use.

• Recent product launches, including KidneyVault and DPTE-FLEX Alpha-Port, received positive feedback and supported expansion initiatives.

Financial highlights

• Adjusted gross profit rose to SEK 4,337 million, with gross margin up to 52.1% (from 51.3%), mainly from Acute Care Therapies.

• Adjusted EBITDA reached SEK 1,003 million, with margin up to 12.1% (up one percentage point year-over-year).

• Free cash flow decreased to SEK 160 million, impacted by inventory increases, restructuring costs, and timing of receivables.

• Net debt at quarter-end was SEK 9,731 million, with leverage at 1.4x adjusted EBITDA (1.1x excluding pensions).

• Adjusted EBITA margin improved to 14.1% (from 12.1% in Q1 2024).

Outlook and guidance

• 2025 organic net sales expected to increase by 2–5%, unchanged from previous guidance.

• Margin improvements anticipated from product mix and operational efficiency.

• Long-term EBITDA margin target remains 16–19% by 2028; short-term margin guidance withheld due to market uncertainties.

• Priorities for 2025 include quality in Acute Care Therapies, sustainable productivity, and cost control amid geopolitical uncertainty.

• Recent acquisitions expected to contribute about 2% to growth.