Getinge (GETI) Q2 2025 earnings summary

Executive summary

• Achieved 4.1% organic net sales growth and 4.4% order intake growth in Q2, with positive development across all business areas and regions.

• Margin improvements driven by acquisitions, pricing, and product mix, despite significant headwinds from tariffs and FX.

• Financial position remains robust, with leverage well below internal thresholds and improved free cash flow.

• Paragonix contributed positively to group margins and EBITA earlier than expected, supported by successful product launches.

• Continued focus on recurring revenue, high-margin products, and quality improvements, with recurring revenue now at 65% of sales.

Financial highlights

• Adjusted gross margin increased to 50.8% in Q2 2025 (up from 50.0%); adjusted gross profit reached SEK 4,183M.

• Adjusted EBITA/EBITDA margin improved to 12.0%–14.2% year-over-year; adjusted EBITA reached SEK 989M.

• Free cash flow was SEK 510M–0.5B in Q2, up 76% year-over-year, positively impacted by working capital changes.

• Net debt/EBITDA at 1.4x–1.7x, well below the 2.5x target.

• Currency effects and tariffs negatively impacted margins, with SEK 110M in tariff costs absorbed in Q2.

Outlook and guidance

• 2025 organic net sales growth expected in the range of 2% to 5%, unchanged from previous guidance.

• Long-term target of at least 12% adjusted EPS CAGR for 2024–2028 reaffirmed, despite tariff and FX impacts.

• No significant change in margin guidance; productivity improvements and cost mitigation expected to offset headwinds.

• Management maintains a positive outlook for the remainder of 2025, despite elevated geopolitical risks.