Siemens Healthineers Chief Financial Officer Jochen Schmitz said at the recent annual press conference that the strong operational performance is continuing. However, he added that "at the same time we expect profit growth in the 2025/2026 financial year to be offset by the current macroeconomic challenges.“ Taking these headwinds into account, he expects adjusted earnings per share of between 2.20 and 2.40 euros.

At the same time, Schmitz emphasised that "we assume that our growth path will continue this year.“ On a comparable basis, revenue in the current period is expected to rise by between 5 and 6 percent after 5.9% in the previous year. Siemens Healthineers will present its medium-term targets at its capital markets day on November 17, CEO Bernd Montag announced.

Schmitz pointed out that the medical technology sector as a whole is under pressure on the stock market. Montag said that a decision by Siemens AG regarding its shareholding in Healthineers could support the share price. Siemens holds around 70% of the company and is expected to soon announce whether it will gradually sell shares up to the point of deconsolidation. „It is an advantage that we could become more attractive for new investors,“ said Montag. He has in mind long term investors with large investment volumes.

A company like Siemens Healthineers also requires a high degree of independence in its external positioning, Montag added. However, operational decisions were not influenced by Siemens AG. Schmitz explained that in the event of deconsolidation, Siemens Healthineers would gradually refinance itself through banks instead of Siemens AG. He said this does not concern him. However, he noted to analysts that the acquisition of Varian had been financed during a very low interest-rate environment. A total of 3.4 billion euros must be refinanced in the current and next financial year.

Schmitz said the expectation of stable earnings despite higher operating profitability is mainly due to two factors. The strong euro, particularly against the dollar, reduces earnings by 0.15 euros per share. Even stronger is the impact of tariffs, which reduced comparable net income by 200 million euros last year. This year the effect will be 400 million euros. The additional 200 million euros corresponds to another reduction of 0.15 euros per share. All tariff figures are net after mitigating factors such as price adjustments.

Schmitz said the impact of tariffs would gradually decline after 2025/2026. Over the medium term, the effects will be fully offset. There are three levers to achieve this: pricing, cost control and shifting value creation. Pricing changes will take effect only with a delay relative to revenue development. If this together with cost control is not sufficient, the company will consider shifting parts of production. „We are evaluating the options we have,“ said Schmitz, referring to the repeatedly changing tariff environment in the United States.

Schmitz also noted that revenue growth in China is expected to stagnate. Customers have been holding back orders for more than two years due to corruption investigations and centralized procurement. Comparable revenue in China fell by 1% to 2.5 billion euros in the past year, and by 3% in the fourth quarter alone.

CEO Montag acknowledged that Siemens Healthineers underestimated how long the market realignment in China would take. The company will only return to growth forecasts when it sees reliable signals. Over the medium term, growth in China is expected to return to mid to high single-digit rates. Siemens Healthineers remains the market leader, while international competitors are losing share and local suppliers have gained share with aggressive pricing.

By segment, Siemens Healthineers expects the strongest growth from Varian in 2025/2026, with high single digit sales growth. Imaging and Advanced Therapies are expected to grow in the mid single digits, while Diagnostics will stagnate. Margins are expected to rise slightly in Diagnostics, fall slightly in Imaging, and decline more noticeably in Advanced Therapies. The Varian margin is expected to remain unchanged.

Montag said the company finished the past financial year successfully despite a challenging environment. The adjusted EBIT margin increased by about 0.8 percentage points to 16.5%. Tariffs reduced earnings by 0.12 euros per share. The Imaging segment margin fell by 0.4 percentage points to 20.7%. The dividend is to increase from 0.95 to 1.00 euros per share.

Revenue growth was strong at 5.9%. Imaging rose by 8.5% and Varian by 6.9%. Diagnostics rose by only 0.4%.

For the first quarter of the new year, Schmitz expects a subdued start. Comparable revenue growth will be below the full year target of 5 to 6%. Imaging and Varian are expected to meet their targets, while Diagnostics and Advanced Therapies will be weaker. Margins will be lower year on year due to currency and tariff effects.