Siemens Healthineers AG (SMMNY) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and ...

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08-05-2025

Q : Can you provide more color on the impact of tariffs, specifically the EUR0.15 impact you mentioned? A : The biggest impact is from imports into the US from Europe. The impact from the US into China is limited to selective parts of our portfolio, with some exemptions currently in place. The gross and net impact range is between EUR200 million and EUR300 million, with mitigation measures accounting for the EUR100 million delta. (Jochen Schmitz, CFO)
The company had to lower the bottom end of its EPS outlook range due to new tariffs and a rapidly changing global trade environment.
Siemens Healthineers AG ( SMMNY ) entered into its largest ever value partnership worth CAD800 million with the provincial government of Alberta, Canada, enhancing its position in cancer care.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
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Q: Regarding Varian, you previously guided for a margin improvement, but the first half performance was weaker. Can you explain the drivers and outlook for the second half? A: The first half was impacted by an unfavorable mix, particularly a high equipment share, which affected profitability. However, we expect margins to improve in the second half based on our backlog and anticipated shipments. (Jochen Schmitz, CFO)
Q: Does the upper end of the EPS guidance range reflect any impact from tariffs? A: The upper end of EUR2.50 does not include tariff impacts. The midpoint of the new range, EUR2.35, reflects the EUR0.15 impact from tariffs. The upper range remains unchanged, depending on the success of mitigation measures. (Jochen Schmitz, CFO)
Q: How is the situation evolving in China, particularly regarding orders and demand? A: The market remains on lower levels due to the anticorruption campaign, with no significant improvement in demand. The stimulus program and pent-up demand have not yet led to a visible market uptick. (Bernhard Montag, CEO)
Q: Have the new Photon counting devices received FDA clearance, and how is the order intake expected to be impacted? A: We are pleased with the progress of Photon counting CT devices, which are generating strong interest. We do not see changes in customer demand, and we expect the equipment book-to-bill to remain above 1.1 for the full year. (Bernhard Montag, CEO)
Q: Can you provide an update on the Atellica analyzer rollout and the impact of VBP in China? A: The Atellica franchise continues to grow above 20%, now comprising about 55% of CLS business revenues. In China, VBP impacts growth and margins, but the Atellica rollout is progressing well, contributing positively to margins. (Bernhard Montag, CEO)
Q: How significant was the Alberta value partnership to the book-to-bill numbers, and what is the booking schedule over the contract's life? A: Without Alberta, the book-to-bill ratio would still be above 1. The partnership is an 8-year agreement, with significant volume expected initially, then spreading over time. (Jochen Schmitz, CFO)
Q: Are you seeing any changes in pricing dynamics due to tariffs, and have you been able to pass on tariff surcharges to clients? A: We are cautious with pricing as a mitigation measure. While pricing can influence our guidance range, we manage it carefully to maintain market share and customer relationships. (Jochen Schmitz, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.