Why Johnson & Johnson Could Be a Safe Long-Term Bet for Your Portfolio?
Johnson & Johnson reported Q1 FY2025 revenue of $21.893 billion, reflecting a 2.4% year-over-year increase and modestly surpassing the consensus estimate of $21.56 billion. The company maintained a stable operating margin of approximately 28.3%, broadly in line with Q1 FY2024. On a non-GAAP basis, adjusted EPS came in at $2.77, marking a 2.2% increase from the prior year and exceeding the Street's expectation of $2.56. While core profitability remained steady, GAAP net income and margins saw an exceptional spikenet margin surged from approximately 15% in the prior-year quarter to nearly 50% in Q1 FY2025. This increase was primarily driven by significant one-time accounting adjustments, including the reversal of talc-related litigation accruals, which materially inflated bottom-line results on a GAAP basis.
We maintain a constructive near-term view on Johnson & Johnson (NYSE:JNJ), supported by steady fundamentals across its core Pharmaceutical and MedTech businesses, offset by residual headwinds from FX and litigation risks. For FY2025, management guides for organic sales growth of 33.5% (vs. 3.2% in FY2024) and adjusted EPS of $10.6010.70 (+6% y/y at midpoint).
Pharmaceuticals (55% of sales) remain the primary growth driver, with mid-single-digit growth projected. Key contributors include Darzalex (+20% y/y), Tremfya (+18%), and Stelara (+8%), supported by market share gains in immunology and oncology. Pipeline catalysts in 2H2025, including expanded Spravato indications and oncology readouts (Lazertinib and TAR-200), could unlock incremental upside. However, pricing pressure in the U.S. (~200 bps impact) and the looming Stelara patent expiration in 2028 are notable risks, though unlikely to materially affect near-term performance.
MedTech (~30% of sales) is poised for stronger momentum in 2025, benefiting from elective procedure recovery and the upcoming launch of Ottava, JNJ's robotic surgery platform. Management targets mid-single-digit growth for the segment, driven by advanced wound closure and interventional oncology devices. We see the potential for MedTech operating margin expansion (~150 bps) as scale improves and mix shifts toward higher-value procedures.
Consumer Health (Kenvue) is now largely deconsolidated following the spin-out, with only a residual equity stake (~9.5%). Near-term financial contribution is minimal, but the separation allows JNJ to redeploy capital toward higher-growth, higher-margin Pharmaceutical and MedTech assets.
J&J's diversified platform, large pipeline, and balance sheet underpin a constructive long-term outlook. The company invests heavily in R&D and external innovation; approximately 50% of the pipeline is sourced via acquisitions or partnerships, according to CEO Joaquin Duato. Kenvue's spin-out has further buoyed J&J's financial firepower; the separation generated roughly $13.2 billion in cash that J&J can deploy for pharma deals. J&J already has a voracious appetite for M&A (mid-sized biotech tuck-ins and partnerships) to supplement organic growth. In 2024, new product approvals and label expansions (e.g. in oncology, immunology, neurology, and surgery) helped fuel 5-7% operational growth in each segment. Demographic trends such as aging populations and higher healthcare spending also support demand for innovative drugs and devices. J&J's financial strength (net cash of ~$30B, conservative balance sheet) and its Credo-driven culture (emphasis on consumers, patients, employees, and communities) suggest stable execution. J&J's key risks remain the notably ongoing litigation (talc, product liability) and biotech competition, but these are largely legacy issues and are accounted for in guidance.
J&J currently trades at a forward P/E of roughly 14 (as of July 2025), down from its ~5-year historical average of roughly 1517. (GuruFocus data shows J&J's forward P/E was about 14.66 at end-2023 vs ~17.0 in 2019-2022.) In other words, J&J trades below its recent valuation range. By comparison, many of its large-cap healthcare peers have a wide range of P/E ratios: Merck (MRK) and Pfizer (PFE) trade around 89 forward P/E (reflecting near-term earnings bounce-backs); AbbVie (ABBV) is about 13.5; Novartis (NVS) ~13.5; and higher-growth biotech names like Eli Lilly (LLY) are well over 25. J&J's forward P/E is roughly in the middle of this group. On dividends, J&J yields ~3.3% (3.22% trailing yield), which is above the S&P 500 average, reflecting its mature, cash-generative nature.
Johnson & Johnson remains a stable, large?cap healthcare leader with diversified revenue streams and strong cash flow. Its recent earnings beat and raised sales guidance suggest resilience in 2025, while the spin-off of consumer health (Kenvue) positions J&J more squarely in higher?margin Pharma and MedTech. The company's deep pipeline, R&D engine, and $13+ billion in acquisition firepower bode well for long-term growth. On the valuation front, J&J's current multiples are below its recent historical range and roughly in line withor slightly belowmany big pharma peers. The stock's forward P/E (~14) is lower than its ~5?year average (?1617), and its dividend yield is attractive for a defensive sector player.
This article first appeared on GuruFocus.
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Yahoo
10 minutes ago
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FLSmidth & Co. A/S H1 2025 Interim Financial Report: Adjusted EBITA margin increased to 15.2% in Q2 2025, driven by the continued execution of our strategic priorities
COMPANY ANNOUNCEMENT NO. 23-2025 FLSmidth & Co. A/S 20 August 2025 Copenhagen, DenmarkToday, the Board of Directors of FLSmidth have approved the H1 2025 Interim Financial Report. Highlights in Q2 2025: Continued and disciplined execution of our strategic priorities despite macroeconomic and geopolitical uncertainties Further reduction in SG&A driving strong progression in underlying profitability, with an Adjusted EBITA margin of 15.2% Solid organic order intake growth in PC&V and Products, whereas organic Service order intake is slightly down versus Q2 2024 Solid cash flow generation and launch of the company's first share buy-back programme since 2012 Signed agreements to sell the Cement business and corporate headquarters in Copenhagen The financial guidance for the full year 2025 was updated on 14 August 2025 (ref. Company Announcement no. 22-2025) Continued progression on all our science-based sustainability targets FLSmidth Group CEO, Mikko Keto, comments: 'In Q2 2025, we advanced our strategy despite ongoing macroeconomic and geopolitical uncertainty. Profitability strengthened with an Adjusted EBITA margin of 15.2%, reflecting continued momentum. Orders grew by 3% year-on-year, driven especially by higher Products orders, while Pumps, Cyclones & Valves delivered 13% organic growth from targeted sales force investments. Service orders declined by 1% due to delayed modernisation projects in North America linked to tariff uncertainty, though these remain in the pipeline and recovery is expected in the coming quarters. We also achieved three strategic milestones: the DKK 730 million sale of our headquarters, strengthening the balance sheet; the divestment of FLSmidth Cement, advancing our transition to a pure-play mining technology and service provider; and the launch of our first share buy-back programme since 2012, reinforcing our commitment to shareholder returns. Alongside an upgraded earnings guidance, these results underline our delivery on strategy and the creation of a stronger, more resilient FLSmidth.'Updated segment reporting As a result of the signed agreements to divest FLSmidth Cement, including the Air Pollution Control business, the business has been classified as discontinued activities and assets held for sale. Consequently, FLSmidth has as of Q2 2025 changed its segment reporting to reflect that FLSmidth going forward will be a pure-play supplier of technology and services to the mining industry. As such, FLSmidth will as of Q2 2025 report on the following three continuing segments: Service, Products, and Pumps, Cyclones & Valves (PC&V). On average, the PC&V segment is expected to comprise approximately 25% equipment-related orders and 75% aftermarket-related orders. The new segments have been defined based on our go-to-market strategy and are consistent with the Group's internal management and reporting structure going in Q2 2025 Commercial performance Service order intake decreased by 8% compared to Q2 2024 (decrease of 1% if excluding currency effects and effects from divestments). The year-on-year decline can primarily be attributed to a lower order intake within upgrades & retrofits due to the delays to larger modernisation projects in North America. The order backlog decreased to DKK 4,781m compared to DKK 5,093m at the end of Q2 2024. The book-to-bill ratio was 100.2% in Q2 2025. Products order intake increased by 44% compared to Q2 2024 (increase of 53% if excluding currency effects and effects from divestments). No large orders were announced in neither Q2 2025 nor in Q2 2024. The order backlog decreased to DKK 4,869m compared to DKK 5,681m at the end of Q2 2024. The book-to-bill ratio was 112.2% in Q2 2025. PC&V order intake increased by 7% compared to Q2 2024 (increase of 13% if excluding currency effects and effects from divestments). The year-on-year increase was driven by a higher level of equipment orders as well as an unchanged level for aftermarket-related orders. In addition, the increase was primarily driven by higher order intake in the SAMER and EMEA regions, partly offset by a lower order intake in the NAMER region. The order backlog decreased to DKK 1,000m compared to DKK 1,078m at the end of Q2 2024. The book-to-bill ratio was 108.5% in Q2 2025. Consolidated order intake increased by 3% in Q2 2025 (increase of 9% if excluding currency effects and effects from divestments). The year-on-year increase was primarily a result of a higher order intake in Products and was partly offset by a lower order intake in Service. In addition, Non-Core Activities contributed with DKK 7m in order intake in Q2 2024. The order backlog decreased by 13% to DKK 10,650m compared to Q2 2024. The book-to-bill ratio was 104.1% in Q2 performance Service revenue decreased by 3% compared to Q2 2024 (decrease of 1% if excluding currency effects and effects from divestments). The year-on-year decline is primarily a reflection of the timing of the execution of certain orders. The decline was partly offset by higher revenue within professional services and upgrades & retrofits. The Adjusted EBITA margin was 19.6% when excluding transformation and separation costs of DKK 27m as well as other operating net income of DKK 34m, which primarily related to sale of certain properties in Q2 2025. Including these items, EBITA increased to DKK 411m corresponding to an EBITA margin of 19.9% compared to DKK 403m corresponding to an EBITA margin of 19.0% in Q2 2024. Products revenue decreased by 43% compared to Q2 2024 (decrease of 39% if excluding currency effects and effects from divestments). The year-on-year decline was primarily a reflection of the delayed execution of orders within certain product groups. FLSmidth expects the majority of these orders will be executed during the second half of 2025. The Adjusted EBITA margin was -9.7% when excluding transformation and separation costs of DKK 16m as well as other operating net income of DKK 25m, which primarily related to sale of certain properties in Q2 2025. Including these items, EBITA increased to DKK -50m corresponding to an EBITA margin of -8.2% compared to DKK -103m corresponding to an EBITA margin of -9.7% in Q2 2024. PC&V revenue increased by 17% compared to Q2 2024 (increase of 24% if excluding currency effects and effects from divestments). The year-on-year increase reflects the positive momentum in the business and was driven by both higher equipment- and aftermarket-related revenue. The Adjusted EBITA margin was 23.7% when excluding transformation and separation costs of DKK 8m. There was no impact from other operating net income in the quarter. Including these items, EBITA increased to DKK 160m corresponding to an EBITA margin of 22.6% compared to DKK 134m corresponding to an EBITA margin of 22.1% in Q2 2024. Consolidated revenue decreased by 12% compared to Q2 2024 (decrease of 5% if excluding currency effects and effects from divestments). The year-on-year decline was primarily driven by lower revenue in Products. In addition, Non-Core Activities contributed with DKK 44m in revenue in Q2 2024. The decline was partly offset by higher revenue in the PC&V business. The gross profit amounted to DKK 1,199m (unchanged compared to Q2 2024) corresponding to a gross margin of 35.5% (31.3% in Q2 2024). Excluding transformation and separation costs of DKK 50m and other operating net income of DKK 59m, the Adjusted EBITA margin was 15.2% in Q2 2025. Including these items, the EBITA margin was 15.5% compared to 8.8% in Q2 2024. Non-Core Activities impacted EBITA negatively by DKK 99m in Q2 2024. Excluding Non-Core Activities, the EBITA margin would have been 11.5% in Q2 2024. Profit from the continuing business was DKK 262m in Q2 2025 (Q2 2024: DKK 76m). Discontinued activities reported a total loss of DKK 717m compared to a gain of DKK 112m in Q2 2024. The loss includes impairment charges of DKK 495m relating to the divestment of the Cement business and derecognition of certain deferred tax in H1 2025 Commercial performance Service order intake decreased by 7% compared to H1 2024 (decrease of 4% if excluding currency effects and effects from divestments). The decline was primarily a result of a lower order intake for upgrades & retrofits and spare parts and primarily in North America as well as in South America where orders were particularly strong in H1 2024. The year-on-year decline was partly offset by a higher order intake for consumables. Products order intake decreased by 9% compared to H1 2024 (decrease of 7% if excluding currency effects and effects from divestments). The year-on-year decline reflects that a single large order was announced during H1 2025 (albeit with undisclosed total value), whereas two large orders with a combined value of approximately DKK 680m were announced in H1 2024. PC&V order intake increased by 12% compared to H1 2024 (increase of 16% if excluding currency effects and effects from divestments). The year-on-year increase was driven by a higher level of both equipment- and aftermarket-related orders. In addition, the increase was primarily driven by a higher order intake in the EMEA and SAMER regions. Consolidated order intake decreased by 4% compared to H1 2024 (decrease of 1% if excluding currency effects and effects from divestments). The year-on-year decrease was primarily a result of a lower order intake in Service. In addition, Non-Core Activities contributed with DKK 37m in order intake in H1 2024. The decline was partly offset by a higher order intake in the PC&V performance Service revenue increased by 5% compared to H1 2024 (increase of 9% if excluding currency effects and effects from divestments). The higher revenue was primarily driven by higher revenue from consumables and upgrades & retrofits, driven by effective backlog management and improved order execution, partly offset by lower revenue in professional services, which can be partly explained by the exit from basic labour services. The Adjusted EBITA margin was 20.0% when excluding transformation and separation costs of DKK 52m as well as other operating net income of DKK 36m, which primarily related to sale of certain properties in H1 2025. Including these items, EBITA increased to DKK 831m corresponding to an EBITA margin of 19.6% compared to DKK 716m corresponding to an EBITA margin of 17.7% in H1 2024. Products revenue decreased by 33% compared to H1 2024 (decrease of 32% if excluding currency effects and effects from divestments). The year-on-year decline was primarily driven by delayed execution of certain orders. FLSmidth expects the majority of these orders to be executed during the second half of 2025. The Adjusted EBITA margin was -9.9% when excluding transformation and separation costs of DKK 32m as well as other operating net income of DKK 41m, which primarily related to sale of certain properties in Q2 2025. Including these items, EBITA increased to DKK -131m corresponding to an EBITA margin of -9.3% compared to DKK -208m corresponding to an EBITA margin of -9.9% in Q2 2024. PC&V revenue increased by 17% compared to H1 2024 (increase of 21% if excluding currency effects and effects from divestments). The year-on-year increase was driven by a higher level of aftermarket-related revenue. In addition, the increase was primarily a result of higher revenue in the EMEA region. The Adjusted EBITA margin was 24.2% when excluding transformation and separation costs of DKK 17m. There was no impact from other operating net income in the quarter. Including these items, EBITA increased to DKK 330m corresponding to an EBITA margin of 23.0% compared to DKK 296m corresponding to an EBITA margin of 24.2% in Q2 2024. Consolidated revenue decreased by 5% compared to H1 2024 (decrease of 1% if excluding currency effects and effects from divestments). The year-on-year decline was primarily driven by lower revenue in Products. In addition, Non-Core Activities contributed with DKK 94m in revenue in H1 2024. The decline was partly offset by higher revenue in the Service and PC&V businesses. Gross profit increased by 8% to DKK 2,503m (DKK 2,311m in H1 2024) corresponding to a gross margin of 35.3% (31.0% in H1 2024). Excluding transformation and separation costs of DKK 101m and other operating net income of DKK 77m, the Adjusted EBITA margin was 14.9% in H1 2025. Including these items, the EBITA margin was 14.5% compared to 8.6% in H1 2024. Non-Core Activities impacted EBITA negatively by DKK 161m in H1 2024. Excluding Non-Core Activities, the EBITA margin would have been 10.9% in H1 2024. Profit for the period for the continuing business amounted to DKK 570m compared to DKK 277m in H1 2024. Discontinued activities reported a total loss of DKK 674m compared to a gain of DKK 104m in H1 2024. The loss includes impairment charges of DKK 495m relating to the divestment of the Cement business and derecognition of certain deferred tax business Divestment of Corporate HeadquartersRef. Company Announcement no. 9-2025, FLSmidth has entered into an agreement to sell its corporate headquarters for a total net cash gain of approximately DKK 730m to be paid in full to FLSmidth upon closing of the transaction, expectedly at the end of Q1 2026. The expected accounting gain amounts to approximately DKK 690 million. Divestment of FLSmidth CementRef. Company Announcement no. 10-2025, FLSmidth has entered into an agreement to divest its Cement business for a total initial consideration of approximately DKK 550m, plus a deferred cash consideration of up to approximately DKK 550m. The transaction is expected to close during the second half 2025. Divestment of Air Pollution Control businessOn 30 June 2025, FLSmidth announced that it had entered into an agreement to divest its Air Pollution Control business. The transaction is expected to close during the second half of 2025 and includes all related assets, including intellectual property, technology, employees and order backlog. Changes to Executive Leadership TeamIn June, FLSmidth announced that Mikko Tepponen, Chief Digital Officer & Chief Operations Officer, had decided step down from his position to pursue an opportunity outside of the company. As part of the implementation of the new corporate model, the role of Chief Digital Officer & Chief Operations Officer will be eliminated. Consequently, the respective responsibilities for Digital and Manufacturing will be transferred to other members of the executive team. Further, the Chief Financial Officer will take over the responsibility for IT, and manufacturing activities will be managed by the three Business Lines, enhancing their respective end-to-end P&L ownership. In addition, following the agreement to divest FLSmidth Cement, Christopher Ashworth, President of FLSmidth Cement, has left the company. During the period until closing of the transaction, Cori Petersen, Chief People Officer & Global Business Services Executive Vice President, will act as interim President of FLSmidth guidance for the full year 2025 The financial guidance for 2025, which was updated on 14 August 2025 (ref. Company Announcement no. 22-2025), is maintained. As such, FLSmidth expects revenue of DKK 14.5-15.0bn (previously DKK ~15.0bn). The downward adjustment from previous guidance is partly attributable to the expectation of lower revenue from the order backlog due to customer-driven delays affecting the execution of certain Products orders. Further, the updated revenue guidance reflects adverse foreign exchange rate movements. In addition, FLSmidth expects an Adjusted EBITA margin of 15.0-15.5% (previously 14.0-14.5%). The upgraded Adjusted EBITA margin guidance incorporates the stronger-than-anticipated benefits from the ongoing implementation of our corporate model, driving further business simplification and operational efficiency. Guidance 20 June 2025 Guidance 14 August 2025 Revenue, DKK ~15.0bn 14.5-15.0bn Adj. EBITA margin1 14.0-14.5% 15.0-15.5%Compared to 2024, we expect market demand for aftermarket services in the global mining industry to remain stable and active, whereas the market demand for equipment is expected to remain soft. The Adjusted EBITA margin is expected to be positively impacted by the ongoing implementation of our corporate model, driving further business simplification and operational efficiency, as well as enhanced commercial execution. The Adjusted EBITA margin guidance excludes costs related to the ongoing transformation activities and the separation of the Mining and Cement businesses. These costs are expected to amount to approximately DKK 200m for the full year 2025. In addition, the guidance for Adjusted EBITA margin now excludes Other Operating Net Income. Other Operating Net Income totalled an income of DKK 77m in H1 call detailsA presentation of the H1 2025 Interim Financial Report is scheduled for Wednesday 20 August 2025 at 11:00 a.m. CEST. During the presentation, Group CEO, Mikko Keto, and Group CFO, Roland M. Andersen, will comment on the report and developments in the Group. The presentation will be followed by a Q&A session. Live audio-webcast The presentation can be followed live or as a replay via the internet here. If you wish to ask questions during the Q&A session, please sign up here. After registration, you will receive phone numbers, pin codes and a calendar invite. Please note that you will receive two codes (a pass code and a PIN code), both of which are needed when dialling into the webcast. Presentation slides The presentation slides will be made available shortly before the scheduled start of the webcast at key figures for Q2 2025 and H1 2025 (continuing business) DKK million, unless otherwise stated Q2 2025 Q2 2024** Change (%) H1 2025 H1 2024** Change (%) Order intake 3,517 3,430 3% 7,294 7,636 -4% Order backlog 10,650 12,287 -13% 10,650 12,287 -13% Revenue 3,378 3,827 -12% 7,086 7,458 -5% Gross profit* 1,199 1,199 0% 2,503 2,311 8% Gross margin* 35.5% 31.3% 35.3% 31.0% SG&A costs -677 -805 -16% -1,432 -1,546 -7% SG&A ratio 20.0% 21.0% 20.2% 20.7% Other operating net income 59 4 77 5 Adjusted EBITA*** 513 394 30% 1,054 743 42% Adjusted EBITA margin*** 15.2% 10.3% 14.9% 10.0% EBITA 522 335 56% 1,030 643 60% EBITA margin 15.5% 8.8% 14.5% 8.6% Profit for the period, continuing activities 260 75 247% 570 277 106% Profit for the period, discontinued activities -717 112 -740% -674 104 -748% Profit for the period -455 187 -343% -104 381 -127% CFFO 527 14 515 -338 Free cash flow 309 -89 187 -395 Net working capital 1,562 2,021 Net interest-bearing debt (NIBD) -1,286 -1,227 NIBD/EBITDA ratio 0.6x 0.7x * Q2 2024 and H1 2024 information has been restated to reflect a reclassification of DKK 28m and DKK 55m from Administration costs to Production costs, respectively.** All 2024 numbers have been restated to reflect the continuing business. 2024 continuing business figures include the impact from Non-Core Activities.*** To illustrate the underlying business performance, we present an Adjusted EBITA margin, which excludes costs related to our ongoing transformation activities and the separation of the Mining and Cement businesses as well as items reported as other operating net Investor Relations Andreas Holkjær, +45 24 85 03 84, andh@ Denholt, +45 21 69 66 57, jli@ Media Jannick Denholt, +45 21 69 66 57, jli@ FLSmidth FLSmidth is a full flowsheet technology and service supplier to the global mining industry. We enable our customers to improve performance, lower operating costs and reduce environmental impact. MissionZero is our sustainability ambition towards zero emissions in mining by 2030. We work within fully validated Science-Based Targets, have a clear commitment to improving the sustainability performance of the global mining industry and aim to become carbon neutral in our own operations by 2030. Attachments FLSmidth Company Announcement no. 23-2025 213800MXXDGQ3ITPXI41-2025-06-30-en FLSmidth_Q2-2025Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
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European Stocks Trading Below Estimated Value
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Unlock comprehensive insights into our analysis of Swatch Group stock in this financial health report. Andritz Overview: Andritz AG provides industrial machinery, equipment, and services globally, with a market cap of €6.19 billion. Operations: The company's revenue segments consist of Metals (€1.71 billion), Hydro Power (€1.65 billion), Pulp & Paper (€3.10 billion), and Environment & Energy (€1.52 billion). Estimated Discount To Fair Value: 49.7% Andritz, currently trading at €63.45, is significantly undervalued with a fair value estimate of €126.15, reflecting strong cash flow potential. Despite a dip in recent earnings to €102.4 million for Q2 2025 from €119.7 million the previous year, Andritz's earnings are projected to grow at 13.8% annually, outpacing the Austrian market average of 11.1%. The company's robust order intake and strategic projects like the Cahora Bassa hydropower plant rehabilitation bolster its growth prospects amidst an unstable dividend history. 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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CPSE:DEMANT SWX:UHR and WBAG:ANDR. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
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Europe Discusses Sending Troops to Ukraine
Good morning. European officials are said to be planning to send British and French troops to Ukraine. Stocks are set for a rough day after a tech rout on Wall Street. And we take a look at how hotter summers threaten tourism in Europe. Listen to the day's top stories.
