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• Order Intake Growth: 7.1% total growth, 2.9% organic growth.

• Net Sales Increase: 10.7% total increase, 6.2% organic growth.

• Adjusted Gross Margin: Improved by 0.8 percentage points.

• Adjusted EBITDA Margin: Improved by 1 percentage point to 12.1%.

• Adjusted Gross Profit: Increased by SEK 0.5 billion to SEK 4.337 billion.

• Adjusted EBITDA: SEK 1.003 billion.

• Free Cash Flow: Decreased to SEK 0.2 billion.

• Net Debt: SEK 9.7 billion; SEK 7.3 billion when adjusted for pension liabilities.

• Leverage Ratio: 1.4 times adjusted EBITDA; 1.1 times when adjusted for pension liabilities.

• Cash Position: Approximately SEK 4.2 billion.

• Recurring Revenue Share: 65% of sales.

• High-Margin Products: Make up about two-thirds of sales.

• 2025 Outlook: Organic net sales growth expected to be 2% to 5%.

• Warning! GuruFocus has detected 5 Warning Signs with GNGBF.

Release Date: April 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Getinge AB (GNGBF) reported a solid quarter with a 7.1% increase in order intake and a 10.7% rise in net sales, with 6.2% organic growth.

• The company's adjusted gross and EBITDA margins improved by about 1-percentage-point, driven by volume leverage, acquisitions, price increases, and a positive mix.

• The acquisition of Paragonix has been successful, with the KidneyVault product launch receiving positive feedback.

• Getinge AB (GNGBF) achieved EU MDR approval for the majority of its products, facilitating expansion outside the US.

• The company maintains a strong financial position with a leverage of 1.4 times adjusted EBITDA, well below its internal threshold of 2.5 times.

Negative Points

• Currency fluctuations negatively impacted the EBITDA margin by 1.1-percentage-point in the quarter.

• Free cash flow decreased to SEK0.2 billion, affected by volume-driven inventory increases and lower operating liabilities.

• Life Science order intake was significantly down due to weak orders in the Bio-Processing subsegment.

• The intended phaseout of the Surgical Perfusion product category negatively impacted organic order intake and net sales.

• There is ongoing uncertainty related to tariffs and geopolitical factors, which could impact future financial performance.

Q & A Highlights

Q: Can you elaborate on the strong performance in the Americas for Acute Care Therapies and any potential stocking due to flu season or tariffs? A: Mattias Perjos, CEO: The strong performance is mainly due to ventilators and ECLS. We don't believe it's related to stocking but rather a shift towards remaining ventilator suppliers. For ECLS, there might be a flu effect, but no evidence of stocking.