NEW YORK – Siemens Healthineers on Thursday said it posted a 1 percent rise in diagnostics adjusted revenues year over year for its fiscal first quarter while its overall revenues grew by 6 percent.
Erlangen, Germany-based Siemens Healthineers said that for the quarter ended Dec. 31, 2024, its overall revenues rose to €5.48 billion ($5.68 billion) from €5.18 billion a year ago with strong growth in the firm's Imaging and Varian Medical Systems segments. While revenues fell 7 percent in China, revenues in the separate Asia-Pacific and Japan region grew 8 percent.
Siemens Healthineers' diagnostics business recorded adjusted revenues of €1.07 billion for Q1 2025 compared to €1.06 billion a year earlier. The company's diagnostics revenues dipped slightly in the Americas and fell in the mid-single digits in China.
However, Siemens Healthineers noted that the diagnostics business's adjusted earnings before interest and taxes was 7.8 percent for the quarter, up from 5.1 percent a year ago, as cost reductions from the company's transformation program and other revenue growth outweighed currency exchange headwinds.
Siemens officials said in November that the company's diagnostics business had become healthier, leaner, less complex, and more profitable through a transformation program that the company began in 2023 to reduce its headcount and eliminate legacy product lines. As part of the transformation, the company has said that it is ending support for those legacy systems starting in 2025. Those legacy platforms are being replaced by the company's Atellica instrument lineup.
Siemens Healthineers CEO Bernd Montag said on a conference call Thursday that Atellica adoption continues to grow. He noted that central labs provide about two-thirds of revenues from Siemens Healthineers' diagnostics segment, and about half of those revenues are now generated by Atellica instruments.
Montag expects the transition will continue in the coming three years or so, after which the company will reach a "long tail" of remaining legacy systems.
As for other divisions, the company's imaging adjusted revenues jumped 8 percent year over year to €3.01 billion from €2.79 billion with growth in computed tomography and molecular imaging. The company noted that the segment's revenues grew sharply in the Americas and moderately in its Asia-Pacific and Japan region. Its separate China region revenues declined in the mid-single digits due to delays in customer orders, and its Europe, Middle East, and Africa region revenues also declined in the mid-single digits compared to outstanding growth in the prior-year quarter, the company said.
Varian Medical Systems adjusted revenues, meanwhile, rose 7 percent year over year to €974 million from €911 million in Q1 2024 with sharp growth in the Asia-Pacific and Japan region as well as growth in the Americas and EMEA regions. Revenues in the China region, though, declined in the low double digits, also due to delayed customer orders.
Lastly, advanced therapies adjusted revenues rose 5 percent to €499 million from €475 million in Q1 2024, again with sharp growth in the Asia-Pacific and Japan region along with strong growth in the EMEA and Americas regions. China revenues declined in the low double digits, once again due to delays in customer orders.
Siemens reported net income for the quarter of €478 million, or €.42 per share, compared to €432 million, or €.39 per share, a year ago. Adjusted EPS was €.51.
The company increased its R&D expenses by about 4 percent year over year to €481 million from €464 million while it raised its SG&A expenses by 8 percent to €973 million from €902 million in Q1 2024.
The company also posted severance charges of €15 million compared to €24 million a year ago and other restructuring expenses of €14 million during the quarter compared to €23 million a year ago.
Siemens Healthineers ended the quarter with €2.77 billion in cash and cash equivalents.
In Thursday trading on the Frankfurt Stock Exchange, shares of Siemens Healthineers were up 6 percent at €57.64.