Pro Medicus reports 39% profit jump in FY25 and record contracts

Pro Medicus shares have jumped 7% after reporting its FY25 result.

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The Pro Medicus Ltd (ASX: PME) share price is in focus today after the ASX healthcare imaging company posted a full-year net profit of $115.2 million, up 39.2%, and a 31.9% lift in revenue to $213 million.

What did Pro Medicus report?

  • Revenue from ordinary activities rose 31.9% to $213.0 million
  • Net profit increased 39.2% to $115.2 million
  • Underlying profit before tax was $163.3 million, up 40.2%
  • Cash and other financial assets grew 35.5% to $210.7 million
  • Fully-franked final dividend of 30 cents per share declared
  • The company remains debt-free

What else happened in FY25?

Pro Medicus had a record year for new contract wins, contract renewals, and the sale of additional modules to existing clients. The company signed over $520 million in new deals, including major ten-year contracts with Trinity Health and academic health systems across the USA.

The group renewed $130 million in contracts, notably with Mercy Health, and secured extra module sales to NYU Langone and Duke Health. Revenue increased across all regions, particularly in North America, which climbed 35.8%.

What did Pro Medicus management say?

Commenting on the result, CEO Dr Sam Hupert said:

All key financial metrics headed in the right direction. And, importantly we continued our trajectory of strong, profitable growth. The majority of the contracts that we signed were in the second half of the year and will come on stream this coming year and beyond, so there is a very sizeable revenue pathway in front of us… It was also a strong year for implementations as we were able to complete 7 implementations including Baylor, Scott and White which we completed in a three-month window. We now have around 10% of the total addressable market in the US which is material, but it also means there is plenty of scope for further growth.

What's next for Pro Medicus?

Pro Medicus expects much of its new contract revenue to flow through from FY26 and beyond, building on a robust sales pipeline. The company says demand for its full-stack, cloud-based imaging solutions continues to grow, distinguishing it from competitors relying on hybrid systems.

Management highlighted continued interest from key market segments including academic medical centres and large health networks. A strong focus on innovation and cloud adoption positions Pro Medicus for further expansion both in the US and internationally.

Pro Medicus share price snapshot

Over the past 12 month, Pro Medicus shares have continued their incredible track record. Specifically, they have risen 122%, far outpacing the S&P/ASX 200 Index (ASX: XJO) which is up 13% over the same time frame.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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