Pro Medicus interim earnings surge on record profits

Pro Medicus interim results impress with record revenue, surging profits, and strong new contract wins.

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The Pro Medicus Ltd (ASX: PME) share price is in focus today after the health imaging company delivered a record interim result, with revenue up 28.4% to $124.8 million and reported net profit after tax jumping 230.9% to $171.2 million.

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Image source: Getty Images

What did Pro Medicus report?

  • Revenue from ordinary activities: $124.8 million (up 28.4%)
  • Underlying profit before tax: $90.7 million (up 29.7%)
  • Reported net profit after tax: $171.2 million (up 230.9%, driven by $149.1 million in unrealised gains)
  • Underlying EBIT margin: 73% (up from 72%)
  • Cash and financial assets: $221.8 million (up 5.3%)
  • Fully franked interim dividend: 32 cents per share

What else do investors need to know?

Pro Medicus signed more than $280 million in new contracts during the half, including a $170 million, 10-year deal with the University of Colorado and major agreements with healthcare leaders in the US and Europe. Most new contracts included the company's full stack of Visage products, with some clients also adopting its cardiology solution, highlighting increasing customer demand for bundled offerings.

The company remains debt-free and increased its cash holdings, despite two share buybacks, higher dividends, and a $10 million investment in 4D Medical Limited that contributed significant unrealised gains to this result.

What did Pro Medicus management say?

CEO Dr Sam Hupert said:

Our profits continue to grow strongly even though our biggest implementation during the period in Trinity Cohort 1 went live towards the end of October so had limited impact on the half.

Importantly, our margins also grew, and we made more sales in this half than we used to make in a full year just 2 years ago. Most contracts were for the full stack of Visage products – Viewer, Workflow and Archive and two also included our cardiology offering making them full stack +1, a trend we see continuing.

What's next for Pro Medicus?

Management flagged a busy second half, with seven more go-lives planned—including three more Trinity cohorts—which should support further revenue growth. The sales pipeline remains strong, helped by the success of its presence at major industry events like RSNA 2025.

The company continues to target a broad range of healthcare providers and sees opportunities to deepen its penetration in the US, leveraging its "one product, one model" approach to address the full range of imaging market needs.

Pro Medicus share price snapshot

Over the past 12 months, Pro Medicus shares have declined 41%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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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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