Pro Medicus (PME) H1 2025 earnings summary

Executive summary

• Achieved record first-half results with 31.1% revenue growth and 42.7% profit increase, driven by major new contracts, renewals, and rapid implementations, forming a strong base for future growth.

• Expanded U.S. market presence, now representing 90% of revenue, with strong growth in academic, IDN, and private radiology segments; over 50% of top U.S. hospitals now use Visage 7.

• Major contracts secured include Trinity ($330M/10 years), Mercy ($98M/8 years), and Duly Health & Care ($30M/7 years), with 100% renewal rate at higher price points and longer terms.

• Continued innovation in cloud-based enterprise imaging, AI, and new product modules, with rapid implementation and strong client feedback.

• Maintained a debt-free balance sheet, increased cash and investments by 17.7%, and paid a record fully franked interim dividend up 38.9%.

Financial highlights

• Revenue for HY 2025 reached $97.2M, up 31.1% year-over-year; profit after tax rose 42.7% to $51.7M.

• Underlying EBIT increased 42.9% to $69.9M, with EBIT margin at 71.9%.

• Cash and financial assets totaled $182.33M, up 17.7% in the half; company remains debt-free.

• Interim fully franked dividend of $0.25 per share, up 38.9%.

• Earnings per share (basic) increased to 49.53c from 34.71c year-over-year.

Outlook and guidance

• Revenue growth expected to accelerate in the second half as new contracts and implementations contribute more fully.

• Forward contracted revenue exceeds AUD 894M over five years, with major new contracts supporting future growth.

• Margins expected to remain strong or expand, leveraging scalable cloud-based model and robust sales pipeline.

• Strategic focus on expanding client footprint, transaction growth, and new product offerings, including AI and new "ologies".