Siemens Healthineers (SHL) Status update summary

Core business performance and outlook

• Solid momentum in imaging and Varian, with molecular imaging showing strong growth, especially via PETNET.

• Book-to-bill ratio for equipment at 1.02 in Q2, expected to improve to 1.1 for the full year.

• Order volatility in Q2 attributed to phasing, with large deals shifting to Q3 and a strong pipeline supporting optimism for the second half.

• Advanced therapies revenue expected to accelerate in the second half due to new product launches and regulatory approvals.

• More than 50% of revenue is now recurring, supporting resilience and pricing power.

Diagnostics segment challenges and recovery

• Diagnostics faced a 40%-50% revenue decline in China due to procurement changes, reimbursement cuts, and OEM destocking.

• China’s share of diagnostics revenue dropped from 12% pre-pandemic to 6%, with normalization expected in two more quarters.

• Outside China, diagnostics is improving, with Atellica migration largely complete and legacy exposure reduced.

• Diagnostics is operationally separated; legal carve-out preparations are underway to maximize shareholder value.

Strategic initiatives and innovation

• Legal entity carve-out for diagnostics is being prepared, with parallel exploration of strategic options.

• Proceeds from any diagnostics transaction may be used for deleveraging or share buybacks.

• Innovation in photon-counting CT and new LINAC systems is driving market share gains and expanding addressable markets.

• PETNET’s molecular imaging business is growing at or above 20%, nearing €1 billion in annualized revenue.