Varex Imaging (VREX) Oppenheimer 36th Annual Healthcare MedTech & Services Conference summary

Macroeconomic and geopolitical environment

• Business remains stable despite geopolitical tensions and tariff fluctuations; minimal direct impact from Middle East events and stable order intake rates observed so far.

• Healthcare demand and hospital capital budgets remain resilient, with no significant changes in customer sentiment or capital expenditure domestically or in the EU.

• Industrial segment shows flat to positive trends, especially in security, with increased inquiries and urgency.

Tariffs and supply chain strategy

• Tariff situation has stabilized after initial disruptions; inventory purchased at higher tariffs will take 4-5 months to work through, after which a marginal gross margin uplift is expected.

• Ongoing diversification of supply chain, including expansion in India, and continued price adjustments to customers to mitigate tariff impacts.

• Expectation that tariff volatility will persist, with Section 301 developments being closely monitored.

Regional market dynamics

• China’s healthcare market has normalized to steady, secular growth, with domestic OEMs gaining market share through competitive tenders.

• No material supply chain risks identified for critical materials in the X-ray domain; competitive pressure on global OEMs in China remains high.

• Japan shows no growth, while Europe remains stable.