Varex Imaging (VREX) Sidoti March Small-Cap Virtual Conference summary

Business overview and market position

• Operates in X-ray imaging, focusing exclusively on X-ray components for medical (70% of revenue) and industrial (30%) markets.

• Maintains long-term relationships with major global OEMs in both medical and industrial sectors.

Tariff mitigation and supply chain strategy

• Successfully passed increased tariff costs to customers and shifted to local-for-local manufacturing in China and Europe.

• Developed local supply chains and used bonded warehouses to further mitigate tariffs.

• Lower tariffs following a Supreme Court decision are expected to benefit P&L in 4–6 months as high-cost inventory is depleted.

Medical market environment and trends

• Hospital capital expenditure and discretionary procedure volumes are stable, with imaging remaining a top investment priority.

• Channel inventory issues and procurement slowdowns in China have resolved, with stable to improving order intake rates.

• New system development with major OEMs has accelerated post-COVID, strengthening engagement and pipeline.