Getinge boosts margins while absorbing significant new tariff costs

Swedish medical technology company Getinge AB on Friday reported higher second-quarter sales and improved margins, even as it absorbed significant new tariff costs.

The company's net sales grew 4.1% organically, which excludes currency effects and acquisitions, while order intake rose 4.4%.

Adjusted operating profit, a key metric for the company, rose slightly to 989 million Swedish Kronor from 981 million a year earlier, with the margin ticking up to 12.0% from 11.8%.

This was achieved despite a negative impact of nearly 270 million Swedish Kronor from tariffs and currency fluctuations, the company said.

"The positive start to 2025 continued in the second quarter, with stable organic growth in order intake and sales, and our margins strengthened despite strong headwinds from tariffs and negative currency effects," said Chief Executive Mattias Perjos.

Getinge saw growth across its business areas, with its Acute Care Therapies unit successfully meeting higher demand for ventilators, a division that faced quality and supply challenges in 2023.

The company also noted that Paragonix, a U.S. firm acquired in late 2024, contributed positively to profit margins ahead of schedule.

Getinge said that while it has raised prices, it has been forced to absorb most of the new tariff costs in the short term and is analyzing ways to adapt its supply chain.

Despite these headwinds, the company said it sees no need to change its long-term financial targets.