Getinge's Q4 Net Profit Rebounds Amid Revenue Headwinds

Swedish medical technology firm Getinge AB (GNGBF, GETI-B.ST) revealed a mixed earnings picture in its latest quarterly results, showcasing a notable rebound in net profit even as core sales metrics faced mounting pressure. The company’s Q4 net profit climbed to 869 million Swedish kronor from 668 million kronor in the prior year period, while adjusted net profit reached 1.21 billion kronor—a performance that masks deeper operational challenges emerging across the business.

Profitability Recovery Despite Top-Line Decline

The improvement in net profit presents an interesting counterpoint to Getinge’s overall revenue trajectory. Net sales retreated to 10.19 billion kronor from 11.07 billion kronor year-over-year, representing a decline that reflects market softness and geopolitical uncertainty. Order intake similarly weakened, falling to 8.56 billion kronor from 9.27 billion kronor previously. However, when stripped of currency fluctuations and tariff effects, the underlying organic picture appeared more resilient, with net sales rising 1.2 percent organically and order intake increasing 2.3 percent on a comparable basis. Earnings per share improved to 3.19 kronor versus 2.44 kronor a year earlier, reflecting the net profit expansion.

Margin Pressure Signals Operational Headwinds

The expansion in net profit masks concerning trends in operational efficiency. Adjusted EBITA declined to 1.81 billion kronor from 2.14 billion kronor, while the adjusted EBITA margin compressed to 17.8 percent from a healthier 19.4 percent. This margin squeeze reflects mounting cost pressures and the strategic phase-out of the Surgical Perfusion business unit. Currency headwinds and tariff impacts played a material role—excluding these factors, the adjusted EBITA margin would have stood at a healthier 20.3 percent, underscoring the company’s underlying profitability challenges independent of external shocks.

2026 Outlook and Shareholder Rewards

Looking ahead to fiscal 2026, management has signaled cautious optimism, forecasting organic sales growth of 3-5 percent, adjusted for the Surgical Perfusion phase-out and premised on underlying demand sustainability amid continued geopolitical uncertainty. The Board of Directors proposed boosting the dividend to 4.75 kronor per share from 4.60 kronor previously, with the record date set for April 23. This modest dividend increase suggests confidence in the company’s net profit generation capacity while maintaining capital discipline during a period of operational transition and market uncertainty.