Leading health imaging company Pro Medicus Limited (ASX: PME) has reported a record half-year profit of $51.7 million, up 42.7% from the previous period, as its footprint in North America continues to expand.
Revenue surged 31.1% to $97.2 million, with North American sales driving the bulk of the growth, up 34.6% to $86.4 million. This momentum has been fueled by major new contracts and renewals, further cementing Pro Medicus’ position as a leader in advanced medical imaging solutions.
Big Wins and Strong Margins
CEO Dr. Sam Hupert highlighted that this was not only a record result in terms of revenue and profit but also a standout half-year for new contracts, renewals, and upgrades.
During the period, the company secured key deals worth a combined $365 million with:
- Trinity Health
- Lurie Children’s Hospital
- Duly Health and Care
Additionally, renewals and contract extensions included:
- Mercy Health (USA) – $98 million over 8 years
- A major Australian radiology practice – $32 million over 5 years
- Duke Health – $15 million archive addition over 5 years
- NYU Langone – $24 million archive addition over 5 years
Margins also improved significantly, jumping from 66% to 72%, driven by a higher mix of transaction-based revenue.
BS&W Implementation Sets Industry Record
One of the standout achievements of the half was the rapid implementation of Baylor Scott & White (BS&W), which went live in just 11 months from signing—a record for the industry. This project contributed three months of full revenue in the first half and will deliver a full six months of revenue in the second half, providing additional tailwinds for growth.
Meanwhile, contracts won in the first half, including Trinity Health, will begin generating revenue in FY26 and beyond, setting up a strong long-term revenue pipeline.
Cash Reserves Climb, Debt-Free Status Maintained
Pro Medicus ended the half with $182.3 million in cash and financial assets, up 17.7%, maintaining its debt-free position. Shareholders will benefit from a fully franked interim dividend of 25 cents per share.
Outlook: Growth Pipeline Remains Strong
Dr. Hupert remains bullish on the company’s growth trajectory, pointing to a strong pipeline across all client segments. He noted that the 2024 RSNA conference—the largest radiology event of the year—was Pro Medicus’ biggest yet, opening up even more opportunities.
“The contracts we won demonstrate our flexibility, catering to institutions of all sizes, from Lurie Children’s, one of the top paediatric hospitals, to Trinity Health, one of the largest integrated delivery networks (IDNs) in the US,” he said.
The company is also seeing growing adoption of its full Visage product suite (Viewer, Workflow, and Archive), with major institutions like Duke and NYU expanding their commitments.
With record profits, strong cash reserves, and a growing global footprint, Pro Medicus looks well-positioned to continue its winning streak in the years ahead.
