Pro Medicus share price storms higher on record-breaking results

Investors are cheering on this tech company's latest results.

| More on:
A young man punches the air in delight as he reacts to great news on his mobile phone.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Pro Medicus Limited (ASX: PME) share price is rising again on Thursday morning.

In early trade, the health imaging technology company's shares are up 4% to an all-time high of $298.98.

This follows the release of the company's record half year results.

Pro Medicus share price higher on record results

  • Total revenue up 32.15% to a record of $100.79 million
  • Revenue from ordinary activities up 31.1% to $97.2 million
  • Underlying EBIT margin increased from 66% to 72%
  • Underlying profit before tax up 42.9% to $69.9 million
  • Net profit up 42.7% to a record of $51.7 million
  • Earnings per share up 42.7% to 49.53 cents
  • Fully franked interim dividend up 38.9% to 25 cents per share
  • Cash and other financial assets of $182.3 million with no debt

What happened in the first half?

For the six months ended 31 December, Pro Medicus reported a 32.15% increase in total revenue to $100.79 million. This comprises a 31.1% increase in revenue from ordinary activities to $97.2 million and interest income of $3.6 million.

Management notes that this strong result was driven largely by its North America segment, which reported a 34.6% increase in revenue to $86.4 million. This reflects three major implementations for Oregon Health & Science University, the last three phases of Baylor, Scott and White, and Moffitt Cancer Centre (Breast Imaging) being completed.

Complementing this growth was a modest 0.8% lift in European revenue and a 10.8% increase in Australian revenue. The latter was boosted by the renewal of a five-year contract extension with a large Australian Radiology Network.

Management advised that it is looking to further build on its presence in North America, Germany and Australia and is actively pursuing a growing number of opportunities within the academic/teaching hospital, integrated delivery network (IDN), and corporate/private imaging centre markets.

Profit surge

Pro Medicus' margins expanded further during the first half of FY 2025. Its underlying EBIT margin increased from 66% to 72%. Combined with its top line growth, this underpinned a 42.9% increase in underlying profit before tax to $69.9 million.

And on the bottom line, the high-flying tech stock revealed a 42.7% increase in both net profit to $51.7 million and earnings per share to 49.53 cents. The latter is ahead of the consensus estimate of 47.7 cents per share.

This allowed the Pro Medicus board to lift its interim dividend by 38.9% to 25 cents per share. This is also ahead of the consensus estimate of 24.2 cents per share.

Pro Medicus' CEO, Dr Sam Hupert, was pleased with the record result. He said:

We feel it's a strong result, underlined by record contract wins and several key implementations, including Baylor Scott & White (BS&W) – which was fully implemented in 11 months from date of signing, a record for the industry.

BS&W contributed three months of full revenue in the half and will help build the base for the second half with a full 6 months of revenue. In addition, contracts won in the first half including Trinity Health will start to contribute revenue in the first half of FY26 and beyond as these implementations ramp up.

Outlook

No guidance has been provided for FY 2025 but Dr Hupert spoke positively about its outlook, highlighting that its sales pipeline "remains strong." He concludes:

We continue to see many opportunities in the USA – many on the back of the annual RSNA conference which in 2024 was our biggest to date.

Our modular approach also continues to provide flexibility and scalability, as evidenced by the increasing number of clients choosing the full stack of all three Visage products – Viewer, Workflow and Archive as well as existing clients in Duke and NYU adding modules, trends we see continuing.

The Pro Medicus share price is up almost 162% over the past 12 months.

Should you invest $1,000 in Allkem right now?

Before you buy Allkem shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Allkem wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Miner looking at a tablet.
Gold

Newmont share price lifts off on first-quarter results

The ASX 200 gold stock is charging higher on Thursday.

Read more »

A man wakes up happy with a smile on his face and arms outstretched.
Healthcare Shares

ResMed shares jump 8% on strong Q3 update

It was yet another strong quarter from this high-quality company.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Up 53% in a year, why is this ASX 200 financial stock leaping higher again today?

Investors are sending the ASX 200 financial stock soaring on Wednesday. Let’s see why.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Why is this ASX 200 uranium stock rocketing 17% on Wednesday?

The ASX 200 uranium stock is racing higher today. But why?

Read more »

Piggy bank at the end of a winding road.
Dividend Investing

Why this $44 billion ASX 200 dividend stock is pushing higher today

The ASX 200 dividend stock trades on a yield of 4.6%.

Read more »

Workers inspecting a gas pipeline.
Energy Shares

Why is the Santos share price racing ahead of the ASX 200 today?

Santos shares are enjoying a day of strong outperformance. But why?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Financial Shares

What's happening with the AMP share price on Thursday?

A lot of AMP shares are changing hands on Thursday. But at what price?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Pilbara Minerals share price falls on 30% quarterly revenue slump

ASX investors are bidding down Pilbara Minerals shares on Thursday. Here’s why.

Read more »