Pro Medicus Surges with 42.7% Profit Jump and Major North American Wins

Robust Financial Growth Amid Global Expansion

Pro Medicus Limited has reported a striking financial performance for the half-year ended 31 December 2024, underscoring its growing footprint in the healthcare technology sector. The company’s after-tax profit surged by 42.7% to $51.74 million, while revenue from contracts with customers rose 31.1% to $97.2 million. This growth reflects both organic expansion and strategic contract wins, particularly in North America.

Underlying profit before tax, a key non-IFRS measure used by the company to provide a clearer operational view, increased by 42.9% to $69.92 million. On a constant currency basis, which neutralizes exchange rate fluctuations, revenue and underlying profit before tax would have been even higher, at $97.84 million and $70.44 million respectively.

North American Market: The Growth Engine

The North American segment remains the powerhouse behind Pro Medicus’ growth, with revenue up 34.6%. The company completed major implementations at Oregon Health & Science University, Baylor, Scott and White, and Moffitt Cancer Centre, expanding its presence in critical academic and cancer care institutions. What's more, Pro Medicus secured substantial new contracts worth a combined A$365 million over 7 to 10 years with Lurie Children's Hospital, Trinity Health, and Duly Health and Care.

Contract renewals and extensions also contributed significantly, including a $39 million deal for Visage 7 Open Archive at NYU Langone and Duke Health, and an $98 million renewal with Mercy Health. These long-term agreements not only provide revenue visibility but also reinforce Pro Medicus’ position as a trusted partner in complex healthcare environments.

Steady Performance in Australia and Europe

While North America drives headline growth, Pro Medicus’ Australian business also showed solid progress with a 10.8% revenue increase, largely due to a five-year contract extension with a major Australian Radiology Network. European revenues remained stable, reflecting a mature market position with ongoing opportunities to deepen penetration.

Innovation and Financial Strength

Pro Medicus continues to invest heavily in research and development, both domestically and internationally, signaling a commitment to innovation that underpins its competitive edge. The company actively integrates customer feedback to refine its products, ensuring they meet evolving clinical needs and technological standards.

Financially, Pro Medicus remains in a strong position with cash reserves increasing by 17.7% to $182.33 million, despite a higher dividend payout. The company is debt-free, providing flexibility to fund growth internally. The board declared a fully franked interim dividend of 25 cents per share, reflecting confidence in sustained profitability and cash flow generation.

Looking Ahead

With a solid half-year behind it, Pro Medicus is well-positioned to capitalize on expanding opportunities across North America, Australia, and Europe. The company’s focus on academic hospitals, integrated delivery networks, and private imaging centers suggests a strategic approach to market diversification and long-term revenue stability.