How Did Fisher & Paykel Healthcare Achieve $2B Revenue and 43% Profit Growth?

• Record full-year revenue of NZ$2.02 billion, up 16%
• Underlying net profit after tax increased 43% to NZ$377.2 million
• Hospital product group revenue grew 18%, homecare up 13%
• Gross margin improved to 62.9%, up 247 basis points
• R&D investment of NZ$226.9 million, 11% of revenue

Record Financial Performance

Fisher & Paykel Healthcare Corporation Limited (ASX: FPH) has delivered a landmark financial year, surpassing NZ$2 billion in operating revenue for the first time in its history. For the full year ended 31 March 2025, the company reported operating revenue of NZ$2.02 billion, marking a 16% increase over the prior year, or 14% when adjusted for constant currency effects.

Underlying net profit after tax rose sharply by 43% to NZ$377.2 million, reflecting strong operational leverage and improved margins. The company’s gross margin expanded by 247 basis points to 62.9%, driven by operational efficiencies and a favourable product mix.

Growth Across Product Groups

The Hospital product group, which includes invasive and noninvasive ventilation, anesthesia, and surgical products, recorded an 18% increase in revenue to NZ$1.28 billion. This growth was underpinned by broad-based demand across the portfolio, including double-digit growth in consumables related to new applications.

Meanwhile, the Homecare product group, encompassing devices and masks for obstructive sleep apnea (OSA), grew 13% to NZ$739.9 million. OSA mask revenue alone increased 14%, supported by the launch of new mask models such as the F&P Nova Micro and F&P Nova Nasal masks.

Strategic Investments and Innovation

Fisher & Paykel Healthcare invested NZ$226.9 million in research and development during the year, representing 11% of operating revenue. This investment supports the company’s commitment to innovation, including sustainability initiatives like Ecodesign, which aims to reduce the environmental impact of its products throughout their lifecycle.

New product launches and expanded market rollouts were notable highlights, including the introduction of the F&P Airvo 3 and F&P 950 System in the United States, and increased adoption of anesthesia products such as the F&P Optiflow Switch and Trace.

Sustainability and Climate Risk Management

The company’s comprehensive climate-related disclosures detail governance structures, risk management frameworks, and scenario analyses addressing both physical and transitional climate risks. Fisher & Paykel Healthcare is actively integrating sustainability into its long-term strategy, including setting science-based targets for greenhouse gas emissions and investing in renewable energy infrastructure.

Governance and Capital Management

Governance remains a cornerstone, with a diverse and experienced Board overseeing strategic direction and risk. The Board approved a final dividend of 24 cents per share, bringing total dividends for the year to 42.5 cents per share, a 2% increase over the prior year. The company ended the year with a strong net cash position of NZ$200.5 million and has committed capital expenditure of NZ$271 million, including a new building at its East Tāmaki campus and land acquisition in Karaka, New Zealand.

Fisher & Paykel Healthcare continues to navigate geopolitical challenges such as US tariffs with a measured approach, focusing on operational stability and long-term growth.

Bottom Line?

With robust financials and a clear sustainability roadmap, Fisher & Paykel Healthcare is well-positioned for continued innovation and growth amid evolving global healthcare and climate challenges.

Questions in the middle?

• How will ongoing geopolitical tensions and tariffs impact future supply chain costs and margins?
• What is the timeline and expected impact of the new East Tāmaki building and Karaka campus on production capacity?
• How will the company’s R&D pipeline translate into marketable products in the face of increasing competition and regulatory demands?