Medical technology company of Germany, Siemens Healthineers AG saw profit fall in its fourth quarter compared to the same period of the previous year, the company said on Wednesday.
The company had slightly lower revenues over the period. Further, the company proposed a higher dividend and issued a fiscal 2026 outlook.
Looking ahead to fiscal year 2026, the company expects adjusted basic earnings per share to be between €2.20 and €2.40 ($2.53-$2.76), with comparable revenue growth of between 5% to 6% from the prior year.
In fiscal 2025, adjusted basic earnings per share were €2.39 on revenues of €23.38 billion.
Bernd Montag, chief executive of Siemens Healthineers, said, “We have closed another successful year, despite a challenging environment. Following this achievement, we are raising our proposed dividend. We have a solid foundation for our next strategy phase.”
In the fourth quarter, net income dropped 4% to €597 million from €624 million last year. Basic earnings per share were €0.52, down from €0.55 a year ago. Adjusted basic earnings per share were €0.68, compared to €0.67 last year.
The company noted that the lower tax rate as well as higher earnings from the operating business more than compensated for lower financial income, net, and higher tariffs. Overall the adjusted earnings before interest and taxes (EBIT) margin was 17.4%, slightly under the prior-year quarter due to higher tariffs.
In the fourth quarter, adjusted EBIT of €1.098 billion dropped 2% from €1.120 billion in the prior-year period.
The adjusted EBIT margin dropped to 17.4% from last year’s 17.7%. Higher tariffs had a negative effect in all segments. This was offset by contributions from revenue development as well as cost reductions in connection with the transformation programme of the diagnostics business.
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