Getinge (OM:GETI B) Margin Improvement Reinforces Bullish Narrative on Profitability

Getinge (OM:GETI B) reported earnings that are forecast to grow at 16.08% per year, with revenue also projected to rise by 5.3% annually. The company's net profit margin stands at 5.7%, up from 5% a year ago, reflecting improved profitability and a turnaround from a five-year average annual earnings decline of 15.2% to most recent earnings growth of 21.5%. With the shares trading at SEK224.3, below the discounted cash flow estimate of SEK441.88, investors are likely to interpret these results as a sign of positive momentum in both margins and earnings trajectory for Getinge.

See our full analysis for Getinge.

Let’s see how these earnings results stack up against the most widely followed narratives for Getinge, where the consensus view gets reinforced and where it might get challenged.

See what the community is saying about Getinge

Profit Margin Beats Historical Trend

• The net profit margin now sits at 5.7%, higher than last year’s 5% and well above the five-year average annual earnings decline of 15.2%. This signals a turnaround in earnings quality.
• Analysts’ consensus view sees this margin improvement as sustainable and claims that ongoing operational efficiencies and expanding digital adoption should further boost Getinge’s margins and overall profitability.
  • Proactive supply chain adjustments and consistent productivity-driven cost reductions are cited as concrete drivers behind the uptrend in margins.
  • Broader product offerings from recent acquisitions are referenced as positive contributors to recurring revenue, which supports the case for continued margin gains over time.

The consensus narrative notes the sharp rebound in margins and raises the question of whether these operational wins can be maintained through future cycles.
📊 Read the full Getinge Consensus Narrative.

Tariffs and Cost Pressures Threaten Gains

• Tariffs added SEK 110 million to costs this quarter, with limited flexibility in contracts to pass these increases on to customers. This risks prolonged pressure on net margins if global trade tensions persist.
• According to the consensus narrative, these risks around tariffs and pricing constraints loom large. There is potential to derail the positive margin trends if Getinge cannot adapt quickly.
  • Analysts highlight that growing long-term contracts may limit Getinge’s ability to offset cost inflation through price hikes, so even operational wins on efficiency may not fully counter external cost headwinds.
  • Dependence on mature Western markets, where growth in hospital upgrades may slow, is flagged as another factor complicating Getinge’s efforts to protect profitability.

Shares Trade at a Discount to DCF Fair Value

• At SEK224.30, Getinge’s share price is well below the DCF fair value of SEK441.88 and also below the analyst price target of SEK235.63. It is trading at a lower price-to-earnings ratio than both sector peers and the broader European Medical Equipment industry.
• The consensus narrative interprets this discount as evidence that the market has not fully priced in Getinge’s recent improvements. It also notes a range of analyst price targets (as low as SEK165.0 and as high as SEK300.0), reflecting uncertainty around long-term growth and risk exposure.
  • To support the analyst consensus, investors must be confident that projected increases in revenue and earnings can be realized while maintaining or expanding profit margins.
  • Current trading multiples suggest Getinge could offer relative value. However, delivery on strategic initiatives and management of external risks remain crucial for unlocking a rerating.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Getinge on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Looking at the data from another angle? Share your own outlook now. Your narrative could be built in just a few minutes. Do it your way

A great starting point for your Getinge research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Despite recent improvements, Getinge’s rising costs, tariff exposures, and limited pricing flexibility mean future profit growth could stall if external pressures persist.

If you want to sidestep those uncertainties, seek out steadier performers with proven consistency by using our stable growth stocks screener (2094 results) to identify companies demonstrating reliable growth through all market conditions.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com