The Pro Medicus Ltd (ASX: PME) share price is up more than 5% after the healthcare software business announced its FY25 result.
Pro Medicus provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups globally.
Pro Medicus FY25 result
Here are some of the main highlights from the report for the 12 months to 30 June 2025:
- Revenue grew 31.9% to $213 million
- Underlying EBIT (EBIT explained) grew 40.5% to $157.7 million
- The underlying EBIT margin reached 74%
- Underlying profit before tax rose 40.2% to $163.3 million
- Net profit after tax (NPAT) soared 39.2% to $115.2 million
- Final dividend per share of $0.30, up 37.5%
During the year, the business announced $520 million in new contracts, including a $330 million, 10-year contract with Trinity Health, one of the largest not-for-profit healthcare systems in the US.
Pleasingly, the company also announced $130 million in contract renewals during the year, including a $98 million eight-year contract with Mercy Health.
The ASX healthcare software business also pointed out it sold additional modules to existing clients, including $24 million over five years with NYU Langone and $15 million over five years with Duke Health.
This year represents a record for contract wins, contract renewals, sales of additional modules revenue, net profit, sales and implementations.
Outlook for the Pro Medicus share price
The company said it has around 10% of the total addressable market in the US, but there is “plenty of scope” for further growth.
It also said that after FY25 finished, it signed two more contracts, including a $170 million, 10-year contract with UCHealth, including the Visage 7 cardiology offering.
Management also noted that more clients are opting to buy Pro Medicus’ full-stack of viewer, archive and workflow management.
Pro Medicus said its cloud capabilities are a strategic advantage because the competition has not been able to re-engineer their systems to fully take advantage of the cloud, so they’ve resorted to hybrid options.
The company says its pipeline remains strong, spanning all key market segments. It also said it has made good progress with other ‘ologies’ and AI.
The Pro Medicus share price is now trading on a very high number. It’s worthy of a high valuation, it may be the highest-quality ASX share, though it’s hard to say exactly what a good price is without a crystal ball to know how the long-term plays out to say if it’s worth it.
I’m a happy shareholder, but there are other ASX growth shares I’d choose to buy first.
