Getinge Aktie

Welcome to Getinge Q1 Report 2026 Presentation. [Operator Instructions]

Now I will hand the conference over to the speakers, CEO, Mattias Perjos; and CFO, Agneta Palmer. Please go ahead.

Thanks, and welcome, everyone. Thanks for joining the call today. As mentioned in the intro here, it's me and our CFO, Agneta Palmer, with you today. And in today's conference, we'll go through performance and some of the highlights in the first quarter of 2026 before opening up for a Q&A.

So let's move directly to Page #2, please. And I'd like to start by looking at the development of some of our strategic KPIs. And as you can see here, it's evident that we continue to clearly track in line with plan to increase the share of sales from recurring revenue and also accelerating the share of sales from higher-margin products like, for example, our ECLS offering, our consumables in Infection Control and our BetaBags within the Sterile Transfer product category.

This is all supported, of course, by solid and effective quality processes. And if we look at the specifics here, you can see that sales from recurring revenue continue to make up 2/3 and high-margin products closing in on about 70% right now. When it comes to quality, the number of field actions in relation to sales has decreased significantly, and we see this positive trend sequentially continue also into the beginning of 2026. And these improvements, we always act with -- in line with thinking of responsible leverage and an attractive long-term return on invested capital.

We can move to Page #3, please. So if we then look at some of the key takeaways from the first quarter, we managed to beat last year's record quarter and grow top line organically. Net sales grew by 0.8% organically with positive development specifically in Life Science and in Surgical Workflows. And on the order intake front, we saw an organic increase of 3.9%.

When it comes to our adjusted gross and EBITA margins, they were down in the quarter, mainly due to the strong headwind from currency and from tariffs. And adjusting for the SEK 226 million in currency and tariff headwinds in the quarter, the EBITA margin was about 50 basis points higher than last year's Q1. So the conclusion from that is that the underlying performance in business -- in our business continues to be strong, and it's developing according to the plans, the long-term plans that we have laid out.

We also have a strong cash flow and continue to have a solid financial position. So our financial leverage is at 1.5x and well below the 2.5x EBITDA that we have kind of as an internal threshold.

We can then move over to Page #4 and some of the key events during the quarter. And if we start with our product offering and our customers, I think one situation that is, of course, evolving on a daily basis is the situation in Middle East, and we continue to monitor this closely. Our first priority is, of course, to tend to our employees in the region and continue to support our customers. And if you look at the region as such, it makes up about 2% of our sales and where Saudi Arabia is half. And so far, the impact on top line and on cost has been very limited for us.

To our Life Science customers, we launched a new steam sterilizer dedicated to larger items for use for labs and for research applications. And when it comes to the sustainability and quality perspective, I'm very happy to see that we got the CE approval for Cardiohelp II in the quarter, and I'll talk more about that on the coming slide here. In addition to this, we have in our implants business received EU MDR certificate for the Intergard Synergy, which is a vascular graft with an antimicrobial coating, to minimize the risk of infections. Furthermore, in the quarter, we released our annual report for 2025, including our sustainability statement and the annual report provides a lot of good information on Getinge. So I encourage you to have a look at this if you haven't done so already.

We can then move to Page #5, please. So just wanted to elaborate a moment on the positive news about the CE approval for Cardiohelp II. And just to remind everybody, this is a market segment where we are already the global market leader within ECLS therapy, thanks to our strong existing portfolio.

With the launch of Cardiohelp II now, we become even more relevant for our customers. And some of the systems' key features are that it's even more lightweight and transportable, meaning that it can be used for both in-hospital and intra-hospital use. It also has an attachable gas blender as an option, which is something that is highly appreciated by our customers. And from an interface standpoint, we have an interface now that is even easier for users to operate, and it includes also several smart monitoring functionalities for better decision support for our customers.

We have initiated a limited market release now in the beginning of the second quarter to a handful of customers and very happy to see how positive the reception from our customers have been for this important product. The plan now is to do a full CE market release at the beginning of the third quarter. And when it comes to the important U.S. market, the plan is still to make the submission of the Cardiohelp II system, including our HLS Advanced consumables in the second half of this year.

We can then move to Page #6 and talk about the top line for a moment. So overall, we had a solid top line performance in Life Science and in Surgical Workflows. And when it comes to order intake for the group, we grew 3.9% organically. The order intake for Acute Care Therapies decreased mainly due to the temporarily high comparative figures in ventilation, where one competitor last year drastically exited the market. So we're very successful in capturing some of that market share. At the same time, we saw really good growth when it comes to ECLS consumables across the board. And this is, as you know, one of our key categories.

In Life Science, the organic order intake increased in the quarter, for example, because of an anticipated improvement from low levels that we've seen in bioprocessing for quite some time. And this is something that [indiscernible] and it's good to see some of the momentum here. [ Surgical Workflows ] grew double digit in the quarter, mainly on the back of the strong development across all our product areas, which is also encouraging to see.

Net sales there, we had growth of 0.8% organically for Acute Care Therapies. Organic net sales decreased mainly on the back of last year's consolidation in the ventilation market, that I just mentioned. In Life Science, they had a really strong quarter in terms of deliveries, and they grew organic net sales in all product areas. BetaBags and Sterile Transfer continues to show significant traction and momentum. In Surgical Workflows, the organic net sales increased primarily thanks to growth in Infection Control consumables within service and within our operating table category.

With that, we can move over to Page #7, and I hand over to you, Agneta for a moment.

Okay. Thank you, Mattias. So overall, the headwind from tariffs and currency continued in the first quarter. Even so, we managed to hold up margins, thanks to continued pricing and productivity. Starting with adjusted gross profit for the group, adjusted gross profit amounted to SEK 3.828 billion in the quarter, heavily impacted by currency and tariffs. Adjusted gross margin was down by 0.7 percentage points in total in spite of healthy contribution from price and mix.

If we then look at adjusted EBITA, cleared for currency, adjusted gross profit effect on the EBITA margin was plus 0.3 percentage points, while OpEx adjusted for currency had a negative impact on the margin by about minus 1 percentage points in the quarter. And FX impacted by minus 0.3 percentage points. So all in all, this resulted in an adjusted EBITA of SEK 824 million and a margin of 11.1%.

Let's then move to Page 8, please. And here, we can clearly state that we remain in a solid financial position. Free cash flow amounted to SEK 842 million in the quarter. Compared with last year, free cash flow was impacted by improved operating profit and changes in capital. Working capital days continued to be well below 100. We are now at roughly 90 days. On operating return on invested capital, we are at 11.4% on a rolling 12-month basis, which is well above the cost of capital.

At the end of Q1, net debt decreased to SEK 9.3 billion. If we adjust for pension liabilities, we are now at SEK 7 billion. This brings us to a leverage of 1.5x adjusted EBITDA, which is well below the 2.5x that we have set as an internal threshold. If we adjust for pension liabilities, leverage is at 1.1x adjusted EBITDA.

Cash amounted to approximately SEK 4 billion at the end of the quarter. So all in all, we can conclude that the financial position continues to be strong.

Let's now move to Page 9, please, and back to you, Mattias.

Okay. Great. Thank you, Agneta. Just a moment then to focus on the impact from tariffs and FX in the quarter. So this was, in total, a drag on adjusted EBITA in Q1 of more than SEK 200 million, so SEK 226 million altogether. Tariffs made up just over SEK 100 million of that. And if we exclude the impact of tariffs and currency, our adjusted EBITA margin in Q1 would have been 12.6%. And there, as you can see, showing then an underlying improvement.

As tariffs were first implemented in Q2 of 2025, then we expect the year-on-year comparison to be a little bit cleaner from Q2 and onwards if tariff levels remain. And that's, of course, something we'll continue to update you on.

We can then move over to Page #10, please. So I want to talk a little bit more about the long term as well. So zooming out and returning to what we said at the Capital Market update that we had in May of 2024. There, we talked about an adjusted EBITA margin of 16% to 19% by the end of 2028. And I think we're on a steady path of reaching that despite the headwind factors that we have seen, that we were not aware of when we announced this target.

The main drivers which will enable this are growth, mix and productivity. From a growth perspective, from regulatory approvals and key strategic product launches such as Cardiohelp II in ECMO that we've talked about here and also launching our low-temp sterilization in the U.S., having the sales restrictions removed for Cardiosave in our Intra-Aortic Balloon Pump business. It's just to mention a few factors here.

Specifically, when it comes to Cardiosave, I'm happy to say that we, at the end of last week, got the release for sales in CEE countries in line with the plan for Q2. We also expect that the investment fatigue that we've seen in the pharma industry will improve and some of the decision anxiety that we've seen in the last year will go away here as well. We will also, in addition to this, get our share of the announced U.S. investments and benefit from the recovery in bioprocessing. And of course, we will also continue our diligent and successful work with realizing price increases annually.

When it comes to mix, we have been successful in our strategic intent to steer our business towards a continued rotation to high-margin products and consumables. And if possible, we prefer to have products made up of a competent hardware with captive consumables attached to it, similar to what we have in our ECLS offering with Cardiohelp and HLS and in the Sterile Transfer offering with Alpha Ports driving the consumption of BetaBag. Our strong R&D and innovation pipeline is, of course, set to support this.

When it comes to productivity, here, we've already done a lot in different parts of the business, and we are still excited that there remain quite a few opportunities across the business as well. One thing to mention, I think, is the heightened extraordinary quality costs connected to the product uplift of Cardiosave and Cardiohelp that is expected now to go down in the second half of 2026 and that we will be on a lower level in 2027 and '28.

Furthermore, we will, of course, continue with our production excellence effort, where we also have some very tangible measurable benefits and helping us further optimize our supply chain and remain with an overall tight cost control across the company. So this all supports our assessment that our target for 2028 is still within good reach.

Then we can move over to Page 11, please. So for the remainder of 2026, we confirm the financial outlook for 2026. As we all know, there are some geopolitical uncertainties that we need to navigate. But based on the underlying demand and the dialogue that we have with our customers on a daily basis, our expectation remains for an organic net sales growth in the range of 3% to 5%, adjusted for the phaseout of the surgical perfusion product category. Surgical Perfusion is still expected to have some net sales in 2026, but declining from about SEK 250 million last year to SEK 50 million this year.

We can then move to Page 13, please. So in terms of summarizing here, the key takeaways from the first quarter. We did achieve organic growth in our top line despite the record quarter last year. Tariffs and FX continue to be a significant headwind, but our underlying performance is improving. Cash flow in the quarter was really strong in the quarter, and our financial position remains solid as well. For 2026, we reiterate our guidance for organic net sales growth of 3% to 5% adjusted for the phaseout of the Surgical Perfusion.

And when it comes to our priorities for 2026, you've heard them before, we are focused on addressing the remaining challenges when it comes to quality remediation in Acute Care Therapies. We focus on sustainable productivity improvements and cost consciousness when it comes to navigating the geopolitical uncertainty and also addressing the impact from tariffs. And most importantly, we continue to focus on the work hand-in-hand with our customers, adding value for them and the patients that they serve.

With that said, I open up for questions.

[Operator Instructions] The next question comes from Sten Gustafsson from ABG Sundal Collier.

A couple of questions. First of all, with regards to the ventilator headwinds you had here in Q1, if I remember correctly, you had pretty good sales development for ventilators also in Q2 last year. So is it fair to assume that the headwind will continue into Q2? That would be my first question.

Maybe to some extent, it's not something -- it's not going to be a significant factor, I think, for Q2, but it certainly won't be a big help either.

Okay. Excellent. My second question is regarding Cardiohelp II. And what kind of gross margin should we assume for that product compared to the existing Cardiohelp product? Is it going to be accretive? Or is it fairly similar gross margins on those 2 products?

Yes. We don't guide on and disclose gross margin levels on any of our products and Cardiohelp II is no exception. Generally, though, when we work with product development and new launches, we make sure that the products that form the next generation of any therapy or product category have a better gross margin than the generation that they replace, and Cardiohelp II should be no exception to this.

Okay. And one final, if I may. You talk about these lower extraordinary quality costs going forward. Could you please sort of quantify those? I mean we've heard SEK 800 million in the past. And where we are today? How low those will be going forward?

Yes. Yes, I think you're right. We said that they peaked at about SEK 800 million in 2024. We saw a small decrease in 2025. We expect another small decrease this year and then a slightly bigger decrease from 2027 onwards. And the end game here is to at least halve those costs.

The next question comes from Erik Cassel from Danske Bank.

First, I want to get some more color on the composition of the ACT decline. I mean, obviously, you talked about ventilators, but you're also talking about Cardiac Assist, et cetera. And I think last quarter, you said that the demand for Cardiac Assist was quite positive on the hardware side. So I wanted to ask if something has changed on that side. And if you could, if possible, give some more color on how much the ACT Americas part declined by the different parts?

Yes. No, thanks for the question. We don't dissect the business that much. What I can say on Cardiac Assist is that we had hoped to be able to resume deliveries in Q1 already of balloon pumps in CEE markets. And that was not the case. We only got the final approval to start this last Friday. So it will be a Q2 event. So that's been a little bit of a drag on sales. And also, it has a direct impact on order intake as well because customers don't order new pumps unless they have received what they're expecting to be delivered.

Can you say anything on how much the ventilator decline did on that 8.5%?

No, we don't disclose subcategory financial parameters, unfortunately.

But can you say anything if it would have been, say, positive organic growth if it wasn't for ventilators?

No, I can't answer that either, unfortunately.

All right. Fair enough. I got to try. Then on the guidance side, I view it as the wording is a bit softer, perhaps the visibility is worse now and maybe you're even seeing a bit more, say, negative outlook. Can you just talk a bit about what you're seeing for the rest of '26 in terms of the, say, customer behavior and dialogues that you're referring to? Has it become slightly more negative? Or is this just a wording change that I'm dwelling too much on?

Yes. No, that was not the intent of the wording change at all. It was really just a way of recognizing that we do operate in a rather volatile environment, and we're mindful of that, but we feel confident reconfirming our guidance here even if the word, semantics, had changed a little bit.

Okay. Just a last question then. Surgical Workflows, obviously quite strong in terms of order intake, especially for Americas and Digital Health. Is there some specific projects that this relates to that sort of makes it nonrecurring? Or are you seeing a more upbeat environment in the U.S. specifically for Surgical Workflows?

It's a bit of both. If you look at DHS, it's always lumpy. I mean they tend to be rather large projects, and we do have that, but there's also a little bit of an underlying better confidence, I think, generally in the market and also, I think in the way we operate in this business as well. We made some tweaks to how we organize ourselves, which hopefully also for the long term has a better, more positive impact. But there's absolutely a bit of -- you cannot call them one-offs because they're not. It's just project business that is a little bit fluctuating by nature.

Okay. Can I ask one short one? Will you tell us anything on the potential impact of the change in steel content tariffs? Or is that something you're going to not disclose?

What we can say there is that it's still under analysis, how it impacts us. It's fairly recent. But the preliminary evaluation is that it's mainly if it hits us. It's components and spare parts, not complete products. And the absolute majority of our exposure is on the complete products.

So the SEK 500 million for full year still holds, you think?

I don't think that we have guided on this, but that sounds like a fair assumption given the current levels, yes.

The next question comes from Filip Wetterqvist from SB1 Markets.

I have a couple. First one, given recent pricing hikes that we have seen on raw materials such as plastic, steel, aluminum, it seems like you do not see any material effect of this in Q1, and I assume contracts are negotiated a few quarters in advance. But do you anticipate any higher input costs in the coming quarters? Or do you not expect any effect at all from this?

Yes. Thank you for that question. If we dissect it a bit into parts. When it comes to freight, which is the more direct near-term impact, we have very limited impact in Q1. But if it's prolonged, yes, there will be some impact in Q2 onwards. When it comes to plastics, et cetera, it's too early to say that we have any effects there.

Okay. And at the Q4 call, you indicated price increases of around 2% for 2026. Did that materialize here in Q1, meaning the 0.8% organic growth was hampered by lower volumes? Or -- and do you -- are you able to accelerate price increases further there if you see increasing costs here in the coming quarters?

Yes. We still stand by that, roughly 2%. It is a gradual rolling during the year. So it's slightly less than that in Q1, but we are progressing well towards that level.

Okay. But let's say, we see -- so if costs are increasing, you won't be able to translate that onwards to your customers, you still anticipate only a 2% price increase then?

This is always an ongoing discussion that we have with the -- all the commercial dynamics and the cost levels that we have. So of course, we will adapt our ways of working if we see that we get higher inflation, but it's not an automatic or sort of something that we can directly pass on. Mattias mentioned it for tariffs and it's similar then for raw material. But we do have very active pricing.

The next question comes from Kristofer Liljeberg from DNB Carnegie.

I have a few short ones. I hope that's okay. First of all, is it possible to quantify at all the positive effect you expect here from the new ECMO approval in Europe or whether that potential positive effect is more a factor of when and -- yes, when you get the U.S. approval, again? And then could you just clarify a little bit about the Cardiosave status here in Europe and the U.S. filing? And then finally, on tariffs, if it's fair to assume really neutral effect here year-over-year from the second quarter?

Yes. I think we can't quantify. But of course, there is a positive effect from the launch of Cardiohelp. I mean this is an important part of our product range. So definitely a net positive, but I can't give you a magnitude of that.

When it comes to the Cardiosave status, we got approval to start shipping last Friday. So the first pumps are being delivered in CEE markets this week. And the U.S. filing, there is no change here. We still expect to do that before the half year mark.

And then when it comes to tariffs, it's dependent, obviously, on the tariff level, but also on the product mix of imports. But generally speaking, yes, it sounds like a fair assumption to assume that.

[Operator Instructions] The next question comes from David Adlington from JPMorgan.

Maybe could you quantify the impact of foreign exchange hedges in Q1, how they roll off through the next 12 months or so? And then secondly, obviously, we're a quarter in now, still no margin guidance. Just wondering if you're willing to give us an idea around how you're seeing margins for the year, whether up, down or sideways?

Yes. If we start with FX, we have not changed anything specifically regarding our hedging strategy, and we will not disclose that. But just a reminder, I think we have talked about it on this call before, looking at the natural hedge, around 60% of what we sell in the U.S., we also produce in the U.S. And then the second thing maybe to mention regarding natural hedging and FX exposure is that we work very actively with our payment flows to compensate or offset as much as possible.

So those are the 2 things to highlight there, but no quantification of the hedging effects as such.

And on the margin guidance, I mean, there's still [Technical Difficulty] said in the presentation, we are confident about the long-term margin guidance of 16% to 19%.

Sorry, Mattias, you broke up again. I might have missed the first part of that. Would you mind just repeating the margins for this year?

Yes. I just said that we -- there's a lot of uncertainty in the world, as you know. So we are not going to do any margin guidance for 2026. We remain with the top line guidance only, and we remain with the long-term margin guidance of 16% to 19%.

The next question comes from Ludvig Lundgren from Nordea.

Yes. I just have a follow-up on ACT. So on ECLS consumables continued to grow despite being up against a rather tough comparison numbers. And I assume there was some flu-related headwinds here given the lower hospitalizations Q1 '26. So I just wonder if there were any one-offs or stocking of consumables that you saw here in the quarter or if it's rather the underlying run rate?

You broke up for a second. Can you repeat the question on the ECLS consumables, please?

Yes. So it seems pretty strong considering the quite tough comparison. So I just wonder if you saw any stocking or one-offs here in the quarter or if it rather reflects the underlying run rate?

Yes. No, there were no abnormal events in Q1. I think your analysis of this seems correct. It's a good underlying demand.

Yes. Okay. And can you just confirm that like the flu-related sales was lower this quarter versus Q1 '25?

[indiscernible] confirm that we see the same flu data as you when it comes to hospitalizations. How our customers use the product they buy, whether it's for treating flu or something else, we don't have perfect insight into it.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Okay. Thank you very much. I think I already made the summary before the Q&A. So I just wanted to say thanks, everyone, for joining, and I wish you a good rest of the day. Thank you very much.

Welcome to the Getinge Q4 Report 2025 presentation. [Operator Instructions].

Now I will hand the conference over to the speakers, CEO, Mattias Perjos; and CFO, Agneta Palmer. Please go ahead.

Thank you very much, and welcome, everyone, to today's earnings call. With me, I have our CFO, Agneta Palmer. We will start the conference today with our performance in the fourth quarter and then reflect a bit on the full year and our expectations for 2026 and onwards before ending with a Q&A.

So we can move directly to Page #2, please. So let's first look at the development of our longer-term strategic KPIs. You can see that we continue to clearly track in line with our plans to increase the share of sales from recurring revenue, accelerating the share of sales from high-margin products like our Paragonix offering, our ECLS portfolio, the consumables with infection controls and also data bags inside our Cell Transfer segment in Life Science. This is all supported by solid and effective quality processes as well, which is extremely important in our industry.

So sales from recurring revenue now makes up about 2/3 and high-margin products a little bit more of total revenue. When it comes to quality, the number of field actions in relation to sales has decreased significantly, and we see this positive trend also sequentially continuing in the fourth quarter. This improvement should, of course, be achieved through responsible leverage and an attractive long-term return on invested capital.

If you move to Page #3. If we then zoom in on the fourth quarter of last year and some of the key takeaways from the quarter, we managed to beat last year's record quarter and grow top line organically, which I think is really good. Net sales grew by 1.2% organically with positive developments in most BAs and regions, and our order intake increased 2.3% organically. If we then look at adjusted gross and EBITDA margins, they were down in the quarter, mainly due to the strong headwind from currency and tariffs. And adjusting for the over SEK 1 billion in currency and tariff headwind in 2025, the EBITA margin for the full year was considerably higher than 2024, signaling that the underlying performance of the business is strong and developing according to plan. We have solid cash flow, and we remain in a very strong financial position with our financial leverage well below 2.5x EBITDA. And the Board has -- the Board of Directors have proposed a dividend of SEK 4.75 per share.

We can then move to Page #4, please. So if we then look at some of the key activities and events in the quarter and start with our -- what we offer our customers, we -- it's usually our strongest quarter than last year's significant amount of shipments that went out in the last week of the quarter -- last week of the year. So really good collaboration with our customers overall, and that this is the reason we managed to reach record high organic sales in the quarter as well.

I'm also very happy to see that our intense product development efforts have resulted in several important product launches during the quarter. In Life Science, we have announced the integration of Siemens open and flexible user interface in the new generation of washers and sterilizers, and this will support streamer operations, efficient data management and secure data integrity for our customers. And also in Surgical Workflows, we launched the utility-efficient Aquadis 44 washer-disinfector, which helps hospitals reduce cost and meet environmental -- their environmental targets. And within Surgical Workflows, we also launched Automatiq, which is a new family of next-generation automated solutions, which combines smart robotics, intelligent conveyor systems and advanced software to achieve both safer, more consistent and less labor-intensive sterile reprocessing.

If we then look at the sustainability and quality aspect of this, we continue to make good regulatory progress in the quarter. In our Implants business, we received premarket approval for the iCast covered stent in large diameter lanes. So this will help us become more competitive in the U.S. market. Our PLS set which is used in extracorporeal circulation for cardiac and pulmonary support received CE certificate under the EUR MDR. And also happy to see that PiCCO, our minimally invasive hemodynamic monitoring system is now included in the European Society of Intensive Care Medicine's guideline on circulatory shock.

I also want to highlight again that our quality KPIs such as audit finance per audit for quality systems and also field actions in relation to sales continue to trend positively. So those are the main activities and events for the fourth quarter, and we can then move to Page #5.

So looking at then our top line performance, we can see that we had solid progress in Acute Care Therapies and in Surgical Workflows. Order intake grew 2.3% organically. And in Acute Care Therapies, this increase was mainly attributable to good performance in ECLS Consumables, in Transplant Care, and we also saw growth in endoscopic vessel harvesting and in product [indiscernible]. Life Science organic order intake declined in the quarter due to softer development in WIS, which is our washers, isolators and sterilizer business and also within Bio-Processing.

The organic order intake for Surgical Workflows grew strongly in the quarter, mainly on the back of strong development in infection control consumables and also operating room equipment generally within Surgical Workflows. From a sales perspective, we had a 1.2% organic increase in sales, and we have both Acute Care Therapies and also Surgical Workflows showing low single-digit growth in organic sales. Acute Care Therapies, the growth came mostly from good performance when it comes to ventilators globally.

We saw Transplant Care with good momentum and also ECLS therapy. In Surgical Workflows, organic net sales increased primarily, thanks to growth in operating tables and in infection control consumables. And when we look at Life Science, we had an organic net sales decrease mainly due to lower sales in Bio-Processing and in the WIS business that I mentioned also on order intake. Growth in sterile transfer, which is our most important subcategory in Life Science continued strong.

We can then move over to Page #6, and I'll hand over to Agneta.

Thank you, Mattias. It's positive to see that our activities come through a strong underlying performance. Despite negative impact from tariffs and FX in the quarter, we managed comparatively well with decent margins. On adjusted gross profit for the group, adjusted gross profit amounted to SEK 5.037 billion in the quarter, primarily on the back of currency and tariffs. Adjusted gross margin was down by 1.1 percentage points in total despite a healthy contribution from price and mix.

On adjusted EBITDA, adjusted gross profit effect on the EBITDA margin was minus 0.5 percentage points due to what I just mentioned. Adjusted for currency, OpEx had a slight impact on the margin in the quarter. FX impacted severely by minus 1.2 percentage points in the quarter. And all in all, this resulted in an adjusted EBITDA of SEK 1.809 billion and a margin of 17.8%.

Let's move to Page 7, please. We remain in a solid financial position. Free cash flow amounted to SEK 1.2 billion in the quarter. Compared with last year, free cash flow was impacted by changes in working capital. At the end of Q4, net debt was SEK 9.8 billion. If we adjust for pension liabilities, we are at SEK 7.5 billion. This brings us to a leverage of 1.5x adjusted EBITDA, which is well below the 2.5x, which we have set as an internal threshold. If we adjust for pension liabilities, leverage is at 1.1x adjusted EBITDA. Cash amounted to approximately SEK 3.4 billion by the end of the quarter. So all in all, we can conclude that the financial position continues to be strong.

Let's move to Page 8, please, and back to you, Mattias.

Thank you, Agneta. Before looking at the full year and ahead, I'd just like to take the opportunity to quickly shift from financial KPIs to some other impactful figures. So at Getinge, my colleagues and I have a lot to be proud of, I think. If you look at our products and services in the hands of clinicians and pharmaceutical staff, they really make a true life-saving impact globally every minute. So this slide just lists a few figures describing some of that impact. And it really explains some of the reasons for the strong customer loyalty that we see year in and year out.

So for example, if you look at our Operating Table business, every fourth operating table globally is from Getinge. These are used in million major surgeries annually. Look at our new washer in Life Science, it uses 32% less water, 25% less energy, so reducing cost and the climate footprint for our customers. And furthermore, if you look at our unique NAVA ventilation technology, this can cut hospital stays by roughly 1/3 for adult ICU patients. So this is a significant win-win, both for patients for their health and for hospital finance.

With that, we can move to Page #9, please. So we take a step back and look at 2025. Overall, it was certainly an interesting year in many, many aspects here. If I sum up the year, it will be in 4 main themes. So first, we have the geopolitical friction such as tariffs and the strong currency headwind that we have seen throughout the year. So this has been a wet blanket not only for Getinge, but for most companies globally. And this is something we expect to continue also to have to deal with in 2026.

Secondly, more specific to Getinge, we've seen really good progress in our important quality remediation work. And thirdly, I'm happy to note that our organic innovation focus has resulted in several product launches throughout the year, which will help us further strengthen our competitive position and the support from our customers. All in all, we continue to show strong underlying performance, thanks to our industry-leading products and our team's enduring efforts together with our customers navigate through ongoing political turmoil.

We can then move over to Page #10, please. I just wanted to take a moment to zoom in on the headwind from tariffs and FX as well since this was a significant drag on adjusted EBITDA in Q4 and almost -- it was almost SEK 500 million and also, of course, a drag on full year adjusted EBITDA by over SEK 1 billion. So tariffs made up almost SEK 150 million in the quarter and about SEK 370 million for the full year, which for last year was Q2 to Q4. If we exclude the impact of tariffs and currency, our adjusted EBITA margin in Q4 would have been 20.3% and 16% for the full year. So this is right at the beginning of our longer-term guidance plan of 16% to 19% set for the end of 2028. So this really shows that the underlying improvement work is really having good momentum here, and that's something we look forward to continue working with and implementing in the coming years.

We can then move over to Page 11. Thank you. Just a few comments on the regulatory uplift plan as well with some of the major milestones coming up during the year. So at the end of 2024, if we take a step back, we reached the important milestone of clearing the quality record backlog. During 2025, several other regulatory milestones have been reached. I mentioned some examples from Q4 at the beginning of this presentation. We've also made progress in the important regulatory product uplift of our market-leading devices, CardioSave, which is our intra-aortic balloon pump in cardiac assist and Cardiohelp, the hardware for ECMO therapy within our Cardiopulmonary business segment.

When it comes to CardioSave, in CE markets, the CE approval is reinstated with conditions since last fall. We hope to initiate sales by the end of last year, but due to some delay in shipment of critical components, we have pushed of deliveries now to the second quarter of 2026. In the U.S., we're currently only selling replacement pumps to existing customers. And due to the delay with critical components that I just mentioned, we've also pushed the 510(k) submission to Q2 2026. We had strong order growth for pumps in the quarter, which confirms the leading position in this segment and the trust that our customers have in us, and this is why the submission and the start of deliveries is really a key priority for us.

If we then move to Cardiohelp, there are no sales restrictions in key markets for the existing Cardiohelp. We and our customers are very excited about the next-generation device here, the Cardiohelp II . For this one, we sent in the submission for CE-mark approval in Q4 of 2025, so last year, and we expect to be able to initiate the first shipment in Europe during the beginning of this year. In the U.S., we're only selling to existing customers or customers confirming that they don't have any other viable alternative. The work with the 510(k) submission for the complete Cardiohelp II system is going according to plan and is set for the second half of this year.

We can then move to Page #12. At the Capital Markets Day in our Capital Markets update in May 2024, we guided for an adjusted EBITA margin of 16% to 19% by the end of 2028. And I think we're on a steady path of reaching that, and that's despite the very different norm that we have today compared to 18 months ago. The main drivers which will enable this is related to growth, it's related to product mix and it's related to productivity. So if you look at the growth angle of this to begin with. So from the perspective of regulatory approvals and key strategic product launches, we have mentioned some of them here. We have the next-generation ECMO therapy with Cardiohelp II having no sales restriction for CardioSave intra-aortic balloon pump and also our low temp sterilization is something that will materialize during this guidance period.

We also expect to get our share of the announced U.S. pharma investments and a recovery in Bio-Processing. And we will, of course, continue our diligent and successful work with realizing price increases every year. From a mix perspective, it is our strategic intent to steer our business towards a continued rotation to high-margin products and consumables. And if possible, we prefer to have products that are made up of a competent hardware and with captive consumables attached to this. Our strong R&D and innovation pipeline is set to contribute to this development. And then from a productivity perspective, we've already done a lot in several parts of the business with remaining opportunities in other parts of the company.

The heightened extraordinary quality costs connected to the product uplift in CardioSave and Cardiohelp is expected to go down from the second half of 2026 and then be significantly lower in 2027 and '28. So this will also support the margin expansion. Furthermore, we will continue with our production excellence efforts, helping us to further optimize our supply chain and remain with a tight cost control across the company. So all in all, this supports our assessment that our target for 2028 is well within reach.

We can then move over to Page 13, please. So what does this mean for 2026 then? And here, we see primarily 3 themes. First, unfortunately, we expect the geopolitical friction and the FX headwind to continue in 2026. And so of course, will our mitigating efforts. Secondly, a key this year will be to hit the critical quality remediation milestones to enable the product launches that we have in the pipe as soon as possible. And thirdly, we do expect the solid underlying performance to continue, and we have good momentum across large parts of our business when it comes to this. So in many aspects, a year quite similar to 2025 and setting us up for an acceleration in 2027 and '28.

Can I move to Page 14. This takes us to our financial outlook for 2026. As we all know, there are some geopolitical uncertainties that we will need to navigate in the coming years. But based on the underlying demand that we see, our expectation is for an organic net sales growth to be in the range of 3% to 5%, adjusted for the phaseout of our Perfusion product category. Surgical Perfusion is expected to have a net sales in 2026 declining from about SEK 250 million to SEK 50 million.

We move then to Page 16, please. So summarizing the quarter, we had organic growth in top line, resulting in record high sales for the quarter. Tariffs and FX continue to be a significant headwind, but we still managed to have margins in line with the 2024 level, really confirming that the underlying performance is developing according to our plans. Our financial position remains solid. We had a good end from a cash flow perspective for 2024 -- sorry, '25. For 2026, we guide for organic net sales growth of 3% to 5% adjusted for the phaseout of Surgical Perfusion. And our priorities remain the same for 2026.

So key here is addressing the remaining challenges that we have in our Acute Care Therapies business area. We continue to focus on sustainable productivity improvement and cost consciousness when navigating the geopolitical uncertainty and addressing the impact from tariffs. And key focus, of course, as always, is to continue creating added value for our customers and really help them serve patients better. With that said, I open up for questions.

[Operator Instructions] The next question comes from Oliver Reinberg from Kepler Cheuvreux.

Three, if I may. I'll probably take them one by one. Mattias, can you just say a word on 2026? I mean, you alluded to the fact that there's obviously still the kind of headwinds from currencies and I guess also tariffs maybe a certain annualization effect. Can you just help us to get a kind of feeling for the magnitude of these headwinds? And I think the Street is currently expecting 60 basis points of margin expansion. Is that something you feel comfortable with? That would be the first question, please.

As usual, we never comment on expectations from the capital markets here. But the -- from the tariff situation, assuming that they remain the way they are now, I think the math that we have from 2025 will apply in 2026. So we will have a slightly higher level of tariffs up to a couple of hundred million. So that's something we will need to mitigate. And so we are fingers crossed for some tariff stability at least. The best thing will be if they went away, but we expect to have to live with tariffs now for 2026. So they will continue to be around SEK 0.5 billion headwind at least. On the currency side, we do expect the dollar to continue to depreciate, but we're really in no position to make any estimates forward-looking on this. So that's an additional headwind that we will need to find ways of mitigating.

Okay. But would it be fair that you still feel that you can mitigate both and there will be net margin expansion at the end?

Yes, that's our ambition.

Okay. Perfect. And then just secondly, on this kind of midterm guidance, which you also already gave within the last call. I mean, can you just give any kind of flavor is the upper end as likely as the low end, so the full range of the whole guidance still applies?

I'm not really in a position to dissect the guidance spend now and narrow it down. But I think it's really encouraging to see that without the negative effect from the geopolitical consequences of tariffs and headwinds, we would already be within our guidance range. So the momentum underlying in our business is good. We do feel okay about investment climates among our customers as well. I think treatment needs will continue to grow slowly, but that support our business growth. And like I mentioned in the presentation page, our productivity measures across the business is also really showing good momentum. So overall, we feel good about the traction towards the margin, but I'm not prepared to make any more detailed analysis or break this down with the probabilities right now.

Okay. Fair enough. And the last question, just because we're full, it's always probably a kind of good opportunity to discuss capital allocation. I mean, you brought the leverage down quite significantly. Can you just talk about priorities? I mean, in the past, you were more leaning towards M&A. Can you just provide some kind of color how open you would be to any kind of share buybacks at this kind of point? And I think there was some time ago also you did this kind of discussion to what extent Life Sciences is a kind of long-term fit given that the industry is going to normalize. I mean, do you feel that there's a lot of people knocking on your door for any kind of potential offer? Any kind of flavor here would be great.

Yes. I think we definitely have continued inbound interest regarding the Life Science business, but it's not something that we have on the divest list here. We feel like good owners. We like the exposure to this end market, and we continue to invest in this part of the business as well. When it comes to capital allocation in general, M&A remains one area, but we have a mandate to do share buybacks as well. It's a discussion that is continually going on in the Board. Given the uncertainty that still remains, I think we've seen some examples of this already in this year with tariffs coming in or the threats of tariffs coming in and so on. So I think it's good to be a little bit prudent with how we allocate capital.

The next question comes from Mattias Vadsten from SEB.

I have 3. I'll take them one by one as well. First one, if you could talk a bit about the sort of phasing for the year, for example, assuming perhaps Q1 is one of your tougher comps during 2026 from the perspective of a couple of things? And also quality cost, it sounds like it should come down foremost towards the second half. So maybe if you could give your view there. That's the first one.

Yes. No, we're not prepared to make any kind of quarterly guidance here, but the dynamics that you described, we agree with, it's maybe the best way of putting this. But we've guided for 3% to 5% growth in 2026. Our ambition is to continue to expand the margin, but I can't really break it down by quarter.

Okay. Then it appears ventilators has been very strong, of course, and strength continued also into Q4, perhaps driven more by outside U.S. markets. But could you give us your overall sort of thinking for the business in 2026, perhaps without going into too much of a detail, but more how you think about it going forward? Are accounts sort of tougher? Or is the momentum strong enough to make it continue to grow strongly also in '26?

Yes. I think I'll describe it the way we've done it during 2025. We've had over a year of good momentum now in this business. I think definitely compared to our market share pre this shift, we've been net beneficiary when it comes to market share grab. So very thankful for the support from our customers and the great work by our teams to make this happen. I think that there is a mix of replacement cycle, normal replacement cycle going on in this business, and there is the continued withdrawal of some of the remaining incumbents in this business as well. But needless to say, the tailwind will be much, much milder than it was during end of '24 and the whole of 2025.

Okay. And then on the situation -- on the supply side in IABP, what is your sort of level of confidence to have that sorted in Q2? And also, is it fair to say that sort of CardioSave in the U.S. will be sold without restrictions towards the end of 2026? Or how do you view that?

I don't think we will be able to sell towards the end of 2026. This is now first about submitting the updated 510(k) that we said now is in the second quarter. It still hinges on making sure that we have the critical components fully available that we can do the validation and testing needed and we prepare for this. So there is still some uncertainty related to this, but we feel obviously more confident about Q2. Otherwise, we would have said something different. So there's some remaining work, but also steady progress towards this.

The next question comes from Kristofer Liljeberg from Carnegie.

I will also take my questions one by one. First, are you able to comment on Paragonix sales level here for 2025, maybe how much it's growing right now and margins?

I don't think we will disclose the exact growth figures of Paragonix, but we are very happy about this development. And as is visible in our report, we will end up with a bit of a higher earn-out also based on this. And margin-wise, it is also developing according to our expectations or a bit better.

But would you say it's still dilutive on margin?

It's slightly dilutive on margin overall on the...

Okay. For the group or for ACT?

For the group.

Okay. Then my second question, Mattias asked before about phasing effects. Just wondering about Q1 and the flu season. I think that was quite a good benefit for you last year and it seems the number of cases is dropping quite fast in the U.S. Could you maybe give a little bit of flavor how much a good or a strong or weak flu season impacting sales in a given quarter?

No, the short answer is no. It is difficult to break it down. I mean there's been a couple of years after the pandemic where we had no flu season effect and now we saw last year that there was some and this year, if you look at 2025, '26, hospitalizations increased a little bit earlier than they did before. So there was maybe a bit more of a December effect, but it's impossible for us to speculate about the impact of this in...

Okay. And finally, when it comes to the quality cost, is it possible to say approximately how much lower they were in 2025 versus '24 or if they were still at this SEK 800-plus level?

No, I think we will stick to the information that we have provided before. We had sort of a peak level that is -- we are remaining on high levels, and it will slightly then come down, but we will not give any exact amount.

But you can confirm it was less than SEK 800 million in 2025?

Yes, that we can confirm.

The next question comes from Ludwig Germunder from Handelsbanken.

Ludwig Germunder from Handelsbanken. I would like to start with touching upon ventilators again, like we've been talking about a bit before already. But would you be willing to give some flavor around the ventilator sales? We knew that comps were tough going into this quarter and yet the sales come out strong now. What does the strong mean? What are the main drivers? And how should we think about this going into Q1, where dynamics are very similar?

I think the strength comes on the back of some continued competitive conversion, possibly some of the normal replacement cycle kicking in and also some fee effect positively. But we can't break this down even if we wanted to unfortunately.

Did it surprise you? Or was this in line with what you saw coming?

I wouldn't say surprise, mild surprise, maybe it was a mild positive compared to expectations.

Okay. And then a quick one on Paragonix as well. It seems like it's doing well there, another quarter of strong growth. What are the main drivers you're seeing in Paragonix? And what are you expecting for this in 2026?

The drivers have not changed. I mean there is this conversion from ICE, it's still one of the ongoing things. And then, of course, we had a good launch of the KidneyVault during 2025 as well. So I'd say these are the main contributors.

Okay. And then just final one on the outlook given the updated definition. If my math are correct, you're adjusting for an estimated headwind of around 57 basis points. How should we think about this in relation to the other? Has anything changed given the, let's say, the estimated rest of the business? Or is it the same as before?

The same as before, we have not guided before on 2026. Would you care to elaborate the question?

No. Yes, sorry. I'm thinking the development, for example, when you guided to 3% to 5% in 2025, you did that on the base of something. Do you see the same market development excluding the Surgical division?

There are a number of dynamics in the market development, of course. If you look at our market presence, it is the same trajectory as in 2025 and strong in our key position. Then we have different dynamics such, for example, as the one described by Mattias when it comes to ventilators and the conversion effect that is a tough comparison now moving into 2026.

The next question comes from Philip Omnou from JPMorgan.

Firstly, on Section 232, I would love to get your thoughts on that program and the implications of that and what you anticipated in terms of its outcome for 2026?

Yes. So I have hopes, but I will not speculate on the outcome. What we can say about Section 232 is that we have submitted our opinion along with our industry colleagues, and we are expecting clarity on this in Q1, this is what has been said before. So let's hope for some clarity. And as Mattias mentioned before, the very least stability on tariffs. That's all we can say on this one.

Okay. Perfect. And then maybe can you remind us of your tariff mitigation actions that you've gone through and what sort of impact do you expect they can have in 2026?

We can just reiterate what we have mentioned before. So we work with it -- we always work very actively with pricing, but we intensify these efforts to mitigate for tariffs. We also intensify our productivity agenda that has been very strong also, but we have accelerated some areas of that to compensate for the increased cost of tariffs. And then the third bucket is that we review our structure, both in terms of our business partners, so to speak, with suppliers, et cetera, and in some cases, also our own footprint.

Right. Okay. And then just the last one from me, please. I'm not sure if someone has really asked this because my line cut out. But we saw the corporate warning from Teleflex a few weeks ago, and they were talking about weakness in demand for intra-aortic balloon pumps and catheters in the U.S. and Asia. So just wondering if you had any thoughts on that and if you were seeing anything in your existing customers? Or does it change anything with planning for CardioSave?

Yes. I think we've seen that as well. We can only comment on our reality. And I think our view is a bit muddled by the fact that we have supply restrictions here, but the order intake and the optimism from our customers in terms of getting shipments of balloon pumps started in [indiscernible] is positive, I'd say. So we have a somewhat positive picture of the demand situation and the desire from our customers to have access to this therapy.

The next question comes from Sten Gustafsson from ABG Sundal Collier.

I have a question regarding the margin outlook for the year. You expect to compensate the tariffs and FX and expand margins. I think I understood you correctly. It would be good to hear what assumptions you made on tariffs and also on what type of FX headwinds you expect on EBIT for the year? Have you -- on the tariff side, have you assumed the tariffs to remain unchanged? Or coming back to the Section 232, which I think at least partly assumes higher tariffs, so if you could provide some clarity on what you have included in your sort of internal thinking for the year, that would be helpful.

Yes. When it comes to the tariffs, we have assumed the same level as we ended in 2025. We have made no predictions on the outcome of any 232 investigation here. So it's the same tariff that we left 2025 with that we have assumed for this year.

And in terms of FX headwinds, I think it was 1.2 percentage points in Q4 on EBIT?

Yes. So we -- again, we don't speculate in the FX development, and we will not give any specific guidance on this. But overall, as you know, a weakening dollar is negative for us, and we will do everything that we can to mitigate and compensate for that in the case that, that continues, which has been the trend in the start of this year.

Okay. But you're not -- do you think it will be higher than 1.2 for '26? Or is that sort of a proxy or what you have assumed the impact will continue to be during the year?

Again, we will not speculate on the development of the U.S. dollar. So we work with a number of scenarios and mitigation activities, and we adjust accordingly.

Sure. And finally, on price, you were successful last year raising prices. I think you talked about previously 2 to 3 percentage points. Do you think you can do the same thing this year, raise prices by 2% to 3%?

The ambition is more closer to 2% than 3%, I'd say, is realistic. But the price work continues actively as it has done since 2018 for us. So we will continue this work. And I think you already know the dynamics with long contracts in our industry and so on and the limited ability to maneuver in the beginning of this phase. But hopefully, there'll be some opportunities there. But yes, ambition is still to continue to improve prices in 2026.

The next question comes from Erik Cassel from Danske Bank.

First, I want to sort of touch upon the guidance as well. I mean, as you alluded to, Mattias, excluding headwinds from FX and tariffs, you've sort of already reached the low end of the targets you set. Would you say that you've sort of managed to achieve all the improvements you set out to do earlier than planned, sort of meaning that there's not much left to do? Or would you rather say that you sort of underestimated the level of margin improvement you could achieve over time?

We have definitely not run out of improvement initiatives. There's plenty to do still. I don't want to reply that we had underestimated the potential either. We know that there's a lot of potential in the business. And we've made some good progress now as you've seen in 2025, but there's a lot still to do there.

Okay. I guess that sounds good that you're not done. Then I sort of want to ask what's happening with the Perfusion business in terms of drag on margins. I mean, do you sort of keep the organization there to support customers in '26 and sort of see it become loss-making? Or have we already moved a lot of the people over to ECMO so that there is not much of an effect for ACT as a whole?

We do expect a slight marginal improvement effect coming from the gradual Surgical Perfusion in 2026.

We have moved out people already from this business, both to grow the [indiscernible] business, but also there is a reduction of people related to this that we implemented in 2025.

Okay. Great. And then lastly, on ECMO, it seems to be doing pretty well. How much would you attribute that to just the underlying market doing well, perhaps the effect of influenza season coming early? Or is there some sort of aspect of you maybe gaining back some market share that is driving the maybe above-market growth?

It's not possible for us to dissect this. It's very difficult to monitor competitor performance in detail, I think. So we've definitely benefited from good overall market momentum, a little bit of a flu effect in there as well. I think it kind of confirms our competitive products and that they do really life-saving work every day. That's something that's appreciated by the clinicians who are our customers. So this is the main reason why we continue to see growth. But what the market growth was exactly in Q4 it is not possible to say right now.

Okay. Just lastly, do you have any comments or thoughts on the sort of long-term prospects of ECMO now? I recall you saying that there's still a risk that you're going to lose out on customers from them switching. Have you seen any more evidence of that to sort of provide support that you're really going to lose market share going forward or sort of maintain or even improve? Do you have a different view now?

No, I think nothing has changed in our view. I think we believe still in a longer-term market growth of mid- to high single digits for this segment. And looking at the competitive dynamics right now, it doesn't appear that we are losing anything to competitors. So we remain strong with us in this segment. And all the work now that goes into both launching Cardiohelp II in CE markets and also getting the 510(k) submission into the U.S. is really key milestones now to continue to grow this business.

The next question comes from Filip Wetterqvist from SB1 Markets.

I just have one question on Life Science and then a follow-up. Would you say that the weak quarter in Life Science is an effect of like a big pharma production ramp-up last year ahead of tariffs leading to some cooler demand this year? Or is it just lumpiness of the business?

I think it is partly natural lumpiness of the business, we have seen also throughout 2025 that there's been a lot of delayed decision-making when it comes to projects. So a lot of companies now have announced expansion plans, but they've not really started to implement projects. So we can see that we have a similar win ratio like we've had before, but there's been less fewer big opportunities in 2025 due to customer hesitation on the back of geopolitical uncertainty.

All right. And then do you have like any idea how much the government shutdown affected Life Science in the quarter as no NIH funding was paid out during the period?

No, we cannot quantify that, unfortunately.

The next question comes from Delphine Le Louet from Bernstein.

I go again one by one. Just a clarification on the Paragonix and just willing to know how big Paragonix is now into the ACT business, how much does that represent? I know you don't want to disclose that, but probably you can give us sort of a sense and the range of how big it is? Second question to deal with Paragonix because I didn't catch. You mentioned it was not dilutive at the group level. And so if I'm hearing well, I just -- I need a confirmation. And so my question here would be, what is missing or when can you achieve sort of the ACT margin for that specific range of products? And then I will continue.

I think from a volume perspective, we don't have enough details for subsegment, but it's well over $100 million now the Paragonix business. And what Agneta said earlier is that it's slightly dilutive to group margins and consequently also dilutive to ACT margins. We don't guide for when it's going to be accretive to margins, and this is more about how we pace the expansion of the business with it. So we're happy with the performance right now, both from a growth perspective, and we can see that there is operating leverage in the business, but we're also continuing to invest quite a lot both in the U.S., in the old U.S. expansion and in the future R&D pipeline.

All right. Moving on probably to what's going on in China and any feedback you may give us regarding the grounds that you have in China on the hospital activity, on the evolution of the commercial interaction over the course of '25, have you anything specific to tell us about that?

I think it's a year or more of the same. I think the hurdles continue to be the same ones that we have battled for a number of years now. We have some really strong positions in China. And I think one of the bright spots is that we actually did grow in China also in 2025. That's not something we take for granted in our industry anymore. So that's really positive and confirms the strong positions that we have.

0Going forward, I think, again, I think the geopolitical friction and impact here will continue to be somewhat of a hurdle. And of course, there are barriers when it comes to having local presence and so on. And there's also, of course, an evolving competitive landscape in China. So basically, we stand by the comments that we've made before that we have a long-term positive view on China. But it has changed quite a lot from 5 years ago when we had good double-digit growth in that market.

Okay. Moving on to the Life Science. Obviously, we hear from the competition and on the biomanufacturing side, speaking about that, back to a very nice normalization and back to high single-digit, low double-digit growth. So I was wondering on your side, if you are feeling about any traction from the clients, if you confirm because you're probably a bit more late stage that the normalization has happened and that you're hearing probably more positive coming out from the U.S. versus Europe or any comment here either on a product or on a region would be interesting?

I think bioprocessing, we highlighted was a weak spot for us in Q4. It has been a weak spot throughout 2025. And we have relative to many of our peers in the market, a higher exposure to China, which is a more difficult market, both from an investment and competitive standpoint. But we do see on a broader basis, the comeback in other markets in China like the U.S., for example. So that market dynamic, we do see as well, but we have a slightly different exposure than our peers.

Yes. Okay. And just probably to be back into the tariff and into a mitigation measure that you are currently implementing. Can we get your first feedback, clients reaction about the price increase? And can you probably more specify over the course of the '26, how you're going to mitigate exactly the tariff? And what would be the ideal target by the end of the year for '26 when it comes to the mitigation of the tariff? Would that be 50%, 70% and then thinking about '27 and '28?

I think we've continued -- worked actively with pricing since 2018 when we were able to reverse a downward trend through price improvement, and we've been able to do that ever since. So it's really not something new for us. So there's no new -- we can't talk about new customer reactions to this. Customers understand our perspective when it comes to the impact of tariffs, but they also have, of course, a reality with their challenges. So it's a dialogue with customer by customers and very different reactions and understanding of this. But we feel that we can continue to work with pricing the way that we have done in the last 2 years successfully. So that's really the main way. And we take a couple of percentage points price increases, we can calculate the mitigation effect of that when it comes to tariffs and of course, currency.

The next question comes from Ludvig Lundgren from Nordea.

So I have 2, and I'll take them one by one. First on Life Science. So yes, weaker order intake here in Q4. So I just wonder what the lead times typically are for these products? And how much one should look at this Q4 order intake number when predicting sales for H1?

I think on average, the lead time in Life Science is 9 to 12 months. Having said that, I think in cell transfer, it's much, much quicker given the data bags, for example. And -- but when it comes to the weak business, it's obviously often over a year in lead time. So the average is 9 to 12 months.

Okay. Great. And then second one on this critical component delay, which made you push the 510(k) submission and CE mark get launch for CardioSave, I just wonder if you can elaborate a bit on your confidence in this new time and if there's any uncertainty in this?

There is some uncertainty still in this. So we still need to make sure that we have the adequate supply of the critical components and that we are able to do the remaining test validations and that is required. So it's our best estimate right now, the second quarter for submission.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you very much. I think we already made a summary before the Q&A. So nothing in addition to say from me. I just thank you for your attention today, and wish you a good rest of the day. Thank you.

Welcome to the Getinge Q3 Report 2025 Presentation.

[Operator Instructions] Now I will hand the conference over to the speakers CEO, Mattias Perjos; and CFO, Agneta Palmer. Please go ahead.

Thank you very much, and welcome, everyone, to today's conference. Today, we will first look into our performance in the third quarter and then also reflect a bit on the current market situation and our expectations for the remainder of 2025.

So we can move over to Page #2, please. So if we start then by looking at the development of some of our long-term or strategic KPIs, we can see that we continue to clearly track in line with our plan to increase the share of sales from recurring revenue products and also accelerating the share of sales from high-margin products, like our Paragonix offering, our ECLS portfolio, consumables in infection prevention and BetaBags in Sterile Transfer. This is all supported by solid and effective quality processes as well. Sales from recurring revenue is now at 65% and the high-margin products make up more than 2/3 of sales today. When it comes to quality, the number of field actions in relation to sales has decreased significantly, and we see this positive trend to continue also in the third quarter of this year. These improvements should, of course, be achieved through responsible leverage and an attractive long-term return on invested capital.

We can move then to Page #3, please. So if we focus then on the third quarter for a moment and the key takeaways for the quarter, we can see that we show strength in the quarter with significant growth on the top line. Net sales grew by 9.5% organically with positive development in all business areas and all regions. Order intake also increased by 4.7% organically. Adjusted gross and EBITA margins improved mainly due to acquisitions, healthy price increases, positive mix and also productivity gains. And this is in spite of continued strong headwind from tariffs and also currency on the EBITA margin, which then is a signal that the underlying development is even stronger. Our financial position remains solid with our financial leverage well below 2.5x EBITDA.

We can then move over to Page #4, please. So taking a step back then and looking at some of the key activities and events in the third quarter. When it comes to our offering and customers, I'm happy to see that Sweden's first fully automated Central Sterile Supply Department at the Malmo University Hospital has been inaugurated, with Getinge's T-DOC providing the intelligence that optimizes sterile supply Management. And by enhancing quality, patient safety, cost efficiency and also improving the work environment, T-DOC is really the critical enabler for successful operations. And this is something that we've seen for over 25 years now with this product.

Productivity is a key priority for us. And by implementing the Getinge Manufacturing Excellence program, we've been able to, for example, cut lead times by more than 20% and also reduce the COGS by about 10% for some of our key products in the product category, WIS, which is washers, isolators and sterilizers. We've also joined forces with Philips to offer hospitals in CE markets, an integrated anesthesia workstation for the operating room. So this new solution unites the precise anesthesia delivery and the state-of-the-art patient monitoring technologies.

When it then comes to sustainability and quality, in the quarter, we got the CE Mark for our Cardiosave Intra-Aortic Balloon Pump back. This is, of course, subject to certain conditions, and we plan to gradually resume deliveries towards the end of this year. When it comes to our implants business, we received EU MDR approval of 3 further indications for our V12 balloon expandable covered stent, and this will now strengthen our position, and it's a critical enabler for success on the European endovascular market. When it comes to our environment KPIs, I'm happy to see that our CO2 emissions from operations continue to decrease.

Let's move then to Page #5 and look at our top line performance in a bit more detail. So overall, we had a specifically strong top line performance in Acute Care Therapies and Life Science. Our order intake grew 4.7% organically. And the organic order intake for Acute Care Therapies increased mainly due to ventilators in Critical Care and ECLS consumables. Life Science showed double-digit growth in the organic order intake for the quarter due to very strong performance in Sterile Transfer. And the organic order intake for Surgical Workflows declined a bit in the quarter despite the strong trend that we've seen for operating tables and also consumables in Infection Control.

When it comes to sales, we grew 9.5% organically. Both Acute Care Therapies and Life Science had double-digit growth in organic net sales. In Acute Care Therapies, this was mainly due to the very strong performance in ventilator, ECLS therapy and also within Cardiac Surgery. Organic net sales for Life Science primarily increased as a result of healthy growth in Sterile Transfer and also capital goods in the washer, isolator and sterilizer category. In Surgical Workflows, organic net sales increased due to growth in Infection Control and also thanks to operating tables within Surgical Workplaces.

We can then move over to Page #6, and I'll hand over to you, Agneta.

Thank you, Mattias. I will start on a positive note and highlight that despite some severe headwind from tariffs and FX, we continue to see improvements throughout the business, leading to higher margins.

When it comes to adjusted gross profit for the group, adjusted gross profit increased to SEK 4.051 billion in the quarter, primarily on the back of volume, acquisitions, healthy price increases and positive product mix. Adjusted gross margin was up by 0.9 percentage points in total, primarily supported by price and healthy mix. Looking at adjusted EBITA, the positive effect from adjusted gross profit on the EBITA margin was 1.4 percentage points, thanks to what I just mentioned. Adjusted for currency, OpEx had a slight positive impact on the margin in the quarter. FX impacted negatively by minus 0.6 percentage points in the quarter. All in all, this resulted in an adjusted EBITA of SEK 1.079 billion, improving our margin by about 1.6 percentage points year-over-year to 13.1%.

We move to Page 7, please. Let's have a closer look at the impact from tariffs. Earlier this year, in our Q1 call, we shared some insights on our sales flows. So just to reiterate that. About 60% of our sales in the U.S. are produced in the U.S. For EU and China, respectively, about 10% is produced in the U.S. and about 1% of sales in EU and U.S. is coming from China. As you know, the tariff discussions are highly dynamics, but this overview should provide a good understanding of our exposure. In the third quarter, cost of tariffs amounted to approximately minus SEK 108 million. Adding the impact in Q2, we are then at minus SEK 218 million year-to-date.

Let's move to Page 8, please. So how are we then mitigating this and what has been the impact on the margin? In our previous earnings call, we talked about the 3 main areas that we focus on to address this topic, and they are pricing, cost reduction and reviewing and challenging our structural setup for sourcing and production. This is, of course, nothing new, but we have intensified the efforts in all 3 of these areas. The chart on the right illustrates the margin development year-on-year for Q3. First thing to note is the great comeback in adjusted EBITDA margin from 11.5% to 13.1% for the quarter. What the chart also illustrates with the blue line is what the margin would be without tariffs and with the turquoise line, what it would be without tariffs and at last year's currency rates. So without tariffs, we would have landed on a 14.4% margin. And when also neutralizing currency, we would have been at 14.9%. So this is a clear signal of our strong underlying performance and potential.

Let's move to Page 9 and look at our financial situation. We remain in a solid financial position. Free cash flow amounted to SEK 0.8 billion in the quarter. Compared with last year, free cash flow was positively impacted by improved operating profit and changes in working capital. Working capital days continued to develop well. And on operating return on invested capital, we improved to 12.5% on a rolling 12-month basis, which is well above the cost of capital. At the end of Q3, net debt was SEK 11.1 billion. If we adjust liabilities, we are at SEK 8.6 billion. This brings us to a leverage of 1.6x adjusted EBITDA, which is well below the 2.5, which we have set as the internal threshold. If we adjust for pension liabilities, leverage is at 1.2x adjusted EBITDA. Cash amounted to approximately SEK 2.8 billion by the end of the quarter. So all in all, we can conclude that the financial position continues to be strong.

Let's move to Page 10, please, and back to you, Mattias.

All right. Thank you very much, Agneta. So just moving then to our outlook for 2025.

We will have a better balance between Q3 and Q4 this year. If you remember last year, we had a rather weak Q3 and a super strong Q4. And I think from an operations perspective, I think we will have a smoother second half of the year in 2025. So we're -- even though we're entering our fourth quarter with tough comparative figures, we believe that thanks to our leading position in key niches that meet the long-term increasing health care needs globally, we remain with our expectation for organic net sales growth to be in the range of 2% to 5% and our long-term financial target of over 12% EPS growth is also intact despite the headwind from tariffs and currency.

So with that, we can move over to Page 12, please, and just summarize the state of the union after the third quarter. So we've delivered strong organic growth with improved margins despite the significant headwind from tariffs and FX. Our financial position remains solid, as just highlighted by Agneta. And we stick to our outlook for 2025, where we guide for organic net sales growth of 2% to 5%. And the priorities for 2025 are the same as they've been throughout the year, which means addressing the remaining challenges in Acute Care Therapies when it comes to the important quality work that is the #1 priority for us. It's about sustainability productivity improvements and cost consciousness when navigating the current geopolitical uncertainty and, of course, addressing the impact from tariffs as well. And most importantly, we continue to create added value for our customers, which I think is something that is shown also through the third quarter when it comes to our order intake growth and our net sales growth.

So with that summary, I open up for questions. Thank you.

[Operator Instructions] Next question comes from Kristofer Liljeberg from Carnegie.

My question relates to the strong ACT growth, and you highlighted ECMO, for example. Is it possible to comment a bit more on that? Maybe quantify how much ECMO is ECMO consumables are growing, what markets? And I'm particularly interesting to hear if there's any change when it comes to the competitive dynamics in the U.S.

Thank you. No, I think there's no -- to take the latter part of the question first, there's no significant change when it comes to competitive dynamic, I think. And the strong growth in ACT is -- in addition to ECLS disposables, we have the growth in Critical Care and also in Cardiac Surgery, that's also positive. So U.S. is obviously one of the key markets that have been performing well in this regard, but we don't break down and disclose numbers for the different product groups within the quarter.

But can you confirm that you're growing ECMO consumables in the U.S.?

Yes, we can.

Okay. Good. And the same thing, Sterile Transfers within Life Science. Any specific drivers for that strong growth?

I think generally, there's -- of course, the whole destocking is over. I think that's an important prerequisite. That's something we suffered from for a couple of years, and that's clearly over since over a year now. The other part is, of course, that there is a gradual comeback in the end market for these products. And I think in addition to this, one needs to be aware that this is a business that is also partly dictated by large contracts, and there's certain lumpiness in the business between quarters, just to be aware of that also.

Great. And then the other question I had is, if you could comment about the upcoming timing here for filing the new Cardiosave and Cardiohelp solutions in Europe.

In Europe, we've already received the CE Mark back for our Cardiosave product. So that's behind the...

I mean, the new updated version of Cardiosave and the new...

Okay. We've not provided any updated time line on this. This is into 2026. So the first milestone is the 510(k) submission in the U.S. for Cardiosave. That's the next milestone that we're working towards. And today, no update on the time line.

The next question comes from Mattias Vadsten from SEB.

I was a bit curious here how it looks now with demand in ventilators. Again, a good quarter. I think it's the fifth quarter in a row with very strong demand. So just describe a bit more in detail what you're hearing from customers. I am at least thinking about, should we expect this trend to continue given the competition dynamics? Or are comps increasingly tough going forward, which will slow it down a bit on a year-on-year basis? So anything that could help us here would be appreciated.

Yes, I think it's yes on both questions. We do expect this conversion to continue. There's been -- as you probably are aware, there's been a bit of a sped-up conversion of the [ ViAir ] installed base and a more drawn-out conversion of the other 2 players installed base. And that part, I think, will continue. But you're also right that we are meeting tougher comps now. I think the first positive developments were in Q3 last year. And then from Q4 and onwards, we had very strong momentum when it comes to ventilator conversion in critical care.

And then a follow-up on Sterile Transfer, looking very strong. Could you just describe a little bit where we are versus maybe peak volumes during COVID in this area now? Are we higher than that? And maybe, yes, there's some comments on specifically BetaBags also in terms of how they follow the higher demand in Sterile Transfer.

Yes. I think BetaBags definitely follow the high demand in Sterile Transfer. They're the biggest individual product within Sterile Transfer for us. And we -- as you may remember, we had 30% decline after COVID for 2 straight years. So we're not back at those levels yet, but it's a really encouraging comeback, I would say, where we stand right now.

And then last one for me, perhaps. In terms of the tariffs, rather flattish impact Q3 vis-a-vis Q2. Maybe some further comments on that and then also sort of outlook for the upcoming quarter here? I could assume you may be shipped some products in July already, maybe to take away some impact. I don't know, but some comments here would be helpful.

So yes, you are right. We managed to get some product into the U.S. before the raise of the tariffs from 10% to 15% that were then delivered later in the quarter. So we did not have the full 15% impact in the third quarter. When it comes to what we have ahead, we will not speculate and not guide on this. It is, as you know, a very dynamic situation. And there are many factors impacting this. And one of them is, of course, also product mix.

The next question comes from Sten Gustafsson from ABG Sundal Collier.

A question, and it's on -- related to Page or Slide 8, where you show your -- the margin development and what it would have been without tariffs and FX. How much of that improvement is driven by price? And how much is cost reduction and supply chain structure?

Yes. Thank you for that question. We will not break it down in the details, but price is an important contributor to the underlying performance as is productivity improvements. So the main pieces are around what we mentioned. It is mix. We have contribution from our recent acquisition on the gross margin and also on the EBITDA margin. And then we have those factors, pricing and productivity.

Okay. Would it be possible to get -- you mentioned price increases. How much you have raised your prices during the year?

No. For reasons, we do not disclose exactly the price increase.

So is it fair to assume that the sort of the majority of the increase comes from price?

Again, I will not break it down. It's also versus -- but we are -- we know that we are fairly successful in price realization, yes.

Okay. And we said earlier that between 2% and 3% price increase is what we're aiming for this year, and we are within that span. We won't break it down further.

No, that's very helpful. My second question would be if you can talk about what kind of drivers you see for the gross margin in Q4 and also in terms of OpEx spending, if there are any things we should be mindful about going into Q4?

I think firstly, just to repeat what Mattias said, it is tough comps when we come into Q4. We had a really strong delivery quarter last year. Some of the -- what would normally be in Q3 were sort of postponed also into Q4 of 2024, which is a tough comparison. When it comes to the margin, we will not guide on that. But as per usual in Q4, we have a higher share of capital equipment deliveries that impacts the gross margin. And for OpEx, the same there, we will not give any specific guidance. But generally speaking, we have a seasonal pattern that we have some elevated costs from that in Q4 related to the higher volumes. And also to mention that from now the end of the third quarter and ahead, we have Paragonix fully in our organic comparison as well.

I think also beyond Q4, I mean our main focus is on the underlying improvements that we're doing to our business for the longer term. So they, of course, have factors like our Manufacturing Excellence that we mentioned for Life Science in the report. There's still a lot of work to do when it comes to purchasing and things like that as well. So we remain optimistic that we can continue to improve our business, but you will have some swings between quarters. That's important to keep in mind.

The next question comes from Erik Cassel from Danske Bank.

Not to beat a dead horse, but I want to talk about guidance. You only need to deliver roughly 1.7% organic growth in Q4 to get to the upper end. And I guess lower end is quite a frightening thought. And yes, sure, I get that comps are a bit more challenging. You highlighted ventilators, for example. But can you help us pinpoint a bit more areas that you might be concerned about and as to why the upper limit is there to say? And do you still believe that the lower end is even on the table? And what would need to happen for you to get there?

Yes. Thanks for the question. I think we're not concerned about anything in particular in Q4. I think we have a well-working supply chain. We are mitigating tariffs and currency effect to the best of our ability. So -- and I think the demand situation is fairly robust as well. So there's nothing that stands out as concerning. And we've just not spent a lot of time on narrowing the guidance span here. But obviously, if you look at the way things are tracking and so on, you can work with different probabilities when it comes to the lower and the higher end of the span, of course. But we've just not decided to invest a lot of time in that. Like in line with the previous question, we're a lot more focused, of course, finishing the year serving our customers the way they need and helping patients and really then the longer term, 2026 and beyond towards what we've guided for in 2027 and '28 here, which we feel that we are well underway towards.

Okay. That's fair enough. And then on Cardiosave, I know that EU is a relatively small market, but what have you been seeing now for Cardiosave that the CE Mark is back? Does there seem to be any sort of pent-up demand from customers that they're eager to order again? Or is it fairly slow? And then also on Cardiosave, have you started to see any sort of change of use in the U.S. after the guideline changes that happened earlier?

When it comes to the situation in the EU markets, we don't expect the resuming deliveries will have any positive impact or material impact on the fourth quarter. But we can see from and hear from customers that there is a pent-up demand. There are customers who would like to replace their existing balloon pumps, but we -- it takes a while until we can actually have our factory focus on meeting demand for those customers. So therefore, there is no big impact in Q4 for this.

When it comes to use in U.S., we've not seen any real change there either. We're trying to serve the customers with the consumables for the installed base while working on the 510(k) submission. That's really our key priority there. But no other changes from like a market or customers' perspective to call out.

Okay. Good. And last question. I mean, you're reiterating long-term guidance again essentially. And I guess with both tariff and FX being worse than at the Q2 report, reiterating the long term, I guess, implies a sort of upgrade to the underlying performance that you see. And I guess if you agree with that, where have you found that sort of upside or rather what sort of cushions have you may be removed from the initial guidance now compared to Q2?

Yes. I mean you're right. I think the underlying development is good at the moment. So that supports us reiterating the longer-term targets despite the slightly stronger headwinds from tariffs and currency. And the main levers for this is we touched on all of them, I think. Pricing is one where we're seeing good traction. There is still a lot of work for us to do when it comes to purchasing, even though we have good material cost control, it doesn't mean that it can get better. We're still, I think, only partly reaping the fruits from the hard work that was done to mitigate inflation during 2022 and '23. So we still expect that to help as well. We have a positive mix rotation, also which you can see in some of the longer-term strategic KPIs. And we have now also acquisitions that help towards this target. So those, I'd say, are the main factors for feeling confident despite the short-term headwinds.

The next question comes from Ludvig Lundgren from Nordea.

So 2 on Life Science, please. So first, if in Q1, you highlighted a slowdown due to -- or partly due to NIH budget constraints. And like is some of the sales growth here seen in Q3 related to these projects? Or is it some other types of customers that are driving the sales growth in Q3?

It's very limited, I think, the positive effect from the comeback in NIH. I think there are still decisions pending to be made, both when it comes to NIH funding cuts specifically, but also the general wait and see when it -- because of geopolitical uncertainty. So I think that's probably the bigger factor. So things have developed in a positive direction since Q1, but there's still some lingering uncertainty around these key projects, I'd say.

Okay. Great. And then second one, just -- so with the strong order intake you saw in the segment as well, which I assume is mainly related to capital equipment, do you expect a Q4 budget flush similar to what we saw last year for the segment? Or have you seen any other indications for this year, so to say?

It's a good question, but very, very hard to answer. We didn't expect any budget flush last year, but there certainly was some of that. So fingers crossed for that this year as well, but we -- it's too early to have any indication or view on this.

We have one anonymous caller. So could you please present yourself with name and company? Please go ahead.

It's Ludwig Germunder from Handelsbanken here. I have 2, please. First one, just to get a bit more clarity on the tariff mitigations. In the report, you mentioned that you're successful with the price adjustment strategy. But in the short term, you need to absorb a large share of the tariff costs. And now I believe you said that you still have a good effect from price increases in your margin. Could you give some clarity on this and what to expect going forward? How much more margin can we expect you to gain from price adjustments?

Yes. I think the comment is -- should be seen like this that when it comes to mitigating the tariffs specifically that we pay, the price increases aren't lined up to compensate for those. So the price increase we talk about, they are across the board, across all our products, across all geographies. So in that sense, they help, but they're not specifically mitigating the tariffs on the product categories that are mostly going into the U.S. here. So the 2% to 3% price improvement is a global figure and the ones when it comes to specific product groups hit by tariffs, we don't disclose in detail, but that's where we're still absorbing some of this effect.

Okay. And just a follow-up on the tariffs again. You mentioned you managed to do some shipping before the increased tariff rates. Can you give -- can you comment on how close the 15% total hit from tariffs you saw over the entire quarter? Is it close to 15% or under 15%?

No, we will not break it down like this, but it is still -- if I put it like this, it did not impact the full 15% did not impact fully in the 2 months that it would have if you just normalize it over the quarter, maybe, yes, a fairly big portion of what was sold in the third quarter, we managed to import before the raise of the tariffs.

Okay. And just a final question on quality, please. Could you provide any update around the 510(k) submission for balloon pumps in the U.S.

Yes, there's no update on this right now. We're still working towards the end of this year and the second half of next year for the ECMO 510(k) submission.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

All right. Thank you very much for participating in the discussion today. We've already made the summary here, and I just wish everybody a good rest of the day. Thank you very much.

[Audio Gap]

2025 presentation. [Operator Instructions] Now I will hand the conference over to the speakers, CEO, Mattias Perjos; and CFO, Agneta Palmer. Please go ahead.

Welcome, everyone, to today's call. This is Mattias Perjos. With me, I have our CFO, Agneta Palmer. In today's conference, we'll first look into our performance in the second quarter of 2025 and then also talk a bit about the current market situations and our expectations for 2025. So we can move directly over to Page #2, please.

And I wanted to start with a quick repetition of our overall ambitions and how to get there. And as you already know, our financial targets for 2024 to 2028 is to have at least 12% adjusted EPS growth on average. We believe we have a strategy that is well crafted to get us to this goal. It's really based on our market positions in leading categories and the strength that we have in the different key geographies globally as well. And part of this is, of course, increasing the share of sales from recurring revenue. It's accelerating the share of sales from higher-margin products like our Paragonix offering, our ECLS portfolio, the consumables in Infection Control and our BetaBags in Sterile Transfer. And it's also a strategy that involves, of course, solid and effective quality processes going forward.

These improvements should, of course, be achieved through responsible leverage as well and an attractive long-term return on invested capital. We can clearly see that we are delivering according to the plan on these KPIs. We're trending in the right direction on all of them. Sales from recurring revenue is now at 65%, and it was even higher now at the beginning of the first half of this year, but I would like to remind you that we are more weighted towards capital, especially in the fourth quarter of the year. High-margin products make up about 2/3 of sales. For quality, the number of field actions in relation to sales has decreased significantly, and we can see that this positive trend continues in the first half of this year as well.

We can then move to Page #3, please. So if we zoom in on the second quarter of this and the key takeaways on performance for the quarter, we do look back at a solid quarter when it comes to top line. Net sales grew by 4.1% organically with a positive development in all business areas and regions. Order intake increased by 4.4% organically with growth in all regions and also in Acute Care Therapies and Surgical Workflows, while we had a softer performance in Life Science, also based on high comps from the previous year.

Adjusted gross and EBITA margins improved mainly due to acquisitions, healthy price increases and positive mix. Tariffs and currency weighed heavily on the EBITA margin, signaling that the underlying development is very strong. Our financial position as well remains solid with financial leverage way below 2.5x EBITDA despite the increased net debt level after the acquisition of Paragonix.

We can then move over to Page #4. So I wanted to talk a bit about the key activities and events during the quarter as well, and let's start with the offering and customers. First, I would like to highlight that our Vasoview Hemopro 3 clinical cases that were successfully conducted in the U.S. and that we expect now to start deliveries in the U.S. in larger scale during the third quarter and especially with full force from September. We've also extended the functionality of the Servo-c ventilator with the neonatal option in targeted markets. And besides making a series of sales records for different product categories in the quarter, Paragonix celebrated its 100th kidney transplant case with the KidneyVault that was approved in Q4 last year.

In Life Science, we launched the heavy-duty Ultima 1600 washer. And in Surgical Workflows, we have announced that we have entered into a partnership with Zimmer Biomet to support the fast-growing Orthopedic Ambulatory Surgery Center segment in the U.S.A. In Surgical Workflows, we've also introduced the XEN disinfection chemistry portfolio in the U.S., and this is leveraging the Quadralene offering through Healthmark, which was one of our strategic intents with the acquisition of Healthmark. So it's really nice to see that this is going according to plan as well.

When it comes to sustainability and quality, I just wanted to highlight that our complete intra-aortic balloon pump -- intra-aortic balloon catheter portfolio obtained EU MDR certificate in the quarter. And we have also submitted the documentation for reinstatement of the CE mark on our balloon pump and are now in a dialogue with our notified body about this. As you can see in the second quarter report, we have a positive trend also in regulatory compliance and findings per audit and field corrections per million of net sales compared to previous year. So really good job by the team on all fronts in this regard. The increase in online training of customers remains and CO2 emissions from operations also continued to decrease.

Let's move now to Page #5 and our top line performance, please. Overall, we had a specifically strong top line performance in Acute Care Therapies and in the Americas regions. I also want to highlight that we had really good traction when it comes to order intake overall in our 3 biggest markets, so U.S., China and Germany. When it comes to order intake, we had an average 4.4% organic increase across the company. So the organic order intake for Acute Care Therapies increased mainly due to ventilators in Critical Care and ECLS consumables.

The organic order intake for Life Science continued to report double-digit growth in Sterile Transfer. However, the other meant that the order intake declined organically. The organic order intake for Surgical Workflows increased sharply due to healthy growth in all product categories and regions. So that's really nice to see.

On the net sales front, we had 4.1% organic growth. And despite challenging comparative figures, Acute Care Therapies increased its net sales organically, mainly due to the strong performance in ventilators and also in Cardiac Surgery. Organic net sales for Life Science primarily increased as a result of the very high growth in Sterile transfers and also sterilizers in the quarter. In Surgical Workflows, organic net sales increased due to high growth in Infection Control and also in our Health Solutions offering.

Let's move to Page #6 then. And with that, I hand over to you, Agneta.

Thank you, Mattias. Firstly, I will say that even in the face of these headwinds in terms of tariffs and FX, we do continue to see improvements coming through leading to higher margins. Starting then with adjusted gross profit. For the group, adjusted gross profit increased to SEK 4,183 billion in the quarter, primarily on the back of volume, acquisitions, continued traction in pricing and positive mix. Gross margin was up by 0.8 percentage points in total, primarily supported by price and mix.

Moving on to adjusted EBITA. The positive effect from adjusted gross profit on the EBITA margin was 1.3 percentage points related to what I just mentioned. Adjusted for currency, OpEx had a slight negative impact on the margin in the quarter. FX impacted negatively by minus 0.9 percentage points in the quarter. All in all, this resulted in an adjusted EBITA of SEK 989 million, improving our margin by about 0.2 percentage points year-on-year to 12%. So I really want to emphasize the underlying performance improvement, tariffs and FX had a significant negative impact on adjusted EBITA margin. If currencies had been the same level as last year and if we add back the cost of tariffs, we would be above 14% on adjusted EBITA margin. So the underlying improvement is strong.

Let's then move to Page 7 and tariffs, please. So a few words on where we are on the tariffs. Let me first reiterate what we said in our previous earnings call that about 60% of our sales in the U.S. is produced in the U.S. For EU and China, respectively, about 10% is produced in the U.S. and about 1% of sales in EU and U.S. is coming from China. Finally, as you can see, a significant proportion of our sales in China is still produced in the EU.

And on that note, we will not comment on the latest news when it comes to tariffs and trade regulations between EU and China as things are still moving. What we can talk about is the cost from tariffs that we have in the second quarter, which amounted to approximately minus SEK 110 million. And even though we continue to be successful with price adjustments, we have had to absorb most of this cost in the quarter.

Let's move to Page 8, please, and what we do to mitigate these effects. So here, we aim to illustrate what we do to mitigate the impact from tariffs. As you can see, there are 3 main areas: pricing, cost reduction, and reviewing our structural setup for sourcing and production. The further to the right that we go on this slide, the larger the potential effect, but also the longer the time to impact.

As we said before, we continue to be successful in adjusting prices, but nevertheless, we expect pricing to have the least impact on out of these 3 given our competitive landscape. The next one, productivity-driven cost reduction. That is, of course, nothing new, but we will scale up our ongoing initiatives globally and throughout our operations. And we do expect that to continue to counterbalance the impact from increased costs that we have seen in recent years from inflation and now also from tariffs.

When it comes to the last one, reviewing our setup for sourcing and production, we are analyzing everything from local sourcing alternatives to regionalizing or even localizing other value-adding activities along our supply chain where this makes sense. At this stage, it's too early to put figures on this based on 2 facts. First, there's still a lot of moving parts. No one knows exactly what the final tariffs will look like, meaning that the tariff landscape can still change materially. Secondly, we still have important work ahead to assess and compare our strategic options, and therefore, we will not comment on the specifics for now.

Let's move to Page 9, please. Free cash flow in the quarter amounted to SEK 0.5 billion. Compared with last year, free cash flow was positively impacted by changes in working capital and working capital days continue to develop well. On operating return on invested capital, we are at 12.1% on a rolling 12-month basis, which is well above the cost of capital.

At the end of Q2, net debt amounted to SEK 11.7 billion. If we adjust for pension liabilities, we are at SEK 9.2 billion. This brings us to a leverage of 1.7x adjusted EBITDA which is well below the 2.5x that we have as an internal threshold. If we adjust for pension liabilities, leverage is at 1.4x adjusted EBITDA. So this signals that we remain in a solid financial position and actually at the same leverage as last year, even with our recent strategic acquisitions. Cash amounted to approximately SEK 1.9 billion by the end of the quarter. So all in all, we can conclude that the financial position continues to be strong.

Let's move to Page 10, and back to you, Mattias.

Okay. Great. Thank you, Agneta. So this takes us to the outlook for 2025, where we remain with our expectation for organic net sales growth to be in the range of 2% to 5% based on the 2024 net sales.

With that, we can move directly to Page #12, please, to summarize a bit. So key part of the second quarter of this year is that we've delivered organic growth with improved margins despite significant headwind from tariffs and FX. Our financial position remains solid despite the acquisition of Paragonix, and we stick to our outlook for 2025, where we guide for organic net sales growth of 2% to 5%.

So the priorities for 2025 haven't changed since last time. We are continuing to address the remaining challenges when it comes to quality in Acute Care Therapies. We work actively with the sustainable productivity improvements and also cost consciousness when it comes to navigating the geopolitical uncertainty and addressing the impact from tariffs. And most importantly, we continue to invest in our business, develop new products and solutions to create added value for our customers and make sure that we provide access to life-saving technology for more people globally.

So with that said, I open up for questions. Thank you very much.

[Operator Instructions] The next question comes from Erik Cassel from Danske Bank.

So first, I want to have sort of a 2-in-1 question on the long-term guidance. So you reiterate the long-term guidance on margins essentially despite all the tariffs and FX. First, I sort of want to understand the implication for how you're viewing the underlying business. So what sort of FX and tariffs impact have you assumed for the long term? And then secondly, the sort of reiteration, is that driven by that you found more upside in, say, the underlying business? Or have you mainly assumed mitigation effects on your end?

Yes. When it comes to the long-term guidance, we -- it is based on the current tariff situation here. So we'll have to wait until August 1 and see if there's any update in either direction there. But the assumption and the statements made today are based on the situation as it is today. And I think when it comes to the mitigation part, it's not that we found a lot of new things. We've always worked actively with productivity improvements, of course. We worked actively with the pricing for many years. The regionalization of supply chains as well is something that became a topic already in the pandemic. So we had some prework done in this regard as well. So I wouldn't say that there's a lot of new things. We've -- it's maybe better to express it like we're emptying some of the cushions that maybe we had in our outlook for the coming years rather than finding new things.

Okay. Good. But this quarter was essentially 1.3 percentage points effects on adjusted EBITDA. Is that sort of where you've assumed the long-term impact to be as well?

We don't assume a significant deterioration in the currency rates as they are now.

Okay. And then I assume a lot of the cushions that you had when you set that guidance considering the timing was on losing market shares in balloon pumps and ECMO. Are those the sort of cushions that you have removed now? And can you say anything on the sort of current cadence on ECMO and balloon pumps?

Yes. No, I think those are not really part of it. We've had maybe a slightly more favorable impact than we assumed that if we go back to May of 2024, but that's not what I meant when I talked about cushion. That's more related to some of the productivity improvements that we've been working actively on and that we have assessed the impact from. So it's more about that. But when it comes to the challenged categories, if you look at balloon pumps and the consumables with it, we continue to have a pretty good development when it comes to the consumables.

But needless to say, when it comes to the installed base, given the restrictions we have, we do see a negative development here. And that's the same thing for cardiopulmonary. When it comes to the hardware situation, it's a much slower development. And as you could see on the disposable side, the ECLS consumables was one of the highlights for Acute Care Therapies this quarter. So no material change. The impact is a little bit less than we feared in May of 2024, but the impact is there. It would have been a lot better if we didn't have this situation.

Okay. Just a final question from my end. Last year, there was a lot of ongoing costs related to all the quality work with scrapping, et cetera, in the ECMO. Is there any such effects in this quarter? And what's your view on the full year for those sort of costs?

There is no significant scrapping cost in Q2. There's also no significant cost from field actions or field corrections, but we do still have an elevated level of cost when it comes to continuing work to uplift our different products that are impacted. So that's the main way to look at this. And I think the statement that we made end of last year that we believe that the extraordinary quality cost peaked in 2024 is still valid.

The next question comes from Anchal Verma from JPMorgan.

This is Anchal Verma on behalf of David Adlington. Three questions from me, please. First one, can you just confirm the current tariff assumptions that you have baked in, is that 10% for EU tariffs for the full year? Or have you baked in that, that increases to 20%? And can you just give us some sort of guidance on what the full year tariffs could be like? Essentially, how should we expect the SEK 110 million in Q2 develop over the remainder of the year? Similarly, could you please also outline what your FX headwind impacts at the margin level will be for the full year?

And then finally, your 2024 to 2028 financial target calls for average EPS growth of over 12% However, H1 EPS growth is less than half of that. Is that in line with your expectations? And what do you believe will drive it higher in H2, especially where we believe headwinds from tariffs could be higher?

So if we start with the first question to confirm the tariff assumptions. What we do disclose is the current tariff level that we have had in Q2, which is at minus SEK 110 million. We don't speculate or guide on what is ahead. And that, I think, answers also the question related to the full year tariffs. If we take the FX topic and outline, it's the same situation there. We don't speculate in where FX will go going forward. But what we will say is then this effect that we have had in the second quarter. We can also share the most important FX pairs for us. They are USD to Swedish krona, USD to euro, euro to Swedish krona. So as you can well see in the second quarter here, we are favored by a strong U.S. dollar and the opposite then when the dollar weakens versus the SMB, that is unfavorable for us. And the final one regarding the EPS growth. This is the CAGR on average for the period 2024 to 2028, and we confirm that we still stand behind that.

Again, just confirming, I guess, so the current tariff assumptions are for 10% EU tariffs and if they were to increase, you'd probably have to recalibrate the calculations. Is that fair?

That is a fair assumption, yes. But if tariffs increase or in the case that they would decrease, that number would change, of course.

The next question comes from Mattias Vadsten from SEB.

I have a few questions here today as well. First one, you benefited a lot for a year or so now from higher demand in ventilators. Basically, where are we now? Are you expecting even further incremental tailwind? Or will it come down a bit as we move into the second half and into 2026? And maybe if you could disclose also how many ventilators you're anticipating to sell this year?

Yes. Thanks. The -- as you can see in the report, ventilators has continued to be one of the highlights here when it comes to growth. It has a little bit actually of a dilutive effect on margins given the mix of the types of ventilators here. But the growth remains solid. I think we're going to enter into more difficult comps now in the second half of the year, but we do expect this transition to continue. As you know, there's a number of players who are leaving the market here, one a bit more drastic than the others. And that, I think, gave a more short-term boost to this. But the long-term replacement is going to take several years. So that will continue to be a tailwind for the business, I think. And we do not disclose the number of ventilators that we expect to sell.

Okay. Then just where we are tracking on price contribution to growth year-to-date and what we are looking for the full year? And also, I appreciate it's tough to disclose what you could do regarding the tariffs, but just keen to hear a little bit how discussions have been, when discussions started and some flavor on that would be helpful.

Yes. On pricing, we're a little bit above 2% on average so far this year, and we expect to be somewhere between 2% and 3% for the full year here. When it comes to your question on tariff discussions, I mean, can you elaborate what you mean with what type of discussions?

So if you've had any price negotiations with customers post-Liberation Day basically and what the feedback has been in this case?

Yes. Yes, of course, we've had a dialogue with our customers about this. And I think generally, there isn't a whole lot of acceptance towards tariff surcharges or things like that. And also from a competitive standpoint, the key categories for us, we also need to be mindful to protect our market share. So therefore, we have decided to take a long-term view on this and be relatively cautious. Our average price increases in the U.S. are a little bit higher than the global average, but not to the extent that we compensate for tariffs. But this will continue to be ongoing work. And I want to remind everybody again that for a large portion of our business, we do have long-term contracts that have limited flexibility in the short term, meaning 2025 and '26.

That's very helpful. Then just lastly on Surgical Workflows. How much is an element of market share gains, would you say in this business area? I think orders are super strong and it's been a good momentum recently.

I can't call out any significant market share gains. As you know, by nature, this business is a bit lumpy, but it's very nice to see that we've had good progress across the board when it comes to our different product categories within Surgical Workflows. But I really can't call out any measurable market share gains here. I think it's nice to note the XEN chemistry expansion in the U.S., which is on the back of 2 acquisitions, Healthmark being the most recent, but also the Quadralene acquisition done a few years ago where we've developed this new range of both chemicals that is showing really good traction now as a combination between these 2 acquisitions.

The next question comes from Aisyah Noor from Morgan Stanley.

My first one is also on tariffs. Thank you for the disclosure of SEK 110 million for the quarter. I know you don't provide guidance, but could you disclose a bit of detail around when the tariff payments started in 2Q? Was it kind of the middle of the quarter or just a couple of weeks? And was it paid -- which region did you pay them to? So was it between U.S. to China shipments, China to U.S., Europe to U.S., which was most kind of impactful to you?

Second question relates to something that was asked before as well around volume impact. So do you think based on your order growth and your sales growth, was there any stockpiling impact from the 90-day pause of these tariffs that you think could result in a bit of an air pocket of volumes in the next quarter?

And then just one on Paragonix. It looks like you're, I guess, ahead of your expectation of a positive contribution, I heard to your EPS from this asset starting in 2028. So could that, I guess, drive a little bit of upside? Or do you think there was a little bit of strength -- unexpected strength in the Paragonix EBITA this quarter that is temporary?

Thank you. If we start with the tariff payments, we did start to pay tariffs fairly early second half of April of this quarter. And the major flows for us is EU to U.S. And then we had -- we have some, as we disclosed as well, some flows from China into U.S. and U.S. into China, but the majority of the payments are related to the EU to U.S. If we then comment on the potential stockpiling situation, we know of both, 1 or 2 rather isolated cases. We have brought some material into China expedited that due to this, but it's not anything material.

On the other hand, however, worth mentioning that in our own supply chain, we have taken firm measures to sort of make sure that we transport everything in before these dates where tariffs have been said to potentially change. So it's a little bit of an effect of that in our own supply chain, but no stockpiling with customers of any significance that we know of. And finally, then on Paragonix, yes, it is trending a bit ahead of what we expected ourselves in a positive way.

Okay. Just one follow-up on Paragonix. I think you mentioned when you acquired this company that there would be some earn-out payments expected to be paid if some financial performance milestones are achieved. When do you expect to pay these out, I guess, if they happen? And how would that kind of look like on the P&L and cash flow?

Yes. So the first earn-out payment, we paid it now in the second quarter of 2025 related to 2024 growth performance. So that is visible in our cash flow statement. And then we have one more earnout potentially then by the same time next year.

The next question comes from Ludwig Germunder from Handelsbanken.

Ludwig Germunder from Handelsbanken. I have one question, which is a follow-up on the Paragonix question. So could you expand a bit on what is driving the faster-than-expected development on the margin there? And would you be willing to give some flavor on what the margin is or some kind of ballpark?

Yes. It's volume-driven, the margin expansion. We've just disclosed that it's now accretive to group margins, but no more specifics than that. And I think the growth is driven by really successful portfolio. And I think the latest addition is the launch of the KidneyVault here. So -- but I want to highlight that all product categories are doing well in Paragonix.

Okay. And a follow-up on that. Do you see the market growing? Or are you taking market shares in the market?

Yes. I mean it is a growing market, absolutely. I don't want to make any statements about market shares here. I mean it is a growing and evolving market and sometimes difficult to measure market shares as well between players. So we're definitely growing above the market, the way it's described generally, but it's hard to pinpoint any exact figures when it comes to market share developments.

Next question comes from Kristofer Liljeberg from DNB Carnegie.

Yes. I have some questions on the quality work you're doing. But first, a follow-up on Paragonix. Is it possible to quantify how much Paragonix is growing now?

No, we've not disclosed that. I think you can see from the acquisition part in the report, the current quarterly sales, but we've not disclosed growth numbers for them, but it, let's say, really continues to be significant.

And this is going to be included in organic growth from the fourth quarter, right?

That's correct, yes.

Okay. So on ECMO and intra-aortic balloon pump sales in the U.S., is it fair to say that consumables are still growing there?

Yes.

And your comment about the installed base, is it so that the installed base is decreasing? Or is it more that you are losing a bit of market share from not being able to grow the installed base?

Yes. The installed base continues to grow, but it is definitely the loss of market share in both categories given the restrictions that we have on actively selling and marketing these products.

Okay. And when it comes to the new ECMO machine in Europe, what about timing there? Is anything you could say?

No, we've not disclosed any detailed timing on this. So we'll come back on that when we can specify that exactly. I want to highlight that when it comes to the installed -- sorry, go ahead.

No, sorry, please.

No, it's just the addition when it comes to the installed base in the U.S., looking at this from ECMO perspective, for example, I want to highlight that we have a very loyal customer base in the U.S. So they continue to use our equipment. Several of them add new equipment as well. And the penetration level from competitors is still relatively lower. But it's important to keep in mind that when you compare with historic growth rates here, we obviously have a decline. So reality it would have been a lot better if we could actively sell and market these products.

Okay. And then did you say that you have now submitted for a new CE registration for the balloon pump in Europe?

Yes, correct. We have submitted the documentation required for this.

[Operator Instructions] Next question comes from Sten Gustafsson from ABG Sundal Collier.

I'm sorry, I missed part of the prepared remarks in the beginning, so maybe you already covered it, but it would be interesting to hear your view on the margin development for the year, what the different drivers are and if you had commented on what you expect the full year margin to be in relation to last year? That would be my first question. And secondly, also, if you saw any prebuying or one-off shipments in Q2 in anticipation of higher tariffs coming potentially in August?

Yes. I think the prebuying question was brought up earlier, and we haven't seen anything significantly. We've made some advances in our own supply chain to try to be in the right country by the right time, so to speak, but nothing else to call out significantly. When it comes to the margin, we don't guide on margin for individual years. We have reiterated our earnings per share growth development, and we stand by this target despite the current level of tariffs and the FX headwind that we've seen.

And in general, also, if you look at the report as such, the improvement in EBITA margin from 11.8% to 12% would have been above 14% if we didn't have this headwind. So it's an evidence of the continuing productivity work that we continue to implement and that we see results from. So we work strongly with continuous improvement. And this, of course, does translate into margins, but we don't guide for 2025.

Okay. And there's no specific headwind or tailwind other than tariffs and FX that we should be mindful about looking at the second half here?

No, I think it's generally a favorable market situation. We've seen nice growth in organic growth in both order intake and in net sales. And even also the Life Science market, which has been quite depressed for some time, shows improvement. It's a bit challenging still on the -- especially on the R&D and research side. But other than that, I think it's trending favorable. We maintain our strong positions in our different categories as well.

So generally, I think also when you look at Net Promoter Score and how happy customers are with what we do for them remains also positive and strong relative to competition. So we expect generally a favorable development. We've had -- also there was an earlier question about quality-related cost, and we've had no significant scrapping or field action cost in the second quarter and continue to have a heightened level of cost when it comes to uplifting products in line with the work that's required for especially our balloon pump category or Cardiac Assist and also our cardiopulmonary part, nothing changed compared to previous commentary or statements in this regard.

Excellent. If I may squeeze in a final question. If you could comment anything about what type of restructuring charges you foresee for the second half, that would be helpful.

We also don't guide on restructuring charges either. You've seen that we have some of the costs for previously announced restructuring measures now materializing in the first half of this year. But again, nothing new. The unwinding of the Surgical Perfusion business is going according to plan. So no new information there either.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

All right. Thank you. I think we've already made the summary, and I appreciate everyone taking the time to dial in and talk to us today. So with that, we close today's call, and I wish everyone a good rest of the day. Thank you.