Company Interview / AI helps Pro Medicus chart record profit

Key Points:

Pro Medicus (ASX:PME) delivers record FY25 results, with a 39% rise in net profit Majority of new contract revenue expected from FY26 onwards US market expansion and cloud adoption continue to drive growth Strong investment in AI and expansion into cardiology and pathology

Pro Medicus (ASX:PME) achieves a record year in FY25, marking unprecedented success in converting opportunities into sales. Sam Hupert states that the company secures its highest volume of new contracts, with most revenue from these deals set to flow into FY26 and beyond. Net profit climbs more than 39% to $115 million, underpinned by robust growth in North America, where revenue rises nearly 36%. A fully franked final dividend of $0.30 per share has been declared. Hupert highlights a 100% contract renewal rate, which he regards as critical for ongoing success, asserting that retaining clients is as crucial as acquiring new ones.

The opportunity pipeline is described as dynamic, with recent contract wins swiftly replenished by new prospects following industry events and conferences. Although Pro Medicus holds 10% of the total addressable US market, Hupert sees significant upside in further US expansion, given the market’s scale and dynamism. Ongoing diversification into cardiology and pathology, built onto the existing Visage 7 platform, is set to broaden Pro Medicus’ clinical reach and enhance its competitive edge.

Cloud adoption is accelerating, with all US deals now fully cloud-based. Hupert emphasises cybersecurity and simplification as key drivers. The company is also investing in AI, especially for breast cancer detection, with plans for FDA approval and commercialisation underway.