Varex Imaging Reports 3.2% Revenue Growth to $212.9 Million in Latest Quarter

Varex Imaging Corporation reported a net revenue of $212.9 million for the three months ended April 4, 2025, marking a 3.2% increase from $206.2 million in the same period last year. For the six months, revenues rose to $412.7 million, up 4.2% from $396.2 million. The company achieved a net income of $7.1 million for the quarter, significantly higher than the $1.6 million reported in the prior year, while net income for the six months was $7.0 million compared to $1.2 million in the previous year. This resulted in a basic net income per share of $0.17 for the latest quarter, up from $0.03 a year earlier.

The increase in revenue was primarily driven by growth in the Medical segment, which saw a 3.4% rise in sales to $153.8 million, largely due to increased demand for CT and oncology modalities. The Industrial segment also contributed with a 3.0% increase in revenue to $59.1 million. Gross profit for the quarter improved to $76.7 million, a 16.6% increase from $65.8 million, with the Medical segment's gross margin rising to 36.3% from 30.0% due to improved productivity and lower material costs.

In terms of operational developments, Varex Imaging's employee headcount was approximately 2,300 as of the reporting date. The company continues to focus on research and development, with R&D expenses totaling $22.0 million for the quarter, slightly down from $22.6 million a year ago. Selling, general, and administrative expenses also decreased to $32.6 million from $35.5 million, reflecting cost management efforts. The company reported a backlog of approximately $316 million, indicating a solid pipeline of future revenue.

Strategically, Varex Imaging has been active in expanding its market presence and capabilities. The company completed the acquisition of a controlling interest in MeVis BreastCare, which is expected to enhance its product offerings in medical imaging. Additionally, Varex has been navigating a challenging economic environment characterized by tariffs and geopolitical tensions, particularly affecting its operations in China, which accounted for about 15% of total revenue in fiscal 2024. The company is implementing strategies to mitigate the impact of these tariffs and maintain competitiveness.

Looking ahead, Varex Imaging anticipates continued growth driven by demand for its medical and industrial imaging products. The company remains committed to investing in innovation and expanding its product portfolio while managing its operational costs effectively. However, it acknowledges potential risks from market conditions, including supply chain disruptions and regulatory challenges, which could impact future performance.