Getinge's Resilience in a Turbulent Trade Environment

The medical equipment sector has long been a battleground for geopolitical and trade policy pressures, with Trump-era tariffs (2017–2021) reshaping supply chains and operational strategies. While many manufacturers scrambled to adjust to rising costs and retaliatory measures, Swedish firm Getinge AB has demonstrated a rare combination of resilience and strategic foresight. By maintaining its supply chain stability, accelerating R&D-driven growth, and navigating regulatory hurdles, Getinge offers a compelling case study for investors seeking opportunities in a sector marked by uncertainty.

Navigating Tariffs Without Disruption

The Trump administration's aggressive trade policies, including 25% tariffs on Chinese imports and retaliatory measures from U.S. trading partners, forced many medical device companies to rethink their global operations. Firms like GE HealthCare faced direct blows, with stock prices plummeting after tariff announcements. Yet Getinge, which reported a 19% increase in adjusted EBITA to 1.00 billion Swedish crowns in Q1 2025, has largely sidestepped these challenges. The company attributed its performance to organic growth in core areas—such as Acute Care Therapies and Sterile Transfer—rather than tariff-related disruptions.

This stability stems from Getinge's strategic focus on niche markets and long-term supply chain continuity. Unlike competitors that rushed to reconfigure operations or stockpile inventory, Getinge has opted for a measured approach. Its first-quarter earnings report underscored that “tariffs will not change established supply chains,” a stance that reflects confidence in its global sourcing model. This decision aligns with broader industry trends: 96% of U.S. manufacturing leaders expressed concern about trade policy impacts, yet few have executed costly onshoring shifts. Getinge's ability to absorb short-term costs or pass them to customers without operational overhauls highlights its adaptability.

Strategic Growth: Innovation and Expansion

Beyond tariff resilience, Getinge's growth story is anchored in aggressive innovation and market expansion. The company's 2024 acquisition of Paragonix Technologies—a leader in organ preservation—has proven transformative. Paragonix's KidneyVault, launched in Q2 2025, has already achieved a sales record, while five of its six products now hold EU MDR approval, unlocking cross-border opportunities. This acquisition not only diversifies Getinge's portfolio but also positions it at the forefront of a high-growth segment: transplant technologies.

In Surgical Workflows, Getinge is pioneering next-generation solutions. The recent clinical use of its Vasoview Hemopro 3 endoscopic vessel harvester in the U.S. marks a critical milestone, with plans for large-scale deliveries in Q3 2025. Meanwhile, the company's partnership with Zimmer Biomet in the Ambulatory Surgical Center (ASC) segment underscores its ability to tap into rapidly expanding niches. These moves are bolstered by a 6.2% organic sales increase in Q1 and a 4.1% rise in Q2 2025, outpacing many peers.

Regulatory and Environmental Agility

Regulatory challenges, however, remain a wildcard. Getinge temporarily paused U.S. promotions for its Cardiohelp System and Cardiosave IABP following FDA advisories, redirecting resources to quality improvements. While this could delay short-term revenue, the company's focus on next-gen product development—targeting U.S. clearance by late 2025—demonstrates a proactive approach to compliance. For investors, this signals a commitment to long-term reputation over short-term gains.

Environmentally, Getinge's pledge to reduce Scope 1 and 2 emissions by 90% by 2030 and Scope 3 by 25% by the same year aligns with global ESG trends. Such commitments not only mitigate regulatory risks but also enhance brand appeal in markets prioritizing sustainability.

Investment Implications

Getinge's ability to thrive amid trade uncertainties and regulatory headwinds makes it a standout in the medical equipment sector. While tariffs and geopolitical tensions persist, the company's diversified product portfolio, R&D momentum, and strategic acquisitions position it to outperform peers. Its long-term financial targets—12%+ adjusted EPS growth from 2024–2028—further reinforce its growth trajectory.

For investors, the key takeaway is clear: Getinge's resilience is not a fluke but a product of deliberate strategy. By balancing supply chain continuity with innovation, the company is well-equipped to navigate a volatile landscape while capitalizing on high-growth opportunities. As the medical equipment sector evolves, Getinge's proactive approach offers a blueprint for sustainable success.