Pro Medicus: New Contract Wins Broadly Tracking Our Expectations

Narrow-moat Pro Medicus announced five new United States contract wins for a combined minimum value of AUD 45 million. However, we had assumed further contract wins would contribute to earnings growth, and our earnings estimates are broadly unchanged. The new customers include two children’s hospitals, two private radiology groups, and a cancer center. The contracts will be cloud-based implemented, and we assume an eight-month earnings contribution in fiscal 2025, making up 3% of our total fiscal 2025 revenue forecast of AUD 188 million.