Siemens Healthineers has predicted a pretax tariff impact of up to 300 million euros ($339 million) this year, prompting the company to lower the bottom end of its earnings range.
The company, which discussed tariffs as part of its fiscal second-quarter earnings Wednesday, is now targeting adjusted earnings per share of at least 2.20 euros in fiscal 2025. The bottom end of the earnings range was previously 2.35 euros. Siemens left the top end of the range unchanged at 2.50 euros.
Siemens Healthineers CEO Bernd Montag said on an earnings call the change reflects the need to “cater for these new tariffs and the rapidly changing global trade environment.” The forecast assumes the U.S. ups the tariff on European goods to 20% in July, when the current pause ends, and the existing taxes on trade with China, Canada and Mexico stay the same.
Siemens Healthineers expects the situation to change. CFO Jochen Schmitz said on the call that “the only thing which I'm pretty sure is that everything we assume today will most likely not be what we will see in 2026.” The uncertainty is informing Siemens Healthineers’ response to the tariffs.
“As the situation is still in flux, especially with regard to European goods going to the U.S., it is too early for larger structural decisions in terms of adopting our production footprint,” Montag said. “But let me be clear, we would have all the means to mitigate potential impacts from tariffs, thanks to our existing global production footprint, over the medium term.”
Tariffs on European goods going to the U.S. will have the biggest effect on Siemens Healthineers, Schmitz said, accounting for more than half of the impact.
The CFO said analysts could very conservatively model the impact of tariffs in 2026 by doubling the effect this year. That suggests a tariff impact of up to 600 million euros next year, but Siemens Healthineers could step up its response in that scenario, with Schmitz telling analysts “we are able to implement changes to our global footprint should adjustments ultimately be deemed as economically meaningful.”
Schmitz said mitigation measures such as shipping goods before tariffs kick in will expire this year, but the company will have other options in 2026 and beyond. The CFO named “smaller changes in the supply chain” as a longer-term option, adding that Siemens Healthineers will proceed “with prudence and cautiousness on costs.”
