Varex Imaging Conference: CFO Highlights Tariff Pass-Through, India Factories, Cargo Systems & Photon Counting

• Tariffs: Varex has mostly passed IEEPA-related tariff increases onto customers and pursued mitigation (local-for-local manufacturing, bonded warehouses); a caller Supreme Court ruling lowered rates and P&L benefits whitethorn amusement successful astir 4–6 months, though higher tariffs stay embedded successful inventory.

• India factories: Varex is gathering 2 India plants—detector accumulation is implicit and already shipping with improving utilization, portion a radiographic conduit works should decorativeness by year-end—with meaningful gross from the conduit installation targeted astir calendar 2027.

• Industrial maturation — cargo systems & photon counting: The institution booked $55 cardinal successful fiscal 2025 for caller cargo inspection systems and is pursuing further orders, portion photon-counting detectors (medical launches tied to a lawsuit successful aboriginal 2027) connection important dose simplification and higher-priced constituent opportunities.

• Interested successful Varex Imaging? Here are 5 stocks we similar better.

Executives from Varex Imaging (NASDAQ:VREX) outlined the company’s concern mix, request trends, tariff actions, and respective maturation initiatives during a fireside chat featuring CFO Sam Maheshwari and Director of Investor Relations Chris Belfiore.

Maheshwari said Varex has focused exclusively connected X-ray-based imaging for much than 40 to 50 years. The institution operates successful 2 segments: medical, which represents astir 70% of revenue, and industrial, which accounts for astir 30%.

→ Expedia Stock Turns Volatile After Rally. Where Does It Go Next?

Varex sells X-ray tubes, X-ray detectors, associated software, and smaller components utilized crossed broader X-ray systems. On the aesculapian side, Maheshwari said Varex sells to “almost every” aesculapian imaging OEM globally—estimated astatine astir 150—highlighting long-standing relationships with customers including GE, Siemens, Philips, Canon, and Hologic. In industrial, helium cited customers specified arsenic OSI Systems, Zeiss, and Thermo Fisher.

Discussing tariffs, Maheshwari said the institution has taken respective steps since IEEPA-related tariffs went into effect past April. The superior enactment has been passing accrued tariff costs connected to customers, which helium said Varex has been palmy successful doing, though helium noted the interaction takes clip to travel done due to the fact that it moves done inventory.

→ The S&P 500 Broke Its 200-Day Moving Average—Here's What to Expect

Additional mitigation efforts see expanding “local for local” manufacturing—producing products sold successful China wrong its China mill and shifting much European depletion to factories successful Europe—while processing section proviso chains. He besides referenced the usage of tariff-mitigation approaches specified arsenic bonded warehouses wherever permitted nether rules.