Recent developments prompting ASX healthcare stocks, 4DMedical and Reece in the limelight

4DMedical and Reece have gained momentum as recent announcements around commercial traction, balance sheet strength and operational execution have renewed confidence in their growth outlook.

4DMedical Limited (ASX: 4DX) 

4DMedical Limited (ASX: 4DX) on 19 December announced that Cleveland Clinic has entered into a commercial arrangement to commence clinical use of its CT:VQ which is the world’s first and only non-contrast CT-based ventilation-perfusion imaging solution.
This adoption makes Cleveland Clinic the third major U.S. academic medical centre to deploy CT:VQ after Stanford University and the University of Miami.
The company on 15 December announced that it received Canadian regulatory approval for CT:VQ which supports the expansion of 4DMedical’s footprint in North America and enables immediate commercial deployment across Canada through its partnership with Philips.
4DMedical also announced that it secured $30.2 million through a fully underwritten options exercise which has made the balance sheet much stronger as the company reported a pro forma cash balance of $63.7 million as at 30 September.
4DMedical is delivering its SaaS products across 409 sites globally which represents a 50.9% year-on-year increase and the company produced more than 74,345 scans in Q1 FY26 which has more than doubled from last year.
The company is focused on scaling CT:VQ adoption and expanding partnerships which positions the company for massive revenue growth in the upcoming years.

Reece Limited (ASX: REH) 

Reece Limited (ASX: REH) on 21 November released its 1Q FY26 trading update which reported sales revenue of $2.4 billion, up 8% year-on-year and up 6% on a constant currency basis.
The Group generated 1Q FY26 EBITDA of $222 million which was down 8% year-on-year while EBIT declined 18% to $129 million due to higher depreciation and amortisation costs linked to continued investment across the business.

During the quarter, Reece added 15 net new branches to its network which included 5 branches across ANZ and 10 branches in the United States.
For FY25, the company delivered group sales revenue of approximately $9 billion which was 1% lower year-on-year and reflected softer housing conditions across its key markets.

Despite these market pressures, Reece continued to generate strong cash flows with operating cash inflows of $600 million and free cash flow of $508 million for the year.

Reece also paid a fully franked total dividend of 18.36 cents per share for FY25 while management is confident in the long-term fundamentals and continues to invest in branch upgrades and supply chain capabilities which positions the business for growth in the upcoming years.

(Source: Company Reports)