GE HealthCare Q4 Earnings: Net Income Surges 75% as Margins Hit Record High
GE HealthCare (GEHC) reported strong Q4 2024 financial results with revenue growth of 2% year-over-year to $5.3 billion. The company achieved significant margin improvements, with net income margin rising to 13.5% from 7.7% and adjusted EBIT margin increasing to 18.7% from 16.1%.
For full-year 2024, GEHC posted revenue of $19.7 billion, up 1% year-over-year, with net income of $2.0 billion versus $1.6 billion in 2023. The company’s performance was driven by strong demand in Advanced Visualization Solutions and Pharmaceutical Diagnostics, particularly in the U.S. market, though partially offset by softness in China.
Looking ahead to 2025, GEHC provided guidance including organic revenue growth of 2-3%, adjusted EBIT margin of 16.7-16.8%, and adjusted EPS of $4.61-$4.75. The company also announced strategic partnerships with Sutter Health and Nuffield Health, while investing $138 million in its Cork, Ireland manufacturing facility.
GE HealthCare (GEHC) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con una crescita dei ricavi del 2% rispetto all’anno precedente, raggiungendo i 5,3 miliardi di dollari. L’azienda ha ottenuto significativi miglioramenti nei margini, con il margine di reddito netto che è salito al 13,5% rispetto al 7,7% e il margine EBIT rettificato che è aumentato al 18,7% dal 16,1%.
Per l’intero anno 2024, GEHC ha registrato ricavi di 19,7 miliardi di dollari, in aumento dell’1% rispetto all’anno precedente, con un reddito netto di 2,0 miliardi di dollari rispetto a 1,6 miliardi di dollari nel 2023. Le performance dell’azienda sono state sostenute da una forte domanda nelle Soluzioni di Visualizzazione Avanzata e nei Diagnostici Farmaceutici, in particolare nel mercato statunitense, sebbene parzialmente compensate da una debolezza in Cina.
Guardando al 2025, GEHC ha fornito indicazioni che includono una crescita organica dei ricavi del 2-3%, un margine EBIT rettificato del 16,7-16,8% e un utile per azione rettificato di 4,61-4,75 dollari. L’azienda ha anche annunciato partnership strategiche con Sutter Health e Nuffield Health, investendo 138 milioni di dollari nel suo stabilimento di produzione a Cork, Irlanda.
GE HealthCare (GEHC) informó resultados financieros sólidos para el cuarto trimestre de 2024, con un crecimiento de ingresos del 2% interanual, alcanzando los 5.3 mil millones de dólares. La compañía logró mejoras significativas en los márgenes, con el margen de ingreso neto aumentando al 13.5% desde el 7.7% y el margen EBIT ajustado incrementándose al 18.7% desde el 16.1%.
Para el año completo de 2024, GEHC reportó ingresos de 19.7 mil millones de dólares, un aumento del 1% en comparación con el año anterior, con un ingreso neto de 2.0 mil millones de dólares frente a 1.6 mil millones de dólares en 2023. El desempeño de la compañía fue impulsado por una fuerte demanda en Soluciones de Visualización Avanzada y Diagnósticos Farmacéuticos, especialmente en el mercado de EE. UU., aunque parcialmente compensado por la debilidad en China.
De cara a 2025, GEHC proporcionó orientación que incluye un crecimiento orgánico de ingresos del 2-3%, un margen EBIT ajustado del 16.7-16.8% y un EPS ajustado de 4.61-4.75 dólares. La compañía también anunció asociaciones estratégicas con Sutter Health y Nuffield Health, mientras invierte 138 millones de dólares en su instalación de fabricación en Cork, Irlanda.
GE HealthCare (GEHC)는 2024년 4분기 재무 결과가 강력하다고 보고했으며, 수익이 전년 대비 2% 증가하여 53억 달러에 도달했습니다. 회사는 순이익 마진이 7.7%에서 13.5%로 증가하고, 조정 EBIT 마진이 16.1%에서 18.7%로 증가하는 등 상당한 마진 개선을 달성했습니다.
2024년 전체 연도에 대해 GEHC는 197억 달러의 수익을 기록했으며, 이는 전년 대비 1% 증가한 수치로, 순이익은 20억 달러로 2023년의 16억 달러와 비교되었습니다. 회사의 성과는 미국 시장에서의 고급 시각화 솔루션 및 제약 진단에 대한 강한 수요에 의해 주도되었지만, 중국에서의 부진으로 부분적으로 상쇄되었습니다.
2025년을 바라보며 GEHC는 2-3%의 유기적 수익 성장, 16.7-16.8%의 조정 EBIT 마진, 4.61-4.75달러의 조정 EPS를 포함하는 가이던스를 제공했습니다. 또한 Sutter Health 및 Nuffield Health와의 전략적 파트너십을 발표하고 아일랜드 코크에 있는 제조 시설에 1억 3천8백만 달러를 투자한다고 밝혔습니다.
GE HealthCare (GEHC) a annoncé des résultats financiers solides pour le quatrième trimestre de 2024, avec une croissance des revenus de 2 % par rapport à l’année précédente, atteignant 5,3 milliards de dollars. L’entreprise a réalisé des améliorations significatives de ses marges, avec une marge de revenu net passant de 7,7 % à 13,5 % et une marge EBIT ajustée augmentant de 16,1 % à 18,7 %.
Pour l’année complète 2024, GEHC a affiché des revenus de 19,7 milliards de dollars, en hausse de 1 % par rapport à l’année précédente, avec un revenu net de 2,0 milliards de dollars contre 1,6 milliard de dollars en 2023. La performance de l’entreprise a été soutenue par une forte demande dans les Solutions de Visualisation Avancée et les Diagnostics Pharmaceutiques, en particulier sur le marché américain, bien qu’en partie compensée par une faiblesse en Chine.
En regardant vers 2025, GEHC a fourni des prévisions comprenant une croissance organique des revenus de 2 à 3 %, une marge EBIT ajustée de 16,7 à 16,8 % et un BPA ajusté de 4,61 à 4,75 dollars. L’entreprise a également annoncé des partenariats stratégiques avec Sutter Health et Nuffield Health, tout en investissant 138 millions de dollars dans son usine de fabrication à Cork, en Irlande.
GE HealthCare (GEHC) berichtete über starke finanzielle Ergebnisse im vierten Quartal 2024 mit einem Umsatzwachstum von 2 % im Jahresvergleich auf 5,3 Milliarden Dollar. Das Unternehmen erzielte signifikante Margenverbesserungen, wobei die Nettogewinnmarge von 7,7 % auf 13,5 % anstieg und die bereinigte EBIT-Marge von 16,1 % auf 18,7 % zunahm.
Für das Gesamtjahr 2024 verzeichnete GEHC einen Umsatz von 19,7 Milliarden Dollar, was einem Anstieg von 1 % im Jahresvergleich entspricht, mit einem Nettogewinn von 2,0 Milliarden Dollar im Vergleich zu 1,6 Milliarden Dollar im Jahr 2023. Die Leistung des Unternehmens wurde durch eine starke Nachfrage in den Bereichen Advanced Visualization Solutions und Pharmaceutical Diagnostics, insbesondere auf dem US-Markt, vorangetrieben, wurde jedoch teilweise durch eine Schwäche in China ausgeglichen.
Für das Jahr 2025 gab GEHC eine Prognose ab, die ein organisches Umsatzwachstum von 2-3 %, eine bereinigte EBIT-Marge von 16,7-16,8 % und einen bereinigten EPS von 4,61-4,75 Dollar umfasst. Das Unternehmen gab außerdem strategische Partnerschaften mit Sutter Health und Nuffield Health bekannt und investierte 138 Millionen Dollar in seine Produktionsstätte in Cork, Irland.
Positive
- Q4 2024 net income margin increased significantly to 13.5% from 7.7%
- Q4 2024 adjusted EBIT margin improved to 18.7% from 16.1%
- Full-year net income grew to $2.0 billion from $1.6 billion
- Q4 orders increased 6% organically year-over-year
- Book-to-bill ratio of 1.09 indicates strong future revenue potential
Negative
- Q4 operating cash flow decreased to $913M from $1.1B year-over-year
- Full-year free cash flow declined to $1.6B from $1.7B
- Continued market softness in China affecting overall performance
- Patient Care Solutions segment EBIT declined 4% year-over-year
Insights
GE HealthCare’s Q4 2024 results reveal a company successfully executing on multiple fronts despite market challenges. The 18.7% Adjusted EBIT margin represents exceptional operational efficiency, driven by productivity initiatives and improved pricing power. The 6% organic order growth and 1.09x book-to-bill ratio indicate strong market demand and suggest revenue acceleration in coming quarters.
The Pharmaceutical Diagnostics segment emerges as a standout performer, with 9% revenue growth and an impressive 32.9% EBIT margin. This performance, coupled with the planned acquisition of the remaining stake in Nihon Medi-Physics, positions GE HealthCare strongly in the growing radiopharmaceutical market.
Working capital management deserves attention, as operating cash flow declined to
The 2025 guidance of 2-3% organic growth appears conservative, considering the robust order book and strategic enterprise deals with Sutter Health and Nuffield Health. The projected margin expansion of 40-50 basis points suggests continued operational improvements, though Chinese market softness and new U.S. tariffs present headwinds.
The introduction of approximately 40 innovations in 2024 and strategic focus on AI-enabled solutions demonstrate strong R&D execution. The company’s ability to secure over 50 strategic enterprise deals globally indicates growing market share and customer confidence in its precision care strategy.
Fourth Quarter 2024
-
Revenue growth was
2% year-over-year; Organic revenue growth* was2% -
Net income margin was
13.5% versus7.7% for the prior year; Adjusted earnings before interest and taxes (EBIT) margin* was18.7% versus16.1% -
Diluted earnings per share (EPS) were
$1.57 $0.88 $1.45 $1.18 -
Cash flow from operating activities was
$913 million $1.1 billion $811 million $956 million
Full Year 2024
-
Revenue growth was
1% year-over-year; Organic revenue growth* was1% -
Net income margin was
10.1% versus8.0% for the prior year; Adjusted EBIT margin* was16.3% versus15.1% -
Diluted EPS was
$4.34 $3.04 $4.49 $3.93 -
Cash flow from operating activities was
$2.0 billion $2.1 billion $1.6 billion $1.7 billion - Company introduces full-year 2025 financial guidance
GE HealthCare (Nasdaq: GEHC) today reported financial results for the fourth quarter and full year ended December 31, 2024.
GE HealthCare President and CEO Peter Arduini said, “We were pleased with the strong momentum in orders, backlog and book-to-bill that we saw in the fourth quarter. We also continued to deliver revenue growth driven by demand in our Advanced Visualization Solutions and Pharmaceutical Diagnostics businesses, with overall strength in the
Fourth quarter 2024 total company financial performance
-
Revenues of
$5.3 billion 2% on both a reported and Organic* basis year-over-year. Revenue growth was driven by Advanced Visualization Solutions (AVS) and Pharmaceutical Diagnostics (PDx), with overall strength in theU.S. -
Total company book-to-bill was 1.09 times. Total company orders increased
6% organically year-over-year. -
Net income attributable to GE HealthCare was
$720 million $403 million $994 million $837 million -
Net income margin was
13.5% versus7.7% for the prior year, up 580 basis points (bps). Adjusted EBIT margin* was18.7% versus16.1% , up 260 bps as both measures saw benefits from productivity and volume. -
Diluted EPS was
$1.57 $0.88 $0.69 $1.45 $1.18 $0.27 -
Cash flow from operating activities was
$913 million $137 million $811 million $145 million
Fourth quarter 2024 segment financial performance (Unaudited)
|
Segment ($ in millions) |
Imaging |
Advanced Visualization Solutions |
Patient Care Solutions |
Pharmaceutical Diagnostics |
|
Segment Revenues |
|
|
|
|
|
YoY % change |
—% |
|
—% |
|
|
YoY % Organic* change |
—% |
|
—% |
|
|
Segment EBIT |
|
|
|
|
|
YoY % change |
|
|
(4)% |
|
|
Segment EBIT Margin |
|
|
|
|
|
YoY change |
200 bps |
240 bps |
(50) bps |
850 bps |
|
YoY refers to year-over-year comparison on a recast basis Results recast in line with move of Image Guided Therapies from Imaging to Advanced Visualization Solutions |
||||
Full year 2024 total company financial performance
-
Revenues of
$19.7 billion 1% on both a reported and Organic* basis year-over-year. Revenue growth in theU.S. and in PDx was partially offset by continued market softness inChina . -
Total company book-to-bill was 1.05 times. Total company orders increased
3% organically year-over-year. -
Net income attributable to GE HealthCare was
$2.0 billion $1.6 billion $3.2 billion $3.0 billion -
Net income margin was
10.1% versus8.0% for the prior year, up 210 bps. Adjusted EBIT margin* was16.3% versus15.1% , up 120 bps as both measures saw benefits from productivity and price. -
Diluted EPS was
$4.34 $3.04 $1.31 $4.49 $3.93 $0.56 -
Cash flow from operating activities was
$2.0 billion $146 million $1.6 billion $161 million -
Cash flow conversion, defined as cash from operating activities divided by net income attributable to GE HealthCare, was
98% while Free cash flow conversion* was75% .
Growth and innovation
Mr. Arduini continued, “In 2024, we introduced approximately 40 innovations and closed more than 50 strategic enterprise deals globally, laying a solid foundation for future growth. We started 2025 with commercial momentum announcing two strategic long-term enterprise deals – Sutter Health in the
Recent innovation and commercial highlights
2025 guidance
Today, the Company introduces 2025 full-year guidance, which includes the estimated impact from recently implemented
2025 guidance is as follows:
-
Organic revenue growth* of
2% to3% year-over-year, which reflects continued demand for our products and services as well as a measured view of market conditions inChina -
Adjusted EBIT margin* of
16.7% to16.8% , reflecting an expansion of approximately 40 to 50 basis points versus 2024 Adjusted EBIT margin* of16.3% -
Adjusted effective tax rate (ETR)* in the range of
22% to23% -
Adjusted EPS* in the range of
$4.61 $4.75 3% to6% growth versus Adjusted EPS* of$4.49 -
Free cash flow* of at least
$1.75 billion
The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP Financial Measures in Outlook section below for more details.
Financial rounding
Certain columns and rows in this document may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.
|
Consolidated and Combined Statements of Income |
||||||
|
|
For the three months ended December 31 |
|||||
|
(In millions, except per share amounts) |
2024 |
2023 |
||||
|
Sales of products |
$ |
3,621 |
|
$ |
3,597 |
|
|
Sales of services |
|
1,698 |
|
|
1,609 |
|
|
Total revenues |
|
5,319 |
|
|
5,206 |
|
|
Cost of products |
|
2,226 |
|
|
2,268 |
|
|
Cost of services |
|
818 |
|
|
782 |
|
|
Gross profit |
|
2,275 |
|
|
2,156 |
|
|
Selling, general, and administrative |
|
1,130 |
|
|
1,152 |
|
|
Research and development |
|
344 |
|
|
315 |
|
|
Total operating expenses |
|
1,474 |
|
|
1,467 |
|
|
Operating income |
|
801 |
|
|
689 |
|
|
Interest and other financial charges – net |
|
121 |
|
|
131 |
|
|
Non-operating benefit (income) costs |
|
(100 |
) |
|
(50 |
) |
|
Other (income) expense – net |
|
(53 |
) |
|
(1 |
) |
|
Income from continuing operations before income taxes |
|
834 |
|
|
609 |
|
|
Benefit (provision) for income taxes |
|
(96 |
) |
|
(193 |
) |
|
Net income from continuing operations |
|
737 |
|
|
416 |
|
|
Income (loss) from discontinued operations, net of taxes |
|
— |
|
|
— |
|
|
Net income |
|
737 |
|
|
416 |
|
|
Net (income) loss attributable to noncontrolling interests |
|
(17 |
) |
|
(13 |
) |
|
Net income attributable to GE HealthCare |
|
720 |
|
|
403 |
|
|
Deemed preferred stock dividend of redeemable noncontrolling interest |
|
— |
|
|
— |
|
|
Net income attributable to GE HealthCare common stockholders |
$ |
720 |
|
$ |
403 |
|
|
|
|
|
||||
|
Earnings per share from continuing operations attributable to GE HealthCare common stockholders: |
|
|
||||
|
Basic |
$ |
1.58 |
|
$ |
0.89 |
|
|
Diluted |
|
1.57 |
|
|
0.88 |
|
|
Earnings per share attributable to GE HealthCare common stockholders: |
|
|
||||
|
Basic |
$ |
1.58 |
|
$ |
0.89 |
|
|
Diluted |
|
1.57 |
|
|
0.88 |
|
|
Weighted-average number of shares outstanding: |
|
|
||||
|
Basic |
|
457 |
|
|
455 |
|
|
Diluted |
|
459 |
|
|
458 |
|
|
Consolidated and Combined Statements of Income |
|
|
|
||||||
|
|
For the years ended December 31 |
||||||||
|
(In millions, except per share amounts) |
2024 |
2023 |
2022 |
||||||
|
Sales of products |
$ |
13,075 |
|
$ |
13,127 |
|
$ |
12,044 |
|
|
Sales of services |
|
6,597 |
|
|
6,425 |
|
|
6,297 |
|
|
Total revenues |
|
19,672 |
|
|
19,552 |
|
|
18,341 |
|
|
Cost of products |
|
8,271 |
|
|
8,465 |
|
|
7,975 |
|
|
Cost of services |
|
3,196 |
|
|
3,165 |
|
|
3,187 |
|
|
Gross profit |
|
8,205 |
|
|
7,922 |
|
|
7,179 |
|
|
Selling, general, and administrative |
|
4,269 |
|
|
4,282 |
|
|
3,631 |
|
|
Research and development |
|
1,311 |
|
|
1,205 |
|
|
1,026 |
|
|
Total operating expenses |
|
5,580 |
|
|
5,487 |
|
|
4,657 |
|
|
Operating income |
|
2,625 |
|
|
2,435 |
|
|
2,522 |
|
|
Interest and other financial charges – net |
|
504 |
|
|
542 |
|
|
77 |
|
|
Non-operating benefit (income) costs |
|
(406 |
) |
|
(382 |
) |
|
(5 |
) |
|
Other (income) expense – net |
|
(55 |
) |
|
(86 |
) |
|
(62 |
) |
|
Income from continuing operations before income taxes |
|
2,581 |
|
|
2,361 |
|
|
2,512 |
|
|
Benefit (provision) for income taxes |
|
(531 |
) |
|
(743 |
) |
|
(563 |
) |
|
Net income from continuing operations |
|
2,050 |
|
|
1,618 |
|
|
1,949 |
|
|
Income (loss) from discontinued operations, net of taxes |
|
— |
|
|
(4 |
) |
|
18 |
|
|
Net income |
|
2,050 |
|
|
1,614 |
|
|
1,967 |
|
|
Net (income) loss attributable to noncontrolling interests |
|
(57 |
) |
|
(46 |
) |
|
(51 |
) |
|
Net income attributable to GE HealthCare |
|
1,993 |
|
|
1,568 |
|
|
1,916 |
|
|
Deemed preferred stock dividend of redeemable noncontrolling interest |
|
— |
|
|
(183 |
) |
|
— |
|
|
Net income attributable to GE HealthCare common stockholders |
$ |
1,993 |
|
$ |
1,385 |
|
$ |
1,916 |
|
|
|
|
|
|
||||||
|
Earnings per share from continuing operations attributable to GE HealthCare common stockholders: |
|
|
|
||||||
|
Basic |
$ |
4.37 |
|
$ |
3.06 |
|
$ |
4.18 |
|
|
Diluted |
|
4.34 |
|
|
3.04 |
|
|
4.18 |
|
|
Earnings per share attributable to GE HealthCare common stockholders: |
|
|
|
||||||
|
Basic |
$ |
4.37 |
|
$ |
3.05 |
|
$ |
4.22 |
|
|
Diluted |
|
4.34 |
|
|
3.03 |
|
|
4.22 |
|
|
Weighted-average number of shares outstanding: |
|
|
|
||||||
|
Basic |
|
456 |
|
|
455 |
|
|
454 |
|
|
Diluted |
|
459 |
|
|
458 |
|
|
454 |
|
|
Consolidated Statements of Financial Position |
|
|||||
|
|
As of |
|||||
|
(In millions, except share and per share amounts) |
December 31, 2024 |
December 31, 2023 |
||||
|
Cash, cash equivalents, and restricted cash |
$ |
2,889 |
|
$ |
2,504 |
|
|
Receivables – net of allowances of |
|
3,564 |
|
|
3,525 |
|
|
Due from related parties |
|
5 |
|
|
32 |
|
|
Inventories |
|
1,939 |
|
|
1,960 |
|
|
Contract and other deferred assets |
|
974 |
|
|
1,000 |
|
|
All other current assets |
|
529 |
|
|
389 |
|
|
Current assets |
|
9,901 |
|
|
9,410 |
|
|
Property, plant, and equipment – net |
|
2,550 |
|
|
2,500 |
|
|
Goodwill |
|
13,136 |
|
|
12,936 |
|
|
Other intangible assets – net |
|
1,078 |
|
|
1,253 |
|
|
Deferred income taxes |
|
4,474 |
|
|
4,474 |
|
|
All other non-current assets |
|
1,950 |
|
|
1,881 |
|
|
Total assets |
$ |
33,089 |
|
$ |
32,454 |
|
|
Short-term borrowings |
$ |
1,502 |
|
$ |
1,006 |
|
|
Accounts payable |
|
3,022 |
|
|
2,947 |
|
|
Due to related parties |
|
20 |
|
|
99 |
|
|
Contract liabilities |
|
1,943 |
|
|
1,918 |
|
|
Current compensation and benefits |
|
1,521 |
|
|
1,518 |
|
|
All other current liabilities |
|
1,545 |
|
|
1,493 |
|
|
Current liabilities |
|
9,553 |
|
|
8,981 |
|
|
Long-term borrowings |
|
7,449 |
|
|
8,436 |
|
|
Non-current compensation and benefits |
|
5,583 |
|
|
5,782 |
|
|
Deferred income taxes |
|
56 |
|
|
68 |
|
|
All other non-current liabilities |
|
1,796 |
|
|
1,877 |
|
|
Total liabilities |
|
24,437 |
|
|
25,144 |
|
|
Commitments and contingencies |
|
|
||||
|
Redeemable noncontrolling interests |
|
188 |
|
|
165 |
|
|
Common stock, par value |
|
5 |
|
|
5 |
|
|
Treasury stock, at cost, 291,053 shares as of December 31, 2024 and 0 shares as of December 31, 2023 |
|
(25 |
) |
|
— |
|
|
Additional paid-in capital |
|
6,583 |
|
|
6,493 |
|
|
Retained earnings |
|
3,262 |
|
|
1,326 |
|
|
Accumulated other comprehensive income (loss) – net |
|
(1,379 |
) |
|
(691 |
) |
|
Total equity attributable to GE HealthCare |
|
8,446 |
|
|
7,133 |
|
|
Noncontrolling interests |
|
18 |
|
|
12 |
|
|
Total equity |
|
8,464 |
|
|
7,145 |
|
|
Total liabilities, redeemable noncontrolling interests, and equity |
$ |
33,089 |
|
$ |
32,454 |
|
|
Consolidated and Combined Statements of Cash Flows |
|
|
|
||||||
|
|
For the years ended December 31 |
||||||||
|
(In millions) |
2024 |
2023 |
2022 |
||||||
|
Net income |
$ |
2,050 |
|
$ |
1,614 |
|
$ |
1,967 |
|
|
Less: Income (loss) from discontinued operations, net of taxes |
|
— |
|
|
(4 |
) |
|
18 |
|
|
Net income from continuing operations |
$ |
2,050 |
|
$ |
1,618 |
|
$ |
1,949 |
|
|
Adjustments to reconcile Net income from continuing operations to Cash from (used for) operating activities – continuing operations |
|
|
|
||||||
|
Depreciation of property, plant, and equipment |
|
268 |
|
|
248 |
|
|
228 |
|
|
Amortization of intangible assets |
|
312 |
|
|
362 |
|
|
405 |
|
|
Gain on fair value remeasurement of contingent consideration |
|
(19 |
) |
|
(17 |
) |
|
(65 |
) |
|
Net periodic postretirement benefit plan (income) expense |
|
(357 |
) |
|
(332 |
) |
|
9 |
|
|
Postretirement plan contributions |
|
(332 |
) |
|
(357 |
) |
|
(18 |
) |
|
Share-based compensation |
|
125 |
|
|
114 |
|
|
67 |
|
|
Provision for income taxes |
|
531 |
|
|
743 |
|
|
563 |
|
|
Cash paid during the year for income taxes |
|
(491 |
) |
|
(474 |
) |
|
(851 |
) |
|
Changes in operating assets and liabilities, excluding the effects of acquisitions: |
|
|
|
||||||
|
Receivables |
|
(178 |
) |
|
(185 |
) |
|
(231 |
) |
|
Due from related parties |
|
25 |
|
|
4 |
|
|
13 |
|
|
Inventories |
|
(81 |
) |
|
111 |
|
|
(402 |
) |
|
Contract and other deferred assets |
|
3 |
|
|
10 |
|
|
(222 |
) |
|
Accounts payable |
|
126 |
|
|
(13 |
) |
|
481 |
|
|
Due to related parties |
|
(61 |
) |
|
(84 |
) |
|
(33 |
) |
|
Contract liabilities |
|
68 |
|
|
26 |
|
|
138 |
|
|
Current compensation and benefits |
|
39 |
|
|
153 |
|
|
(37 |
) |
|
All other operating activities – net |
|
(74 |
) |
|
174 |
|
|
140 |
|
|
Cash from (used for) operating activities – continuing operations |
|
1,955 |
|
|
2,101 |
|
|
2,134 |
|
|
Cash flows – investing activities |
|
|
|
||||||
|
Additions to property, plant and equipment and internal-use software |
|
(401 |
) |
|
(387 |
) |
|
(310 |
) |
|
Dispositions of property, plant, and equipment |
|
— |
|
|
1 |
|
|
4 |
|
|
Purchases of businesses, net of cash acquired |
|
(313 |
) |
|
(147 |
) |
|
— |
|
|
Purchases of investments |
|
(40 |
) |
|
(48 |
) |
|
(59 |
) |
|
All other investing activities – net |
|
(160 |
) |
|
23 |
|
|
(33 |
) |
|
Cash from (used for) investing activities – continuing operations |
|
(914 |
) |
|
(558 |
) |
|
(398 |
) |
|
Cash flows – financing activities |
|
|
|
||||||
|
Net increase (decrease) in borrowings (maturities of 90 days or less) |
|
— |
|
|
(12 |
) |
|
9 |
|
|
Newly issued debt, net of debt issuance costs (maturities longer than 90 days) |
|
995 |
|
|
2,006 |
|
|
8,198 |
|
|
Repayments and other reductions (maturities longer than 90 days) |
|
(1,418 |
) |
|
(855 |
) |
|
(3 |
) |
|
Dividends paid to stockholders |
|
(55 |
) |
|
(41 |
) |
|
— |
|
|
Redemption of noncontrolling interests |
|
— |
|
|
(211 |
) |
|
— |
|
|
Net transfers (to) from GE |
|
— |
|
|
(1,317 |
) |
|
(8,934 |
) |
|
Proceeds from stock issued under employee benefit plans |
|
33 |
|
|
34 |
|
|
— |
|
|
Taxes paid related to net share settlement of equity awards |
|
(93 |
) |
|
(33 |
) |
|
— |
|
|
All other financing activities – net |
|
(34 |
) |
|
(49 |
) |
|
(92 |
) |
|
Cash from (used for) financing activities – continuing operations |
|
(573 |
) |
|
(478 |
) |
|
(822 |
) |
|
Cash from (used for) operating activities – discontinued operations |
|
(4 |
) |
|
— |
|
|
(21 |
) |
|
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash |
|
(77 |
) |
|
(10 |
) |
|
(3 |
) |
|
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
387 |
|
|
1,055 |
|
|
890 |
|
|
Cash, cash equivalents, and restricted cash at beginning of year |
|
2,506 |
|
|
1,451 |
|
|
561 |
|
|
Cash, cash equivalents, and restricted cash at end of year |
$ |
2,893 |
|
$ |
2,506 |
|
$ |
1,451 |
|
|
Supplemental disclosure of cash flows information |
|
|
|
||||||
|
Cash paid during the year for interest |
$ |
(550 |
) |
$ |
(570 |
) |
$ |
— |
|
|
Non-cash investing activities |
|
|
|
||||||
|
Acquired but unpaid property, plant, and equipment |
$ |
143 |
|
$ |
140 |
|
$ |
136 |
|
Non-GAAP Financial Measures
The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results, and assess its future prospects. When read in conjunction with the Company’s
The Company reports Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of the Company’s established, ongoing operations, as well as provide insights into overall demand for its products and services. To calculate these measures, the Company excludes the effect of acquisitions, dispositions, and foreign currency rate fluctuations.
The Company reports EBIT, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, and Adjusted earnings per share to provide management and investors with additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures the Company excludes, and reflects in the detailed reconciliations below, the following adjustments as applicable: Interest and other financial charges – net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. GE HealthCare may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin is calculated by taking Adjusted EBIT divided by Total revenues for the same period.
The Company reports Adjusted tax expense and Adjusted effective tax rate (“Adjusted ETR”) to provide management and investors with a better understanding of the normalized tax rate applicable to the business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. The Company may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted ETR is Adjusted tax expense divided by income before income taxes less the pre-tax income adjustments referenced above.
The Company reports Free cash flow and Free cash flow conversion to provide management and investors with an important measure of the ability to generate cash on a normalized basis and provide insight into the Company’s flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities – continuing operations including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments. Free cash flow conversion is calculated by taking Free cash flow divided by Adjusted net income.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with
Non-GAAP Financial Reconciliations
|
Organic Revenue* |
|
|
|
|
|
|
|
||||||||
|
Unaudited |
For the three months ended December 31 |
|
For the years ended December 31 |
||||||||||||
|
($ in millions) |
2024 |
2023 |
% change |
|
2024 |
2023 |
% change |
||||||||
|
Imaging revenues |
$ |
2,393 |
|
$ |
2,392 |
— |
% |
|
$ |
8,855 |
|
$ |
8,944 |
(1 |
)% |
|
Less: Acquisitions(1) |
|
17 |
|
|
— |
|
|
|
47 |
|
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Foreign currency exchange |
|
(7 |
) |
|
— |
|
|
|
(71 |
) |
|
— |
|
||
|
Imaging Organic revenue* |
$ |
2,383 |
|
$ |
2,392 |
— |
% |
|
$ |
8,880 |
|
$ |
8,944 |
(1 |
)% |
|
AVS revenues |
$ |
1,440 |
|
$ |
1,382 |
4 |
% |
|
$ |
5,131 |
|
$ |
5,094 |
1 |
% |
|
Less: Acquisitions(1) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Foreign currency exchange |
|
(4 |
) |
|
— |
|
|
|
(25 |
) |
|
— |
|
||
|
AVS Organic revenue* |
$ |
1,443 |
|
$ |
1,382 |
4 |
% |
|
$ |
5,157 |
|
$ |
5,094 |
1 |
% |
|
PCS revenues |
$ |
827 |
|
$ |
827 |
— |
% |
|
$ |
3,125 |
|
$ |
3,142 |
(1 |
)% |
|
Less: Acquisitions(1) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Foreign currency exchange |
|
(2 |
) |
|
— |
|
|
|
(6 |
) |
|
— |
|
||
|
PCS Organic revenue* |
$ |
829 |
|
$ |
827 |
— |
% |
|
$ |
3,131 |
|
$ |
3,142 |
— |
% |
|
PDx revenues |
$ |
646 |
|
$ |
591 |
9 |
% |
|
$ |
2,508 |
|
$ |
2,306 |
9 |
% |
|
Less: Acquisitions(1) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Foreign currency exchange |
|
3 |
|
|
— |
|
|
|
(10 |
) |
|
— |
|
||
|
PDx Organic revenue* |
$ |
642 |
|
$ |
591 |
9 |
% |
|
$ |
2,518 |
|
$ |
2,306 |
9 |
% |
|
Other revenues |
$ |
13 |
|
$ |
14 |
(4 |
)% |
|
$ |
52 |
|
$ |
66 |
(21 |
)% |
|
Less: Acquisitions(1) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Foreign currency exchange |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Other Organic revenue* |
$ |
13 |
|
$ |
14 |
(4 |
)% |
|
$ |
52 |
|
$ |
66 |
(21 |
)% |
|
Total revenues |
$ |
5,319 |
|
$ |
5,206 |
2 |
% |
|
$ |
19,672 |
|
$ |
19,552 |
1 |
% |
|
Less: Acquisitions(1) |
|
17 |
|
|
— |
|
|
|
47 |
|
|
— |
|
||
|
Less: Dispositions(2) |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
||
|
Less: Foreign currency exchange |
|
(8 |
) |
|
— |
|
|
|
(112 |
) |
|
— |
|
||
|
Organic revenue* |
$ |
5,310 |
|
$ |
5,206 |
2 |
% |
|
$ |
19,737 |
|
$ |
19,552 |
1 |
% |
| (1) |
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction. |
|
|
(2) |
Represents revenues attributable to dispositions for the four quarters preceding the disposition date. |
|
Adjusted EBIT* |
|
|
|||||||||||||||
|
Unaudited |
For the three months ended December 31 |
|
For the years ended December 31 |
||||||||||||||
|
($ in millions) |
2024 |
2023 |
% change |
|
2024 |
2023 |
% change |
||||||||||
|
Net income attributable to GE HealthCare |
$ |
720 |
|
$ |
403 |
|
79 |
% |
|
$ |
1,993 |
|
$ |
1,568 |
|
27 |
% |
|
Add: Interest and other financial charges – net |
|
121 |
|
|
131 |
|
|
|
|
504 |
|
|
542 |
|
|
||
|
Add: Non-operating benefit (income) costs |
|
(100 |
) |
|
(50 |
) |
|
|
|
(406 |
) |
|
(382 |
) |
|
||
|
Less: Benefit (provision) for income taxes |
|
(96 |
) |
|
(193 |
) |
|
|
|
(531 |
) |
|
(743 |
) |
|
||
|
Less: Income (loss) from discontinued operations, net of taxes |
|
— |
|
|
— |
|
|
|
|
— |
|
|
(4 |
) |
|
||
|
Less: Net (income) loss attributable to noncontrolling interests |
|
(17 |
) |
|
(13 |
) |
|
|
|
(57 |
) |
|
(46 |
) |
|
||
|
EBIT* |
$ |
854 |
|
$ |
690 |
|
24 |
% |
|
$ |
2,679 |
|
$ |
2,521 |
|
6 |
% |
|
Add: Restructuring costs(1) |
|
30 |
|
|
20 |
|
|
|
|
120 |
|
|
54 |
|
|
||
|
Add: Acquisition and disposition-related charges (benefits)(2) |
|
9 |
|
|
— |
|
|
|
|
3 |
|
|
(15 |
) |
|
||
|
Add: Spin-Off and separation costs(3) |
|
68 |
|
|
95 |
|
|
|
|
251 |
|
|
270 |
|
|
||
|
Add: (Gain) loss on business and asset dispositions(4) |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
||
|
Add: Amortization of acquisition-related intangible assets |
|
36 |
|
|
32 |
|
|
|
|
137 |
|
|
127 |
|
|
||
|
Add: Investment revaluation (gain) loss(5) |
|
(4 |
) |
|
— |
|
|
|
|
22 |
|
|
(1 |
) |
|
||
|
Adjusted EBIT* |
$ |
994 |
|
$ |
837 |
|
19 |
% |
|
$ |
3,211 |
|
$ |
2,956 |
|
9 |
% |
|
Net income margin |
|
13.5 |
% |
|
7.7 |
% |
580 bps |
|
|
10.1 |
% |
|
8.0 |
% |
210 bps |
||
|
Adjusted EBIT margin* |
|
18.7 |
% |
|
16.1 |
% |
260 bps |
|
|
16.3 |
% |
|
15.1 |
% |
120 bps |
||
|
(1) |
Consists of severance, facility closures, and other charges associated with restructuring programs. |
|
|
(2) |
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. |
|
|
(3) |
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. |
|
|
(4) |
Consists of gains and losses resulting from the sale of assets and investments. |
|
|
(5) |
Primarily relates to valuation adjustments for equity investments. |
|
|
Adjusted Net Income* |
|
|
|||||||||||||||
|
Unaudited |
For the three months ended December 31 |
|
For the years ended December 31 |
||||||||||||||
|
($ in millions) |
2024 |
2023 |
% change |
|
2024 |
2023 |
% change |
||||||||||
|
Net income attributable to GE HealthCare |
$ |
720 |
|
$ |
403 |
|
79 |
% |
|
$ |
1,993 |
|
$ |
1,568 |
|
27 |
% |
|
Add: Non-operating benefit (income) costs |
|
(100 |
) |
|
(50 |
) |
|
|
|
(406 |
) |
|
(382 |
) |
|
||
|
Add: Restructuring costs(1) |
|
30 |
|
|
20 |
|
|
|
|
120 |
|
|
54 |
|
|
||
|
Add: Acquisition and disposition-related charges (benefits)(2) |
|
9 |
|
|
— |
|
|
|
|
3 |
|
|
(15 |
) |
|
||
|
Add: Spin-Off and separation costs(3) |
|
68 |
|
|
95 |
|
|
|
|
251 |
|
|
270 |
|
|
||
|
Add: (Gain) loss on business and asset dispositions(4) |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
||
|
Add: Amortization of acquisition-related intangible assets |
|
36 |
|
|
32 |
|
|
|
|
137 |
|
|
127 |
|
|
||
|
Add: Investment revaluation (gain) loss(5) |
|
(4 |
) |
|
— |
|
|
|
|
22 |
|
|
(1 |
) |
|
||
|
Add: Tax effect of reconciling items(6) |
|
(16 |
) |
|
(21 |
) |
|
|
|
(42 |
) |
|
(24 |
) |
|
||
|
Add: Spin-Off and other tax adjustments(7) |
|
(78 |
) |
|
60 |
|
|
|
|
(17 |
) |
|
196 |
|
|
||
|
Less: Income (loss) from discontinued operations, net of taxes |
|
— |
|
|
— |
|
|
|
|
— |
|
|
(4 |
) |
|
||
|
Adjusted net income* |
$ |
666 |
|
$ |
539 |
|
24 |
% |
|
$ |
2,060 |
|
$ |
1,797 |
|
15 |
% |
|
(1) |
Consists of severance, facility closures, and other charges associated with restructuring programs. |
|
|
(2) |
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. |
|
|
(3) |
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. |
|
|
(4) |
Consists of gains and losses resulting from the sale of assets and investments. |
|
|
(5) |
Primarily relates to valuation adjustments for equity investments. |
|
|
(6) |
The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. |
|
|
(7) |
Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested, the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates, and the impact of tax legislation changes. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items. |
|
|
Adjusted Earnings Per Share* |
|
|
|
|
|
|
|||||||||||
|
Unaudited |
For the three months ended December 31 |
|
For the years ended December 31 |
||||||||||||||
|
(In dollars, except shares outstanding presented in millions) |
2024 |
2023 |
$ change |
|
2024 |
2023 |
$ change |
||||||||||
|
Diluted earnings per share – continuing operations |
$ |
1.57 |
|
$ |
0.88 |
|
$ |
0.69 |
|
$ |
4.34 |
|
$ |
3.04 |
|
$ |
1.31 |
|
Add: Deemed preferred stock dividend of redeemable noncontrolling interest |
|
— |
|
|
— |
|
|
|
|
— |
|
|
0.40 |
|
|
||
|
Add: Non-operating benefit (income) costs |
|
(0.22 |
) |
|
(0.11 |
) |
|
|
|
(0.88 |
) |
|
(0.83 |
) |
|
||
|
Add: Restructuring costs(1) |
|
0.06 |
|
|
0.04 |
|
|
|
|
0.26 |
|
|
0.12 |
|
|
||
|
Add: Acquisition and disposition-related charges (benefits)(2) |
|
0.02 |
|
|
— |
|
|
|
|
0.01 |
|
|
(0.03 |
) |
|
||
|
Add: Spin-Off and separation costs(3) |
|
0.15 |
|
|
0.21 |
|
|
|
|
0.55 |
|
|
0.59 |
|
|
||
|
Add: (Gain) loss on business and asset dispositions(4) |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
||
|
Add: Amortization of acquisition-related intangible assets |
|
0.08 |
|
|
0.07 |
|
|
|
|
0.30 |
|
|
0.28 |
|
|
||
|
Add: Investment revaluation (gain) loss(5) |
|
(0.01 |
) |
|
— |
|
|
|
|
0.05 |
|
|
(0.00 |
) |
|
||
|
Add: Tax effect of reconciling items(6) |
|
(0.03 |
) |
|
(0.05 |
) |
|
|
|
(0.09 |
) |
|
(0.05 |
) |
|
||
|
Add: Spin-Off and other tax adjustments(7) |
|
(0.17 |
) |
|
0.13 |
|
|
|
|
(0.04 |
) |
|
0.43 |
|
|
||
|
Adjusted earnings per share* |
$ |
1.45 |
|
$ |
1.18 |
|
$ |
0.27 |
|
$ |
4.49 |
|
$ |
3.93 |
|
$ |
0.56 |
|
Diluted weighted-average shares outstanding |
|
459 |
|
|
458 |
|
|
|
|
459 |
|
|
458 |
|
|
||
|
(1) |
Consists of severance, facility closures, and other charges associated with restructuring programs. |
|
|
(2) |
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions. |
|
|
(3) |
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. |
|
|
(4) |
Consists of gains and losses resulting from the sale of assets and investments. |
|
|
(5) |
Primarily relates to valuation adjustments for equity investments. |
|
|
(6) |
The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. |
|
|
(7) |
Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested, the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates, and the impact of tax legislation changes. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items. |
|
|
Adjusted Tax Expense* and Adjusted ETR* |
|
|
|
||||||||||
|
Unaudited |
For the three months ended December 31 |
|
For the years ended December 31 |
||||||||||
|
($ in millions) |
2024 |
2023 |
|
2024 |
2023 |
||||||||
|
Benefit (provision) for income taxes |
$ |
(96 |
) |
$ |
(193 |
) |
|
$ |
(531 |
) |
$ |
(743 |
) |
|
Add: Tax effect of reconciling items(1) |
|
(16 |
) |
|
(21 |
) |
|
|
(42 |
) |
|
(24 |
) |
|
Add: Spin-Off and other tax adjustments(2) |
|
(78 |
) |
|
60 |
|
|
|
(17 |
) |
|
196 |
|
|
Adjusted tax expense* |
$ |
(189 |
) |
$ |
(154 |
) |
|
$ |
(590 |
) |
$ |
(571 |
) |
|
Effective tax rate |
|
11.5 |
% |
|
31.7 |
% |
|
|
20.6 |
% |
|
31.5 |
% |
|
Adjusted effective tax rate* |
|
21.7 |
% |
|
21.8 |
% |
|
|
21.8 |
% |
|
23.7 |
% |
|
(1) |
The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction. |
|
|
(2) |
Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested, the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates, and the impact of tax legislation changes. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items. |
|
|
Free Cash Flow* |
|
|
|
|
|
|
|
||||||||||
|
Unaudited |
For the three months ended December 31 |
|
For the years ended December 31 |
||||||||||||||
|
($ in millions) |
2024 |
2023 |
% change |
|
2024 |
2023 |
% change |
||||||||||
|
Cash from (used for) operating activities – continuing operations |
$ |
913 |
|
$ |
1,050 |
|
(13 |
)% |
|
$ |
1,955 |
|
$ |
2,101 |
|
(7 |
)% |
|
Cash flow conversion |
|
|
|
|
|
98 |
% |
|
134 |
% |
(36 |
)pts |
|||||
|
Add: Additions to PP&E and internal-use software |
|
(102 |
) |
|
(94 |
) |
|
|
|
(401 |
) |
|
(387 |
) |
|
||
|
Add: Dispositions of PP&E |
|
— |
|
|
— |
|
|
|
|
— |
|
|
1 |
|
|
||
|
Free cash flow* |
$ |
811 |
|
$ |
956 |
|
(15 |
)% |
|
$ |
1,554 |
|
$ |
1,715 |
|
(9 |
)% |
|
Free cash flow conversion* |
|
|
|
|
|
75 |
% |
|
95 |
% |
(20 |
)pts |
|||||
Non-GAAP Financial Measures in Outlook
GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. GE HealthCare does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or dispositions, timing and magnitude of restructuring activities, and revaluation of strategic investments, amongst other items. The timing and amounts of these items are uncertain and could have a substantial impact on GE HealthCare’s results in accordance with GAAP.
Key Performance Indicators
Management uses the following metrics to provide a leading indicator of current business demand from customers for products and services.
- Organic orders growth: Rate of change period-over-period of contractual commitments with customers to provide specified goods or services for an agreed upon price, and excluding the effects of: (1) recent acquisitions and dispositions with less than a full year of comparable orders; and (2) foreign currency exchange rate fluctuations in order to present orders on a constant currency basis.
- Book-to-bill: Total orders divided by Total revenues within a given financial period (e.g., quarter or FY).
Conference Call and Webcast Information
GE HealthCare will discuss its results during its live earnings call today, February 13, 2025 at 8:30 am ET/7:30 am CT. The webcast and accompanying slide presentation containing financial information can be accessed by visiting the investor section of the website at An archived version of the webcast will be available on the website after the call.
Forward-looking Statements
This release contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “target,” “guidance,” “outlook,” and similar expressions. These forward-looking statements may include, but are not limited to, statements about the Company’s business and expected financial performance, financial condition, and results of operations, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows, and the Company’s outlook; and the Company’s strategy, innovation, and investments. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control. Factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include, but are not limited to, operating in highly competitive markets; global geopolitical and economic instability, including as a result of the conflict between
About GE HealthCare Technologies Inc.
GE HealthCare is a trusted partner and leading global healthcare solutions provider, innovating medical technology, pharmaceutical diagnostics, and integrated, cloud-first AI-enabled solutions, services and data analytics. We aim to make hospitals and health systems more efficient, clinicians more effective, therapies more precise and patients healthier and happier. Serving patients and providers for more than 125 years, GE HealthCare is advancing personalized, connected and compassionate care, while simplifying the patient’s journey across care pathways. Together, our Imaging, Advanced Visualization Solutions, Patient Care Solutions and Pharmaceutical Diagnostics businesses help improve patient care from screening and diagnosis to therapy and monitoring. We are a
GE HealthCare is proud to be among 2025 Fortune World’s Most Admired Companies™.
Follow us on LinkedIn, X, Facebook, Instagram, and Insights for the latest news, or visit our website for more information.
* Non-GAAP financial measure.
View source version on businesswire.com:
Investor Relations Contact:
Carolynne Borders
+1-631-662-4317
[email protected]
Media Contact:
Jennifer Fox
+1-414-530-3027
[email protected]
Source: GE HealthCare
FAQ
What was GE HealthCare’s (GEHC) revenue growth in Q4 2024?
GE HealthCare reported 2% revenue growth both on a reported and organic basis in Q4 2024, reaching $5.3 billion.
How much did GEHC’s Q4 2024 net income margin improve year-over-year?
GEHC’s net income margin improved by 580 basis points, increasing to 13.5% from 7.7% in the prior year.
What is GE HealthCare’s (GEHC) revenue guidance for 2025?
GEHC projects organic revenue growth of 2% to 3% year-over-year for 2025.
How did GEHC’s Pharmaceutical Diagnostics segment perform in Q4 2024?
The Pharmaceutical Diagnostics segment showed strong performance with 9% revenue growth and 47% EBIT growth year-over-year.
What is GEHC’s projected adjusted EPS range for 2025?
GEHC projects adjusted EPS in the range of $4.61 to $4.75 for 2025, representing 3% to 6% growth versus 2024.
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