Core Insights - GE HealthCare reported Q1 2025 adjusted EPS of $1.01, exceeding the consensus estimate of 91 cents and up from 90 cents a year ago [1] - The company achieved sales of $4.78 billion, surpassing the consensus of $4.66 billion [1] - GE HealthCare updated its 2025 full-year guidance, reaffirming organic revenue growth of 2% to 3% year over year [1] Financial Performance - The adjusted EBIT margin is expected to be between 14.2% and 14.4%, a decrease from the previous guidance of 16.7% to 16.8% [2] - GE HealthCare experienced a record 10% organic order growth in Q1, although this was overshadowed by tariff concerns [2] Tariff Impact - The impact of tariffs for 2025 was larger than anticipated, but GE HealthCare has managed to offset over 50% of the gross headwind [3] - The company expects the tariff impact for 2026 to be less than in 2025, with potential offsets of $300 million or more, assuming an $800 million annualized tariff run rate [3] - Uncertainty remains regarding which tariffs may apply to Pharmaceutical Diagnostics (PDx) products, although many are likely produced in Europe, potentially avoiding the highest tariffs [4] Market Reaction - GE HealthCare's stock declined by 3.18% to $68.09 following the news [5] - BofA Securities maintains a Neutral rating due to tariff uncertainties, lowering the price target from $97 to $82 [6] - Wells Fargo rates GE HealthCare as Overweight, reducing the price target from $103 to $89 [6] - Citigroup maintains a Buy rating, lowering the price target from $105 to $86 [6] - Evercore ISI keeps an Outperform rating, adjusting the price target from $96 to $85 [6]

Core Points - GE HealthCare (GEHC) reported first-quarter 2025 adjusted earnings per share (EPS) of $1.01, exceeding the Zacks Consensus Estimate of 91 cents by 11% and showing a year-over-year improvement of 12.2% [1] - The company's GAAP EPS was $1.23, reflecting a significant increase of 51.9% from the previous year [1] - GEHC's shares rose by 4.6% in pre-market trading following the earnings report, although the stock has declined 13% year-to-date compared to a 3.2% increase in the industry [1] Revenue Details - GEHC reported revenues of $4.78 billion, marking a 3% year-over-year increase on a reported basis and a 4% increase organically, surpassing the Zacks Consensus Estimate by 2.5% [3] - Total company orders increased by 10% organically year over year, driven by strong performance in the U.S. market across all segments, particularly in Imaging and Pharmaceutical Diagnostics [3] Segmental Details - Imaging segment revenues reached $2.14 billion, up 4% year over year on a reported basis and 5% organically, with segment EBIT of $199 million, a 20% increase year over year [4] - Advanced Visualization Solutions generated revenues of $1.24 billion, up 1% year over year on a reported basis and 3% organically, with segment EBIT of $261 million, a 2% increase year over year [4] - Patient Care Solutions reported revenues of $753 million, up 1% year over year on a reported basis and 2% organically, while segment EBIT decreased by 41% year over year to $48 million [5] - Pharmaceutical Diagnostics revenues totaled $632 million, reflecting a 6% year-over-year increase and an 8% organic increase, with segment EBIT of $205 million, up 15% year over year [5] Margins - The net income margin improved to 11.8%, an increase of 380 basis points from the prior year, primarily due to productivity and pricing benefits [6] - Cumulative cash flow from operating activities at the end of the first quarter was $250 million, down from $419 million a year ago [6] Financial Position - GEHC ended the first quarter with cash, cash equivalents, and investments totaling $2.47 billion, a decrease from $2.89 billion in the previous quarter [7] - Total assets increased to $33.59 billion from $33.09 billion sequentially [7] 2025 Guidance - GE HealthCare updated its earnings and organic revenue guidance for 2025, now expecting adjusted EPS in the range of $3.90-$4.10, down from a previous range of $4.61-$4.75, indicating a year-over-year decline of 9-13% due to unfavorable tariff impacts [9] - Revenues are anticipated to grow 2-3% organically, reflecting continued demand for its products and services, with the Zacks Consensus Estimate for 2025 EPS and revenues at $4.70 and $19.95 billion, respectively [9]

Financial Performance - GE HealthCare reported first-quarter 2025 adjusted EPS of $1.01, exceeding the consensus of 91 cents, and up from 90 cents a year ago [1] - The company achieved sales of $4.78 billion, surpassing the consensus of $4.66 billion, with revenues increasing 3% reported and 4% organically year-over-year [1] - The net income margin improved to 11.8% from 8.0% the previous year, an increase of 380 basis points [3] Orders and Margins - Total company book-to-bill ratio was 1.09 times, with total company orders increasing a record 10% organically year-over-year [2] - Adjusted EBIT margin was 15.0%, up from 14.7%, reflecting benefits from volume and productivity [3] Capital Allocation - GE HealthCare authorized a stock buyback of up to $1 billion, indicating a commitment to return capital to shareholders while focusing on business growth [4] Guidance and Forecasts - The company updated its 2025 full-year guidance, reaffirming organic revenue growth of 2% to 3% year-over-year, while adjusting the EBIT margin forecast to 14.2%-14.4% [5][6] - Adjusted EPS is forecasted to be between $3.90 to $4.10, reflecting a 9% to 13% decline compared to 2024 adjusted EPS of $4.49 [6] - Free cash flow is expected to be at least $1.2 billion, down from previous guidance of at least $1.75 billion [6] Strategic Moves - In March, GE HealthCare acquired the remaining 50% stake in Nihon Medi-Physics Co., Ltd, achieving full ownership [7] - NMP generated revenues of 28.2 billion Japanese yen (approximately $183 million) in 2023, contributing to GE HealthCare's portfolio in molecular imaging [10] Stock Performance - GEHC stock increased by 3.87% to $70.73 during the last check on Wednesday [8]

Core Insights - GE HealthCare Technologies (GEHC) reported revenue of $4.78 billion for the quarter ended March 2025, reflecting a year-over-year increase of 2.7% and exceeding the Zacks Consensus Estimate of $4.66 billion by 2.57% [1] - The company's earnings per share (EPS) was $1.01, up from $0.90 in the same quarter last year, resulting in an EPS surprise of 10.99% compared to the consensus estimate of $0.91 [1] Revenue Breakdown - Imaging revenues were reported at $2.14 billion, surpassing the average analyst estimate of $2.03 billion, but showing a decline of 13.2% year-over-year [4] - Other revenues amounted to $13 million, slightly below the estimated $13.30 million, with a year-over-year decrease of 13.3% [4] - PDx revenues reached $632 million, slightly above the estimate of $631.52 million, marking a year-over-year increase of 5.5% [4] - PCS revenues were reported at $753 million, exceeding the average estimate of $749.38 million, with a year-over-year growth of 0.8% [4] Stock Performance - Over the past month, GE HealthCare shares have returned -14.4%, contrasting with a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

GE HealthCare Technologies (GEHC) came out with quarterly earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.99%. A quarter ago, it was expected that this medical technology company would post earnings of $1.26 per share when it actually produced earnings of $1.45, delivering a surprise of 15.08%.Over the la ...

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenues of $4.8 billion, with solid organic revenue growth of 4% across all segments, particularly strong in the U.S. with high single-digit growth year over year [12][13] - Adjusted EBIT margin was 15%, up 30 basis points year over year, driven by volume and productivity improvements [14] - Adjusted EPS for the quarter was $1.01, reflecting a 12% increase year over year [14] Business Line Data and Key Metrics Changes - Imaging segment organic revenue grew 5% year over year, with EBIT margin up 130 basis points due to productivity and volume [16][17] - Advanced Visualization Solutions saw organic revenue increase of 3% year over year, with EBIT margin up 10 basis points [18] - Patient Care Solutions experienced 2% organic revenue growth, but EBIT margin declined by 450 basis points due to investments and product mix [19] - Pharmaceutical Diagnostics achieved 8% organic growth with an EBIT margin above 32% [20] Market Data and Key Metrics Changes - The U.S. market showed strong demand, particularly in imaging products focused on cardiology and oncology, contributing to record double-digit orders growth [6][12] - The company reported a record backlog of $20.6 billion, up $1.9 billion year over year [13] Company Strategy and Development Direction - The company is focused on strengthening its market presence and delivering a pipeline of innovations, including radiopharmaceuticals and next-generation imaging technologies [10][11] - The strategic approach includes optimizing the supply chain to mitigate tariff impacts and pursuing organic growth alongside strategic M&A opportunities [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of tariffs on profit and cash flow, estimating a total impact of $0.85 per share for 2025, with mitigation actions expected to reduce this in 2026 [10][24] - The company expects organic revenue growth for the full year 2025 to be in the range of 2% to 3%, with adjusted EPS guidance revised to between $3.90 and $4.10, reflecting a decline year over year [22][24] Other Important Information - The company announced a share repurchase program authorization of $1 billion [21] - Management emphasized the importance of maintaining R&D investments despite cost control measures in other areas [84] Q&A Session Summary Question: Tariff impact and mitigation strategies - Management detailed that the estimated tariff impact for 2025 is $0.85 per share, with mitigation strategies including duty drawback and dual sourcing to reduce future impacts [32][34] Question: China market performance and VBP impact - Management confirmed expectations of a mid-single-digit decline in China for the first half of 2025, with a sequential improvement anticipated in the second half [39][41] Question: Free cash flow reduction - The reduction in free cash flow guidance to at least $1.2 billion is attributed to tariff payments and inventory buildup [64][66] Question: Flurcato product launch and market reception - The Flurcato product is on track for a successful launch, with positive clinical feedback and expected revenue of approximately $30 million in 2025 [72][74] Question: Long-term outlook on rare earth element supply - Management expressed confidence in managing supply risks related to rare earth elements, with strategies in place for multi-sourcing [110][111]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenues of $4.8 billion, with organic revenue growth of 4% and high single-digit growth in the U.S. market [10][11] - Adjusted EPS for the quarter was $1.01, reflecting a 12% year-over-year increase, while free cash flow was $98 million, down $175 million from the previous year [12][19] - The adjusted EBIT margin was 15%, up 30 basis points year-over-year, driven by volume and productivity improvements [12][13] Business Line Data and Key Metrics Changes - Imaging segment organic revenue grew 5% year-over-year, with EBIT margin up 130 basis points due to productivity and volume [14][15] - Advanced Visualization Solutions saw a 3% increase in organic revenue, with EBIT margin increasing by 10 basis points [16] - Patient Care Solutions experienced 2% organic revenue growth, but EBIT margin declined by 450 basis points due to investments and product mix [17] - Pharmaceutical Diagnostics achieved 8% organic growth with an EBIT margin above 32% [18] Market Data and Key Metrics Changes - The U.S. market showed strong demand, particularly in imaging products focused on cardiology and oncology, contributing to record double-digit orders growth [5][6] - The company noted a significant backlog of $20.6 billion, up $1.9 billion year-over-year, indicating strong market demand [11] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts and optimizing its supply chain, with expectations of reduced tariff impacts in 2026 [8][9] - Continued investment in R&D is prioritized, with a commitment to innovation and product leadership, including the launch of new products like radiopharmaceuticals [12][25] - The company aims to enhance its market presence and drive growth through strategic M&A opportunities [20][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational execution despite macroeconomic challenges, with an updated full-year guidance reflecting organic revenue growth of 2% to 3% [21][22] - The company anticipates a negative sales performance in China for the first half of 2025, with expectations of sequential improvement in the second half [22][40] - Management remains focused on maintaining long-term innovation investments while controlling discretionary expenses [27][81] Other Important Information - The company announced a share repurchase program authorization of $1 billion [20] - The first commercial doses of Flurcado were delivered, and the company is on track with its planned rollout [18][70] Q&A Session Summary Question: Can you elaborate on the tariff impact and mitigation efforts? - The estimated tariff impact for 2025 is $0.85 per share, with a significant portion expected in Q2, Q3, and Q4. Mitigation efforts include duty drawback and dual sourcing strategies [31][33][34] Question: What is the outlook for China and the impact of VBP? - The company expects a mid-single-digit decline in China for the first half of 2025, with no significant changes in market sentiment [39][40] Question: How are you managing R&D and operational spending amid tariff impacts? - The company is controlling spending in SG&A while protecting key investments in R&D and sales to support product launches [81][82] Question: What is the status of Flurcado and its market potential? - Flurcado is on track for a successful launch, with expected revenue of $30 million in 2025 and positive clinical feedback [70][71] Question: How do you view the potential risks from rare earth element export limitations? - The company does not foresee significant long-term issues from rare earth element limitations, as it has multiple sourcing strategies in place [108][109]

1Q 2025 Earnings Presentation April 30, 2025 © 2025 GE HealthCare. GE is a trademark of General Electric Company used under trademark license. Forward-looking statements and additional information This presentation 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," "outloo ...

Financial Performance - Total revenues for the three months ended March 31, 2025, were $4,777 million, representing a 3% increase year-over-year and a 4% organic growth [164]. - Operating income increased to $629 million, up 17% from $540 million in the same period last year, with an operating margin of 13.2% [165]. - Net income attributable to GE HealthCare rose to $564 million, a 51% increase compared to $374 million in the prior year [165]. - Imaging segment revenues were $2,140 million, growing 4% year-over-year, driven by strong performance in Molecular Imaging and Computed Tomography [166]. - PDx segment revenues increased by 6% to $632 million, supported by growth in both price and volume [166]. - USCAN revenues grew by 7% to $2,237 million, with significant contributions from PDx and Imaging segments [166]. - Adjusted EBIT was $715 million, reflecting a 5% increase from the previous year, with an adjusted EBIT margin of 15.0%, up 30 basis points [185]. - Organic revenue for the three months ended March 31, 2025, was $4,842 million, a 4% increase from $4,650 million in the prior year [182]. - Adjusted net income was $464 million, a 12% increase from $413 million in the previous year [188]. - Adjusted earnings per share for Q1 2025 was $1.01, an increase of 12.2% from $0.90 in Q1 2024 [190]. Expenses and Costs - Research and development expenses were $344 million, up from $324 million in the previous year [161]. - Operating expenses increased by $21 million, primarily due to a $20 million increase in R&D investments [167]. - Cost of products sold decreased by $4 million, resulting in a 160 basis point reduction as a percentage of sales of products [167]. - Gross profit increased by $111 million, representing a 120 basis point improvement as a percentage of total revenues, primarily due to a reduction in cost of products sold [167]. Cash Flow and Debt - Free cash flow for Q1 2025 decreased by 64% to $98 million, down from $274 million in Q1 2024 [197]. - Cash generated from operating activities in Q1 2025 was $250 million, a decrease of 40.4% compared to $419 million in Q1 2024 [199]. - Total debt as of March 31, 2025, was $8,759 million, down from $8,951 million as of December 31, 2024, due to a $250 million repayment of the Term Loan Facility [212]. - The weighted average interest rate for the company's debt was 5.93% for Q1 2025 [213]. - As of March 31, 2025, the company had $2,473 million in cash, cash equivalents, and restricted cash, along with access to $3,500 million in revolving credit facilities [198]. Tax and Investments - The effective tax rate for Q1 2025 was 15.0%, a decrease from 24.2% in Q1 2024 [193]. - Cash used for investing activities in Q1 2025 was $407 million, primarily for the acquisition of the remaining 50% interest in NMP and additions to PP&E [203]. - Capital expenditures for Q1 2025 were $152 million, compared to $145 million in Q1 2024, focused on manufacturing capacity expansion and new product introductions [209]. Strategic Initiatives - The company continues to monitor the impact of tariffs imposed by the U.S. on imports from China, Mexico, and Canada, which could materially affect financial results [153]. - The 2024 stimulus program in China is expected to create long-term opportunities for the company, despite short-term revenue delays [155]. - The company authorized a share repurchase program for up to $1,000 million of common stock on April 30, 2025 [211]. Segment Performance - Imaging segment EBIT increased by $33 million to $199 million, driven by cost productivity and sales volume growth [174]. - The company generated revenues of $64 million from Russia and Ukraine for the three months ended March 31, 2025, down from $77 million in the same period last year [156].

[Overview of First Quarter 2025 Performance](index=1&type=section&id=Overview%20of%20First%20Quarter%202025%20Performance) GE HealthCare reported robust Q1 2025 growth in revenue, orders, and profit, driven by the U.S. market, despite a significant decline in cash flow Q1 2025 Key Financial Highlights (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $4.8B | $4.7B | +3% Reported, +4% Organic* | | Net Income Margin | 11.8% | 8.0% | +380 bps | | Adjusted EBIT Margin* | 15.0% | 14.7% | +30 bps | | Diluted EPS | $1.23 | $0.81 | +$0.41 | | Adjusted EPS* | $1.01 | $0.90 | +$0.11 | | Cash from Operating Activities | $250M | $419M | -$169M | | Free Cash Flow* | $98M | $274M | -$175M | - The company experienced strong customer demand, with a total company book-to-bill ratio of 1.09 and a record **10% organic increase in orders** year-over-year[7](index=7&type=chunk) - CEO Peter Arduini highlighted strong execution, focus on precision care strategies, and active mitigation actions regarding the current global trade environment[3](index=3&type=chunk) [Segment Financial Performance](index=2&type=section&id=First%20quarter%202025%20segment%20financial%20performance) All four segments achieved positive organic revenue growth in Q1 2025, with Pharmaceutical Diagnostics leading in growth and margin expansion, while Patient Care Solutions saw a significant EBIT margin decline Q1 2025 Segment Financial Performance (YoY) | Segment | Revenues ($M) | Organic Growth* | Segment EBIT ($M) | EBIT Margin | Margin Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Imaging | $2,140 | 5% | $199 | 9.3% | +130 bps | | Advanced Visualization Solutions | $1,239 | 3% | $261 | 21.1% | +10 bps | | Patient Care Solutions | $753 | 2% | $48 | 6.4% | -450 bps | | Pharmaceutical Diagnostics | $632 | 8% | $205 | 32.4% | +270 bps | - Financial results were recast to reflect the move of Image Guided Therapies from the Imaging segment to Advanced Visualization Solutions[8](index=8&type=chunk) [Growth, Innovation, and Strategic Initiatives](index=2&type=section&id=Growth%2C%20Innovation%2C%20and%20Strategic%20Initiatives) The company is advancing its precision care strategy through new product launches, strategic acquisitions, and a new **$1 billion** share repurchase program to enhance shareholder value - Key commercial and strategic highlights for the quarter include: Completion of the acquisition of Nihon Medi-Physics (NMP), a leading radiopharmaceutical company in Japan; U.S. launch of Flyrcado™ (flurpiridaz F 18) injection for PET imaging; Unveiling of the Revolution™ Vibe CT system and the Freelium sealed magnet platform; Expansion of the invasive cardiology portfolio with AltiX AI.i[9](index=9&type=chunk)[10](index=10&type=chunk) - The Board of Directors authorized a **$1 billion** share repurchase program, demonstrating confidence in the company's long-term prospects and providing a mechanism to opportunistically return capital to shareholders[13](index=13&type=chunk)[14](index=14&type=chunk) [Full-Year 2025 Guidance Update](index=2&type=section&id=2025%20guidance) GE HealthCare updated its full-year 2025 guidance, revising down Adjusted EBIT Margin*, Adjusted EPS*, and Free Cash Flow* due to estimated tariff impacts, while Organic Revenue Growth* remains unchanged Updated Full-Year 2025 Guidance | Metric | Previous Guidance | Updated Guidance | Change | | :--- | :--- | :--- | :--- | | Organic Revenue Growth* | 2% to 3% | 2% to 3% | Unchanged | | Adjusted EBIT Margin* | 16.7% to 16.8% | 14.2% to 14.4% | -250 to -240 bps | | Adjusted EPS* | $4.61 to $4.75 | $3.90 to $4.10 | -$0.71 to -$0.65 | | Free Cash Flow* | at least $1.75B | at least $1.2B | -$0.55B | - The guidance was updated to reflect the impact of announced tariffs, which are assumed to return to pre-pause levels on July 9, 2025[10](index=10&type=chunk)[12](index=12&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section provides the unaudited consolidated financial statements for Q1 2025, including Statements of Income, Financial Position, and Cash Flows, detailing the company's financial performance and condition [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Unaudited%29) Q1 2025 saw total revenues increase to **$4.78 billion**, gross profit to **$2.01 billion**, operating income to **$629 million**, and net income attributable to GE HealthCare significantly rose by **51%** to **$564 million**, yielding a diluted EPS of **$1.23** Q1 2025 Income Statement Highlights (in millions, except EPS) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $4,777 | $4,650 | | Gross profit | $2,012 | $1,902 | | Operating income | $629 | $540 | | Net income attributable to GE HealthCare | $564 | $374 | | Diluted EPS | $1.23 | $0.81 | [Condensed Consolidated Statements of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position%20%28Unaudited%29) As of March 31, 2025, total assets were **$33.6 billion** and total liabilities **$24.2 billion**, with cash and equivalents decreasing to **$2.47 billion** and long-term borrowings reducing to **$6.76 billion** Balance Sheet Highlights (in millions) | Line Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash | $2,473 | $2,889 | | Total current assets | $9,735 | $9,901 | | Total assets | $33,586 | $33,089 | | Total current liabilities | $9,969 | $9,553 | | Long-term borrowings | $6,757 | $7,449 | | Total liabilities | $24,168 | $24,437 | | Total equity | $9,207 | $8,464 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Q1 2025 cash from operating activities significantly decreased to **$250 million**, with investing activities using **$407 million** and financing activities using **$286 million**, resulting in a net cash decrease of **$416 million** Q1 Cash Flow Summary (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash from operating activities | $250 | $419 | | Add: Additions to PP&E and internal-use software | ($152) | ($145) | | **Free cash flow*** | **$98** | **$274** | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles non-GAAP financial measures like Organic Revenue*, Adjusted EBIT*, and Free Cash Flow* to U.S. GAAP, providing transparency on adjustments for acquisitions, currency, and one-time costs - The company uses non-GAAP measures to help investors understand underlying business trends by excluding effects of acquisitions, currency fluctuations, and certain non-recurring or non-cash items[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) [Organic Revenue Reconciliation](index=10&type=section&id=Organic%20Revenue%20Reconciliation) Total reported revenues of **$4.78 billion** were adjusted for currency and acquisitions, resulting in an Organic Revenue* of **$4.84 billion**, a **4%** year-over-year growth Total Revenue to Organic Revenue* Reconciliation (in millions) | Description | Q1 2025 | | :--- | :--- | | Total revenues (GAAP) | $4,777 | | Less: Acquisitions | $14 | | Less: Foreign currency exchange | ($78) | | **Organic revenue* (Non-GAAP)** | **$4,842** | [Adjusted EBIT Reconciliation](index=12&type=section&id=Adjusted%20EBIT%20Reconciliation) Adjusted EBIT* for Q1 2025 increased **5%** to **$715 million**, reconciled from Net Income Attributable to GE HealthCare by adjusting for interest, taxes, restructuring, spin-off costs, and an investment revaluation gain EBIT* and Adjusted EBIT* Reconciliation (in millions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income attributable to GE HealthCare | $564 | $374 | | **EBIT*** | **$728** | **$531** | | Add/Less: Adjustments (Restructuring, Spin-Off, etc.) | ($13) | $151 | | **Adjusted EBIT*** | **$715** | **$681** | [Adjusted Net Income & EPS Reconciliation](index=13&type=section&id=Adjusted%20Net%20Income%20%26%20EPS%20Reconciliation) Adjusted Net Income* increased **12%** to **$464 million**, leading to Adjusted EPS* of **$1.01**, primarily adjusted from GAAP Diluted EPS by excluding non-operating income, spin-off costs, and an investment revaluation gain Diluted EPS to Adjusted EPS* Reconciliation | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Diluted earnings per share (GAAP) | $1.23 | $0.81 | | Total Adjustments | ($0.22) | $0.09 | | **Adjusted earnings per share* (Non-GAAP)** | **$1.01** | **$0.90** | [Free Cash Flow Reconciliation](index=15&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free Cash Flow* for the quarter decreased **64%** to **$98 million**, derived from **$250 million** in operating cash flow minus **$152 million** for PP&E and internal-use software additions Free Cash Flow* Reconciliation (in millions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash from operating activities | $250 | $419 | | Add: Additions to PP&E and internal-use software | ($152) | ($145) | | **Free cash flow*** | **$98** | **$274** | [Other Information](index=16&type=section&id=Other%20Information) This section provides investor and media details, including earnings call information, and outlines forward-looking statement risks such as geopolitical instability, tariff policies, and supply chain disruptions, concluding with a corporate overview - The company will host a conference call and webcast on April 30, 2025, at 8:30 am ET to discuss the quarterly results[48](index=48&type=chunk) - The forward-looking statements are subject to risks including geopolitical instability, changes in trade and tariff policy, supply chain management, and competition[49](index=49&type=chunk) - GE HealthCare is a **$19.7 billion** business with approximately **53,000 employees**, focused on medical technology, pharmaceutical diagnostics, and AI-enabled solutions[51](index=51&type=chunk)