Core Insights - GE HealthCare Technologies reported mixed financial results for Q4 2024, with adjusted EPS of $1.45 exceeding expectations of $1.27, while revenue of $5.32 billion showed modest growth of 2% year over year [2][4][7] - The company demonstrated strong earnings performance but highlighted challenges in revenue expansion and cash flow management [3][10] Financial Performance - Adjusted EPS increased by 23% from $1.18 in Q4 2023 to $1.45 in Q4 2024 [4] - Revenue of $5.32 billion was slightly below analysts' expectations of $5.33 billion, reflecting a 2% increase from $5.21 billion in Q4 2023 [4][7] - Net income margin improved to 13.5%, up from 7.7% in the previous year, indicating enhanced profitability [4] - Free cash flow decreased by 15.2% to $811 million from $956 million in Q4 2023, suggesting a need for improved cash management [4][10] Segment Performance - The Pharmaceutical Diagnostics segment experienced significant EBIT growth of 47% year over year, with a 9% revenue increase [8] - Advanced Visualization Solutions segment revenue grew by 4%, while the Imaging segment revenue remained flat year over year, indicating stagnation in a key area [8] Strategic Initiatives - GE HealthCare focused on innovation, launching nearly 40 new products and investing $138 million in Ireland to enhance service capabilities [9] - Partnerships in AI technology, such as with Nuffield Health in the UK, reflect the company's commitment to driving future innovation and market presence [9] Future Outlook - For 2025, GE HealthCare projects organic revenue growth of 2% to 3% and adjusted EPS growth of 3% to 6%, with EBIT margin enhancement to 16.7%-16.8% [12] - The company aims to leverage strategic partnerships and innovation to navigate challenging market conditions, particularly in China [12]

Core Insights - GE HealthCare Technologies (GEHC) reported quarterly earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and up from $1.18 per share a year ago, representing an earnings surprise of 15.08% [1] - The company posted revenues of $5.32 billion for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.25%, but up from $5.21 billion year-over-year [2] - GE HealthCare shares have increased approximately 9.9% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.98 on revenues of $4.75 billion, and for the current fiscal year, it is $4.65 on revenues of $20.38 billion [7] - The estimate revisions trend for GE HealthCare is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Products industry, to which GE HealthCare belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of GE HealthCare's stock may be influenced by the overall industry outlook, as empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions [5]

GE HealthCare (GEHC) reported better-than-expected fourth-quarter profit on Thursday, while sales were in line with analysts' estimates. The medical device maker reported adjusted earnings per share (EPS) of $1.45 on revenue of $5.32 billion. Analysts polled by Visible Alpha expected $1.26 and $5.32 billion, respectively. GE HealthCare shares, which entered the day up about 3% over the last 12 months, were little changed immediately following the report. The company said it expects year-over-year organic r ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) GE HealthCare is a leading global provider of medical technology and diagnostics, operating in four key segments - GE HealthCare is a leading global healthcare solutions provider with approximately **53,000 employees**, operating in over **160 countries**[17](index=17&type=chunk)[19](index=19&type=chunk) - The company is organized into four business segments: **Imaging**, **Advanced Visualization Solutions (AVS)**, **Patient Care Solutions (PCS)**, and **Pharmaceutical Diagnostics (PDx)**[19](index=19&type=chunk) - Effective July 1, 2024, the **Image Guided Therapies (IGT)** unit was realigned from the Imaging segment to the newly renamed Advanced Visualization Solutions segment[22](index=22&type=chunk) - Primary global competitors include **Siemens Healthineers**, **Philips Healthcare**, **Canon**, **Mindray**, and **United Imaging**, with **Bayer**, **Bracco**, **Guerbet**, and **Curium** as key competitors in the PDx segment[45](index=45&type=chunk) [Our Segments](index=5&type=section&id=Our%20Segments) The company's operations are structured into four key segments, offering diverse medical devices, solutions, and diagnostics - **Imaging:** Provides scanning devices and solutions across five product lines: Molecular Imaging (MI), Computed Tomography (CT), Magnetic Resonance (MR), Women's Health, and X-ray[23](index=23&type=chunk)[24](index=24&type=chunk) - **Advanced Visualization Solutions (AVS):** Focuses on ultrasound, image-guided therapies, and interventional solutions, serving areas like Specialized Ultrasound and Procedural Guidance[27](index=27&type=chunk)[28](index=28&type=chunk) - **Patient Care Solutions (PCS):** Offers a broad portfolio for patient monitoring, diagnostic cardiology, maternal infant care, and anesthesia, complemented by consumables and digital solutions[32](index=32&type=chunk)[33](index=33&type=chunk) - **Pharmaceutical Diagnostics (PDx):** A leading supplier of contrast media and radiopharmaceuticals used in conjunction with imaging modalities like CT, MR, and PET scans[35](index=35&type=chunk)[37](index=37&type=chunk) [Human Capital](index=12&type=section&id=Human%20Capital) GE HealthCare employs approximately 53,000 people globally, prioritizing workforce health, culture, talent attraction, and retention - The company has a global workforce of approximately **53,000 colleagues**, with the largest concentrations in the **United States (17,000)** and **China (7,000)**[46](index=46&type=chunk)[48](index=48&type=chunk) - Key human capital priorities include protecting workforce health and safety, evolving company culture, attracting and developing talent, and retaining employees with competitive rewards[47](index=47&type=chunk)[52](index=52&type=chunk) [Regulation](index=16&type=section&id=Regulation) The company's operations are subject to stringent global regulations, including medical device, data privacy, and anti-corruption laws - The development, manufacturing, and sale of products are subject to stringent government regulation, with the most significant regions being the **U.S. (FDA)**, **European Union (EMA)**, and **China (NMPA)**[55](index=55&type=chunk)[56](index=56&type=chunk) - The company is subject to a wide range of data privacy laws, including **HIPAA** in the U.S., **GDPR** in the EU, and **China's PIPL & DSL**, governing personal and patient health data[59](index=59&type=chunk)[60](index=60&type=chunk) - Compliance with global healthcare laws is critical, including U.S. federal laws against kickbacks (**AKS**) and false claims (**FCA**), as well as anti-corruption laws like the **FCPA** and **U.K. Bribery Act**[64](index=64&type=chunk)[65](index=65&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from intense competition, global instability, supply chain complexities, and regulatory compliance - **Industry and Economic Risks:** The company operates in highly competitive markets and is sensitive to global geopolitical instability, public health crises, and efforts by payers to control healthcare costs[89](index=89&type=chunk)[97](index=97&type=chunk)[104](index=104&type=chunk) - **Business and Operational Risks:** Challenges include managing the supply chain for key materials, integrating strategic acquisitions, mitigating cybersecurity threats, and protecting intellectual property[119](index=119&type=chunk)[132](index=132&type=chunk)[145](index=145&type=chunk) - **Legal and Regulatory Risks:** The business is tightly regulated by the FDA and global equivalents, facing risks from non-compliance with anti-corruption, anti-kickback, and data privacy laws, and potential product liability claims[164](index=164&type=chunk)[171](index=171&type=chunk)[194](index=194&type=chunk) - **Financing and General Risks:** Risks include managing significant debt obligations, postretirement benefit liabilities, potential conflicts of interest, and the tax-free status of the Spin-Off from GE[159](index=159&type=chunk)[206](index=206&type=chunk)[209](index=209&type=chunk) [Cybersecurity](index=52&type=section&id=Item%201C.%20Cybersecurity) GE HealthCare manages cybersecurity risks through an enterprise risk management program overseen by the Audit Committee - Cybersecurity risk is managed through an enterprise risk management (ERM) program that includes risk identification, mitigation strategies, and incident response plans[222](index=222&type=chunk)[225](index=225&type=chunk) - The Audit Committee of the Board of Directors oversees cybersecurity-related risks and receives regular reports from management, including the Chief Information Officer (CIO) and Chief Information Security Officer (CISO)[228](index=228&type=chunk) - The company's cybersecurity program is measured against the **National Institute of Standards and Technology (NIST) Cyber Security Framework**, and controls and incident response plans are regularly tested[224](index=224&type=chunk) - To date, the company is not aware of any cybersecurity incident that has had or is reasonably likely to have a material impact on its business, operations, or financial condition[227](index=227&type=chunk) [Properties](index=53&type=section&id=Item%202.%20Properties) GE HealthCare operates globally with headquarters in Chicago and over 300 facilities, including 43 manufacturing sites across 17 countries - The company has **43 manufacturing**, assembly, and pharmaceutical production facilities in **17 countries**, with **15** located in the U.S. and **28** located internationally[230](index=230&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) GE HealthCare's common stock trades on Nasdaq under "GEHC," with 189,289 stockholders and consistent quarterly dividends - The company's common stock is traded on Nasdaq under the symbol "**GEHC**"[233](index=233&type=chunk) - As of February 6, 2025, there were **189,289 stockholders of record**[235](index=235&type=chunk) - Quarterly dividends of **$0.03 per share** were paid for Q1, Q2, and Q3 2024, with **$0.035 per share** declared for Q4 2024[237](index=237&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=56&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) For FY2024, total revenues grew 1% to $19.7 billion, net income increased 27% to $2.0 billion, and free cash flow was $1.6 billion - Key trends impacting performance include the **Russia-Ukraine conflict**, market developments in **China** (delayed 2024 stimulus and anti-corruption campaign), and **tariffs**[245](index=245&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) - As a stand-alone company, GE HealthCare has incurred additional costs for external reporting, internal audit, and other corporate functions, and has instituted new competitive compensation programs[252](index=252&type=chunk)[253](index=253&type=chunk) Key Performance Measures (FY 2024 vs. FY 2023) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $19,672M | $19,552M | 1% | | Operating Income | $2,625M | $2,435M | 8% | | Net Income Attributable to GE HealthCare | $1,993M | $1,568M | 27% | | Adjusted EBIT* | $3,211M | $2,956M | 9% | | Adjusted Net Income* | $2,060M | $1,797M | 15% | | Free Cash Flow* | $1,554M | $1,715M | (9)% | [Results of Operations](index=60&type=section&id=Results%20of%20Operations) In 2024, total revenues increased 1% to $19.7 billion, operating income rose 8% to $2.6 billion, and net income grew 27% to $2.0 billion Revenues by Segment (2024 vs. 2023) | Segment | 2024 Revenues | 2023 Revenues | % Change | | :--- | :--- | :--- | :--- | | Imaging | $8,855M | $8,944M | (1)% | | AVS | $5,131M | $5,094M | 1% | | PCS | $3,125M | $3,142M | (1)% | | PDx | $2,508M | $2,306M | 9% | | **Total** | **$19,672M** | **$19,552M** | **1%** | Revenues by Region (2024 vs. 2023) | Region | 2024 Revenues | 2023 Revenues | % Change | | :--- | :--- | :--- | :--- | | USCAN | $8,981M | $8,551M | 5% | | EMEA | $5,051M | $5,058M | 0% | | China region | $2,360M | $2,785M | (15)% | | Rest of World | $3,280M | $3,158M | 4% | | **Total** | **$19,672M** | **$19,552M** | **1%** | - Operating income for 2024 increased by **$190 million**, driven by a **$283 million** increase in gross profit from cost productivity and pricing, partially offset by a **$106 million** increase in R&D investments[264](index=264&type=chunk)[267](index=267&type=chunk) - Net income attributable to GE HealthCare for 2024 increased by **$425 million**, benefiting from higher operating income, lower interest charges, and a **$212 million** decrease in the provision for income taxes[265](index=265&type=chunk) [Results of Operations – Segments](index=66&type=section&id=Results%20of%20Operations%20%E2%80%93%20Segments) In 2024, Imaging EBIT grew 17% and PDx EBIT grew 27%, while AVS and PCS EBIT declined due to inflation and investments Segment EBIT (2024 vs. 2023) | Segment | 2024 EBIT | 2023 EBIT | % Change | | :--- | :--- | :--- | :--- | | Imaging | $962M | $821M | 17% | | AVS | $1,118M | $1,124M | (1)% | | PCS | $347M | $383M | (9)% | | PDx | $783M | $617M | 27% | [Liquidity and Capital Resources](index=77&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2024, the company held $2.9 billion in cash, $3.5 billion in credit facilities, and reduced total debt to $9.0 billion Cash Flow Summary (in millions) | Cash Flow Activity | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Operating Activities | $1,955 | $2,101 | $2,134 | | Investing Activities | $(914) | $(558) | $(398) | | Financing Activities | $(573) | $(478) | $(822) | | **Free Cash Flow*** | **$1,554** | **$1,715** | **$1,828** | - Total debt decreased from **$9.44 billion** in 2023 to **$8.95 billion** in 2024, primarily due to repayments on the Term Loan Facility[316](index=316&type=chunk) - The company maintains investment-grade credit ratings: **Baa2 (Stable)** from Moody's, **BBB (Stable)** from S&P, and **BBB (Stable)** from Fitch[324](index=324&type=chunk) [Critical Accounting Estimates](index=81&type=section&id=Critical%20Accounting%20Estimates) Management identifies critical accounting estimates including revenue recognition, business combinations, postretirement benefits, and income taxes - Key critical accounting estimates include **Revenue Recognition**, **Business Combination Related Measurements**, **Pension and Other Postretirement Benefits**, and **Income Taxes**[326](index=326&type=chunk) - For pension benefits, a **50 basis point change** in the discount rate would impact the 2024 PBO/APBO by approximately **-$1.0 billion (increase)** or **+$1.1 billion (decrease)**[336](index=336&type=chunk) - The company's determination of valuation allowances for deferred tax assets involves significant judgment regarding future taxable income[344](index=344&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=85&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from foreign currency, interest rates, commodity prices, and equity prices using derivative contracts - Primary market risks include **foreign currency exchange rates** (principally Euro, Chinese Renminbi, Japanese Yen), **interest rates**, **commodity prices**, and **equity prices**[347](index=347&type=chunk)[348](index=348&type=chunk) - A hypothetical **100 basis point change** in interest rates would change annual interest expense by approximately **$35 million**[354](index=354&type=chunk) - The company has executed interest rate swaps to synthetically convert **$2,700 million** of its fixed-rate senior unsecured notes to variable rates[355](index=355&type=chunk) - Commodity risk exists for raw materials such as **helium**, **iodine**, and **rare earth minerals**, with worldwide demand and pricing being volatile[356](index=356&type=chunk) [Financial Statements and Supplementary Data](index=87&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2022-2024, along with the independent auditor's report - The independent auditor, **Deloitte & Touche LLP**, issued an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting[364](index=364&type=chunk)[374](index=374&type=chunk) - The critical audit matter identified by the auditor was related to the valuation allowance on deferred tax assets, which required subjective judgment regarding the projection of future taxable income[368](index=368&type=chunk)[369](index=369&type=chunk)[370](index=370&type=chunk) [Note 1. Organization and Basis of Presentation](index=101&type=section&id=Note%201.%20Organization%20and%20Basis%20of%20Presentation) GE HealthCare became an independent public company on January 3, 2023, following its spin-off from General Electric - The spin-off from GE was completed on **January 3, 2023**, making GE HealthCare an independent public company[392](index=392&type=chunk) - Financial statements for the year ended December 31, 2022, were prepared on a combined, carve-out basis from GE's accounting records[396](index=396&type=chunk) [Note 4. Segment and Geographical Information](index=120&type=section&id=Note%204.%20Segment%20and%20Geographical%20Information) The company reports revenues across four segments, with Imaging as the largest, and geographically, the United States is the primary market Total Revenues by Segment (in millions) | Segment | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Imaging | $8,855 | $8,944 | $8,395 | | AVS | $5,131 | $5,094 | $5,012 | | PCS | $3,125 | $3,142 | $2,916 | | PDx | $2,508 | $2,306 | $1,958 | | **Total** | **$19,672** | **$19,552** | **$18,341** | Total Revenues by Country (in millions) | Country | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | United States | $8,617 | $8,228 | $7,819 | | China | $2,135 | $2,560 | $2,325 | | All other countries | $8,919 | $8,764 | $8,197 | | **Total** | **$19,672** | **$19,552** | **$18,341** | [Note 8. Acquisitions, Goodwill, and Other Intangible Assets](index=127&type=section&id=Note%208.%20Acquisitions%2C%20Goodwill%2C%20and%20Other%20Intangible%20Assets) In 2024, the company acquired MIM Software for $283 million, resulting in $194 million of goodwill, with total goodwill at $13.1 billion - On April 1, 2024, the company acquired **MIM Software** for a total preliminary purchase price of **$283 million**, resulting in **$194 million of goodwill**[522](index=522&type=chunk) - As of December 31, 2024, the company had goodwill of **$13.1 billion** and other net intangible assets of **$1.1 billion**[527](index=527&type=chunk)[529](index=529&type=chunk) [Note 9. Borrowings](index=131&type=section&id=Note%209.%20Borrowings) As of December 31, 2024, total borrowings decreased to $9.0 billion, comprising senior unsecured notes and a term loan facility Borrowings Composition (as of Dec 31, 2024) | Instrument | Principal Amount | | :--- | :--- | | 5.600% senior notes due 2025 | $1,500M | | 5.650% senior notes due 2027 | $1,750M | | 4.800% senior notes due 2029 | $1,000M | | 5.857% senior notes due 2030 | $1,250M | | 5.905% senior notes due 2032 | $1,750M | | 6.377% senior notes due 2052 | $1,000M | | Floating rate Term Loan Facility due 2026 | $750M | | **Total Principal Debt** | **$9,036M** | - The company has access to a **$2.5 billion five-year revolving credit facility** and a **$1.0 billion 364-day revolving credit facility**, with no outstanding borrowings on either as of year-end 2024[537](index=537&type=chunk)[538](index=538&type=chunk) [Note 10. Postretirement Benefit Plans](index=133&type=section&id=Note%2010.%20Postretirement%20Benefit%20Plans) GE HealthCare assumed significant pension and postretirement obligations from GE, with a total plan deficit of $4.6 billion as of year-end 2024 Total Postretirement Plan Funded Status (as of Dec 31, 2024) | Plan Type | Projected Benefit Obligations | Fair Value of Plan Assets | Funded Status (Deficit) | | :--- | :--- | :--- | :--- | | U.S. Plans | $18,241M | $14,378M | $(3,863)M | | International Plans | $2,957M | $3,276M | $319M | | OPEB Plans | $1,016M | $— | $(1,016)M | | **Total** | **$22,214M** | **$17,654M** | **$(4,561)M** | - The company assumed pension and other postretirement obligations from GE on **January 1, 2023**, as part of the Spin-Off[547](index=547&type=chunk) - The company expects to make total cash contributions of approximately **$327 million** to its postretirement plans in 2025[556](index=556&type=chunk) [Note 11. Income Taxes](index=145&type=section&id=Note%2011.%20Income%20Taxes) For 2024, the effective tax rate decreased to 20.6% due to a valuation allowance release, with $551 million in unrecognized tax benefits Income Tax Reconciliation | Item | 2024 | 2023 | | :--- | :--- | :--- | | Income before taxes | $2,581M | $2,361M | | Provision for income taxes | $531M | $743M | | **Effective tax rate** | **20.6%** | **31.5%** | - The valuation allowance on deferred tax assets decreased by **$310 million** in 2024, primarily due to a **$295 million** release of the valuation allowance in France[596](index=596&type=chunk) - The balance of unrecognized tax benefits was **$551 million** as of December 31, 2024, an increase from **$409 million** in 2023, largely due to reserves established for ongoing audits[589](index=589&type=chunk) [Note 14. Commitments, Guarantees, Product Warranties, and Other Loss Contingencies](index=160&type=section&id=Note%2014.%20Commitments%2C%20Guarantees%2C%20Product%20Warranties%2C%20and%20Other%20Loss%20Contingencies) The company is involved in legal proceedings, including potential FCPA violations, and manages product warranty and asset retirement obligations - The company made voluntary self-disclosures to the **SEC** and **DOJ** regarding potential **FCPA violations in China** and is engaged in ongoing discussions with the agencies[646](index=646&type=chunk) - The product warranty liability balance was **$168 million** as of December 31, 2024, down from **$192 million** at the end of 2023[643](index=643&type=chunk) - Asset retirement obligations, primarily for nuclear decommissioning, totaled **$292 million** as of December 31, 2024[648](index=648&type=chunk) [Controls and Procedures](index=174&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management concluded that disclosure controls and procedures were effective as of December 31, 2024[701](index=701&type=chunk) - Management's assessment concluded that internal control over financial reporting was effective as of December 31, 2024, which was also audited by **Deloitte & Touche LLP**[702](index=702&type=chunk)[703](index=703&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=176&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the definitive proxy statement - Required information is incorporated by reference to the company's definitive proxy statement[708](index=708&type=chunk) [Executive Compensation](index=176&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive proxy statement - Required information is incorporated by reference to the company's definitive proxy statement[709](index=709&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=176&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's definitive proxy statement - Required information is incorporated by reference to the company's definitive proxy statement[710](index=710&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=176&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the company's definitive proxy statement - Required information is incorporated by reference to the company's definitive proxy statement[711](index=711&type=chunk) [Principal Accountant Fees and Services](index=176&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive proxy statement - Required information is incorporated by reference to the company's definitive proxy statement[712](index=712&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=176&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and exhibits, noting the omission of certain schedules as information is already provided - Financial statement schedules required by Regulation S-X are omitted because they are not applicable or the information is included in the financial statements or notes[714](index=714&type=chunk) - A comprehensive list of exhibits is provided, including the Separation and Distribution Agreement with GE, the company's Certificate of Incorporation and Bylaws, various debt indentures, and numerous management compensation plans and agreements[715](index=715&type=chunk)[717](index=717&type=chunk)[720](index=720&type=chunk) [Form 10-K Summary](index=180&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has elected not to voluntarily include a summary of the information required by Form 10-K under this item - The Company has elected not to include a summary of the Form 10-K[719](index=719&type=chunk)

Financial Performance - Fourth quarter 2024 revenue was $5.3 billion, representing a 2% year-over-year increase, driven by Advanced Visualization Solutions and Pharmaceutical Diagnostics[5] - Net income for the fourth quarter was $720 million, compared to $403 million in the prior year, resulting in a net income margin of 13.5%, up 580 basis points[5] - Diluted earnings per share (EPS) for the fourth quarter were $1.57, an increase of $0.69 from the prior year[5] - Full year 2024 total revenues reached $19.7 billion, a 1% increase year-over-year, with net income attributable to GE HealthCare at $2.0 billion[10] - Net income from continuing operations for 2024 was $2,050 million, compared to $1,618 million in 2023, reflecting an increase of 27%[21] - Organic revenue for the year ended December 31, 2024, was $19,737 million, a 1% increase from $19,552 million in 2023[29] - Adjusted EPS for 2025 is expected to be in the range of $4.61 to $4.75, reflecting a growth of 3% to 6% compared to 2024[12] - Adjusted net income for Q4 2024 reached $666 million, a 24% increase compared to $539 million in Q4 2023[38] - The effective tax rate for Q4 2024 was 11.5%, significantly lower than 31.7% in Q4 2023[45] - Adjusted earnings per share for Q4 2024 was $1.45, an increase of 22.88% from $1.18 in Q4 2023[42] Cash Flow and Investments - Cash, cash equivalents, and restricted cash at the end of 2024 totaled $2,893 million, up from $2,506 million in 2023, marking a 15% increase[22] - The company reported a Free cash flow of $1,955 million for 2024, down from $2,101 million in 2023[21] - Free cash flow for Q4 2024 was $811 million, down 15% from $956 million in Q4 2023[47] - The company invested $401 million in property, plant, and equipment and internal-use software during 2024, compared to $387 million in 2023[21] - Long-term borrowings decreased to $7,449 million in 2024 from $8,436 million in 2023, a reduction of 12%[19] Business Operations and Strategy - The company reported a total book-to-bill ratio of 1.09 times for the fourth quarter, with orders increasing 6% organically year-over-year[5] - GE HealthCare introduced approximately 40 innovations in 2024 and closed over 50 strategic enterprise deals globally[8] - The company plans to invest $138 million in its manufacturing facility in Cork, Ireland, to meet increasing demand for contrast media[11] - GE HealthCare will acquire the remaining 50% stake in Nihon Medi-Physics, enhancing its position in the radiopharmaceutical market in Japan[15] - The company anticipates continued growth in organic revenue and adjusted EBIT margin based on internal forecasts[48] - GE HealthCare's strategic focus includes improving demand for its products and managing healthcare costs effectively[53] Market and Industry Context - The company is focused on advancing personalized, connected, and compassionate care through innovative medical technology and AI-enabled solutions[54] - GE HealthCare is navigating risks related to global geopolitical instability, public health crises, and competitive market dynamics[53] - The company has been recognized as one of the 2025 Fortune World's Most Admired Companies[55] Research, Development, and Compliance - The company emphasizes the importance of maintaining successful research and development efforts for commercially viable products[53] - GE HealthCare is committed to compliance with various legal and regulatory requirements, including anti-corruption laws[53] - The company is focused on attracting and retaining key personnel to support its growth initiatives[53] Profitability Metrics - Adjusted EBIT for the year ended December 31, 2024, was $3,211 million, reflecting a 9% increase from $2,956 million in 2023[33] - Adjusted EBIT margin for 2024 was not specified, but the company emphasizes ongoing operations and underlying profitability factors[25] - The adjusted EBIT margin for Q4 2024 was 18.7%, an increase of 260 basis points from 16.1% in Q4 2023[33]

Core Viewpoint - GE HealthCare Technologies Inc. (GEHC) is expected to report mixed performance for Q4 2024, driven by strong U.S. demand and product innovation, but facing challenges from ongoing weakness in the Chinese market [3][5][18] Financial Performance - The Zacks Consensus Estimate for GEHC's Q4 revenues is $5.33 billion, indicating a year-over-year growth of 2.4% [12] - The estimated earnings per share (EPS) for Q4 is $1.26, reflecting an improvement of 6.8% from the previous year [12] Market Dynamics - GEHC experienced 1% organic revenue growth in Q3 2024, with expectations of steady performance in Q4 due to backlog execution and operational efficiencies [3][4] - The company’s strategic focus on multiyear enterprise agreements, particularly in imaging and service contracts, is anticipated to bolster revenue growth [4] Segment Performance - The Imaging segment is expected to remain a core revenue driver, although it faced a 1% organic revenue decline in Q3 due to sluggish demand in China [7] - Patient Care Solutions achieved 2% organic revenue growth in Q3, benefiting from backlog execution and increased fulfillment capacity [9] - The Pharmaceutical Diagnostics segment showed strong performance with 7% organic revenue growth in the last reported quarter, driven by increased procedure volumes [10][11] Innovation and Product Development - GEHC introduced new innovations in Q3, including a software tool for radiation dose measurement, which is expected to enhance clinical efficiency and patient safety [6] - The launch of Ocado, a newly FDA-approved PET tracer for coronary artery disease, is anticipated to drive long-term growth in the pharmaceutical diagnostics segment [10][15] Challenges and Outlook - Ongoing macroeconomic challenges, particularly in China, are expected to impact capital equipment sales and overall revenue growth [5][18] - Despite these challenges, GEHC's diversified global presence and strong U.S. performance provide a buffer against uncertainties [18]

GE HealthCare Technologies Inc. (GEHC) recently announced a $138 million investment to expand its manufacturing facility in Cork, Ireland. This initiative will boost the production of imaging contrast media, a critical component in diagnostic procedures, and strengthen GEHC's global supply chain to meet growing healthcare demands.The new state-of-the-art facility on the grounds of the existing site is likely to enable 25 million more patient doses per year of contrast media by the end of 2027, helping addre ...

GE HealthCare Technologies Inc. (GEHC) recently announced receiving FDA 510(k) clearance for its updated Voluson Expert Series ultrasound systems. This advanced portfolio, which includes the Voluson Expert 22, 20, and 18, sets a new benchmark in women’s healthcare by combining exceptional image quality, cutting-edge ultrasound technology, and ergonomic design to enhance workflow efficiency and deliver an unparalleled user experience.The Voluson Expert Series is equipped with artificial intelligence (AI)-pow ...

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GE HealthCare Technologies Inc. (GEHC) and the University of California, San Francisco (UCSF) Department of Radiology & Biomedical Imaging recently announced the launch of a Care Innovation Hub, a joint research collaboration.The collaboration aims to address meaningful clinical challenges in three key areas — accessibility to advanced medical imaging, non-invasive diagnosis and management of neurological and neurodegenerative disease and precision oncology.Likely Trend of GEHC Stock Following the NewsFollo ...