GE HealthCare Technologies (GEHC) - 2024 Q4 - Annual Results

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]