GE HealthCare Technologies (US:GEHC)2025-04-30 10:26Financial 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].