GE HealthCare Technologies (GEHC) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenues for the three months ended June 30, 2025, were $5,007 million, representing a 3% increase year-over-year, with organic growth of 2%[181] - Net income attributable to GE HealthCare for the six months ended June 30, 2025, was $1,049 million, compared to $802 million for the same period in 2024, reflecting a 31% increase[180] - Operating income for the three months ended June 30, 2025, was $654 million, up from $608 million in the same period of 2024, marking an increase of 8%[180] - Total revenues for the six months ended June 30, 2025, were $9,784 million, growing 3% or $295 million, primarily driven by a 5% increase in sales of services[184] - Net income attributable to GE HealthCare for the six months was $1,049 million, an increase of 31% compared to the previous year[185] - Adjusted EBIT for the six months was $1,443 million, reflecting a 1% increase year-over-year, with an adjusted EBIT margin of 14.8%[185] - Operating income for the six months ended June 30, 2025, was $1,283 million, an increase of 12% compared to the previous year[189] - Total revenues for the three months ended June 30, 2025, were $5,007 million, a 3% increase from $4,839 million in 2024[203] - Net income attributable to GE HealthCare for the three months ended June 30, 2025, was $486 million, a 13% increase from $428 million in 2024[209] - Adjusted earnings per share for the three months ended June 30, 2025, was $1.06, an increase of $0.06 from $1.00 in 2024[211] Revenue Segments - Sales of services increased by 7% or $111 million, primarily driven by growth in new and existing customer contractual agreements[183] - The Imaging segment reported revenues of $2,204 million for the three months ended June 30, 2025, a 2% increase from $2,171 million in 2024[181] - The Pharmaceutical Diagnostics (PDx) segment saw a significant revenue increase of 14% to $729 million for the three months ended June 30, 2025, compared to $639 million in 2024[181] - Imaging segment revenues for the same period were $2,204 million, growing 2% or $33 million, with growth in EMEA and USCAN regions, offset by pressure in the China market[184] - PDx segment revenues increased by 14% or $90 million to $729 million, driven by the acquisition of Nihon MediPhysics Co., Ltd. and a 5% growth in organic revenue[184] - USCAN revenues for the six months were $4,577 million, growing 6% or $240 million, with growth across all segments[184] - EMEA revenues increased by 3% to $2,442 million, largely due to growth in Imaging revenues[184] Costs and Expenses - The cost of products sold for the three months ended June 30, 2025, was $2,160 million, compared to $2,045 million in 2024, indicating a 6% increase[180] - Gross profit decreased by $17 million, primarily due to increased costs of products sold and services sold as a percentage of total revenues[189] - Total operating expenses decreased by $63 million, driven by a reduction in R&D and SG&A expenses[189] Cash Flow and Investments - Free cash flow for the six months ended June 30, 2025, was $106 million, reflecting a 15% increase from $92 million in 2024, driven by cash from operating activities of $344 million[216][227] - Cash generated from operating activities for the six months ended June 30, 2025, was $344 million, up 15% from $300 million in 2024, with net income of $1,088 million[219][220] - Cash used for investing activities in the six months ended June 30, 2025, was $630 million, primarily for business acquisitions totaling $279 million and capital expenditures of $238 million[221][222] - Cash generated from financing activities for the six months ended June 30, 2025, was $1,075 million, including net proceeds from the issuance of senior unsecured notes totaling $1,487 million[223] Debt and Liquidity - Total debt as of June 30, 2025, was $10,275 million, an increase from $8,951 million as of December 31, 2024, primarily due to new debt issuance[230] - As of June 30, 2025, the company had $3,763 million in cash, cash equivalents, and restricted cash, along with access to revolving credit facilities totaling $3,500 million[217] Taxation - Adjusted tax expense for the six months ended June 30, 2025, was $235 million, a decrease from $277 million in 2024, with an adjusted effective tax rate of 19.3% compared to 23.7% in 2024[213] - The effective tax rate for the six months ended June 30, 2025, was 16.6%, down from 24.5% in 2024, indicating improved tax efficiency[212] Segment Performance - Imaging Segment EBIT was $188 million, a decrease of $20 million primarily due to cost inflation, including the impacts of incremental tariffs[202] - AVS Segment EBIT was $267 million, an increase of $11 million due to growth in sales volume and cost productivity, largely offset by cost inflation[202] - PDx Segment EBIT was $213 million, an increase of $14 million due to an increase in price and growth in sales volume, partially offset by increased investment[202] Capital Expenditures - Capital expenditures for the six months ended June 30, 2025, were $238 million, focused on manufacturing capacity expansion and new product introductions[228] Credit Rating - The company maintained a stable credit rating with Moody's at Baa2, S&P at BBB, and Fitch at BBB as of July 23, 2025[234]