GE HealthCare Technologies (US:GEHC)2025-10-29 10:26Revenue Performance - Total revenues for Q3 2025 were $5,143 million, representing a 6% increase year-over-year, with organic growth of 4%[183] - For the nine months ended September 30, 2025, total revenues reached $14,927 million, a 4% increase year-over-year, with organic growth of 3%[184] - The U.S. and Canada region generated $2,358 million in Q3 2025, a 5% increase from the previous year[182] - The EMEA region saw a 10% revenue increase to $1,360 million in Q3 2025[182] - Total revenues for the three months ended September 30, 2025, were $5,143 million, a 6% increase compared to $4,863 million in the same period of 2024[204] Segment Performance - Product sales increased by 5% or $174 million, driven by strong growth in Pharmaceutical Diagnostics (PDx), Imaging, and Advanced Visualization Solutions (AVS)[183] - Service sales grew by 6% or $107 million, primarily due to growth in new and existing customer contractual agreements[183] - Segment revenues for Imaging were $2,349 million in Q3 2025, a 5% increase from Q3 2024[181] - PDx segment revenues increased by 20% to $749 million in Q3 2025, with a 10% organic growth[181] - Imaging segment revenues were $2,349 million, growing 5% or $120 million, driven by growth in the EMEA and USCAN regions[185] - AVS segment revenues were $1,301 million, growing 7% or $84 million, with strength in the U.S. market[185] - PDx segment revenues were $749 million, growing 20% or $124 million, driven by the acquisition of Nihon Medi-Physics Co., Ltd. and an increase in Organic revenue, which grew 10%[185] Income and Profitability - The company reported a net income attributable to GE HealthCare of $446 million for Q3 2025, compared to $470 million in Q3 2024[180] - Operating income for Q3 2025 was $653 million, a decrease from $676 million in Q3 2024[180] - Net income attributable to GE HealthCare for the nine months ended September 30, 2025, was $1,495 million, an increase of 18% compared to the previous year[186] - Adjusted EBIT for the three months ended September 30, 2025, was $761 million, a decrease of 4% compared to the previous year[188] - Gross profit decreased by $36 million or 300 basis points as a percent of Total revenues due to increased costs of products and services sold[190] Expenses and Taxation - Total operating expenses decreased by $13 million, with a decrease in R&D investments of $25 million[190] - Provision for income taxes increased by $11 million primarily due to U.S. and foreign tax law changes[190] - Adjusted tax expense for the nine months ended September 30, 2025, was $(377) million, a decrease from $(401) million in 2024, with an adjusted effective tax rate of 20.2% compared to 21.9% in 2024[214] Cash Flow and Capital Structure - Free cash flow for the nine months ended September 30, 2025, was $589 million, down 21% from $743 million in 2024, with cash from operating activities decreasing by 10% to $937 million[217][226] - Cash and cash equivalents as of September 30, 2025, totaled $4,027 million, with access to revolving credit facilities of $3,500 million[218] - Total debt increased to $10,282 million as of September 30, 2025, from $8,951 million at the end of 2024, primarily due to new senior unsecured notes issued[229] - Cash generated from financing activities for the nine months ended September 30, 2025, was $910 million, including $1,487 million from new senior unsecured notes issuance[224] - Operating activities generated cash of $937 million for the nine months ended September 30, 2025, with net income of $1,552 million[220] Capital Expenditures and Compliance - Capital expenditures for the nine months ended September 30, 2025, were $348 million, primarily for manufacturing capacity expansion and new product introductions[227] - The company maintained compliance with credit facility covenants as of September 30, 2025, including the maximum consolidated net leverage ratio[230] - Credit ratings as of October 22, 2025, were Baa2 from Moody's, BBB from S&P, and BBB from Fitch, all with a stable outlook[233]