GE HealthCare Blames Tariffs For Lowering 2025 Profit Outlook, Initiates Stock Buyback

Financial Performance - GE HealthCare reported first-quarter 2025 adjusted EPS of $1.01, exceeding the consensus of 91 cents, and up from 90 cents a year ago [1] - The company achieved sales of $4.78 billion, surpassing the consensus of $4.66 billion, with revenues increasing 3% reported and 4% organically year-over-year [1] - The net income margin improved to 11.8% from 8.0% the previous year, an increase of 380 basis points [3] Orders and Margins - Total company book-to-bill ratio was 1.09 times, with total company orders increasing a record 10% organically year-over-year [2] - Adjusted EBIT margin was 15.0%, up from 14.7%, reflecting benefits from volume and productivity [3] Capital Allocation - GE HealthCare authorized a stock buyback of up to $1 billion, indicating a commitment to return capital to shareholders while focusing on business growth [4] Guidance and Forecasts - The company updated its 2025 full-year guidance, reaffirming organic revenue growth of 2% to 3% year-over-year, while adjusting the EBIT margin forecast to 14.2%-14.4% [5][6] - Adjusted EPS is forecasted to be between $3.90 to $4.10, reflecting a 9% to 13% decline compared to 2024 adjusted EPS of $4.49 [6] - Free cash flow is expected to be at least $1.2 billion, down from previous guidance of at least $1.75 billion [6] Strategic Moves - In March, GE HealthCare acquired the remaining 50% stake in Nihon Medi-Physics Co., Ltd, achieving full ownership [7] - NMP generated revenues of 28.2 billion Japanese yen (approximately $183 million) in 2023, contributing to GE HealthCare's portfolio in molecular imaging [10] Stock Performance - GEHC stock increased by 3.87% to $70.73 during the last check on Wednesday [8]