GE HealthCare reports fourth quarter and full year 2024 financial results

February 13, 2025 |

19 min read

Fourth Quarter 2024

Revenue growth was 2% year-over-year; Organic revenue growth* was 2%
Net income margin was 13.5% versus 7.7% for the prior year; Adjusted earnings before interest and taxes (EBIT) margin* was 18.7% versus 16.1%
Diluted earnings per share (EPS) were $1.57 versus $0.88 for the prior year; Adjusted EPS* was $1.45 versus $1.18
Cash flow from operating activities was $913 million versus $1.1 billion for the prior year; Free cash flow* was $811 million versus $956 million

Full Year 2024

Revenue growth was 1% year-over-year; Organic revenue growth* was 1%
Net income margin was 10.1% versus 8.0% for the prior year; Adjusted EBIT margin* was 16.3% versus 15.1%
Diluted EPS was $4.34 versus $3.04 for the prior year; Adjusted EPS* was $4.49 versus $3.93
Cash flow from operating activities was $2.0 billion versus $2.1 billion for the prior year; Free cash flow* was $1.6 billion versus $1.7 billion
Company introduces full-year 2025 financial guidance

CHICAGO--(BUSINESS WIRE)--GE HealthCare (Nasdaq: GEHC) today reported financial results for the fourth quarter and full year ended December 31, 2024.

GE HealthCare President and CEO Peter Arduini said, “We were pleased with the strong momentum in orders, backlog and book-to-bill that we saw in the fourth quarter. We also continued to deliver revenue growth driven by demand in our Advanced Visualization Solutions and Pharmaceutical Diagnostics businesses, with overall strength in the U.S., and robust margin expansion and earnings growth. Customer interest in new, differentiated products contributed to orders growth and recurring revenue in the year. We remain committed to our precision care strategy for growth, supported by innovation, productivity initiatives, and commercial execution.”

Fourth quarter 2024 total company financial performance

Revenues of $5.3 billion increased 2% on both a reported and Organic* basis year-over-year. Revenue growth was driven by Advanced Visualization Solutions (AVS) and Pharmaceutical Diagnostics (PDx), with overall strength in the U.S.
Total company book-to-bill was 1.09 times. Total company orders increased 6% organically year-over-year.
Net income attributable to GE HealthCare was $720 million versus $403 million for the prior year, and Adjusted EBIT* was $994 million versus $837 million.
Net income margin was 13.5% versus 7.7% for the prior year, up 580 basis points (bps). Adjusted EBIT margin* was 18.7% versus 16.1%, up 260 bps as both measures saw benefits from productivity and volume.
Diluted EPS was $1.57 versus $0.88, up $0.69 from the prior year. Adjusted EPS* was $1.45 versus $1.18, up $0.27 from the prior year as both measures saw improved EBIT and lower interest expense.
Cash flow from operating activities was $913 million, down $137 million year-over-year. Free cash flow* was $811 million, down $145 million year-over-year.

Fourth quarter 2024 segment financial performance (Unaudited)

Segment ($ in millions)	Imaging	Advanced Visualization Solutions	Patient Care Solutions	Pharmaceutical Diagnostics
Segment Revenues	$2,393	$1,440	$827	$646
YoY % change	—%	4%	—%	9%
YoY % Organic* change	—%	4%	—%	9%
Segment EBIT	$302	$374	$106	$212
YoY % change	19%	15%	(4)%	47%
Segment EBIT Margin	12.6%	25.9%	12.8%	32.9%
YoY change	200 bps	240 bps	(50) bps	850 bps
^{YoY refers to year-over-year comparison on a recast basis} ^{Results recast in line with move of Image Guided Therapies from Imaging to Advanced Visualization Solutions}

Full year 2024 total company financial performance

Revenues of $19.7 billion increased 1% on both a reported and Organic* basis year-over-year. Revenue growth in the U.S. and in PDx was partially offset by continued market softness in China.
Total company book-to-bill was 1.05 times. Total company orders increased 3% organically year-over-year.
Net income attributable to GE HealthCare was $2.0 billion versus $1.6 billion for the prior year, and Adjusted EBIT* was $3.2 billion versus $3.0 billion.
Net income margin was 10.1% versus 8.0% for the prior year, up 210 bps. Adjusted EBIT margin* was 16.3% versus 15.1%, up 120 bps as both measures saw benefits from productivity and price.
Diluted EPS was $4.34 versus $3.04, up $1.31 from the prior year. Adjusted EPS* was $4.49 versus $3.93, up $0.56 from the prior year as both measures saw improved EBIT and lower interest expense.
Cash flow from operating activities was $2.0 billion, down $146 million year-over-year. Free cash flow* was $1.6 billion, down $161 million year-over-year.
Cash flow conversion, defined as cash from operating activities divided by net income attributable to GE HealthCare, was 98% while Free cash flow conversion* was 75%.

Growth and innovation

Mr. Arduini continued, “In 2024, we introduced approximately 40 innovations and closed more than 50 strategic enterprise deals globally, laying a solid foundation for future growth. We started 2025 with commercial momentum announcing two strategic long-term enterprise deals – Sutter Health in the U.S., and Nuffield Health in the UK. These collaborative agreements help increase capacity, expand access to quality care for patients, and drive growth for our customers and GE HealthCare.”

Recent innovation and commercial highlights

2025 guidance

Today, the Company introduces 2025 full-year guidance, which includes the estimated impact from recently implemented U.S. tariffs on products from China.

2025 guidance is as follows:

Organic revenue growth* of 2% to 3% year-over-year, which reflects continued demand for our products and services as well as a measured view of market conditions in China
Adjusted EBIT margin* of 16.7% to 16.8%, reflecting an expansion of approximately 40 to 50 basis points versus 2024 Adjusted EBIT margin* of 16.3%
Adjusted effective tax rate (ETR)* in the range of 22% to 23%
Adjusted EPS* in the range of $4.61 to $4.75, representing 3% to 6% growth versus Adjusted EPS* of $4.49 for 2024
Free cash flow* of at least $1.75 billion

The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP Financial Measures in Outlook section below for more details.

Financial rounding

Certain columns and rows in this document may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.

Consolidated and Combined Statements of Income
	For the three months ended December 31
*(In millions, except per share amounts)*	2024			2023
Sales of products	$	3,621		$	3,597
Sales of services		1,698			1,609
Total revenues		5,319			5,206
Cost of products		2,226			2,268
Cost of services		818			782
Gross profit		2,275			2,156
Selling, general, and administrative		1,130			1,152
Research and development		344			315
Total operating expenses		1,474			1,467
Operating income		801			689
Interest and other financial charges – net		121			131
Non-operating benefit (income) costs		(100	)		(50	)
Other (income) expense – net		(53	)		(1	)
Income from continuing operations before income taxes		834			609
Benefit (provision) for income taxes		(96	)		(193	)
Net income from continuing operations		737			416
Income (loss) from discontinued operations, net of taxes		—			—
Net income		737			416
Net (income) loss attributable to noncontrolling interests		(17	)		(13	)
Net income attributable to GE HealthCare		720			403
Deemed preferred stock dividend of redeemable noncontrolling interest		—			—
Net income attributable to GE HealthCare common stockholders	$	720		$	403

Earnings per share from continuing operations attributable to GE HealthCare common stockholders:
Basic	$	1.58		$	0.89
Diluted		1.57			0.88
Earnings per share attributable to GE HealthCare common stockholders:
Basic	$	1.58		$	0.89
Diluted		1.57			0.88
Weighted-average number of shares outstanding:
Basic		457			455
Diluted		459			458


Consolidated and Combined Statements of Income
	For the years ended December 31
*(In millions, except per share amounts)*	2024			2023			2022
Sales of products	$	13,075		$	13,127		$	12,044
Sales of services		6,597			6,425			6,297
Total revenues		19,672			19,552			18,341
Cost of products		8,271			8,465			7,975
Cost of services		3,196			3,165			3,187
Gross profit		8,205			7,922			7,179
Selling, general, and administrative		4,269			4,282			3,631
Research and development		1,311			1,205			1,026
Total operating expenses		5,580			5,487			4,657
Operating income		2,625			2,435			2,522
Interest and other financial charges – net		504			542			77
Non-operating benefit (income) costs		(406	)		(382	)		(5	)
Other (income) expense – net		(55	)		(86	)		(62	)
Income from continuing operations before income taxes		2,581			2,361			2,512
Benefit (provision) for income taxes		(531	)		(743	)		(563	)
Net income from continuing operations		2,050			1,618			1,949
Income (loss) from discontinued operations, net of taxes		—			(4	)		18
Net income		2,050			1,614			1,967
Net (income) loss attributable to noncontrolling interests		(57	)		(46	)		(51	)
Net income attributable to GE HealthCare		1,993			1,568			1,916
Deemed preferred stock dividend of redeemable noncontrolling interest		—			(183	)		—
Net income attributable to GE HealthCare common stockholders	$	1,993		$	1,385		$	1,916

Earnings per share from continuing operations attributable to GE HealthCare common stockholders:
Basic	$	4.37		$	3.06		$	4.18
Diluted		4.34			3.04			4.18
Earnings per share attributable to GE HealthCare common stockholders:
Basic	$	4.37		$	3.05		$	4.22
Diluted		4.34			3.03			4.22
Weighted-average number of shares outstanding:
Basic		456			455			454
Diluted		459			458			454


Consolidated Statements of Financial Position
	As of
*(In millions, except share and per share amounts)*	December 31, 2024			December 31, 2023
Cash, cash equivalents, and restricted cash	$	2,889		$	2,504
Receivables – net of allowances of $103 and $98		3,564			3,525
Due from related parties		5			32
Inventories		1,939			1,960
Contract and other deferred assets		974			1,000
All other current assets		529			389
Current assets		9,901			9,410
Property, plant, and equipment – net		2,550			2,500
Goodwill		13,136			12,936
Other intangible assets – net		1,078			1,253
Deferred income taxes		4,474			4,474
All other non-current assets		1,950			1,881
Total assets	$	33,089		$	32,454
Short-term borrowings	$	1,502		$	1,006
Accounts payable		3,022			2,947
Due to related parties		20			99
Contract liabilities		1,943			1,918
Current compensation and benefits		1,521			1,518
All other current liabilities		1,545			1,493
Current liabilities		9,553			8,981
Long-term borrowings		7,449			8,436
Non-current compensation and benefits		5,583			5,782
Deferred income taxes		56			68
All other non-current liabilities		1,796			1,877
Total liabilities		24,437			25,144
Commitments and contingencies
Redeemable noncontrolling interests		188			165
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 457,246,971 shares issued as of December 31, 2024; 455,342,290 shares issued as of December 31, 2023		5			5
Treasury stock, at cost, 291,053 shares as of December 31, 2024 and 0 shares as of December 31, 2023		(25	)		—
Additional paid-in capital		6,583			6,493
Retained earnings		3,262			1,326
Accumulated other comprehensive income (loss) – net		(1,379	)		(691	)
Total equity attributable to GE HealthCare		8,446			7,133
Noncontrolling interests		18			12
Total equity		8,464			7,145
Total liabilities, redeemable noncontrolling interests, and equity	$	33,089		$	32,454


Consolidated and Combined Statements of Cash Flows
	For the years ended December 31
*(In millions)*	2024			2023			2022
Net income	$	2,050		$	1,614		$	1,967
Less: Income (loss) from discontinued operations, net of taxes		—			(4	)		18
Net income from continuing operations	$	2,050		$	1,618		$	1,949
Adjustments to reconcile Net income from continuing operations to Cash from (used for) operating activities – continuing operations
Depreciation of property, plant, and equipment		268			248			228
Amortization of intangible assets		312			362			405
Gain on fair value remeasurement of contingent consideration		(19	)		(17	)		(65	)
Net periodic postretirement benefit plan (income) expense		(357	)		(332	)		9
Postretirement plan contributions		(332	)		(357	)		(18	)
Share-based compensation		125			114			67
Provision for income taxes		531			743			563
Cash paid during the year for income taxes		(491	)		(474	)		(851	)
Changes in operating assets and liabilities, excluding the effects of acquisitions:
Receivables		(178	)		(185	)		(231	)
Due from related parties		25			4			13
Inventories		(81	)		111			(402	)
Contract and other deferred assets		3			10			(222	)
Accounts payable		126			(13	)		481
Due to related parties		(61	)		(84	)		(33	)
Contract liabilities		68			26			138
Current compensation and benefits		39			153			(37	)
All other operating activities – net		(74	)		174			140
Cash from (used for) operating activities – continuing operations		1,955			2,101			2,134
Cash flows – investing activities
Additions to property, plant and equipment and internal-use software		(401	)		(387	)		(310	)
Dispositions of property, plant, and equipment		—			1			4
Purchases of businesses, net of cash acquired		(313	)		(147	)		—
Purchases of investments		(40	)		(48	)		(59	)
All other investing activities – net		(160	)		23			(33	)
Cash from (used for) investing activities – continuing operations		(914	)		(558	)		(398	)
Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of 90 days or less)		—			(12	)		9
Newly issued debt, net of debt issuance costs (maturities longer than 90 days)		995			2,006			8,198
Repayments and other reductions (maturities longer than 90 days)		(1,418	)		(855	)		(3	)
Dividends paid to stockholders		(55	)		(41	)		—
Redemption of noncontrolling interests		—			(211	)		—
Net transfers (to) from GE		—			(1,317	)		(8,934	)
Proceeds from stock issued under employee benefit plans		33			34			—
Taxes paid related to net share settlement of equity awards		(93	)		(33	)		—
All other financing activities – net		(34	)		(49	)		(92	)
Cash from (used for) financing activities – continuing operations		(573	)		(478	)		(822	)
Cash from (used for) operating activities – discontinued operations		(4	)		—			(21	)
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash		(77	)		(10	)		(3	)
Increase (decrease) in cash, cash equivalents, and restricted cash		387			1,055			890
Cash, cash equivalents, and restricted cash at beginning of year		2,506			1,451			561
Cash, cash equivalents, and restricted cash at end of year	$	2,893		$	2,506		$	1,451
Supplemental disclosure of cash flows information
Cash paid during the year for interest	$	(550	)	$	(570	)	$	—
Non-cash investing activities
Acquired but unpaid property, plant, and equipment	$	143		$	140		$	136

Non-GAAP Financial Measures

The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results, and assess its future prospects. When read in conjunction with the Company’s U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in GE HealthCare’s underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Descriptions of the reported non-GAAP measures are included below.

The Company reports Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of the Company’s established, ongoing operations, as well as provide insights into overall demand for its products and services. To calculate these measures, the Company excludes the effect of acquisitions, dispositions, and foreign currency rate fluctuations.

The Company reports EBIT, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, and Adjusted earnings per share to provide management and investors with additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures the Company excludes, and reflects in the detailed reconciliations below, the following adjustments as applicable: Interest and other financial charges – net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. GE HealthCare may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin is calculated by taking Adjusted EBIT divided by Total revenues for the same period.

The Company reports Adjusted tax expense and Adjusted effective tax rate (“Adjusted ETR”) to provide management and investors with a better understanding of the normalized tax rate applicable to the business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. The Company may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted ETR is Adjusted tax expense divided by income before income taxes less the pre-tax income adjustments referenced above.

The Company reports Free cash flow and Free cash flow conversion to provide management and investors with an important measure of the ability to generate cash on a normalized basis and provide insight into the Company’s flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities – continuing operations including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments. Free cash flow conversion is calculated by taking Free cash flow divided by Adjusted net income.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. The detailed reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below, and no single financial measure should be relied on to evaluate our business.

Non-GAAP Financial Reconciliations

Organic Revenue*
Unaudited	For the three months ended December 31							For the years ended December 31
*($ in millions)*	2024			2023		% change		2024			2023		% change
Imaging revenues	$	2,393		$	2,392	—	%	$	8,855		$	8,944	(1	)%
Less: Acquisitions(1)		17			—				47			—
Less: Dispositions(2)		—			—				—			—
Less: Foreign currency exchange		(7	)		—				(71	)		—
Imaging Organic revenue*	$	2,383		$	2,392	—	%	$	8,880		$	8,944	(1	)%
AVS revenues	$	1,440		$	1,382	4	%	$	5,131		$	5,094	1	%
Less: Acquisitions(1)		—			—				—			—
Less: Dispositions(2)		—			—				—			—
Less: Foreign currency exchange		(4	)		—				(25	)		—
AVS Organic revenue*	$	1,443		$	1,382	4	%	$	5,157		$	5,094	1	%
PCS revenues	$	827		$	827	—	%	$	3,125		$	3,142	(1	)%
Less: Acquisitions(1)		—			—				—			—
Less: Dispositions(2)		—			—				—			—
Less: Foreign currency exchange		(2	)		—				(6	)		—
PCS Organic revenue*	$	829		$	827	—	%	$	3,131		$	3,142	—	%
PDx revenues	$	646		$	591	9	%	$	2,508		$	2,306	9	%
Less: Acquisitions(1)		—			—				—			—
Less: Dispositions(2)		—			—				—			—
Less: Foreign currency exchange		3			—				(10	)		—
PDx Organic revenue*	$	642		$	591	9	%	$	2,518		$	2,306	9	%
Other revenues	$	13		$	14	(4	)%	$	52		$	66	(21	)%
Less: Acquisitions(1)		—			—				—			—
Less: Dispositions(2)		—			—				—			—
Less: Foreign currency exchange		—			—				—			—
Other Organic revenue*	$	13		$	14	(4	)%	$	52		$	66	(21	)%
Total revenues	$	5,319		$	5,206	2	%	$	19,672		$	19,552	1	%
Less: Acquisitions(1)		17			—				47			—
Less: Dispositions(2)		—			—				—			—
Less: Foreign currency exchange		(8	)		—				(112	)		—
Organic revenue*	$	5,310		$	5,206	2	%	$	19,737		$	19,552	1	%

(1)		Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)		Represents revenues attributable to dispositions for the four quarters preceding the disposition date.


Adjusted EBIT*
Unaudited	For the three months ended December 31								For the years ended December 31
*($ in millions)*	2024			2023			% change		2024			2023			% change
Net income attributable to GE HealthCare	$	720		$	403		79	%	$	1,993		$	1,568		27	%
Add: Interest and other financial charges – net		121			131					504			542
Add: Non-operating benefit (income) costs		(100	)		(50	)				(406	)		(382	)
Less: Benefit (provision) for income taxes		(96	)		(193	)				(531	)		(743	)
Less: Income (loss) from discontinued operations, net of taxes		—			—					—			(4	)
Less: Net (income) loss attributable to noncontrolling interests		(17	)		(13	)				(57	)		(46	)
EBIT*	$	854		$	690		24	%	$	2,679		$	2,521		6	%
Add: Restructuring costs(1)		30			20					120			54
Add: Acquisition and disposition-related charges (benefits)(2)		9			—					3			(15	)
Add: Spin-Off and separation costs(3)		68			95					251			270
Add: (Gain) loss on business and asset dispositions(4)		—			—					—			—
Add: Amortization of acquisition-related intangible assets		36			32					137			127
Add: Investment revaluation (gain) loss(5)		(4	)		—					22			(1	)
Adjusted EBIT*	$	994		$	837		19	%	$	3,211		$	2,956		9	%
Net income margin		13.5	%		7.7	%	580 bps			10.1	%		8.0	%	210 bps
Adjusted EBIT margin*		18.7	%		16.1	%	260 bps			16.3	%		15.1	%	120 bps

Contacts

Investor Relations Contact:
Carolynne Borders
+1-631-662-4317
carolynne.borders@gehealthcare.com

Media Contact:
Jennifer Fox
+1-414-530-3027
jennifer.r.fox@gehealthcare.com

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