10-KPeriod: FY2022

GE HealthCare Technologies Inc. Annual Report, Year Ended Dec 31, 2022

Filed February 15, 2023For Securities:GEHC

Summary

GE HealthCare Technologies Inc. completed its spin-off from General Electric Company on January 3, 2023, and began trading as an independent public company. The company operates as a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator, organized into four key segments: Imaging, Ultrasound, Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx). For the fiscal year ended December 31, 2022, GE HealthCare reported total revenues of $18.34 billion, representing a 4% increase (7% organically) compared to the previous year. The company experienced growth in its Imaging and Ultrasound segments, driven by new product introductions and acquisitions, though this was partially offset by unfavorable foreign currency impacts and a decrease in service revenues. Financially, the company reported operating income of $2.52 billion and net income attributable to GE HealthCare of $1.92 billion for 2022, both declining year-over-year primarily due to inflationary cost pressures and increased investments in R&D and commercial activities. The company also significantly increased its debt during the year in preparation for and as a result of the spin-off, with total debt reaching $8.25 billion. Despite these challenges, GE HealthCare generated $2.13 billion in cash from operating activities and remains focused on its strategy of delivering industry-leading innovations, building integrated solutions, and enabling the digitization of healthcare.

Financial Statements
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Key Highlights

  • 1Completed spin-off from General Electric Company on January 3, 2023, establishing GE HealthCare as an independent, publicly traded entity (GEHC on Nasdaq).
  • 2Reported total revenues of $18.34 billion for the fiscal year ended December 31, 2022, a 4% increase (7% organically) over the prior year, driven by strong performance in Imaging and Ultrasound segments.
  • 3Operating income decreased by 10% to $2.52 billion, and net income attributable to GE HealthCare decreased by 15% to $1.92 billion in 2022, primarily due to inflationary cost pressures and increased R&D and commercial investments.
  • 4Acquired BK Medical in December 2021, which contributed to growth in the Ultrasound segment, expanding capabilities into surgical and therapeutic interventions.
  • 5The company significantly increased its debt load, ending 2022 with $8.25 billion in senior unsecured notes, to support its strategic objectives and capital structure as an independent entity.
  • 6Generated $2.13 billion in cash from operating activities, demonstrating continued strong cash generation, though free cash flow decreased by 35% to $1.83 billion due to increased receivables and higher cash taxes paid.
  • 7The company operates across four segments: Imaging, Ultrasound, Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx), all of which are critical to its diversified revenue stream and market position.

Frequently Asked Questions

For the fiscal year ended December 31, 2022, GE HealthCare reported total revenues of $18.34 billion, a 4% increase (7% organically) compared to the prior year. Operating income was $2.52 billion, and net income attributable to GE HealthCare was $1.92 billion, both showing a decline year-over-year due to increased costs and investments. The company generated $2.13 billion in cash from operating activities.

GE HealthCare operates across four segments: Imaging, Ultrasound, Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx). In 2022, the Imaging segment saw revenue growth of 6% (10% organically), driven by MR and MI/CT product lines. The Ultrasound segment grew 8% (6% organically), boosted by the BK Medical acquisition and new product introductions. PCS revenues were flat year-over-year, with 3% organic growth, while PDx revenues declined 3% (2% organically) due to foreign currency impacts and China-specific issues.

GE HealthCare significantly increased its debt in 2022 as part of its separation from GE. As of December 31, 2022, the company had total debt of $8.25 billion, primarily from the issuance of senior unsecured notes. Post-spin off, the company drew down an additional $2 billion from its Term Loan Facility, bringing total borrowings to $10.25 billion. The company believes its cash on hand and cash generated from operations are sufficient to meet its obligations.