10-KPeriod: FY2024

GE HealthCare Technologies Inc. Annual Report, Year Ended Dec 31, 2024

Filed February 13, 2025For Securities:GEHC

Summary

GE HealthCare Technologies Inc. (GEHC) reported robust performance for the fiscal year 2024, demonstrating resilience and strategic execution in a dynamic global healthcare market. Total revenues reached $19.67 billion, a slight increase of 1% year-over-year, driven primarily by growth in services and a strong performance in the Pharmaceutical Diagnostics (PDx) segment. Despite a 1% dip in the Imaging segment, the company saw growth in Advanced Visualization Solutions (AVS) and Patient Care Solutions (PCS), albeit modest. The PDx segment was a standout, with a 9% revenue increase, fueled by volume, pricing, and new product introductions. Geographically, the company experienced a 5% revenue increase in the United States and Canada (USCAN), while EMEA remained flat. China, however, saw a significant 15% decline in revenues, attributed to the lingering effects of prior stimulus programs and an ongoing anti-corruption campaign impacting healthcare sector spending. The company's profitability also saw improvement, with operating income increasing by 8% and net income attributable to GE HealthCare rising by 27% to $1.99 billion. This was supported by improved gross profit margins, cost productivity initiatives, and a reduction in interest expenses. GEHC remains focused on innovation, particularly in AI and digital solutions, which are integrated across its product lines to enhance patient care and operational efficiency for healthcare providers.

Financial Highlights

49 data points
Beta

Revenue

$19.67B

41.7% Gross Margin

Net Income

$1.99B

10.1% Net Margin

EPS (Diluted)

$4.34

Total Assets

$33.09B

Cash & Equivalents

$2.89B

Free Cash Flow

$1.96B

Financial Statements
Beta
Revenue$19.67B
Gross Profit$8.21B
R&D Expenses$1.31B
SG&A Expenses$4.27B
Operating Expenses$5.58B
Operating Income$2.63B
Net Income$1.99B
EPS (Basic)$4.37
EPS (Diluted)$4.34
Shares Outstanding (Basic)456.00M
Shares Outstanding (Diluted)459.00M

Key Highlights

  • 1Total revenues grew 1% year-over-year to $19.67 billion in fiscal year 2024.
  • 2Pharmaceutical Diagnostics (PDx) segment was a key growth driver, with revenues up 9% driven by volume, pricing, and new product introductions.
  • 3USCAN region showed solid growth with a 5% revenue increase, while China experienced a 15% revenue decline.
  • 4Operating income increased by 8% to $2.63 billion, and net income attributable to GE HealthCare rose 27% to $1.99 billion, demonstrating improved profitability.
  • 5The company is actively investing in R&D, with R&D expenses increasing by $106 million, reflecting a focus on innovation in AI and digital solutions.
  • 6Free cash flow was $1.55 billion for 2024, indicating strong cash generation capabilities.
  • 7GE HealthCare paid quarterly dividends of $0.03 and $0.035 per share, highlighting a commitment to returning capital to shareholders.

Frequently Asked Questions

GE HealthCare reported total revenues of $19.67 billion in fiscal year 2024, a 1% increase compared to the previous year. Operating income grew 8% to $2.63 billion, and net income attributable to GE HealthCare increased by 27% to $1.99 billion, reflecting improved profitability and operational efficiencies.

The Pharmaceutical Diagnostics (PDx) segment was the strongest performer, with a 9% revenue increase. The Imaging segment experienced a 1% revenue decrease, while Advanced Visualization Solutions (AVS) and Patient Care Solutions (PCS) saw modest 1% and 1% decreases, respectively. The decline in Imaging was partly due to lower sales volume in China.

GE HealthCare continues to invest in innovation, particularly in AI and digital solutions, which are integrated across its product lines. The company aims to enhance patient care and improve operational efficiency for healthcare providers by leveraging these technologies. Growth is also expected from new product introductions, as seen in the PDx segment.

GE HealthCare maintains a strong liquidity position with $2.89 billion in cash, cash equivalents, and restricted cash as of December 31, 2024. The company has access to $3.5 billion in revolving credit facilities. Debt has been managed through repayments and strategic issuances of senior unsecured notes, and the company was in compliance with its debt covenants as of the reporting period.