GE HealthCare Technologies Inc. Q4 FY2024 earnings call

• Fourth quarter saw orders growth in every segment, robust backlog, and strongest book-to-bill since spin. - Continues execution on precision care strategy, with 50 enterprise deals closed in 2024 and $1B Care Alliance with Sutter Health. - Introduced ~40 innovations in 2024, high-margin NPIs contributing to recurring revenue. - Advanced AI with 85 AI-enabled FDA authorizations, and cloud-based solutions like CareIntellect. - 2024 acquisitions: MIM Software and Intelligent Ultrasound; planned acquisition of NMP. - Tom Westrick, President and CEO of Patient Care Solutions, to retire.

Imaging: Organic revenue flat vs prior year; segment EBIT margin up 200 basis points y/y, with 170 basis points improvement for the full year due to productivity and price. AVS: Organic revenue up 4% y/y; segment EBIT margin increased 240 basis points y/y driven by productivity, volume, and new product introductions. Patient Care Solutions: Organic revenue growth flat vs prior year; segment EBIT margin declined 50 basis points due to inflation and portfolio mix, but sequentially improved 220 basis points. Pharmaceutical Diagnostics: 9% y/y organic growth, EBIT margin ~33%; recent $138M investment to expand Contrast Media manufacturing facility in Cork, Ireland.

• 2025 revenue growth expected in the range of 2% to 3%, with China sales expected to be a low single-digit decline and ~1.5% foreign exchange headwind. - Adjusted EBIT margin expected to be in the range of 16.7% to 16.8%, representing year-over-year expansion of 40 to 50 basis points. - Adjusted EPS expected to be between $4.61 and $4.75, representing 3% to 6% growth year-over-year. - First quarter 2025 organic revenue growth expected in the range of 1% to 2%, with adjusted EBIT margin and adjusted EPS expected to be flat year-over-year, and stronger growth in the second half of 2025.

• Market conditions in China and U.S. tariffs could materially impact results. - Inventory build in 2024 led to a decrease in free cash flow, with a need to work down inventory in the first half of 2025. - Competitive dynamics in the healthcare market could affect market share.

Q: Anthony Petrone inquired about margin dynamics.

A: Jay Saccaro discussed margin expansion, noting the fourth quarter margin was ahead of expectations and expressing confidence in mid-term guidance.

Q: Craig Bijou asked about the China order environment.

A: Peter Arduini and Jay Saccaro discussed China market improvement being on track, with tender processes in place.

Q: Vijay Kumar questioned guidance and Flyrcado.

A: Jay Saccaro and Peter Arduini talked about guidance alignment and Flyrcado launch being on track.

Q: Matt Taylor asked about segment growth and Flyrcado.

A: Jay Saccaro and Peter Arduini discussed segment growth expectations and Flyrcado launch preparations.

Q: Joanne Wuensch inquired about first quarter margin and competition.

A: Peter Arduini and Jay Saccaro talked about first quarter margin flatness and the competitive landscape.

Q: Larry Biegelsen asked about the Sutter deal and M&A.

A: Peter Arduini discussed Sutter deal opportunities and focus on tuck-in M&A.

Q: David Roman asked about the AVS business.

A: Jay Saccaro talked about AVS growth drivers and new product launches.

Q: Robbie Marcus asked about the capital market and free cash flow.

A: Peter Arduini and Jay Saccaro discussed capital market outlook and free cash flow improvement in 2025.