GE HealthCare Technologies Inc. Q1 FY2025 earnings call

• Strong first quarter execution with revenue and profit growth exceeding expectations, double-digit orders growth driven by U.S. market strength. - Adjusting 2025 guidance due to tariff impact, having mitigated over 50% of gross tariff exposure. - Innovation highlights include Flyrcado launch, Revolution Vibe cardiac CT system, and progress on radiopharmaceuticals and photon counting CT. - Announced $1 billion share repurchase program authorization. - Introduced Jeannette Bankes as new CEO of patient care solutions, with over 30 years of MedTech experience.

Imaging: Organic revenue in the quarter was up 5% year-over-year, with segment EBIT margin up 130 basis points year-over-year, driven by productivity, volume, and price. Advanced Visualization Solutions: Organic revenue was up 3% year-over-year, with segment EBIT margin increased by 10 basis points year-over-year, driven by volume and productivity. Patient Care Solutions: Organic revenue growth was up 2% versus the prior year, but EBIT margin declined 450 basis points year-over-year due to investments, tariff impact, and product mix. Pharmaceutical Diagnostics: Delivered 8% year-over-year organic growth and an EBIT margin above 32%, with progress on radiopharmaceutical strategy including Flyrcado launch and acquisition of Nihon Medi-Physics adding ~$150 million of inorganic revenue over remaining 2025 quarters.

• Full-year 2025 organic revenue growth expected in range of 2%-3%. - Adjusted EBIT margin forecast 14.2%-14.4% vs prior 16.7%-16.8%. - Adjusted EPS expected $3.90-$4.10, down from prior $4.61-$4.75. - Free cash flow expected at least $1.2 billion, down from prior at least $1.75 billion. - Second quarter 2025 organic revenue growth expected 1%-2% y/y, adjusted EPS expected to decline high-single-digit.

• Tariff impacts on profit and cash, with estimated ~$0.85 per share net incremental impact in 2025. - China market challenges with mid-single-digit decline expected in first-half 2025. - Uncertainties around global trade environment and potential anti-dumping investigations in China impacting business operations.

Q: Larry Biegelsen asked about tariffs and China. Jay Saccaro discussed tariff impact cadence and Peter Arduini commented on China's expected performance and VBP.

A: Jay Saccaro said tariffs in 2025 are predominantly in Q2-Q4, with expectation of lower impact in 2026. Peter Arduini noted China expected mid-single-digit decline in first-half 2025 and VBP factored into strategy.

Q: Jason Bednar asked about tariffs and photon counting CT. Peter Arduini said no downstream impacts seen from administrative changes and photon counting CT submission on track.

A: Peter Arduini stated no notable impacts from administrative changes and photon counting CT submission on track.

Q: Vijay Kumar asked about China tariffs and free cash flow. Jay Saccaro explained tariff impact on free cash flow and Peter Arduini discussed China tariff breakdown.

A: Jay Saccaro said free cash flow reduction due to tariff payments. Peter Arduini detailed China tariff portion and product import/export.

Q: Robbie Marcus asked about Flyrcado and China anti-dumping. Peter Arduini provided Flyrcado update and said anti-dumping investigation not material.

A: Peter Arduini said Flyrcado on track and anti-dumping investigation not material. Jay Saccaro noted pharma diagnostics tariff uncertainty.

Q: David Roman asked about tariffs and M&A. Peter Arduini and Jay Saccaro discussed tariff mitigation actions and M&A strategy.

A: Jay Saccaro and Peter Arduini discussed tariff mitigation efforts and M&A as part of capital allocation.

Q: Joanne Wuensch asked about CapEx and photon counting CT. Jay Saccaro and Peter Arduini commented on constructive CapEx environment and photon counting CT on track.

A: Jay Saccaro and Peter Arduini said CapEx environment constructive and photon counting CT on track.

Q: Craig Bijou asked about China rare elements and business sentiment. Peter Arduini said no significant risk from rare elements and positive business sentiment in China.

A: Peter Arduini said no significant risk from rare elements and positive business sentiment in China.

Q: Anthony Petrone asked about semiconductors and Flyrcado. Jay Saccaro and Peter Arduini discussed semiconductor impact and Flyrcado outlook.

A: Jay Saccaro said semiconductors reflected in tariff impact and Flyrcado on track.