Delivers Strong Financial and Operating Performance in First Year as Public Company

Fourth Quarter 2023

• Revenue growth was 5% year-over-year; Organic revenue growth* of 5%
• Net income margin was 7.7% versus 11.2% for the prior year; Adjusted Earnings Before Interest and Taxes (EBIT) margin* was 16.1% versus the fourth quarter of 2022 Standalone Adjusted EBIT margin* of 16.1%
• Cash flow from operating activities was $1.1 billion versus $1.1 billion for the prior year; Free cash flow* was $956 million versus $987 million; repaid $850 million of debt in the fourth quarter of 2023 and an additional $150 million of debt in January 2024

Full Year 2023

• Revenue growth was 7% year-over-year; Organic revenue growth* of 8%
• Net income margin was 8% versus 10.4% for the prior year; Adjusted EBIT margin* was 15.1% versus 2022 Standalone Adjusted EBIT margin* of 14.5%
• Cash flow from operating activities was $2.1 billion versus $2.1 billion for the prior year, and Free cash flow* was $1.7 billion versus $1.8 billion last year, due to standalone interest and postretirement benefit payments
• Company provides 2024 financial guidance, demonstrating progress toward medium-term financial targets

CHICAGO: GE HealthCare (Nasdaq: GEHC), a leading global precision care innovator, today reported financial results for the fourth quarter ended December 31, 2023.

GE HealthCare President and CEO Peter Arduini said, “After our first year as a publicly traded company, I’m pleased to announce robust fourth quarter and full year results. This strong financial performance is a testament to our dedicated team and successful execution of our precision care strategy. We’ve made significant strides, including investing over $1 billion in R&D for future growth, helping drive more than 40 innovations in 2023. We bolstered our market position with strategic acquisitions, while at the same time paying down $1 billion in debt, setting a solid foundation for continued growth. We’re confident heading into 2024 amid the backdrop of an improved capital equipment landscape.”

Fourth Quarter 2023 Total Company Financial Performance

• Revenues of $5.2 billion increased 5% on both a reported and Organic* basis year-over-year, driven by price and volume.
• Total company book-to-bill was strong at 1.05 times, defined as Total orders divided by Total revenues, as the Company continues to build a robust backlog. Total company orders increased 3% organically year-over-year.
• Net income attributable to GE HealthCare was $403 million versus $554 million for the prior year, and Adjusted EBIT* was $837 million versus $844 million.
• Net income margin was 7.7% versus 11.2% for the prior year, down 350 basis points (bps) primarily impacted by standalone interest expense. Adjusted EBIT margin* was 16.1% versus 17.1%, down 100 bps. Adjusted EBIT margin* for the fourth quarter of 2023 was flat versus the Company’s estimated fourth quarter 2022 Standalone Adjusted EBIT margin* of 16.1% as benefits from productivity and price were offset primarily by investments.
• Earnings per share (EPS) from continuing operations were $0.88 versus $1.21, down $0.33 from the prior year. Adjusted EPS* was $1.18 versus $1.31, down $0.13 from the prior year. Both comparisons were impacted by standalone interest expense. Adjusted EPS* for the fourth quarter of 2023 grew $0.12 versus the Company’s estimated fourth quarter 2022 Standalone Adjusted EPS* of $1.06.
• Cash flow from operating activities was $1.1 billion, down $13 million year-over-year. Free cash flow* was $956 million, down $31 million year-over-year. Both metrics were primarily impacted by standalone interest and postretirement benefit payments. The Company repaid $850 million of debt in the fourth quarter of 2023 and an additional $150 million of debt in January 2024. 

Fourth Quarter 2023 Segment Financial Performance

Imaging

• Revenues of $2.8 billion increased 4% on both a reported and Organic* basis year-over-year.
• Segment EBIT was $337 million versus $321 million for the prior year.
• Segment EBIT margin was 11.9% versus 11.8% for the prior year.

Ultrasound

• Revenues of $944 million declined 1% reported and 2% on an Organic* basis year-over-year.
• Segment EBIT was $244 million versus $285 million for the prior year.
• Segment EBIT margin was 25.8% versus 29.8% for prior year.

Patient Care Solutions

• Revenues of $827 million increased 5% reported and 4% on an Organic* basis year-over-year.
• Segment EBIT was $110 million versus $130 million for the prior year.
• Segment EBIT margin was 13.3% versus 16.5% for the prior year.

Pharmaceutical Diagnostics

• Revenues of $591 million increased 25% reported and 23% on an Organic* basis year-over-year.
• Segment EBIT was $144 million versus $109 million for the prior year.
• Segment EBIT margin was 24.4% versus 23.0% for the prior year.

Full Year 2023 Total Company Financial Performance

• Revenues of $19.6 billion increased 7% year-over-year and 8% on an Organic* basis with growth across all segments and regions.
• Total company book-to-bill was 1.03 times, as orders dollars outpaced revenues. Total company orders increased 3% organically year-over-year.
• Net income attributable to GE HealthCare was $1.6 billion versus $1.9 billion for the prior year, and Adjusted EBIT* was $3.0 billion versus $2.9 billion in the same period last year.
• Net income margin was 8% versus 10.4% for the prior year, down 240 bps, primarily impacted by standalone interest expense. Adjusted EBIT margin* was 15.1% versus 15.6% last year, down 50 bps. Adjusted EBIT margin* for the full year 2023 was up 60 bps versus the Company’s estimated full year 2022 Standalone Adjusted EBIT margin* of 14.5% last year. Margin benefited from productivity, price, and volume, and was partially offset by inflation.
• EPS from continuing operations was $3.04 compared to $4.18 for full year 2022, down $1.14 from the prior year. Adjusted EPS* was $3.93, versus $4.63 in prior year. Both comparisons were impacted by standalone interest expense. Adjusted EPS* for the full year 2023 grew $0.55 versus the Company’s estimated full year 2022 Standalone Adjusted EPS* of $3.38.
• Cash flow from operating activities was $2.1 billion, down $33 million year-over-year, and Free cash flow* was $1.7 billion, down $113 million year-over-year, due to standalone interest and postretirement benefit payments.
• Cash flow conversion, defined as cash from operating activities divided by net income attributable to GE HealthCare, was 134% while Free cash flow conversion* was 95% for 2023.

Growth and Innovation

• GE HealthCare Announces Agreement to Acquire MIM Software
• GE HealthCare Unveils SIGNA Champion, a 1.5T Wide Bore MRI System Powered by Artificial Intelligence (AI) for High Performance and Patient Comfort
• GE HealthCare Participates in Project to Pioneer AI-Screening Platform for Early Detection of Alzheimer’s Disease
• GE HealthCare Announces New Version of Digital Expert Access, the First FDA 510(k)-Cleared Device to Enable Remote Patient Scanning, and Exclusive Distribution Agreement with IONIC Health
• University of Wisconsin–Madison and GE HealthCare Broaden Shared Commitment to Healthcare Innovation
• Expanding the Reach of Care for Cancer and Other Disease States: BAMF Health and GE HealthCare collaborate to enable sustainable and scalable solutions for growth in Theranostics
• GE HealthCare Announces New Data Validating AI Models for Predicting Patient Response to Immunotherapies
• GE HealthCare Tops List with Highest Number of AI-Enabled Medical Device Authorizations, Developing Innovative Solutions for Precision Care

2024 Guidance

Full year 2024 guidance is as follows:

• Organic revenue growth* of approximately 4% year-over-year.
• Adjusted EBIT margin* in the range of 15.6% to 15.9%, reflecting an expansion of 50 to 80 basis points versus 2023 Adjusted EBIT margin* of 15.1%.
• Adjusted effective tax rate (ETR)* in the range of 23% to 25%.
• Adjusted EPS* in the range of $4.20 to $4.35, representing 7% to 11% growth versus Adjusted EPS* of $3.93 for 2023.
• Free cash flow* of approximately $1.8 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.

Consolidated and Combined Statements of Financial Position
	As of
(In millions, except share and per share amounts)	December 31, 2023			December 31, 2022
Cash, cash equivalents, and restricted cash	$	2,504		$	1,445
Receivables – net of allowances of $98 and $91		3,525			3,295
Due from related parties		32			17
Inventories		1,960			2,155
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