GE HealthCare Reports Strong Q4 2024 Results with $5.32B in Revenue and Raises Full-Year 2025 Guidance

Feb 14, 2025 11:49 CST Updated 11:49

GE Healthcare

Digital Solution Provider

On February 13, 2025, GE Healthcare (NASDAQ: GEHC) saw a rise in its stock price as its Q4 2024 earnings exceeded the adjusted earnings per share (EPS) expectations. By the afternoon trading session on the 13th, the stock price of GEHC had increased.More than 9%, reaching per share$93.79。

GE Healthcare Reports$737 millionThe profit, with sales in the fourth quarter reaching$5.32 billion(Approximately 38.8 billion RMB), with earnings per share of $1.57.After adjustments and excluding one-time items, earnings per share were $1.45, beating Wall Street's expectations by 19 cents. Sales were almost in line with forecasts, with experts previously predicting revenue of $5.33 billion.

#Earnings Highlights

The Fourth Quarter

Revenue in the fourth quarter increased year-over-year2%; Organic revenue growth also reached2%。
Net Profit Margin13.5%, a significant increase from 7.7% in the same period last year; the adjusted Earnings Before Interest and Taxes (EBIT) margin was18.7%, compared with 16.1% in the same period last year.
Diluted Earnings Per Share (EPS) is$1.57, a significant increase from US$0.88 in the same period last year; adjusted earnings per share were$1.45, compared with $1.18 in the same period last year.
Cash flow generated from operating activities is$9.13 billion, compared to $1.1 billion in the same period last year; free cash flow was$8.11 billion, compared to USD 956 million in the same period last year.

Throughout 2024

Revenue growth year-over-year achieved throughout 20241%; Organic revenue growth was also 1%.
Net Profit Margin10.1%, up from 8.0% in the same period last year; the adjusted Earnings Before Interest and Taxes (EBIT) margin was16.3%, compared to 15.1% in the same period last year.
Diluted Earnings Per Share (EPS) is$4.34, a significant increase from $3.04 in the same period last year; adjusted earnings per share were$4.49, compared to $3.93 in the same period last year.
Cash flow generated from operating activities is$2 billion, compared to $2.1 billion in the same period last year; free cash flow was$1.6 billion, compared to $1.7 billion in the same period last year.

Full-Year 2025 Financial Guidance

Organic revenue growth is expected to be2% to 3%. The adjusted Earnings Before Interest and Taxes (EBIT) margin is expected to be16.7% to 16.8%, an increase of approximately 40 to 50 basis points from 16.3% in 2024.
The adjusted effective tax rate (ETR) is expected to remain at22% to 23%Within the range.
Adjusted Earnings Per Share (EPS) Expected to Be Between$4.61 to $4.75Between, increased by 3% to 6% from $4.49 in 2024.
Free cash flow is expected to be no less than1.75 billionDollar.

# Business Performance

Medical Imaging

Revenue for the fourth quarter of 2024 was$2.393 billion, Department Earnings Before Interest and Taxes (EBIT) is$302 million, year-on-year growth19%, Department EBIT Margin is12.6%, increased by 200 basis points.

Right: Pristina Via™ by GE HealthcareBreast Imaging System,Equipped with artificial intelligence technology

Due to the adverse factors in the Chinese market, organic revenue growth was flat year-over-year but was offset by strong growth in the United States and other regions of the world.Strong growth in the U.S. market, with customers continuing to invest in innovation.The year-on-year improvement in EBIT margin was attributed toFavorable prices and product portfolio.

Advanced Visualization Solutions

Revenue for the fourth quarter of 2024 was$14.40 billion, year-on-year growth4%, Department Earnings Before Interest and Taxes (EBIT) is$374 million, year-on-year growth15%, Department EBIT margin reached25.9%, an increase of 240 basis points.

On the right is the OEC 3D platform, which enables 3D and 2D image visualization during surgical procedures, and introduces a new clinical application, Lung Suite.

Strong performance in the U.S. was partially offset by headwinds in China.The year-on-year improvement in EBIT margin was attributed toIncrease in production efficiency and business volume.Strong demand for newly released artificial intelligence products,It is expected to drive continued growth.

Patient Care

Revenue for the fourth quarter of 2024 was$8.27 billion(Flat compared to last year), the department's earnings before interest and taxes (EBIT) is$106 million, a year-on-year decrease4%, Department EBIT Margin12.8%, a year-on-year decrease of 50 basis points.

GE Healthcare's ECG solution suite provides accurate and timely insights, enabling clinicians to deliver more precise diagnoses and treatment plans.

Organic revenue was flat compared to last year; EBIT margin declined year-over-year, primarily due to inflation and product mix changes, partly offset by improved productivity measures.

Strong global customer partnerships, particularly in the United States, lay a solid foundation for future growth.

# Executive Evaluation

GE HealthCare President and CEO Peter Arduini stated: "The company demonstrated strong business growth in the fourth quarter, specifically reflected inSignificant improvements in key indicators such as order growth, backlog optimization, and order-to-shipment ratioThanks to the strong demand for advanced visualization solutions and pharmaceutical diagnostic services, the company's revenue has continued to grow.Among them, the US market has shown particularly outstanding performance, with not only a significant increase in profit margin but also a steady growth in profitability.

Notably, customers' continuous attention to and demand for the company's new differentiated products have effectively driven the growth of annual orders and recurring revenue.

Looking ahead, we will continue to adhere to the precision care strategy, ensuring sustainable growth of the company's business through continuous innovation, optimizing productivity initiatives, and strengthening commercial execution.