GE HealthCare Reports Fourth Quarter and Full Year 2023 Financial Results
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 ...
Autore: Business Wire
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
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.
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