Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial results should be read in conjunction with the condensed consolidated financial statements and corresponding notes (the “financial statements”) included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis provide information management believes to be relevant to understanding the financial results of GE HealthCare Technologies Inc. and its subsidiaries (“GE HealthCare,” the “Company,” “our,” “us,” or “we”) for the three months ended March 31, 2025 and 2024. For a full understanding of our financial condition and results of operations, the below discussion should be read alongside the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. This discussion contains forward-looking statements that are based upon current expectations and are subject to uncertainty and changes in circumstances; see “Forward-Looking Statements.” Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed below and elsewhere in this Quarterly Report on Form 10-Q, and particularly in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

On January 3, 2023, the General Electric Company, which now operates as GE Aerospace (“GE”), completed the spin-off of GE HealthCare Technologies Inc. (the “Spin-Off”).

The following tables are presented in millions of United States (“U.S.”) dollars unless otherwise stated, except for per-share amounts which are presented in U.S. dollars. Certain columns and rows may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts, and unless otherwise stated, represent changes year-over-year.

Effective July 1, 2024, Image Guided Therapies, previously part of the Imaging segment, was realigned to the Ultrasound segment. The Ultrasound segment was subsequently renamed Advanced Visualization Solutions (“AVS”). Following this realignment, the Company continues to have four reportable segments: Imaging, Advanced Visualization Solutions, Patient Care Solutions (“PCS”), and Pharmaceutical Diagnostics (“PDx”). These segments have been identified based on the nature of the products sold and how the Company manages its operations. Historical segment financial information presented within this report has been recast to conform to the new reportable segments structure. For additional information on our segments, refer to Note 3, “Segment Information.”

TRENDS AND FACTORS IMPACTING OUR PERFORMANCE

We believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and particularly in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

KEY TRENDS AFFECTING RESULTS OF OPERATIONS.

Global Trade and Macroeconomic Environment

In February 2025, the U.S. imposed new tariffs on products from China; in March 2025, those tariffs on Chinese products were increased and new tariffs were imposed on products imported from Mexico and Canada. These tariffs were in effect for less than a full quarter, and thus did not significantly impact our results for the three months ended March 31, 2025.

In addition to the tariffs announced during the three months ended March 31, 2025, in April 2025, the U.S. announced additional new tariffs on imports from all countries in the world (except Mexico and Canada). China responded by announcing tariffs on U.S. imports, and subsequently both the U.S. and China announced additional tariffs. If maintained at current levels, we expect the U.S. and Chinese tariffs on imports from each other, as well as the U.S. baseline tariff on other countries (currently at 10% but subject to revision in July 2025), and the tariffs announced during the three months ended March 31, 2025, will materially impact our financial results through the incurrence of additional costs. Additional tariffs or other trade restrictions by the U.S. or other countries where we do significant business, or other restrictions on specific industries, such as pharmaceuticals, could further materially impact our results in the future. While we are taking actions to mitigate the impact of tariffs, it is highly unlikely that we will be able to fully offset the additional costs or other negative impacts resulting from the tariffs.

We continue to monitor the global markets in which we operate for changes in customer behavior, changes in government spending and reimbursement, and indirect impacts from the tariffs. Should these factors dampen economic growth, slow global trade, or impact inflation, we could see adverse impacts to our business as our customers adapt to the change in economic environment. We continue to monitor potential impacts on purchasing decisions by both public and private customers in China and other markets as result of the current trade environment, as well as other actions related to tariffs and trade frictions, investigations, or activities that could similarly increase our costs or otherwise impact our business. In addition, if negative sentiment towards U.S. companies influences the purchasing decisions of global customers, our business could be impacted materially.

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China Market

We continue to monitor developments in the market in China. In March 2024, the government in China announced a new stimulus program (“2024 stimulus”) that includes the healthcare sector and is being implemented through China’s provinces. In addition, the focus of the government in China on combating corruption in the healthcare sector remains ongoing, and we expect it to remain a focus in the future. These factors contributed to delayed orders and revenues in our China business throughout 2024 and the first quarter of 2025. We expect the 2024 stimulus program will result in opportunities for our business in China in the longer term, but it has had short-term impacts as provinces develop and announce their plans and customers begin to make purchasing decisions. We expect these factors to continue to impact our orders and revenues in the near term, although we are unable to predict the exact duration or magnitude of the impact. We expect both of these impacts to be temporary, and we believe the focus of government policy in China on expanding access to healthcare will benefit our business in China in the long term.

Russia and Ukraine Conflict

We had $143 million and $162 million of assets in, or directly related to, Russia and Ukraine as of March 31, 2025 and December 31, 2024, respectively, none of which are subject to sanctions that impact the carrying value of the assets. We generated revenues of $64 million and $77 million from customers in these two countries for the three months ended March 31, 2025 and 2024, respectively. The potential inability to repatriate earnings from these two countries will not have a material impact on our ability to operate.

We continue to monitor the effects of Russia’s invasion of Ukraine, including the consideration of financial impact, cybersecurity risks, the applicability and effect of sanctions, and the employee base in Ukraine and Russia. Under the current U.S. Department of Commerce regulations, we are permitted to export, re-export, or transfer medical equipment and spare parts that meet stated criteria under a License Exception, which has eliminated the need for us to obtain individual U.S. licenses in most cases; however, licenses still may be needed for some transactions. The European Union and other countries have also expanded licensing requirements for certain spare parts, services, software, and other items. We will continue to apply for licenses to supply to these customers and to support our business in Russia, as required. The implementation of these measures affected our ability to supply customers in Russia during the three months ended March 31, 2025 and 2024 and will continue to do so as we confirm applicability of the U.S. License Exception to our transactions and continue to obtain licenses. There is no guarantee we will obtain all of the licenses for which we applied, that any approvals we obtain will be on a timely basis, or that our business in Russia will not be further disrupted due to evolving legal or operational considerations. The Board, together with management, will continue to assess whether developments related to the conflict have had, or are reasonably likely to have, a material impact on the Company.

SUMMARY OF KEY PERFORMANCE MEASURES

Management reviews and analyzes several key performance measures including Total revenues, Operating income, Net income attributable to GE HealthCare, Earnings per share, and Cash from (used for) operating activities. Management also reviews and analyzes Organic revenue*, Adjusted earnings before interest and taxes* (“Adjusted EBIT*”), Adjusted net income*, Adjusted tax expense*, Adjusted effective tax rate* (“Adjusted ETR*”), Adjusted earnings per share*, and Free cash flow*, which are non-GAAP financial measures. These measures are reviewed and analyzed in order to evaluate our business performance, identify trends affecting our business, allocate capital, and make strategic decisions, including those discussed below. See “Results of Operations” and “Liquidity and Capital Resources” below for further discussion on our key performance measures.

The non-GAAP financial measures should be considered along with the most directly comparable U.S. GAAP financial measures. Definitions of these non-GAAP financial measures, a discussion of why we believe they are useful to management and investors as well as certain of their limitations, and reconciliations to their most directly comparable U.S. GAAP financial measures are provided below under “Non-GAAP Financial Measures.”

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*Non-GAAP Financial Measure

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RESULTS OF OPERATIONS

The following tables set forth our results of operations for each of the periods presented.

Condensed Consolidated Statements of Income (Unaudited)									For the three months ended March 31
												2025			2024
Sales of products												$	3,117		$	3,045
Sales of services												1,660			1,605
Total revenues												4,777			4,650
Cost of products												1,963			1,967
Cost of services												802			782
Gross profit												2,012			1,902
Selling, general, and administrative												1,040			1,038
Research and development												344			324
Total operating expenses												1,383			1,362
Operating income												629			540
Interest and other financial charges – net												110			122
Non-operating benefit (income) costs												(74)			(102)
Other (income) expense – net												(99)			8
Income before income taxes												692			512
Benefit (provision) for income taxes												(104)			(124)
Net income												588			388
Net (income) loss attributable to noncontrolling interests												(24)			(14)
Net income attributable to GE HealthCare												$	564		$	374

TOTAL REVENUES.

Revenues by Segment									For the three months ended March 31
																		2025			2024						% change						% organic* change
Segment revenues
Imaging																		$	2,140		$	2,062					4%						5%
AVS																		1,239			1,227						1%						3%
PCS																		753			747						1%						2%
PDx																		632			599						6%						8%
Other(1)																		13			15
Total revenues																		$	4,777		$	4,650					3%						4%

(1) Financial information not presented within the reportable segments, shown within the Other category, represents HealthCare Financial Services which does not meet the definition of an operating segment.

Revenues by Region									For the three months ended March 31
															2025			2024						% change
United States and Canada (“USCAN”)															$	2,237		$	2,093					7%
Europe, the Middle East, and Africa (“EMEA”)															1,174			1,174						—%
China region															593			597						(1)%
Rest of World															773			785						(2)%
Total revenues															$	4,777		$	4,650					3%

For the three months ended March 31, 2025

Total revenues were $4,777 million, growing 3% as reported and 4% organically*. Sales of products increased 2% or $71 million with strong growth in USCAN, led by PDx and Imaging segment revenues. Sales of services increased 3% or $56 million primarily driven by growth in new and existing customer contractual agreements.

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The segment revenues were as follows:

• Imaging segment revenues were $2,140 million, growing 4% or $77 million, with growth across all regions, led by Molecular Imaging and Computed Tomography (“MI/CT”) and Magnetic Resonance (“MR”) product lines;

• AVS segment revenues were $1,239 million, growing 1% or $12 million, with strength in the U.S. market largely offset by unfavorable foreign currency impacts and continued pressure in the China market.

• PCS segment revenues were $753 million, growing 1% or $6 million, driven by strength in the U.S., including growth in Monitoring Solutions, largely offset by declines in Anesthesia revenues due to market timing and unfavorable foreign currency impacts; and

• PDx segment revenues were $632 million, growing 6% or $33 million driven by continued growth in price and volume.

The regional revenues were as follows:

• USCAN revenues were $2,237 million, growing 7% or $143 million with growth across all segment revenues, led by strong growth in PDx and Imaging revenues;

• EMEA revenues were $1,174 million, flat to the prior year, with growth in PDx and Imaging revenues offset by unfavorable foreign currency impacts;

• China region revenues were $593 million, decreasing 1% or $4 million due to a decrease in AVS revenues and unfavorable foreign currency impacts, largely offset by growth in PDx and Imaging revenues; and

• Rest of World revenues were $773 million, decreasing 2% or $12 million due to unfavorable foreign currency impacts, partially offset by growth in Imaging revenues.

OPERATING INCOME, NET INCOME ATTRIBUTABLE TO GE HEALTHCARE, ADJUSTED EBIT, AND ADJUSTED NET INCOME.**

									For the three months ended March 31
																					2025			% of Total revenues			2024			% of Total revenues									% change
Operating income																					$	629		13.2%			$	540		11.6%									17%
Net income attributable to GE HealthCare																					564			11.8%			374			8.0%									51%
Adjusted EBIT*																					715			15.0%			681			14.7%									5%
Adjusted net income*																					464			9.7%			413			8.9%									12%

For the three months ended March 31, 2025

Operating income was $629 million, an increase of $89 million and 160 basis points as a percent of Total revenues. The increase was due to the following factors:

• Gross profit increased $111 million or 120 basis points as a percent of Total revenues primarily due to a reduction in Cost of products sold as a percent of Total revenues. Cost of products sold decreased $4 million or 160 basis points as a percent of Sales of products. The decrease as a percent of sales was driven primarily by cost productivity, partially offset by unfavorable mix within our product offerings and cost inflation. Cost of services sold increased $20 million but decreased 40 basis points as a percent of Sales of services. The decrease as a percent of sales was driven by cost productivity and an increase in pricing of our service offerings, partially offset by unfavorable mix within our service offerings. Included in our total cost of revenue as part of our product investment was $96 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $101 million for the prior year comparable period; and

• Total operating expenses increased $21 million primarily due to an increase in Research and Development (“R&D”) investments of $20 million and an increase in Selling, general, and administrative (“SG&A”) expense of $2 million primarily driven by increased investment in our commercial teams, largely offset by a decrease in Spin-Off and separation costs. As a result, SG&A as a percentage of Total revenues decreased by 60 basis points and R&D as a percentage of Total revenues increased by 20 basis points.

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Net income attributable to GE HealthCare and Net income margin were $564 million and 11.8%, an increase of $190 million and 380 basis points, respectively, primarily due to the following factors:

*•*Operating income increased $89 million, as discussed above;

• Interest and other financial charges – net decreased $12 million primarily driven by repayments made on the Term Loan Facility;

• Non-operating benefit income decreased $28 million primarily due to lower expected returns on plan assets;

• Other income – net increased $107 million primarily driven by the remeasurement of the Company’s 50% interest in Nihon Medi-Physics Co., Ltd (“NMP”) based on the cash consideration exchanged for acquiring the remaining 50% equity interest. For additional detail on the NMP acquisition, refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets”; and

• Provision for income taxes decreased $20 million primarily due to the release of income tax reserves in a foreign jurisdiction for tax years which are no longer subject to an assessment from the local taxing authorities. For additional detail regarding our income taxes, see Note 10, “Income Taxes.”

Adjusted EBIT* and Adjusted EBIT margin* were $715 million and 15.0%, an increase of $33 million and 30 basis points, respectively, primarily due to an increase in Gross profit, partially offset by an increase in operating expenses.

Adjusted net income* was $464 million, an increase of $51 million primarily due to the increase in Gross profit and lower Interest and other financial charges – net, partially offset by an increase in operating expenses.

RESULTS OF OPERATIONS – SEGMENTS

We exclude from Segment EBIT certain corporate-related expenses and certain transactions or adjustments that our Chief Operating Decision Maker (which is our Chief Executive Officer) considers to be non-operational, such as Interest and other financial charges – net, Benefit (provision) for income taxes, restructuring costs, acquisition and disposition-related benefits (charges), Spin-Off and separation costs, Non-operating benefit (income) costs, gain (loss) on business and asset dispositions, amortization of acquisition-related intangible assets, Net (income) loss attributable to noncontrolling interests, Income (loss) from discontinued operations, net of taxes, and investment revaluation gain (loss). See Note 3, “Segment Information” for additional information on our reportable segments, and “Results of Operations” above for discussion on segment revenue performance.

Segment EBIT									For the three months ended March 31
																					2025			% of segment revenues			2024			% of segment revenues									% change
Imaging																					$	199		9.3		%	$	166		8.0		%							20		%
AVS																					261			21.1		%	257			20.9		%							2		%
PCS																					48			6.4		%	81			10.9		%							(41)		%
PDx																					205			32.4		%	178			29.7		%							15		%

For the three months ended March 31, 2025

*•*Imaging Segment EBIT was $199 million, an increase of $33 million due to cost productivity, growth in sales volume, and an increase in price, partially offset by unfavorable mix and increased investment;

*•*AVS Segment EBIT was $261 million, an increase of $4 million due to growth in sales volume and cost productivity largely offset by cost inflation;

*•*PCS Segment EBIT was $48 million, a decrease of $33 million due to increased investment, cost inflation, and unfavorable mix; and

*•*PDx Segment EBIT was $205 million, an increase of $27 million due to an increase in price and growth in sales volume, partially offset by increased investment.

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NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures presented in this Quarterly Report on Form 10-Q are supplemental measures of our performance and our liquidity that we believe will help investors understand our financial condition, cash flows, and operating results, and assess our future prospects. When read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Descriptions of the reported non-GAAP measures are included below.

We report Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of our established, ongoing operations, as well as provide insights into overall demand for our products and services. To calculate these measures, we exclude the effect of acquisitions, dispositions, and foreign currency rate fluctuations.

We report EBIT, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, and Adjusted earnings per share to provide management and investors with additional understanding of our business by highlighting the results from ongoing operations and the underlying profitability factors, on a normalized basis. To calculate these measures we exclude, and reflect in the detailed reconciliations below, the following adjustments as applicable: Interest and other financial charges – net, Net (income) loss attributable to noncontrolling interests, Non-operating benefit (income) costs, Benefit (provision) for income taxes and certain tax related adjustments, and certain non-recurring and/or non-cash items. We may from time to time consider excluding other non-recurring items to enhance comparability between periods. Adjusted EBIT margin is calculated by taking Adjusted EBIT divided by Total revenues for the same period.

We report Adjusted tax expense and Adjusted ETR to provide management and investors with a better understanding of the normalized tax rate applicable to our business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. We may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted ETR is Adjusted tax expense divided by income before income taxes less the pre-tax income adjustments referenced above.

We report Free cash flow to provide management and investors with an important measure of our ability to generate cash on a normalized basis and provide insight into our flexibility to allocate capital. Free cash flow is Cash from (used for) operating activities – continuing operations including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and additions of internal-use software. Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the capital required for debt repayments.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes. In order to compensate for the discussed limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. The detailed reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below, and no single financial measure should be relied on to evaluate our business.

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Organic Revenue*									For the three months ended March 31
															2025			2024			% change
Imaging revenues															$	2,140		$	2,062		4%
Less: Acquisitions(1)															14			—
Less: Dispositions(2)															—			—
Less: Foreign currency exchange															(38)			—
Imaging Organic revenue*															$	2,165		$	2,062		5%
AVS revenues															$	1,239		$	1,227		1%
Less: Acquisitions(1)															—			—
Less: Dispositions(2)															—			—
Less: Foreign currency exchange															(19)			—
AVS Organic revenue*															$	1,258		$	1,227		3%
PCS revenues															$	753		$	747		1%
Less: Acquisitions(1)															—			—
Less: Dispositions(2)															—			—
Less: Foreign currency exchange															(7)			—
PCS Organic revenue*															$	760		$	747		2%
PDx revenues															$	632		$	599		6%
Less: Acquisitions(1)															—			—
Less: Dispositions(2)															—			—
Less: Foreign currency exchange															(14)			—
PDx Organic revenue*															$	646		$	599		8%
Other revenues															$	13		$	15		(11)%
Less: Acquisitions(1)															—			—
Less: Dispositions(2)															—			—
Less: Foreign currency exchange															—			—
Other Organic revenue*															$	13		$	15		(10)%
Total revenues															$	4,777		$	4,650		3%
Less: Acquisitions(1)															14			—
Less: Dispositions(2)															—			—
Less: Foreign currency exchange															(78)			—
Organic revenue*															$	4,842		$	4,650		4%

(1)			Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)			Represents revenues attributable to dispositions for the four quarters preceding the disposition date.

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Adjusted EBIT*									For the three months ended March 31
															2025			2024						% change
Net income attributable to GE HealthCare															$	564		$	374					51%
Add: Interest and other financial charges – net															110			122
Add: Non-operating benefit (income) costs															(74)			(102)
Less: Benefit (provision) for income taxes															(104)			(124)
Less: Net (income) loss attributable to noncontrolling interests															(24)			(14)
EBIT*															$	728		$	531					37%
Add: Restructuring costs(1)															22			40
Add: Acquisition and disposition-related charges (benefits)(2)															8			—
Add: Spin-Off and separation costs(3)															24			60
Add: (Gain) loss on business and asset dispositions(4)															(10)			—
Add: Amortization of acquisition-related intangible assets															35			31
Add: Investment revaluation (gain) loss(5)															(92)			20
Adjusted EBIT*															$	715		$	681					5%
Net income margin															11.8%			8.0%						380 bps
Adjusted EBIT margin*															15.0%			14.7%						30 bps

(1)			Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)			Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)			Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)			Consists of gains and losses resulting from the sale of assets and investments.
(5)			Primarily relates to valuation adjustments for equity investments and for the three months ended March 31, 2025 includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.

Adjusted Net Income*									For the three months ended March 31
															2025			2024						% change
Net income attributable to GE HealthCare															$	564		$	374					51%
Add: Non-operating benefit (income) costs															(74)			(102)
Add: Restructuring costs(1)															22			40
Add: Acquisition and disposition-related charges (benefits)(2)															8			—
Add: Spin-Off and separation costs(3)															29			60
Add: (Gain) loss on business and asset dispositions(4)															(10)			—
Add: Amortization of acquisition-related intangible assets															35			31
Add: Investment revaluation (gain) loss(5)															(92)			20
Add: Tax effect of reconciling items(6)															—			(14)
Add: Spin-Off and other tax adjustments(7)															(17)			5
Adjusted net income*															$	464		$	413					12%

(1)			Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)			Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)			Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. An adjustment is included to eliminate the associated impact on Net (income) loss attributable to noncontrolling interests for applicable costs that impact earnings attributable to noncontrolling interests.
(4)			Consists of gains and losses resulting from the sale of assets and investments.
(5)			Primarily relates to valuation adjustments for equity investments and for the three months ended March 31, 2025 includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.
(6)			The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction.
(7)			Consists of certain income tax adjustments, including the release of income tax reserves in a foreign jurisdiction for tax years which are no longer subject to an assessment from the local taxing authorities, discrete tax impacts resulting from the Spin-Off and separation from GE, and tax impacts of the NMP acquisition. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items.

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Adjusted Earnings Per Share*									For the three months ended March 31
(In dollars, except shares outstanding presented in millions)															2025			2024						$ change
Diluted earnings per share															$	1.23		$	0.81					$	0.41
Add: Non-operating benefit (income) costs															(0.16)			(0.22)
Add: Restructuring costs(1)															0.05			0.09
Add: Acquisition and disposition-related charges (benefits)(2)															0.02			—
Add: Spin-Off and separation costs(3)															0.06			0.13
Add: (Gain) loss on business and asset dispositions(4)															(0.02)			—
Add: Amortization of acquisition-related intangible assets															0.08			0.07
Add: Investment revaluation (gain) loss(5)															(0.20)			0.04
Add: Tax effect of reconciling items(6)															—			(0.03)
Add: Spin-Off and other tax adjustments(7)															(0.04)			0.01
Adjusted earnings per share*															$	1.01		$	0.90					$	0.11
Diluted weighted-average shares outstanding															459			459

(1)			Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)			Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)			Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs. An adjustment is included to eliminate the associated impact on Net (income) loss attributable to noncontrolling interests for applicable costs that impact earnings attributable to noncontrolling interests.
(4)			Consists of gains and losses resulting from the sale of assets and investments.
(5)			Primarily relates to valuation adjustments for equity investments and for the three months ended March 31, 2025 includes the impact from the revaluation of our existing 50% interest in NMP as part of the acquisition transaction.
(6)			The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction.
(7)			Consists of certain income tax adjustments, including the release of income tax reserves in a foreign jurisdiction for tax years which are no longer subject to an assessment from the local taxing authorities, discrete tax impacts resulting from the Spin-Off and separation from GE, and tax impacts of the NMP acquisition. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items.

Adjusted Tax Expense and Adjusted ETR**									For the three months ended March 31
												2025			2024
Benefit (provision) for income taxes												$	(104)		$	(124)
Add: Tax effect of reconciling items(1)												—			(14)
Add: Spin-Off and other tax adjustments(2)												(17)			5
Adjusted tax expense*												$	(121)		$	(133)
Effective tax rate												15.0%			24.2%
Adjusted effective tax rate*												20.1%			23.7%

(1)			The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction.
(2)			Consists of certain income tax adjustments, including the release of income tax reserves in a foreign jurisdiction for tax years which are no longer subject to an assessment from the local taxing authorities, discrete tax impacts resulting from the Spin-Off and separation from GE, and tax impacts of the NMP acquisition. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items.

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*Non-GAAP Financial Measure

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Free Cash Flow*			For the three months ended March 31
			2025			2024						% change
Cash from (used for) operating activities			$	250		$	419					(40)%
Add: Additions to PP&E and internal-use software			(152)			(145)
Add: Dispositions of PP&E			—			—
Free cash flow*			$	98		$	274					(64)%

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2025, our Cash, cash equivalents, and restricted cash balance in the Condensed Consolidated Statements of Financial Position was $2,473 million. We have historically generated positive cash flows from operating activities. Additionally, we have access to revolving credit facilities of $3,500 million in aggregate, described in detail in Note 8, “Borrowings.”

We believe that our existing balance of Cash, cash equivalents, and restricted cash, future cash generated from operating activities, access to capital markets, and existing credit facilities will be sufficient to meet the needs of our current and ongoing operations, pay taxes due, service our existing debt, and fund investments in our business for at least the next 12 months.

The following table summarizes our cash flows for the periods presented:

Cash Flow			For the three months ended March 31
			2025			2024
Cash from (used for) operating activities			$	250		$	419
Cash from (used for) investing activities			(407)			(188)
Cash from (used for) financing activities			(286)			(153)
Free cash flow*			98			274

Operating Activities

Cash generated from operating activities in the three months ended March 31, 2025 was $250 million and included Net income of $588 million, adjusted for non-cash items including depreciation and amortization expense of $136 million and gain on remeasurement of NMP equity method investment of $97 million, and $377 million in net outflows from changes in assets and liabilities. The changes in assets and liabilities are primarily driven by compensation and benefit payments, an increase in inventories to meet business demand, and company-funded benefit payments for postretirement benefit plans, partially offset off by an increase in accounts payable.

Cash generated from operating activities for the three months ended March 31, 2025 decreased by $169 million compared to the same period in 2024, primarily due to timing of employee compensation payments, with the majority of annual payments shifted from the second quarter to the first quarter of 2025, and inventory build.

Cash generated from operating activities in the three months ended March 31, 2024 was $419 million and included Net income of $388 million, non-cash charges for depreciation and amortization of $148 million, and a $116 million outflow from changes in assets and liabilities, primarily driven by company-funded benefit payments for postretirement benefit plans, annual prepayments, and an increase in inventory, partially offset by a decrease in receivables.

Investing Activities

Cash used for investing activities in the three months ended March 31, 2025 was $407 million and primarily included purchases of businesses, net of cash acquired, of $269 million related to the acquisition of the remaining 50% interest in NMP and additions to PP&E of $152 million related mostly to new product introductions and manufacturing capacity expansion. Refer to Note 7, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the NMP acquisition.

Cash used for investing activities in the three months ended March 31, 2024 was $188 million and primarily included additions to PP&E of $145 million related mostly to manufacturing capacity expansion and new product introductions.

Financing Activities

Cash used for financing activities in the three months ended March 31, 2025 was $286 million and primarily included a repayment of $250 million of our outstanding Term Loan Facility. Refer to Note 8, “Borrowings” for further information.

Cash used for financing activities in the three months ended March 31, 2024 was $153 million and primarily included a repayment of $150 million of our outstanding Term Loan Facility.

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*Non-GAAP Financial Measure

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Free cash flow*

Free cash flow* was $98 million for the three months ended March 31, 2025 and primarily included $250 million of cash generated from operating activities, partially offset by $152 million of cash used for additions to PP&E.

Free cash flow* was $274 million for the three months ended March 31, 2024 and primarily included $419 million of cash generated from operating activities, partially offset by $145 million of cash used for additions to PP&E.

Capital Expenditures

Cash used for capital expenditures was $152 million and $145 million for the three months ended March 31, 2025 and 2024, respectively. Capital expenditures were primarily for manufacturing capacity expansion, new product introductions, and equipment and tooling for new and existing products.

Material Cash Requirements

In the normal course of business, we enter into contracts and commitments that obligate us to make payments in the future. Information regarding our obligations under lease, debt, and other commitments are provided in Note 7, “Leases,” Note 9, “Borrowings,” and Note 14, “Commitments, Guarantees, Product Warranties, and Other Loss Contingencies” to the consolidated and combined financial statements contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. We have material cash requirements related to our pension obligations as described in Note 9, “Postretirement Benefit Plans.”

Share Repurchase Program

On April 30, 2025, our Board of Directors authorized a share repurchase program for up to $1,000 million of our common stock. Repurchases may be made from time to time in the open market, in privately negotiated transactions, or in such other manner as determined by GE HealthCare. The repurchase program does not have an expiration date, does not obligate GE HealthCare to acquire any particular amount of common stock, and may be suspended or terminated at any time at the Company's discretion.

Debt and Credit Facilities

As part of our capital structure, we have incurred debt. The servicing of this debt is supported by cash flows from our operations. Additional information on our debt and credit facilities, including definitions of the terms used below, is included in Note 8, “Borrowings.” As of March 31, 2025, we had $8,759 million of total debt compared to $8,951 million as of December 31, 2024. The decrease in debt was due primarily to a repayment of $250 million of the outstanding Term Loan Facility in the first quarter of 2025.

The weighted average interest rate for the Notes and our Credit Facilities for the three months ended March 31, 2025 was 5.93%.

In addition to the Term Loan Facility, our credit facilities include a five-year senior unsecured revolving facility that provides borrowings of up to $3,000 million expiring in March 2030, and a 364-day senior unsecured revolving facility that provides borrowings of up to $500 million expiring in March 2026. As of March 31, 2025, there were no outstanding borrowings on either of the two revolving facilities.

The Credit Facilities include various customary covenants that limit, among other things, the incurrence of liens securing debt, the entry into certain fundamental change transactions by GE HealthCare, and the maximum permitted leverage ratio. As of March 31, 2025, we were in compliance with the covenant requirements, including the maximum consolidated net leverage ratio.

Access to Capital and Credit Ratings

We plan to continue to rely on capital markets, and we expect to have access to credit facilities to fund our operations. The cost and availability of debt financing will be influenced by our credit ratings and market conditions. Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”), and Fitch Ratings (“Fitch”) currently issue ratings on our long-term debt.

Our credit ratings as of April 23, 2025 are set forth in the table below and remain unchanged since the Spin-Off.

			Moody’s			S&P			Fitch
Long-term rating			Baa2			BBB			BBB
Outlook			Stable			Stable			Stable

We are disclosing our credit ratings to enhance the understanding of our sources of liquidity and the effects of our ratings on our costs of funds and access to liquidity. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

For a discussion of recently issued accounting standards, see Note 1, “Organization and Basis of Presentation.”

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*Non-GAAP Financial Measure

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CRITICAL ACCOUNTING ESTIMATES

There have been no material changes to the critical accounting estimates disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.