GE HealthCare Technologies Inc. Q2 FY2025 earnings call

• Delivered another solid quarter with orders growth across all segments, backlog at record levels and strong book-to-bill. - Revenue growth in the period was driven by strength in the U.S. and EMEA regions. - Secured significant wins and long-term enterprise deals in the U.S., Mexico, Europe. - New product introductions generated over 50% of sales, demonstrating success of R&D investments. - Commercial teams go to market with a solutions mindset, clinical expertise and deep product domain to better serve patient needs and help customers create sustainable long-term growth.

Imaging: Organic revenue in the quarter was up 1% versus the prior year. Segment EBIT margin declined 110 basis points year-over-year, driven by tariff pressure. Advanced Visualization Solutions: Organic revenue was up 2% year-over-year. Segment EBIT margin increased 20 basis points year-over-year, driven by productivity and volume. Patient Care Solutions: Organic revenue was flat year-over-year. Segment EBIT margin declined 240 basis points, primarily driven by inflation and unfavorable portfolio mix. Pharmaceutical Diagnostics: Delivered 5% organic growth. EBIT margin declined 200 basis points year-over-year due to planned U.S. radiopharmaceutical investments, Nihon Medi-Physics and FX headwinds.

• 2025 full year organic revenue growth guidance raised to approximately 3%. - Adjusted EBIT margin forecasted to be in the range of 15.2% to 15.4%. - Adjusted EPS expected to be between $4.43 and $4.63. - Third quarter of 2025 currently anticipates year-over-year organic revenue growth for the quarter to be in the range of 2% to 3%, and expects adjusted EBITDA to decline high single digits year-over-year due to tariff impacts. - Expect to deliver free cash flow of at least $1.4 billion for the full year.

• Tariff impacts on adjusted EPS. - Macro-economic landscape uncertainties. - Uncertainty in the global trade environment affecting business operations.

Q: Vijay Kumar with Evercore ISI asked about the capital environment across different regions and whether China has bottomed.

A: Peter J. Arduini and James K. Saccaro responded, talking about U.S., Europe, emerging markets and China's market recovery.

Q: Joanne Wuensch with Citi asked about order growth deceleration.

A: James K. Saccaro and Peter J. Arduini explained about order growth moderation, book-to-bill and backlog.

Q: Lawrence H. Biegelsen with Wells Fargo asked about Flyrcado and gross margin.

A: Peter J. Arduini and James K. Saccaro answered, discussing Flyrcado's progress, reimbursement, and factors affecting gross margin.

Q: Robbie Marcus with JPMorgan asked about China and the rest of the year's revenue guidance.

A: Peter J. Arduini and James K. Saccaro replied, talking about China's market and the cadence of revenue.

Q: David Roman with Goldman Sachs asked about PDx and order to revenue conversion.

A: Peter J. Arduini and James K. Saccaro answered, discussing nuclear medicine and the relationship between orders and revenue.

Q: Matt Taylor with Jefferies asked about innovation pipeline and capital allocation.

A: Peter J. Arduini and James K. Saccaro responded, talking about upcoming products and capital allocation.

Q: Rick Wise with Stifel asked about Photon Counting CT and Patient Care Solutions.

A: Peter J. Arduini replied, updating on Photon Counting CT's progress and Patient Care Solutions' future plans.