GE HealthCare Technologies (GEHC) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue was $19.6B, up 7% reported and 8% organically; adjusted EBIT margin was 15.1%, 60 bps above the estimated FY22 standalone comparison.

• Robust backlog and an improving capital equipment landscape supported a positive 2024 outlook; medium-term financial targets remained on track.

Financial highlights

• Q4 revenue was $5.2B, up 5% reported and organically; organic orders grew 3% YoY and book-to-bill was 1.05x.

• Q4 adjusted EBIT was $837M, with a 16.1% margin; adjusted EPS was $1.18. Net income attributable was $403M vs. $554M, and EPS from continuing operations was $0.88 vs. $1.21.

• FY 2023 adjusted EBIT was $3.0B, with a 15.1% margin; adjusted EPS was $3.93 vs. $4.63, and EPS from continuing operations was $3.04 vs. $4.18.

• FY organic orders grew 3% YoY, book-to-bill was 1.03x, free cash flow was $1.715B and free cash flow conversion was 95%.

Outlook and guidance

• 2024 organic revenue growth guidance is ~4%; adjusted EBIT margin guidance is 15.6%–15.9%, up 50–80 bps vs. FY23.

• 2024 adjusted ETR guidance is 23%–25%; adjusted EPS guidance is $4.20–$4.35, growth of 7%–11%; free cash flow guidance is ~$1.8B.

• Guidance reflects an improved capital equipment landscape; medium-term financial targets remained on track.