Company: GEHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001932393-25-000014
Chunk: 89

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 89
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 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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*Non-GAAP Financial Measure

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Table of Contents                 

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