Company: GEHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001932393-25-000049
Chunk: 54

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 1
Chunk 54
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 services sold increased $71 million or 90 basis points as a percent of Sales of services. The increase as a percent of sales was driven by unfavorable mix within our service offerings and cost inflation, including the impact of incremental tariffs, partially offset by an increase in pricing of our service offerings. Included in our total cost of revenues as part of our product investment was $128 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $102 million for the prior year comparable period; and

•Total operating expenses decreased $63 million primarily due to a decrease in Research and Development (“R&D”) of $26 million, driven by certain programs achieving development milestones resulting in costs to be reported under cost of revenues, and a decrease in Selling, general, and administrative (“SG&A”) expense of $38 million, primarily driven by a decrease in Spin-Off and separation costs, partially offset by increased investment in our commercial teams. As a result, SG&A as a percentage of Total revenues decreased by 150 basis points and R&D as a percentage of Total revenues decreased by 70 basis points.

Net income attributable to GE HealthCare and Net income margin were $486 million and 9.7%, an increase of $57 million and 80 basis points, respectively, primarily due to the following factors:

•Operating income increased $46 million, as discussed above;

•Interest and other financial charges – net decreased $18 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; and

•Provision for income taxes decreased $30 million primarily due to the use of tax attributes from updating our global structure following the Spin-Off. For additional detail regarding our income taxes, see Note 10, “Income Taxes.”

Adjusted EBIT* and Adjusted EBIT margin* were $729 million and 14.6%, a decrease of $13 million and 80 basis points, respectively, primarily due to a decrease in Gross profit, partially offset by a decrease in operating expenses.

Adjusted net income* was $487 million, an increase of $28 million primarily due to lower Provision for income taxes and lower Interest and other financial charges – net, partially offset by a decrease in Gross profit.

For the six months ended June 30, 2025

Operating income was $1,283 million, an increase of $135 million and 100 basis points as a percent of Total