Company: GEHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001932393-25-000014
Chunk: 97

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 97
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 three months ended March 3120252024Cash 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,