Company: GEHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001932393-25-000049
Chunk: 136

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 2
Chunk 136
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, compared to $203 million for the prior year comparable period; and

•Total operating expenses decreased $42 million, with a decrease in R&D investments of $6 million and a decrease in SG&A expense of $36 million primarily driven by a decrease in Spin-Off and separation costs, partially offset by increased investment in our commercial teams. As a result, R&D as a percentage of Total revenues decreased by 30 basis points and SG&A as a percentage of Total revenues decreased by 100 basis points.

Net income attributable to GE HealthCare and Net income margin were $1,049 million and 10.7%, an increase of $247 million and 230 basis points, respectively, primarily due to the following factors:

•Operating income increased $135 million, as discussed above;

•Interest and other financial charges – net decreased $30 million primarily driven by repayments made on the Term Loan Facility;

•Non-operating benefit income decreased $56 million primarily related to lower expected returns on plan assets;

•Other income – net increased $106 million primarily driven by the remeasurement of the Company’s 50% interest in 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 $51 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 and 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 $1,443 million and 14.8%, an increase of $20 million, but a decrease of 20 basis points, respectively. The decrease of Adjusted EBIT margin* was primarily due to the decrease in Gross profit as a percent of Total revenues, as discussed above.

Adjusted net income* was $951 million, an increase of $79 million primarily due to lower Provision for income taxes, the increase in operating income, excluding the impact of lower Spin-Off and separation costs, and lower Interest and other financial charges – net.

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