Company: GEHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001932393-25-000049
Chunk: 110

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 8
Chunk 110
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 profit increased $93 million, but decreased 30 basis points as a percent of Total revenues primarily due to an increase in both Cost of products and Cost of services as a percent of Total revenues. Cost of products sold increased $110 million or 40 basis points as a percent of Sales of products. The increase as a percent of sales was driven by cost inflation, including the impact of incremental tariffs, partially offset by cost productivity. Cost of services sold increased $91 million or 30 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 $224 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, 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