GE HealthCare recorded a 51% increase in net income for the three months ended 31 March 2025 (Q1 2025), reaching $564m, compared with $374m in the corresponding quarter a year earlier.
The rise in profit was supported by improved operating margins and higher volume across core business units.
The company posted total revenues of $4.8bn, reflecting a 3% year-on-year increase. On an organic basis, which excludes currency effects and acquisitions, revenue rose 4%.
Adjusted earnings before interest and taxes (EBIT) stood at $715m, compared with $681m in the prior-year period. Adjusted EBIT margin expanded by 30 basis points to 15.0%, while net income margin increased to 11.8%, up from 8.0%.
Diluted earnings per share for the quarter rose to $1.23 from $0.81. Adjusted earnings per share reached $1.01, up from $0.9.
GE HealthCare’s performance was accompanied by a slowdown in cash generation. Operating cash flow dropped to $250m from $419m in Q1 2024. Free cash flow declined to $98m from $274m, primarily due to a $269m cash outlay for the completed acquisition of Nihon Medi-Physics, a radiopharmaceutical company based in Japan.
GE HealthCare president and CEO Peter Arduini said: “First quarter results reflect strong execution as we start the year with robust revenue, orders and profit growth, which were driven by strength in the US.
“We remain focused on delivering on our precision care and growth acceleration strategies, underscored by the closing of our acquisition of Nihon Medi-Physics, which we expect will increase global access to our next-generation radiopharmaceuticals.”
The company’s total order intake increased 10% organically, resulting in a book-to-bill ratio of 1.09.
Revenue from the Imaging segment rose 4% year-on-year to $2.14bn, with organic growth of 5%. EBIT for this unit reached $199m, an increase of 20%, while margin improved by 130 basis points to 9.3%.
Advanced Visualisation Solutions reported revenue of $1.24bn, up 1%, with organic revenue growing by 3%. EBIT remained stable at $261m, translating to a margin of 21.1%.
Patient Care Solutions revenue totalled $753m, reflecting a 1% rise, while organic growth stood at 2%. However, EBIT for this segment declined by 41% to $48m, with a margin of 6.4%.
The Pharmaceutical Diagnostics business posted revenue of $632m, up 6% year-on-year, and an 8% increase on an organic basis. EBIT grew 15% to $205m, with an EBIT margin of 32.4%, marking a 270-basis point improvement.
GE HealthCare updated its 2025 financial outlook to reflect tariff-related effects. Organic revenue is projected to grow between 2% and 3%, in line with earlier estimates.
However, the company lowered its adjusted EBIT margin forecast to a range of 14.2% to 14.4%, down from the previously guided range of 16.7% to 16.8%.
The firm now expects adjusted EPS to fall between $3.9 and $4.1, down from its earlier forecast of $4.61 to $4.75. The revision includes an estimated $0.85 per share impact from tariffs introduced in April 2025.
Free cash flow for the full year is expected to be at least $1.2bn, compared with the previous projection of at least $1.75bn.
The company noted that the revised forecast assumes the continuation of current US, China, Mexico and Canada tariffs, and a reinstatement of reciprocal tariffs on other countries from July 2025.
