GE HealthCare plots 2023 growth in first solo earnings report

In its first earnings report as an independent company, GE HealthCare said it expected to see between 5% and 7% growth during 2023, driven in part by a strong order backlog and investments in high-growth segments.

That would be largely in line with the 7% organic growth the company saw in the past year when compared to 2021 and excluding foreign currency fluctuations. For 2022, GE HealthCare collected $18.3 billion in revenue, compared to about $17.6 billion the year before, with gains centered in its digital imaging and ultrasound segments—while the company’s acquisitions contributed about 1% growth to the total.

In a release, President and CEO Peter Arduini cited easing supply chain pressures and high market demand as growth drivers. However, the company’s annual net income dropped from $2.24 billion to $1.91 billion, following increases in R&D and administrative expenses. 

Those expenses include, for one example, an $80 million investment late last year to increase capacity at a Norwegian facility for producing X-ray and CT scan contrast media. With more than 100 million doses currently being used annually, GE HealthCare expects that number to double in the next decade. The plant upgrade aims to deliver 30 million more doses per year by 2025.

“Looking ahead, we're confident that our accelerated investment in innovation, as well as standardization across platforms, will drive revenue and margin growth,” Arduini said. “We're seeing customers continue to invest along with macroeconomic tailwinds, such as increasing healthcare digitization, expanding access to care, and an aging population globally.” 

GE HealthCare’s imaging division revenue broke 11 figures, with a 10% jump to about $10.4 billion, up from 2021’s $9.4 billion. The fourth quarter of 2022, meanwhile, saw an 18% gain in sales, to about $2.9 billion. 

At the same time, ultrasound hardware brought in $3.4 billion during the full year of 2022. That amounts to 6% over 2021’s $3.2 billion; while 2022’s fourth quarter saw $960 million in sales for 7% growth.

According to the company, ultrasound sales were led by placements within radiology and primary care offices, as well as in obstetrics, women’s health and cardiovascular clinics. Meanwhile, imaging’s gains were driven by molecular imaging and CT scanner placements, as well as MRI and guided surgery hardware. 

The company previously described technologies such as photon-counting imaging, artificial intelligence and handheld or remote ultrasound devices as high-priority areas for future growth, as well as wearable monitors for patients in hospitals.

GE HealthCare completed its long-awaited spinout from the eponymous conglomerate earlier this month, making its Nasdaq debut Jan. 4. The elder GE first announced a three-way company split in late 2021, with its renewable energy, power and digital divisions set to become another standalone company dubbed GE Vernova in early 2024. Its remaining aviation businesses will be renamed GE Aerospace.