Customer demand, backlog fulfillment, and improved pricing helped propel GE HealthCare to a 7% increase in revenue in its fourth quarter, according to preliminary unaudited results.
For the period (end-December 31, 2022), GE HealthCare produced about $4.9 billion in revenue, representing 7% overall growth and 12% organic growth. For the year, it generated approximately $18.3 billion in revenue, with 4% overall growth and 7% organic growth.
Adjusted earnings before interest and taxes (EBIT) for 2022 are expected to be above the company's previous outlook while free cash flow is projected to be toward the low end of its prior estimated range, according to the company. Full results will be released on January 30.
In a statement, GE HealthCare President and CEO Peter Arduini noted that although inflation remains a factor, the company is seeing an improved supply chain environment and growing demand for its products and services in 2023.
Looking ahead, GE HealthCare said it expects to achieve organic revenue growth ranging from 5% to 7% in 2023 and an adjusted EBIT margin of 15% to 15.5%. The adjusted EBIT margin would reflect an expansion of 50 to 100 basis points compared to its 2022 pro forma adjusted EBIT margin, according to the firm. Furthermore, the company said it anticipates a free cash flow conversion rate of 85% or more.
