GE HealthCare Technologies (GEHC) Wells Fargo 21st Annual Healthcare Conference summary

Q2 performance and order growth

• Achieved 11% order growth in Q2, driven primarily by equipment orders and a significant backlog build.

• Strong market demand persists, with long wait times for scans and new product launches contributing to growth.

• Backlog provides high revenue visibility for Q3 and Q4, with 80% of Q3 revenue already committed.

Margin outlook and productivity

• Expecting a typical 250 basis point margin lift in the second half, supported by new product introductions and productivity initiatives.

• Margin improvement driven by higher-margin new products, sourcing and manufacturing efficiencies, and commercial group synergies.

• Price increases and recovery in PCS after supply chain issues are also expected to support margin expansion.

Hospital capital budgets and policy impacts

• No significant pullback seen in hospital capital equipment budgets despite policy changes; capital spending remains stable.

• Increased demand for imaging due to new drug therapies and procedural growth underpins equipment needs.

• 340B policy changes are not expected to materially disrupt hospital funding or capital spending.