GE HealthCare (GEHC) 31 Oct 232023 Q3 Earnings call transcript

Good day, and welcome to GE HealthCare's Third Quarter 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this call is being recorded.

I would now like to turn the call over to Carolynne Borders, Head of Investor Relations.

You may begin.

operator. Thanks, HealthCare's Earnings GE Quarter Third to Call. XXXX Welcome and Arduini, Jay and joined by Vice Peter President our CFO, I'm our CEO, President Saccaro. and

non-GAAP available GAAP call both press be release conference will the financial website. today's and results. presentation in slides Our found in Reconciliations our non-GAAP and remarks between and measures on can GAAP include

see about are based statements this During things performance. today. our call, we'll make These how forward-looking we statements on

to results described to uncertainties. risks in due our differ As hand Peter. over and actual with call may I'll filings, that, And materially SEC the

new greater about for several strategic Thanks, call. us Carolynne. I'll the Good to new announced our morning, everyone, I flow at multiple applications. start, we've products, detail intelligence-based and introductions and for and quarter. say quarter in collaborations thanks aimed product artificial performance supporting third margin pleased with launched joining talk later growth, our want we're clinical which today and To cash Recently, in

We're grant develop honored from patients and Gates professionals ultrasound health screening, tools experienced lung obstetric to to ultrasound and middle-income Melinda & care and low less have for Foundation more the effective for Bill in received support countries. a

over ], signed and traumatic Department injuries. division a also develop million patients lung pathologies [ with committed for $XX with represent BARDA of contract Health new with Both the technology We these U.S. and ultrasound of a funding. of advanced Services Human AI combined applications of

health strategy. about collaborations multimodal this data, help theranostics on Lastly, treatment using improve enhance and us and we Care how innovation digital precision patient Precision Clinic for in medical announced strategic to and solutions. imaging our and Mayo our a will collaboration excited with by deliver recent We're AI diagnosis

year, macro that execution on business to commitments. on the XXXX, our to deliver demonstrated occurred Despite the several we progress our have mid-range meet we track and We're executed focused our year. challenges been beginning and on set of operational we're on has our and making targets. intensely at The goals team this good has resiliency in financial

strong X% growth Turning delivered price. We and driven to Slide quarter organic X. year-over-year performance by revenue third volume with

of book-to-bill X.XXx, second offer. backlog Importantly, particularly for we site capital the our Customer quarter. as book-to-bill was quarter for procedure in products rising a slightly X.XXx below in reason the investments, that

on Backlog remains X% in than products confidence and driven $X Imaging and levels, customer Services higher the pre-COVID pulse of no at period robust same last significant see growth year. the versus U.S. Orders change second than year. $XX.X the billion, versus remains quarters. survey and more billion which of in in recently completed was the half gives a the in first by We us half future sentiment capital XXXX spending

results revenue quarter, any as as directly near-term to And Orders and do we translate total lumpy this given growth growth. be in book-to-bill is well backlog. metric why can not give

impact were China As relates it Both up the limited in to revenue year-over-year. quarter. campaign, the we our a to orders saw measures anticorruption and and

reminder, a with limited China quarter. orders comparisons to China the to due the profile. quarter year-over-year fourth fourth experienced an continues influence year, will to important be last as promising continue next launch quarter. expect a growth in Also significant which We growth market the impact XXXX stimulus a

using progress During our and [ to ]. on productivity steady make the initiatives we optimization quarter, lean continued business

year. year-to-date approximately pool XX%, times the XX% of of has risk performance high direct The a versus have For improved and as more implementing components by methodology. purchase XX% result for reduced over by lead customer improved example, than has delivery availability number prior classified

availability improvement the service by improved XX% the team. supported have efforts satisfaction customer parts in surveys by lastly, and And approximately service great for

our execution well simultaneously while line, funding EBIT speaks as to commitment adjusted long-term innovation. generated our accelerating investment. On capabilities we expansion as margin the This profit to R&D

to shareholders. Turning on allocation. an strategy with remain a value creating optimized focus committed executing to We for capital

generation Our and while priorities. to flow deleveraging deliver the quarter aim strong inorganic be a flexible free our We organic in continuing cash third to investments evaluate to in dividend positions and opportunities. capital allocation us

Overall, global markets have resilient. remained

remains backlog our continues team to Our execute. and healthy

end result, adjusted a XX% raising of XX%. As we're XXXX range, of the to representing low EPS our growth

our now Jay will performance. through Jay? business take you financials and

Starting Thanks, X. performance Pete. our on Slide with financial

organically. continue XXXX, by was healthy third to volume driven revenues and increased increased quarter price. X.XXx. and year-over-year of revenues. X% of at outpace Order remain $X.X strong the For billion and This X% grew Book-to-bill was dollars

basis, basis, flow expand XX% XX.X%. on increased from inventory margin stand-alone actions. down improved and prior interest on planned XX stand-alone elaborate $X.XX, of the XXX third points Year-over-year, taking actions margin our performance versus we're driven expense expansion through strong volume. partially cash basis increased to productivity was XX% basis year-over-year On and initiatives due EBIT was quarter generated by and due Sequentially, EPS by volume offset investments and to was benefiting Free margin price, productivity margin a our shortly. Adjusted I'll inflation. up adjusted a but year points, we management. up to

X%. Moving X% Revenues revenue growth regions. increased We all grew saw basis, X. revenue organically Slide X% year-over-year service year-over-year. reported and to revenue across strong a On product grew organic

turn it to to performance, X. relates Slide please As margin

that enhanced third Our quarter margin initiatives by the was driven as productivity well commercial in cost and pricing strong, adjusted our by execution we're as driving. XX% variable of gross teams

improved see logistics services example, in we rigor. operational lower For and parts costs for productivity,

real and exited from XXX businesses higher-margin systems service transition create across scale. new efficiencies date. as benefited and the our rationalizing simplifying We've also to footprint volumes and agreements services also IT improving to We're G&A we our introductions. product also optimizing our by We spend estate

gross to a R&D, by margin We've X% driven in made expansion our was we in of expect is margin We the deliver some revenues larger track actions to as beyond. which results approximately in on remain expansion on continue XXXX to progress adjusted have This the of scale XXXX and good quarter. and greater on guidance. EBIT primarily impact invest

Now let's our discuss segments.

Turning This of fulfillment at We follows was reflecting year. improved introductions and of in same driven growth growth the backlog Slide quarters period strong generated improved from X. growth, last increased imaging to product year-over-year CT organic growth driving aimed quarter solid revenue several and X% by on the revenue several MI, new This MR. Revenue patient price. third in included outcomes versus efficiency. and

higher year-over-year more Segment made EBIT investments. of XXX productivity, points in progress this we improved basis delivering than all and offset price margin planned driving volume, as

improved Importantly, also XXX EBIT basis on margin a sequential basis. points

headwinds up expected a happen. we take we're it As quarters measures to before seeing that and now would inflation previously few pricing noted, would that catch

double-digit our Organic we Turning as revenue X. realize that in comparison third to on challenging X% started was when quarter Slide year-over-year versus XXXX the this Ultrasound third the down last for Recall business. we in improvements a was components to delivered revenue we of which the access year quarter growth. organic quarter to first faced

The stabilizing supply leadership Looking challenges. at COVID the X-year to chain We're average, and and mid-single execute maintain continuing Ultrasound market revenue position. the is global grew following digits. in our

cardiovascular women's saw products, and During in the our health we solid for newly demand businesses. launched quarter,

and XX% primarily health, due productivity Segment was year-over-year, down cash planned points basis including improvements. by investments, to EBIT offset were XXX partially and of inflation. These margin

organic AI diagnostics. to integration reflects enhance our as as Our through investment both precision inorganic leadership commitment margin we well to technology seek performance and as

within evaluating U.S., our AI the capture real-time cardiac Caption months, the venue guidance acquisition now in to cardiac quality guidance new technology future we This cases to X exams. Health for images. other AI even growth. features this portfolio we're into In We our product to and drive step-by-step use February, allow technology incorporated provides point-of-care portfolio, users ultrasound diagnostic closed

on by to and past also improved as fulfill X. actions revenue over as more backlog. were continue realize chain-related able contribution benefits Organic NPIs. we Moving up of to Patient X% driven Care by year. taken was Performance Solutions driven the from we to price Slide supply the volume was Revenue

PCS recently broader the monitoring margin last metrics and interoperability. growth by year, monitoring price few volume basis partially our the We're offset impact over Investments we launched excited and products device XXX quarter productivity, compared about support planned the that next portfolio points driven transformation, their by and inflation. and new investments which enables quarters. increased to third

Slide moving was another organic XX. XX% EBIT XX.X% We of declined revenue margin improved year-over-year Diagnostics inflation on raw and XXX partially basis productivity had points year-over-year strong volume. growth. XXX price to to due investments. but by sequentially quarter, This generating material Segment planned Pharmaceutical and Finally, actions points basis and offset

continued and contrast stabilized encouraged we're strong which the procedures, of by need We've for drive global EBIT the imaging growth seen agents. margin PDx

better inventory leverage versus million, post-retirement strong to year-over-year. to lean year up We management while through results XX. interest cash the million absorbing our Turning I'll prior solidify as $XX Inventory of cash driven improved this inventory Slide performance. benefit was system. continue by This we flow period payments. and flow $XXX delivered daily quarter our with free and management walk

We're realizing benefits pressure. liabilities inventory business. organized our while activities addressing for turns faster fast and lean in chain solid events saw We conversion easing across cost and constraints revenue driving from also I'm and progress structure. legacy inflationary supply controlling the inputs results the pleased through with

in allocated our the to conserving our plan freeze were to past that be to investments fact, U.S. agreement fund can business. achieve largest In now we quarter, pension to cash able grow

track continued to investment us and of free deliver cash the profile of flow or flow cash on deleveraging well and XX% solid The more positions remain year. full our for conversion we for business

on let's the XX. Slide outlook turn to Now

the X%. expect revenue We organic continue to growth to X% of range in

will As revenue quarter of a growth in strong reminder, organic growth of quarter performance compared a fourth our against XXXX. be the XX% very fourth

performance of We in XX% EBIT range per the end continue date, full rate margin to And of EPS adjusted $X.XX and now raising to the the to of adjusted versus to prior effective year. year $X.XX full full to range XX.X% expect of XX% $X.XX the share. strong the range range our to tax we're to the for adjusted $X.XX in low year XXXX given XX.X% the

back With the that, Pete. call I'll hand to

Jay. Thanks,

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we recently some PDx, advance announcements In delivery made care. of precision exciting our to

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missed exams. know, of millions misdiagnosed in up in many of to appropriately as routine people may practice A-Fib, the often most not worldwide. It's is cases diagnosed treated clinical of clinical affecting XX% you or common arrhythmia with

College our monitoring. we integrates, this American CardioVisio, visualizes evidence-based and from organizes detection longitudinal we which support able advance A-Fib data of clinical launched provide To multiple devices. along the patient were through care Cardiology, current data with decision from guidelines recently to Taking pathway, from

entire therapies. pathway. digital CardioVisio patients care the patient helps save is cardiologists from for pathway. an most and our this to And recommended and assist connects on and step identify to the presents time care journey the and solutions relevant for more across to across cardiovascular launch caring data integrate eligible patients This devices important

expand to to plan address coronary CardioVisio future, heart. the disease and as additional artery In we areas such structural

linking disease-based expect to multi-vendor solutions also neurology better devices, oncology our and drive serve and by and We to growth. similar customers digital support innovations launch to

operational is XX. summary, made year-to-date, to Turning progress working. that In Slide financial and demonstrating we've substantial our strategy

Our all of execute, I'd to like to across and team the our efforts. continues for their world and thank employees dedication

want questions, vision to responsibility I of our first since independent our open world taking purpose care create your company. and highlight to website. a becoming To learn and recent Before sustainability visit our where questions. page call embodies ESG our the sustainability With an on limits. health to up to is core it Corporate no future our report more that, has plans, our let's about goals release our

please Thank open the can line? you, Peter. Operator, [Operator Instructions]. you

first Our from Instructions] question Evercore. Vijay [Operator Kumar with comes

that upon can the order what And of some order the on want big was there's if did China to to China capital Congratulations of quantify here. commentary those for you numbers have book ex and in your business? here. I good order. a is growth China, And you debate can think deal What touch I quarter? execution your was how

Yes, and see China, about level in you bit add but Ventilators, of 'XX, products high and monitoring. then customers, including if market see let me strong more we're that start the of out growth continuing ultrasound, back, at 'XX around CT, specifically, coming recall that world, some. end by saying a an standpoint. to I'll Again, we to from just wants I'd solid really were that us little talk saw continuous monitoring I'll a demand Vijay, start -- orders in really for obviously, all demand COVID, as Jay step you'll different

which this with a transition then essentially we comparisons. for. And that's But that year, year by XXXX followed planned was is what tougher

'XX, to we obviously year so ahead going of into first view kind even we as of normalized positive. which very since with here, be as more market expecting environment look a that really And the we're COVID,

as So I say, relative things. been we've it's how market, to seen would of printed kind QX, is

I'd a If you and say we China, limited switch QX. over to on in sales orders your point impact to saw

expect and in actually in and comments As we up were I in over we limited in here, QX the 'XX sales mentioned impact orders QX.

job tough signs starting We're results overall here. can ] I'm worked and China good as anticorruption really through And We in just started you late eHow it's of the So there. to really in stabilize our proud some and team [ did challenges a see September. of imagine. campaign nice to

I market kind reports congress certain think There stopped, October. resumed were whereas capacity, a recent lot anesthesia all early a of back were full events of but low. that was in meetings to early August by then was

similar in on believe the to we quarter. a see fourth of going we're So kind that here continue trend

Jay. perhaps Understood. both And follow-up on I one margins, and had you for here

you the fiscal be up I with should do sustain I inflation. think something expecting think clearly, profile you And Is margins, products How price mentioned solutions? [ and margin like related these that to mentioned these ], we what's AI products into 'XX? CardioVisio for kinds of solutions. price to you caught

then, talk a Yes, I'll and can start Jay, more little Vijay, about bit price. maybe you

it's So be monetization, way out, those the out. the in margin products, we're they still to roles of to cases, product on start our we're a AI inside leadership the humbled super AI X, on exciting. portfolio in some X-plus X, points which enable about will one to early the our come now, across that. as is innings of have given products Obviously, think we really is new bring, accretion But applications but

our step-up and margin quite of Air talk a that DL doesn't. Recon over that MR, example it system an of we that an is where bit one think has has I about MR

grow. to that's And so continue going to

will CardioVisio model. it As we a will we're in mentioned, be which as that products of that a which go core bring beginning something be again, over across incorporate will revenue kind model, where you and SaaS roll out AI will many reoccurring like just time, a to offering

XX% I have something range. that from price in would standpoint, of margins, structure. based expect And value typical to would a say we margin on software we north XX%, will that it

is value we of But be couple the this so grow believe, is multimodal as and to really And help solve to future year we this. again, adding issues. customers' this, evolution going data a

you maybe want price. about to comment Jay, So

lot impacts about expecting all X% we ingredients intact. to midterm in X% have laid of framework pricing. disciplined Vijay, the are we the in on Sure. out, And And range. sales previously then culture execution to discussed of is around year price continuing over see price. those the that in to we've this place, a a And X% X% that plan

on would track signs laid and say to that support pathway that much execution the this X% previously I we're see year, the for longer-term we very So out. X% we

comes next Joanne from with Our question Wuensch Citi.

I'm how mid-single This book any is about or we order XXXX, the of In time a the is you're give anything things. can about And or that year street couple about imply implications now? that digits. forward. And year-to-date the start looking would of order, consensus share there XXXX revenue curious for particular feeling you

thanks Joanne, that say the The this we're a stop -- few would provide giving of -- guidance that I short point, can some going say we'll question. but would I color. to things -- for at

execution First, year. far so with really pleased this the

really continued sales do on continued execution, our execution and orders beyond. our focus the XXXX and focus delivery set for successful think margin I on stage enhancement of

QX the book-to-bill of of And that's a I have flat growth. down Secondly, backlog X. backlog that lot essentially to to to in revenue continued point excess place. X% was The to we would a in QX despite be from comes that

really we're up XXXX. the set backlog so happy with for And that's

to XXXX. we set backdrop And Pete is up we're this. seeing regularly say some would alluded survey The decent of for final do I a thing customers.

delivering ingredients think are of successfully and I XXXX. key elements all these

as in go our very that we weeks add? months. and focused so on planning through the And we're anything coming Pete, process to

it. think I No, covered you

I well important very quite of And half commentary as market leaders think myself, outlook. CEOs the and health with one-on-one our second our mean, to on point systems. about lean again, I routinely the the that the half Jay talk part. really do and get obviously, that feedback and teams to bit around a is as the both out capital is And customer of world. the most first compared fact surveys kind consistent we old

by drive say driven hearing would I procedures, 'XX customers. company procedures and continues views be We're to more about that's that we're from And not typically but business, then incremental strong. the obviously, and a more our positive

You've seen also prints and from of obviously, we as customers future. standpoint their outlook. -- healthy the are aging in installed recently from this just but many customers, procedural some base growth, about with see thinking ahead a a And needs their

So into 'XX. see how we're the making optimistic turn about we

Our comes next Petrone from Mizuho. question Anthony with

Congrats on another quarter here. strong

level I to where the think on maybe set forward theme XX-month to backlog stay I'll of revenues just sits on maybe the and sort XXXX an basis. conversion go-forward

we margins. as the backlog feasible converted of it's we look should that are thinking be can the there months? talking over at ending -- in any areas And next China. where on So extended. instance, a that XX be backlog, it the follow-up is XX% have I'll that competitors backlog for conversion Jay cycles, heard some for possibly quick We elongated about And got

a we billion billion. it revenues I meaning say you super our know it's book-to-bill we where today, year it's $XX.X in actually having pre-COVID. would with where was $X We'll is it's start change that's that's next were are a Yes, and healthy. positive, I actually which as the we pretty above to think quite when than out. more orders math with are mentioned book-to-bill, works, that that actually backlog, are close about going And backlog solid. how we going we Anthony, about $XX.XX felt

obviously, I gives I there's drive an to obviously you the tank plenty that numbers We that's outperform the some lumpy the in of anticorruption different China know but again, in this put able revenue. level, with been companies. to gas front, that be up in later And being customers to orders mentioned with that China. as reintegrated at So able important felt we be can different of lot of to in about continue dynamic. news the good earlier year. disengaging business effects from quarter, previous the a on the

some project QX, as The only construction would back are and the on quarter, costs that, a the about say longer. of for the the you is some budgets. seeing kind customers that install the really bit what of onion taking And on did comment to deals higher peel longer U.S. little relative compared other it initial is end in their I to we side see more towards some labor

to they what And get $XXX,XXX getting "Hey, But their may so be are another the deals that this means committee to more back go and have approval". to for is sure. is done finance and say, actually going

up that and think its we've has that quarters. the only kind coming those the time I the actual so thing of way through the as the systems And estimates in match seen horizon. probably played works out cost that's on But

the implied quickly, midpoint $X.XX, up for is be XQ. helpful. on by just Very Jay, XQ earnings, $X.XX And would

of those we of into seeing, So the 'XX. trajectory? if end half there congratulations. year first anything any And look margin slip as of the potentially the here are we're just headwinds into for do Again, that back and note the

for year-to-date. we're with pleased -- question thanks the you Thank comment. Yes. the and Overall, the performance

board seen execution. resiliency we've on is the continued think I margin of the what across focus portfolio, the

very I an cash free of focus the which third performance would ingredients are for out think the is point intense key I us. way, strong all in By also place. the flow in quarter, area

So I third feel delivered quarter. about good the in very we what

the related couple definitely a has the changes material third solid the implies that. then which We in fourth low point would foreign move to than FX We lighter in cents And cents. EBIT the exchange, achieve we The had outlook. really of of we $X.XX, FX. of we feel and As to that about moves, is together. to cents end full bit probability ability couple our worked most by year $X.XXX. quarter the a I fourth of We quarter, out put the quarter quarter That's forecast couple were the the our out the increased. forecast don't rate raised confidence item. a noteworthy fourth our -- a there favorability to of outlook subsequent in way have the

that, on Other going and I fourth we're successful in to focus execution setting continued for think than the quarter XXXX. up a ourselves

comes question with Stanley. Patrick next Our from Wood Morgan

I mean taking a for was get it step historically, to tough back, paid innovation.

slice the is add have some Freelium, it and on was job today, then you But my innovations. And photon wars price. question scope about for just term? kind thinking do I always in changed? is we what pricing like so interpret that taking it You recent innovation and today counting you price think of longer has that a of should the of difficult happening get how how guess great you to did guys the mix Is higher? you're

that's Obviously, took with great are. for that the necessity during you different all things. I your kind where reflect many convergence window, cost it's Patrick, of sometimes higher on pricing strategies and Look, the a question. of place think a COVID Yes, to

It's of think we strategy really I level up with. to a that be part so what that's a And paid for company of talk fairly we of as important our beginning come to want some a kind catalyst. about been

products held are X on ROI the X at look And to for for in of you when these we think years. the products of themselves months, make, pay they many many years. not I

of still whether very been you're money it. I that's good. is part in And return I money and part that teams of on think how reality very, think paying getting that's or sell X% X% the to And the it. that value, So the commercial confidence that's your investment,

other innovation The aspect investments. is

artificial with to actually because out it X price versus new value, years creates customers can take can you actually that more can part there. coming think months actually more more every and and strategy. winner. the It bit But X of and side bring show also work reduce out treat I can to every system we workflow that the that's at innovating little such of actually for up. XX for the a on we more demonstrate our important that And that are day, issues. actually and brings that of something returns have a end the value things an you're digital is If patients the And something ask intelligence

Recon We DL. Air talked about

an a reasonable we have coming we and on to your actually just capabilities applications XX-year-old we about. You kind a alone. you throughput, product. ask would are in We we're things that. and margin that value higher a the the of XX% of that's also than take more typically a do software for We to on increase think upgrade. And that Those are excited I get hardware And state-of-the-art. capabilities have forward get going deliver

free Tesla like the of a a deals, higher spec. of as seeing or follow-up. quick Just the very anything on the modalities. you Are anything maybe with some proportion different spec notable on I across mean, bundled like

different talking on When you you're spec, the say specifications about changes? modalities

pricing those? obviously and bundling I'm with they're Yes, of that the not -- some especially systems obviously, CT curious scanners every and with equivalent. or buying within direct are themselves less how as MR to deals, people because purchasing And bundled the

Yes.

it. this I in just imaging even -- of brand-new you monitoring as look, it's of think, or few industry, take you are out and there imaging, what's kind know, customers anesthesia and right? becoming take very to If

tends there larger a fleet be that And so place. takes much to discussion

do center. that and PET mean based you of installed whole capabilities? capabilities is but base How their where a Alzheimer's capabilities discussion bit state-of-the-art of Where whereas MR systems going I do you may is needs. be areas. the cutting-edge through really parts, helping You that discussion certain this of the certain need [ sure certain other everywhere, don't at? workhorse on in that more need need kind little in more tends for need we're it fleet need ] a heterogeneous you to certain to There's lot you a tied infusion on on. customers

need. again, demonstrate trying can with up match how that Mr. what which you you're achieve we do you But customer how to products that's

this markets of more domestically of a idea so do, around and fleet is as more what the well both world. And we becoming part as strategy big multisite

from comes question next Fargo. Our Larry with Wells Biegelsen

I more orders. this. one to on Sorry, from people on get continue e-mails

to how one year? digits expected And it us does mid-single-digit if below help is ask order you not, growth XXXX. how still that? growth I'm going Or So the on case? revenues the in XXXX revenue if following you had translate? grow order growth I originally mid-single And Why Is doesn't growth understand in into translate order just margins. can that follow-up

Sure.

one consider the order think growth, is book-to-bill key ratio. in I the So of things Larry, of terms to

more execution We quarters. seen And are of to that ratio. And sales up a can for years. quarter. backlog, or orders us expect, essentially set robust the something seen book-to-bill X.XXx in of X does excess allow by that over allows excess still a in we it for which on in we've this very successful what time, We've that's is last even future sales margin

what a But a standpoint. I on to feel orders. So from quite order think quarter. standpoint, relates been this there's always We've we standpoint for from both discussed as a book-to-bill able particular us, we've volatility good and high-quality an overall, backlog then quarter also given that about in execute on it to

revenue that at look of are in the those think that in the we and one with the the of another ingredients we which look have projections we portfolio to health have all X when place. I conjunction at

furthermore, indicate reports about feeling customers We the year. about be story. really time. think done guidance over good that feel we really, should the se. the we've give as and that customer next And good going don't orders the we It's the target seeing that backdrop think also overall But into pretty we surveys I how that we're are per that's something So setup.

So comments I I if make. few don't know know would anything. a be don't I'd want you those that Pete, add to

Yes, it. you I think hit

same think I than here healthy really exit is very that started. the the year the we how is if we key backlog that level, and larger backlog not with the

I as but as into strong And that which that's off, well do share XXX in talked well, be going actually out, year. we're benefit growth. would started So move gives I us once that we we continuing continual a isn't again, last service point continues PDx range, period [ about as to confidence ], business to a so backlog warranty the same as is forward. gaining mean the this contracts. which of contract year you business, some rolls

It beginning that's more to growth, drive continuum higher margins. so And multiyear which has service to also it. has

So about a capital, of of actually rest win business on to on half are basis is the week, recurring. the the of -- our revenues whereas speak, so

good, feel we're things of at about the world. in right considered now, the we So position where Larry, all

XXXX, initiated coverage, before in And goals? those about reason XX% is increase the XXXX. shouldn't talked getting or company the term, on to over XX% defined adjusted And in the the margins X still 'XX you teens That's Has from super EBIT is years high medium about XX% company next I we to Jay, helpful. there any X 'XX. to margins, anything think, the guys that, margin Are think I defined And changed? is which year?

Sure.

good with company on I think lean execution really the quite we're margin margin of this few And company. driving a as is and the starts idea, I've how operational culture improvements the feel of plan. I've time say been spent about mindset lean I since the impressed board. what ago. It across months joining with would we this the a lot at

an important backdrop. And culturally that's so

enhancements, of think X I are We've of them previously and outlined all intact. margin drivers

and area First, of this year, reviews, pricing dividends about continued all commercial of talked business and impact. a we've execution. a pricing expect us We've we today. in for focus lot It's seen real our

of second is focus innovation. The area

introduced seen earlier the prepared about today. that being across higher talked And and we extensively remarks. that about margins. that we've during the Pete New board, products talked with

we And clear variable idea optimization. for on managing feel this lot a of finally, I costs, good. productivity Those are in optimization logistics comes of focus well. that managing we productivity, quite costs ways, in of a different areas is as cost buys, And place G&A then managing spot basis, year-to-date And initiatives say what would us. have all

was XXX year. The third quarter the points up over basis prior

And to able grow we way, a were Larry, areas significant of amount. on margin We enhancement. were few by able execute a different to very the R&D

time, company, areas in investment we're do efficiency dollars same is productivity for drive growth like and at at what protecting while to the So R&D. in trying the

on to far path that -- good, look So so move we to we forward continuing as and forward.

Our BTIG. next from Zimmerman with question Ryan comes

first the is meaningful get look a others winning to United China Imaging as all there and saw for whether you me. clarifying Philips, a or I have suggested. of Did down I'm guys because if happening some some of actually grow from sense mean of the share what very I as trying questions at much Just China couple is just if market are comments [indiscernible], declines. in And

were Ryan, up. we

we the on very if team we've a didn't the did previous where anticorruption year. were So up over -- Obviously, could done but job it. most nice better the we likely, and were have we

you when about in say different ship we think if would anticorruption heavily many predominantly early you. of and have and on the cycles. you quarter, I quarter have effect think an install different you a had business, you're meaning the order the businesses, take sell a in I the could strong that effect

of more for delivering and have you there's it actually it a and a If it's not shipping revenue. transaction, backlog

continue are growth to very execute little been we the all future important grow I it's continues less job China credit in to general, it's a we market give business. a in into to effect But to in the lot able could market a that have a a you. our think a continue to -- believe a larger and has And just have to nice really has of being be on a that signs to backlog-based unpredictable, done that team that bit it I is but market going tend future.

of into started start quarter translate view as be there's to healthier exist I we than China say with again, well. of QX, a level we effect going some QX but still would QX, But to will this throughout we to think that much QX equivalent

kind And what off kind standpoint called of rolling in you TSAs. of Pete. just I'm percentage in from from TSAs you're the GE, expect then, a helpful, out where Jay, you terms at those XXXX? from curious Very of do impact

with on We're TSA the progress pleased exits. Sure.

of exited finance. So chain and far, early. were HR this XX lot XXX of supply we've those, to like about facilities and other And then some IT, a relates exited areas approximately

the program it's to get beyond, us XXXX get track. on opportunities. to And allows as and is us whole savings we stability about to independence that for cost that to So then unlock and really think important some incremental

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would real And XXX. focus is, it's independent pleased an of far so with ourselves, of a us. so good relates And I say supporting what the for it so becoming area to as company the progress

now. lot a right that underway have are We

that At eliminating the progress of And company. end more this year, next stand-alone beginning make in as to margin for of incremental set stage the significantly a year, TSAs. we'll terms of starts expansion

comes Jason Our with question from Piper next Bednar Sandler.

good Want Congrats on of follow here. up the on a on orders. questions prior quarter to some

cost same Sorry other orders to But really down together maybe U.S. puzzle for will China to project made? think your Was your mean can And comments major Europe like but today, directional bit you just of beat Europe or commentary up third that as the I was that for the horse you based the provide a on the on here. trying relief in there. put comments the some a geographies come of those does little U.S. quarter? some

like a keep mentioned out the And the to with then is us in mind for comp U.S. for from Simples there anything you'd China perspective you or call program? Europe,

I just and backdrop. solid market, a on see on there the any some missed. of the the maybe, can comment particularly markets, again, we Jay, comp comment comparison the I on U.S., you that But continue I'll pieces that broader then think of Yes, are to

we was total We're did the higher You a quarter, bit bit customers ready of to towards when point they cost little that heard some the longer versus they when me they a of end talk would some of cut the deals. about what had the POs, because estimated the taking only see were larger kind of little item cost. that this project

had process. And their add sometimes could to go XX approval, which, to again, get XX, days through so back add could the process they to

I again, is this And think lasting don't item. a

costs real be what tighten it's to scale. will with I up not wide think estimates the going out. as are play the that And

I think public cities some That's piece have where major gone so speak, there. cost United of up the there's States the to really work, labor and higher. in the

be cardiovascular amount that's demand as to the support, most customers, of -- as Europe types need Western think monitoring beginning whether of pent-up people care pushing much to procedures, they oncology, demand procedures, we need pent-up of at capacity for this the seeing the States, for orthopedic backlog waiting and be do get I talk of the critical the we capacity United imaging, or we're year. other still anesthesia as it pent-up on or did whether

Russia variances trends standpoint positive backlog regional again, the clearly the of customers, the similar team executing see by well. as tough the But there's the are left seeing And then the in the well but our dynamics East. to approval to a some conflict environment. I on funnel opportunities of in Specifically for procedure of think from Ukraine, some but we're Europe, taking some has a been macro as U.S. we Obviously, and with with Middle regards growing. see patient longer process country, continue the we

when in starting Southeast to is region. significant capabilities folks to within see their for diagnostic general, some grow Asia the it's positive. again, around having countries bright. And high their get speak to in their and with Latin so Southeast America out that would And first in to invest customers rest as quite typically and We're capabilities. amounts continues say The actually very of I are world, of deciding they steps be we world, Asia the the pretty one invest

that know, So that's add to of kind point. I sufficient view don't the things. at Jay,

No I think that sufficient. is

of amendment? amendments a plan comments year. a regarding you just with it cash next here, mentioned then prepared And in with just December in you one some or Healthcare? changing additional know mean [indiscernible] XX-Q I liability this the from the provide for mechanics? disclosure the remarks, does can what's follow-up frozen What flow effective benefits seeing perspective GE are What your Jay,

approach active a back very take to the about step have talk and balance managing maybe we would a I sheet. Sure.

having healthy is we're sheet balance achieve. idea to core this investment-grade a to us, trying For of really what

sheet good like cash other side and then debt the then we do but first, I evaluate continue business. will think we've have flowing with along buyback. balance us allow development also what very also the in to place, things dividend, that got alternatives, the a And business way, is, which of enhance and share

And active balance to sheet. the so approach very managing

liability of to the relates for the approach which U.S. there we to and with an reduction. have contributions is and as on remaining pension, the risk in in be there'll beginning respect lower us, beyond, effective costs it and The well plan, As projected had else a We are impact have a very of pension a lower large material we active everything portion and froze size being benefits XXXX doesn't liability. the service really it XXXX cash equal.

creating a it really real respect with what for So to is outcomes respect of the pension to us. range economic of risk sort does with some the it pension, versus minimizes the eliminate windfall

and to in be up will savings XXXX something starts time that the show over So costs service and beyond. in

question Our Suraj Oppenheimer. with comes last from Kalia

Can right? me hear all you

can. We

the Congrats quarter. on

Peter. for questions upfront. Jay both So and One my for I'll post one

geopolitical understand and risk all we the That's for So ] GE about buffers robust commentary look question the I at think the the Jay. has various a appreciate risks demand mitigation, the right you, When [ about should and I how vis-a-vis backlogs. now? procedure that Jay,

you're forgive I segments. looking collaboration it heard some just disease, piqued if you you type And at And strategic into to have it maybe again. I say looking thought therapeutic me, maybe entering therapeutics it. a in congrats are Peter, I to misheard a curiosity now was into Gentlemen, my X. misheard I potentially get peripheral

use the looking therapy. at a question. one talk and demand thanks of Jay little for of mentioned first Ultrasound procedures I for then take broader it. I'll bit Maybe now Suraj, can was peripheral for your the we're some about Yes, actually What

to we that's liver disease actually didn't peripheral some mention use stimulation the actually to on focus be able going nerves, of into going some other out therapies. with research work I of on have ultrasound the certain to different states. So for actually change But time the been had help of actually on course

that Nordisk is very so it's collaboration this together. early, work announced with And will we but Novo

as and is focused this categorize folks ultrasound. peripheral so what bioelectric And would again, medicine,

with in you're articles But in the the ] help a recently how been 'XX, about for potentially pharmacological to working a actually there approach liver. non-pharmacological this as it, products of actually change interested nature as a conjunction way well most in there's stimulate great an in [ can article courses was modulate some inflammation, is If actually opportunity disease help solutions.

So our this actually is exciting and partner term actually it's partner is something with near obviously we'll a longer-term know and world-class But this. up the a this is investment. we to with pretty Jay? in funded But leverage work that what opportunity jointly pharmaceutical the on company.

sure. Yes,

macroeconomic been X%. our we've about our question, X% to X% and And had resilient sales again backdrop if have company X% you we've with yet, volatile today, expectations, As ahead a on very interesting previous We because discussed it the calls. for macro now it's expect to think quite confronted your relates highly we first and we've that XXXX, volatile to of originally a original expected discussed and backdrop.

like satisfied a comes they put one need that orders, end buffer a that the down is would to backlog typically discussed. acute have. have products things really we've day, us. few What the it in that is we Number the customers when that of At very they with

served well. And backlog of so that has $XX-plus us billion incredibly backlog

is we half or fact revenue. that The place that second in have business have so recurring we the thing of nearly is our

against have layer is, our even like third things we lean final count place, backdrop. The you all this have Service on a it's things are thing situation. say that managing and again, reliably, can PDx, that we macro would such volatile a costs in effectively efficiency macro like model about I protection a business, despite operating as really these things so of And volatile that

forward. to some over fared XXXX So good turn and leave look business it quite overall, and at setup for I will comments. the final that is maybe has think it we I as the well Pete for

Jay. Great,

successfully Thank approach at some in end joining many of well, looking in. not, everyone, the talked That momentum we Society spend. XXXX. for out through number much. macro in meetings you biggest upcoming year to about, to forward one North ends really very look, investor It's maintaining the Chicago, well hope as soon So and strong at and We're teams commitments. just today. Radiological our at and our of fast months America time We're participate some of we'll the flies. how XX see us you the we been one if amazing its November challenges, or of the worked call. a It's We the of you, closing congresses on thanks, of delivered

your participation. for you Thank

You may great now day. disconnect. Everyone, a have