GE HealthCare Technologies Inc.

Good day, and thank you for standing by. Welcome to the GE Healthcare first quarter 2025 earnings conference call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Carolyn Borders. Please go ahead.

Carolyn Borders Thanks, operator. Good morning and welcome to GE Healthcare's first quarter 2025 earnings call. I'm joined by our President and CEO, Peter Arduini, and Vice President and CFO, Jay Saccaro. Our conference call remarks will include both GAAP and non-GAAP financial results. Reconciliations between GAAP and non-GAAP measures can be found in today's press release and in the presentation slides available on our website. During this call, we'll make forward-looking statements about our performance. These statements are based on how we see things today. As described in our SEC filings, actual results may differ materially due to risks and uncertainties. With that, I'll hand the call over to Peter.

Thanks, Carolyn. Good morning, and thank you for joining us. Our first quarter results reflect strong execution as we start the year, with revenue and profit growth that exceeded our expectations. Record double-digit orders growth as a standalone company was driven by strength in the U.S. market, where we see customers prioritizing investments in imaging products with a particular focus on cardiology and oncology. Early indications from market data shows that we've gained share in a significant number of markets where we compete, reflected in our strong orders growth. In the quarter, we booked the first Sutter Health Orders and continued to strengthen our relationship with many other top IDNs, like our recently announced agreement with St. Luke's University Health Network to drive further growth. We saw strong momentum in backlog and continuing strength in book to bill in the quarter. Top line organic performance of 4% was broad based with growth in each segment. And we delivered healthy margin and earnings per share performance. That being said, we're adjusting 2025 guidance today, reflecting the estimated impact from tariffs on profit and cash. Our sales estimates remain the same, supported by a strong customer demand environment. Let me give a more detailed view on slide four of the current global trade environment. In an effort to be transparent about our view of the environment and its correlation to our business, we're showing on the chart how we expect tariffs to impact our 2025 results if they stay at the current elevated levels. We have conservatively assumed that the bilateral U.S. and China tariffs continue, accounting for 75% of our total net tariff impact. We've also assumed that U.S. reciprocal tariffs on rest of world announced on April 2nd return to pre-pause levels on July 9th. And Mexico and Canada tariffs remain in place with U.S. MCA exemptions for all eligible imports. Prior to mitigation, the gross impact of tariffs is estimated to be approximately $1.75 per share. And since we initiated work on tariffs, we've moved swiftly and taken responsible and sustainable actions to mitigate over 50% of our gross exposure. We have a strong funnel of additional opportunities for further offsets, including product and component moves, which take longer to execute. With mitigation actions to date, we expect approximately 80 cents per share of net incremental impact. This is in addition to the 5 cents we reflected in our February guidance. To be clear, the total impact of tariffs in our adjusted EPS guidance is 85 cents. Given the actions we're taking to optimize the supply chain, in 2026, we expect less than 85 cents of adjusted EPS impact from tariffs under the current tariff structure. Operationally, we're strengthening our market presence and we're on track to deliver our pipeline of innovation discussed at our fourth quarter investor day, including radiopharmaceuticals, total body PET, photon counting CT, and next generation interventional vascular labs. These are a few of the high impact opportunities we expect to drive growth in 2026. Now, I'll turn the call over to Jay to provide more detail on the quarter and guidance for the year.