Strong H1 Financial Results
Revenue of $5.445 billion, EBITDA of $907 million, net profit of $262 million and EPS of AUD 0.531 for H1 FY2026.
Organic Revenue Growth
Group organic revenue growth of 5% in H1 FY2026, reflecting broad-based underlying demand across key markets.
Adjusted EBITDA Margin Expansion
Adjusted EBITDA margins improved by c.30 basis points year-on-year (H1 2025 to H1 2026) after accounting for acquisition costs and other one-offs.
Germany: Strong Revenue Growth and Integration Progress
Germany achieved 40% revenue growth on a constant currency basis (organic growth ~5%). LADR acquisition settled 1 July and integration is progressing across 16 work streams with expected synergy capture and margin expansion.
United Kingdom Contract Wins and Growth
UK delivered organic growth of 24% driven by the Hertfordshire & West Essex (HWE) NHS contract; new hub lab in Watford to go live in July to service HWE.
Australia: Solid Pathology Performance
Australian Pathology achieved 5% organic growth; Medicare indexation of 2.4% applied to ~30% of schedule fees; successful private billing rollouts for selected tests and new services commenced at Hollywood Private Hospital (Perth).
Radiology and Clinical Services Momentum
Radiology organic revenue growth of 7% (EBITDA growth normalized +5%); Sonic Clinical Services revenue +5% and EBITDA +20% (off a low base) following integration of National Skin Cancer Clinics.
Advanced Diagnostics Expansion
Advanced diagnostics combining Cairo Diagnostics and ThyroSeq maturing into a nationwide offering; digital pathology rollout progressing with >60% dermatopathology volume on proprietary platform (PathologyWatch).
Capital Management and Dividend
Interim dividend increased 2.3% to AUD 0.45 (60% franked); capital priorities include maintaining investment-grade balance sheet, progressive dividends (medium-term payout target 70%-80%), selective acquisitions and potential share buybacks funded by property sales.
Balance Sheet Headroom and Guidance Maintained
Debt cover ratio at historic levels of 2.5x; available headroom of approximately $1.0 billion (pre-interim dividend); company reaffirmed constant-currency EBITDA guidance of $1.87–$1.95 billion and reduced depreciation guidance to $770–$780 million.
Active Property Monetisation Program
Sale and leaseback process launched for major Brisbane hub (Bowen Hills) targeting June 2026 completion with expected gain on sale; other sale-and-leaseback opportunities under consideration to fund potential buybacks.