Australian Clinical Labs (ACL) investor relations material

Executive summary

• Revenue for the half-year ended 31 December 2025 was AUD 365.4 million, down 1% year-over-year, reflecting a focus on margin over volume in a subdued market.

• Underlying EBIT grew 2.4% to AUD 28 million, with margin expansion to 7.7%, driven by operational efficiency, productivity gains, and closure of loss-making collection centers.

• Underlying NPAT increased 8.9% to AUD 13.2 million, and underlying EPS rose 12.8% to AUD 0.067, supported by share buybacks and improved profitability.

• Statutory NPAT was AUD 5.7 million, down over 50% year-over-year, impacted by a AUD 6.2 million cyberattack settlement and prior period labour underpayments.

• AUD 27.8 million was returned to shareholders via dividends and buybacks, equivalent to 6% of market capitalization.

Financial highlights

• Revenue: AUD 365.4 million, down 1% year-over-year; underlying EBIT: AUD 28 million, up 2.4%, margin at 7.7%.

• Underlying NPAT: AUD 13.2 million, up 8.9%; underlying EPS: AUD 0.067, up 12.8%.

• Statutory NPAT: AUD 5.7 million, down 51.7% year-over-year due to non-recurring items.

• Free cash flow before interest, tax, and financing: AUD 21 million.

• Interim dividend declared: AUD 0.0375 per share, fully franked.

Outlook and guidance

• FY26 revenue guidance updated to AUD 735–745 million, with underlying EBIT expected at AUD 66–69 million before gender undervaluation impacts.

• Gender-based wage increases to impact FY26 EBIT by AUD 1.8 million; full-year margin expected at ~9% before this impact.

• H2 expected to be stronger than H1, with margin guidance of ~11% for 2H26 and anticipated improvement in GP volumes due to new bulk billing incentives.

• At least AUD 8 million of additional EBIT expected in FY27 from ongoing initiatives, including digitized billing and automation.

• Guidance excludes potential further costs from historical employee underpayments, which would be treated as below-the-line items.