Sonic Healthcare (SHL) investor relations material

Executive summary

• Revenue for H1 FY2026 reached A$5.445 billion, up 16.6–17% year-over-year, with organic growth of 5% and further uplift from acquisitions.

• EBITDA rose 9.7–10% to A$907 million, and net profit increased 10.9–11% to A$262 million, with EPS at 53.1 cents, up 7.7–8%.

• Organic revenue growth was 5% year-over-year, with strong performance in Australia, Germany, Switzerland, and the UK.

• Management reaffirmed full-year EBITDA guidance of A$1.87–1.95 billion (constant currency), with cost control and operating leverage as key priorities.

• US business undergoing operational review and rationalisation of anatomical pathology operations.

Financial highlights

• EBITDA margin improved by 30 basis points year-over-year to 18.1%, reflecting synergy realisation and cost control.

• Interim dividend increased by 2.3% to 45 cents per share, 60% franked.

• Net interest-bearing debt increased to A$3.6 billion due to acquisitions, with debt cover at 2.5x and gearing ratio at 29.0%.

• Cash generated from operations was A$682 million, up 10% year-over-year.

• Dividend payout ratio targeted at 70–80% of net profit.

Outlook and guidance

• EBITDA guidance for FY2026 maintained at A$1.87–1.95 billion (constant currency).

• Depreciation expense forecast reduced to A$770–780 million; interest expense expected to rise ~15% year-over-year.

• Effective tax rate expected at ~27%.

• Guidance excludes property sale gains, future acquisitions, and assumes no regulatory changes.

• Additional Medicare funding from November 2025 expected to support future growth.