Australian Clinical Labs (ACL) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 reached $369.2M, up 9.5% year-over-year, with underlying EBIT of $27.3M, a 17% increase, and EBIT margin at 7.4%.

• Underlying NPAT was $12.1M, up 18% year-over-year; statutory NPAT increased to $11.8M.

• Interim fully franked dividend of 3.5 cps declared, representing 59% of underlying NPAT, with payment on 16 April 2025.

• Free cash flow before interest, tax, and financing was $26.8M, with cash conversion at 98%.

• $4.4M of shares repurchased as part of an on-market buy-back program.

Financial highlights

• Total revenue increased to $369.2M, up $31.9M (+9.5%) from 1H FY24.

• Underlying EBITDA was $95.1M; underlying EBIT margin improved to 7.4%.

• Free cash flow conversion from underlying EBIT was 98%; operating cash flow conversion at 105%.

• Net debt (excluding lease liabilities) at $34.2M; leverage and interest coverage ratios well within covenants.

• Interim dividend of 3.5 cps declared, up from 3.0 cps in the prior year.

Outlook and guidance

• FY25 guidance reaffirmed: revenue of $725M–$752M and underlying EBIT of $65M–$73M.

• 2H FY25 EBIT margin expected to return to low double digits on seasonally higher volumes.

• Short-term margin pressure persists due to inflation, revenue gap, and below-trend market volumes.

• Ongoing focus on operational efficiency, AI initiatives, and private billing projects to drive future growth.

• Directors are not aware of any subsequent events that may significantly affect future operations.