Healius (HLS) H1 2025 earnings summary

Executive summary

• Announced sale of Lumus Imaging to Affinity Equity Partners for AUD 965 million, with net proceeds expected to exceed AUD 800 million; majority of conditions for completion have been satisfied and completion expected in 2H25.

• Group revenue for 1H25 rose 10.0% year-over-year to $933.9m, with underlying EBITDA up 3.3% to $164.4m and underlying EBIT up 51.0% to $23.7m.

• Transformation plan and new pathology strategy are being embedded, focusing on productivity, profitability, and digital health technology.

• Reported net loss after tax from continuing operations narrowed to $40.1m from $644.1m, while underlying loss after tax was $20.2m, up 10.99% year-over-year.

• No interim dividend declared for the half-year ended 31 December 2024.

Financial highlights

• Underlying group revenue: $933.9m (up 10.0% year-over-year); underlying EBITDA: $164.4m (up 3.3%); underlying EBIT: $23.7m (up 51.0%).

• Pathology revenue (excluding Agilex) increased 7.0% to $641.7m; Agilex Biolabs revenue declined 1.1% to $18.8m; Lumus Imaging gross revenue grew 13.3% to $286.5m.

• Profit from discontinued operations (Lumus Imaging) was $27.3m, up from $8.3m.

• Free cash flow improved to $45.4m from a $30m outflow in the prior period; cash conversion at 130.8%.

• Basic loss per share improved to (1.8) cents from (107.0) cents year-over-year.

Outlook and guidance

• Pathology volume and revenue growth in January and early February consistent with 1H25; ongoing demand drivers include population growth and chronic health issues.

• Agilex Biolabs order book has returned to budgeted levels, with full-year earnings expected to match FY2024.

• Sale of Lumus Imaging expected to complete in 2H25, with proceeds to reduce debt and return cash to shareholders; further details on post-Lumus business and transformation plans to be provided at March investor day.