Healius (HLS) H1 2025 earnings summary

Executive summary

• Revenue increased by 10.0% to $933.9 million for 1H25, with underlying EBITDA up 3.3% to $164.4 million and underlying EBIT up 51.0% to $23.7 million; net debt reduced to $345.3 million.

• Pathology revenue grew 7.0% to $641.7 million, while Lumus Imaging gross revenue climbed 13.3% to $286.5 million; Agilex Biolabs revenue declined 1.1% to $18.8 million.

• 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.

• Reported net loss after tax from continuing operations narrowed to $40.1 million from $644.1 million, while underlying loss after tax was $20.2 million.

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

Financial highlights

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

• Pathology (ex-Agilex) revenue: $641.7 million (up 7.0%); EBITDA: $111.2 million (down 3.6%); EBIT: $4.1 million (up 2.3%).

• Agilex Biolabs revenue: $18.8 million (down 1.1%); EBITDA: $2.9 million (down 29.3%); EBIT: $1.1 million (down 47.6%).

• Lumus Imaging gross revenue: $286.5 million (up 13.3%); EBITDA: $56.4 million (up 23.7%); EBIT: $26.4 million (up 50.0%).

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

Outlook and guidance

• Pathology volume and revenue growth in January and early February consistent with 1H25, with higher volumes anticipated in 2H25.

• Agilex expected to deliver full-year EBIT in line with FY24, with improved pipeline for 2H25.

• Sale of Lumus Imaging expected to complete in 2H25, with proceeds to reduce debt and return cash to shareholders, likely via special dividend.

• Further details on post-Lumus business and transformation plans to be provided at March 2025 investor day.