Healius (HLS) H1 2026 earnings summary

Executive summary

• Revenue increased 3.8% to $688.1 million in H1 FY26, with underlying EBITDA up 13.1% to $122.2 million and underlying EBIT turning positive at $7.9 million from a prior loss.

• Pathology revenue rose 3.5% to $666.3 million, with EBIT improving to $5.2 million from a $3.8 million loss year-over-year.

• Agilex Biolabs revenue grew 16.0% to $21.8 million, with EBIT up 145.5% to $2.7 million and margins expanding to 12.4%.

• Cost reduction initiatives, especially in labor, delivered annualized savings of $10.7 million in 1H26, with further savings expected.

• Strategic focus remains on digital modernization, customer service, and expanding high-value segments like genomics, clinical trials, and B2B diagnostics.

Financial highlights

• Net cash position at 31 December 2025 was $11.6 million, down from $57.2 million due to ATO payments and restructuring.

• Consumables cost 15.8% of revenue in H1, down from 16.6% in the prior period.

• Labour costs as a percentage of revenue dropped to 49.3% in Q2 2026.

• Non-underlying items totaled $20.8 million, mainly from digital transformation and restructuring.

• Maintenance CapEx was $9.4 million; growth CapEx $12.3 million.

Outlook and guidance

• FY26 earnings expected to be in line with consensus EBIT of around $48 million.

• Revenue and profitability are expected to be weighted to H2 due to seasonality and timing of cost savings.

• High single-digit EBIT margins targeted by June 2027, driven by volume growth, pricing, and cost reduction.

• Labour costs expected to remain broadly flat year-over-year, with further improvements in labor efficiency anticipated.

• Full benefit of cost savings to be realized from FY27 onward.