Healius (HLS) H2 2025 earnings summary

Executive summary

• Group revenue increased 5.7% year-over-year to AUD 1.34 billion, driven by Pathology growth, with underlying EBIT at AUD 17.1 million, in line with consensus for continuing operations.

• Completed sale of Lumus Imaging, repaid all debt, and achieved a net cash position of AUD 57.2 million as of June 2025.

• Paid a special dividend of AUD 0.413 per share following the Lumus sale.

• Underlying EBIT fell 27.2% year-over-year, reflecting higher labor costs and impairment charges.

• Focus shifted to growing the pathology business, with progress on digital transformation and T27 plans.

Financial highlights

• Pathology revenue grew 6% to AUD 1.3 billion; EBIT margin was 2.2% for the year, improving to 4.1% in H2 after cyclone disruption.

• Genomic Diagnostics revenues grew 34.7% in FY 2025; specialist and B2B revenues also increased.

• Agilex Biolabs revenue declined 3.3% to AUD 38.2 million; EBIT dropped to AUD 2.7 million.

• Non-cash impairment charge of AUD 495.2 million recognized against Pathology goodwill.

• Underlying EBITDA was AUD 239.3 million, down 4% year-over-year.

Outlook and guidance

• Revenue growth for FY 2026 expected to match H2 2025 levels; volumes up 2.4% since July.

• Labor costs forecast to remain broadly flat in FY 2026, with cost savings of AUD 15–20 million targeted.

• Digital spend to be treated as business as usual from January 2026.

• High single-digit EBIT margins targeted by June 2027.

• Profitability anticipated to be weighted towards the second half due to cost savings and seasonality.