Healius (HLS) H2 2025 earnings summary

Executive summary

• Group revenue grew 5.7% to AUD 1.34 billion, driven by Pathology segment growth.

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

• Underlying EBIT from continuing operations was AUD 17.1 million, in line with consensus but down 27.2% year-over-year.

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

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

Financial highlights

• Pathology revenue (excluding Agilex) grew 6% to AUD 1.3 billion; Agilex revenue declined 3.3% to AUD 38.2 million.

• Pathology EBIT margin was 2.2% for the year, improving to 4.1% in H2 after cyclone disruption.

• 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.

• Profit from discontinued operations was AUD 411.8 million, reflecting the Lumus Imaging sale.

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.