Healius (HLS) H2 2026 earnings summary

Executive summary

• Underlying revenue rose 2.1% to AUD 1.37 billion for FY 2026, driven by improved mix in Pathology and strong Agilex growth.

• Underlying EBITDA increased 8.1% to AUD 258.6 million, and underlying EBIT rose 76.6% to AUD 30.2 million year-over-year.

• Cost reduction strategies delivered AUD 24.4 million in annualized savings, exceeding targets.

• Major digital technology program completed, including AI deployment and new patient app, driving productivity and efficiency gains.

• Non-cash impairment charge of AUD 332 million recognized against goodwill.

Financial highlights

• Pathology revenue up 1.8% to AUD 1.33 billion; Agilex revenue up 14.1% to AUD 43.6 million year-over-year.

• Pathology EBITDA grew by AUD 15 million to AUD 247.9 million; Agilex EBITDA rose by AUD 4.3 million to AUD 10.7 million.

• Pathology EBIT was AUD 23.8 million; Agilex EBIT more than doubled to AUD 6.4 million.

• Consumable costs reduced to 15.3% of revenue from 16.2% last year.

• Net debt at year-end was AUD 32.8 million, well within banking covenants.

Outlook and guidance

• FY 2027 EBIT expected in line with consensus at AUD 39.7 million.

• Pathology cost growth to be contained at 3.5% in FY 2027, including Fair Work Commission impacts.

• T27 target of mid to high single-digit EBIT margins expected by December 2028.

• Continued growth expected in Genomics, B2B, and Agilex order book supporting FY 2027 targets.

• No final dividend declared for FY 2026.