Healius (HLS) Investor Day 2025 summary

Strategic Direction and Business Transformation

• Sale of Lumus Imaging for $965m to be completed by May 2025, with proceeds used to repay debt and fund a $300m special dividend.

• Transition to a single national operating model, replacing four standalone businesses, to drive standardization and efficiency.

• T27 plan targets high single-digit EBIT margins by June 2027, leveraging digital transformation, cost reduction, and new revenue streams.

• Enhanced management and board, with a new CEO, refreshed leadership, and a new chair supporting execution of the new strategy.

• Sole focus now on Pathology and Agilex Biolabs, with transition to new operating model complete.

Financial Guidance and Cost Management

• Revenue up 6.2% and pathology volumes up 4% year-to-date to February 2025, with recovery after weather-related disruptions.

• Labor costs, at nearly 50% of revenue, are a major focus for efficiency gains through better rostering, automation, and digital tools.

• Targeting AUD 15–20 million in cost reductions, primarily from unallocated corporate and pathology costs, post-Lumus sale.

• Additional AUD 8–10 million in consumables savings targeted by FY 2027 through procurement and inventory management.

• Annual CapEx expected to align with depreciation at around AUD 35 million, with no large one-off investments planned.

Revenue Growth and New Business Development

• Non-MBS revenue streams prioritized, including genomics, vet pathology, and clinical trials, with genomics targeted to reach 10% of revenue and 3x growth by 2027.

• Vet pathology and clinical trials are small but high-margin, fast-growing segments, with consolidated branding and expanded capabilities.

• Genomic Diagnostics delivered 45% revenue growth in H1 FY25 vs H1 FY24, with a threefold increase targeted in coming years.

• Agilex Biolabs, a market-leading bioanalytical lab, maintains a 35–40% market share in Australia and is expanding facilities and geographic reach.

• New contract wins, such as the Department of Health tender in Tasmania and Nucleus Networks clinical trials, demonstrate improved competitiveness.