Integral Diagnostics (IDX) H1 2026 earnings summary

Executive summary

• Revenue rose 55.6% year-over-year to $393.5m for 1H FY26, driven by the Capitol merger, organic growth, and Medicare indexation.

• Operating EBITDA increased 75.6% to $81.1m, with margin improving to 20.6%, up 230 bps from 1H FY25.

• Operating NPAT rose 154.6% to $22.3m; statutory NPAT was $9.0m, impacted by $13.3m in transaction and integration costs.

• Capitol merger synergies exceeded expectations, delivering over $14m in annualised savings.

• Interim dividend per share increased 32% to 3.3 cents, with a payout ratio of 55.2% of Operating NPAT.

Financial highlights

• Operating diluted EPS grew 66.2% to 5.9 cents.

• Operating free cash flow increased 64.5% to $35.8m.

• Net debt to EBITDA improved to 2.5x from 2.8x year-over-year; net debt rose to $317.9m.

• Replacement and growth capex for FY26 expected between $45m and $55m.

• Weighted average interest rate on core debt facility reduced to 4.56%, with 51.2% of gross debt hedged.

Outlook and guidance

• FY26 Operating EBITDA margin forecast at ~21%, with further margin expansion expected.

• Continued revenue growth expected, supported by new greenfield sites, brownfield investments, and regulatory changes.

• Focus on organic earnings growth, radiologist recruitment, digital/AI adoption, and further M&A opportunities.

• Net debt/EBITDA projected to trend down further over time, targeting 2.5x or less.

• Seasonality expected to remain consistent, with a 47%/53% first/second half split.