Integral Diagnostics (IDX) H2 2025 earnings summary

Executive summary

• Completed a transformational merger with Capitol Health, creating the second largest radiology provider in Australia with 145 clinics and approximately 460 radiologists across Australia and New Zealand.

• Revenue grew 33.7% to $628.0 million, with standalone revenue up 6.7% year-over-year and strong EBITDA margin improvement to 20.1%.

• Operating EBITDA increased 38.3% to $126.5 million, and operating NPAT rose 74.4% to $31.6 million; diluted EPS increased by 32.9% to 10.2 cents.

• Declared a fully franked final dividend of 4.0 cents per share, up 21.2%.

• Merger synergies exceeded expectations, with $14.0 million annualised and $7.0 million realised in FY25.

Financial highlights

• Operating EBITDA margin improved to 20.1%, with pro forma margin at 20.4% including synergies.

• Operating free cash flow rose 42.9% to $80.0 million, with a conversion rate of 85.4%.

• Net debt at June 2025 was $298.0 million, with leverage at 2.6x EBITDA (2.4x pro forma for synergies).

• CapEx totaled $55.3 million, with $27.3 million for growth initiatives.

• Statutory NPAT was $4.8 million, impacted by $26.8 million in transaction and integration costs.

Outlook and guidance

• FY26 revenue and EBITDA margin expected to expand, driven by full-year synergies, new clinic ramp-up, and scale benefits.

• CapEx for FY26 guided at $45.0–$55.0 million.

• MRI deregulation and the National Lung Cancer Screening Program to support further growth.

• July FY26 revenue grew 7.0% like-for-like, adjusted for closed/sold clinics.

• Focus areas include organic earnings growth, radiologist recruitment, teleradiology, digital and AI adoption, and ESG strategy.