Netcare (NTC) H1 2026 earnings summary

Executive summary

• Interim results for H1 2026 show robust financial and operational performance, with revenue up 4.8% to R13,281 million and EBITDA up 6.6% to R2,501 million, driven by digital transformation, resilient demand, and operational efficiencies.

• Adjusted headline earnings per share (HEPS) increased 21.9% to 71.7 cents, and return on invested capital (ROIC) improved to 12.4% from 11.9%.

• R948 million returned to shareholders via dividends and share buybacks in H1 2026, with an interim dividend of 44.0 cents per share declared.

• Significant progress in digital, AI, and environmental sustainability strategies, positioning the group as a leader in healthcare innovation.

• Leadership transition announced: Melanie Da Costa appointed CEO-elect, effective June 2026, with outgoing CEO Richard Friedland remaining as strategic advisor until June 2027.

Financial highlights

• Revenue increased by 4.8% year-over-year to R13,281 million for H1 2026; EBITDA rose 6.6% to R2,501 million, with margin improving by 30 basis points to 18.8%.

• Adjusted HEPS up 21.9% to 71.7 cents; interim dividend up 22.2% to 44.0 cents.

• Profit after tax grew 11.9% to R924 million; operating profit up 7.4% to R1,786 million.

• Net debt to EBITDA stable at 1.2x; average cost of debt reduced to 8.1%-8.2%.

• Cash resources and undrawn committed facilities totaled R3.0 billion at period end.

Outlook and guidance

• FY 2026 revenue growth expected between 4.0% and 4.8%.

• Acute patient days projected to grow 0.3%-0.8%; total patient days 1.1%-1.6%.

• Normalised EBITDA margin expected to benefit from operational efficiencies; CapEx guidance at R1.9 billion for FY 2026, including R566 million for expansion.

• Focus remains on innovation, operational efficiency, and maintaining a strong capital structure.