Ramsay Health Care (RHC) H1 2025 earnings summary

Executive summary

• Reported net loss after tax and minority interests of $104.9m for 1H FY25, driven by $263.8m in non-recurring items, including a $305m impairment in the UK (Elysium) and a $64.5m tax provision release.

• Underlying NPAT from continuing operations (excluding non-recurring items) rose 10.7% to $158.9m, supported by strong Australian and UK hospital performance and lower interest costs.

• Revenue increased 5.7% year-over-year to $8.54b, with growth in Australia and the UK offsetting weaker results from Elysium and Ramsay Santé.

• CEO priorities include transforming the Australian hospital business, strengthening capital discipline, and evolving the culture to drive innovation and performance.

• Leadership changes and a new operating model announced to streamline operations and accelerate transformation.

Financial highlights

• Net loss after tax and minority interest was $104.9m, including $263.8m in non-recurring items; underlying NPAT rose 10.7% to $158.9m.

• Underlying EBIT from continuing operations declined 1.0% to $500.1m, reflecting challenges in Elysium and Ramsay Santé.

• Group revenue from contracts with customers rose 5.7% year-over-year to $8,542.8m.

• Free cash flow improved, and group capex declined 8% to $376m.

• Fully franked interim dividend of 40c per share, payout ratio 61.2% of underlying NPAT.

Outlook and guidance

• FY25 expected to show activity growth in all regions, but at a slower rate than FY24, with current trading conditions persisting.

• Dividend payout for FY25 to be maintained at 60%-70% of NPAT after minorities, excluding non-recurring items.

• Net interest expense (including lease costs) forecast at $580-610m for FY25.

• Group capex guidance for FY25 revised down to $755-870m; Australian development capex targeted at $220-260m.

• Strategic review of Ramsay Santé underway, with Goldman Sachs appointed as advisor.