Ramsay Health Care (RHC) H1 2026 earnings summary

Executive summary

• Achieved 8.1% growth in underlying NPAT and 7.3% growth in underlying EBIT for the half, primarily driven by strong performance in Australia.

• Completed executive refresh and advanced multi-year transformation, focusing on Australian hospital business, capital allocation, and cultural innovation.

• Announced proposed distribution of Ramsay Santé investment to shareholders, aiming to simplify group structure; completion expected by December/Q4 2026.

• Progressed Elysium turnaround with site closures and cost reductions to address weak demand; new CEO appointed.

• Interim fully franked dividend of 42.5c per share declared, up 6.3%, with a payout ratio of 60% of underlying NPAT.

Financial highlights

• Group revenue rose 9.7% to $9.3bn, underlying EBIT increased to $536.7m (+7.3%), and underlying NPAT to $171.7m (+8.1%).

• Operating cash flow improved 16.9% to $350.3m, mainly from Australian operations and lower tax paid.

• Group CapEx guidance reduced to $755–795m for FY26, reflecting disciplined capital allocation.

• Consolidated net debt at AUD 5.1 billion; Funding Group leverage at 2.22x, within target (<2.5x).

• Reported NPAT surged 253.2% to $160.7m, reflecting lower non-recurring items versus prior period.

Outlook and guidance

• Expect continued EBIT growth momentum in Australia, driven by activity in priority therapeutic areas, revenue indexation, and cost focus.

• UK NHS activity expected to remain subdued/negative in Q3 FY26 due to budget constraints, with focus on private volumes and operational excellence.

• Elysium turnaround to continue, with ongoing cost and site optimization.

• European activity growth expected in H2, led by day admissions, partially offset by French doctor strike and tariff indexation below cost inflation.

• Net financing costs forecast at $590–610m; dividend payout ratio for FY26 expected at 60–70% of underlying NPAT.