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 1H FY26, primarily driven by strong Australian performance and transformation priorities.

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

• Strategic focus on transforming the Australian hospital business, strengthening capital discipline, and progressing the demerger of Ramsay Santé.

• Elysium turnaround underway, with site closures, cost reductions, and ongoing operational improvements.

• Group Executive team reset completed to accelerate transformation and delivery.

Financial highlights

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

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

• Group capex for 1H was $418m, with full-year guidance lowered to $755–795m.

• Net profit after tax rebounded to $160.7m, reflecting the absence of prior year UK impairments.

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

Outlook and guidance

• Continued EBIT growth in Australia expected, driven by activity in priority therapeutic areas, revenue indexation, and cost focus.

• UK NHS activity to remain subdued in 3QFY26 due to budget constraints, with improvement anticipated as new funding becomes available in Q4.

• Elysium turnaround to continue, with further site closures and cost base adjustments.

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

• Group capex spend in 2H to be lower than 1H; dividend payout ratio for FY26 expected at 60–70% of underlying NPAT.