Ramsay Health Care (RHC) H1 2026 earnings summary

Executive summary

• Underlying NPAT grew 8.1% and underlying EBIT rose 7.3% year-over-year, driven by strong Australian performance and transformation initiatives.

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

• Group transformation priorities advanced, including leadership refresh, operational improvements, and portfolio optimization with site closures and the proposed acquisition of National Capital Private Hospital.

• Elysium turnaround underway, with cost reductions, site closures, and bed alignment to market demand.

• Proposed demerger of Ramsay Santé via in-specie distribution to shareholders, expected completion by December 2026, pending approvals.

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%).

• Net profit after tax rebounded to $160.7m, up 253.2% due to the absence of prior year UK impairments.

• 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.

• Funding Group leverage at 2.22x, within target (<2.5x); interest cover remains strong.

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.

• Net financing expense forecast at $590–610m; group capex guidance lowered to $755–795m, with lower 2H spend.