Ramsay Health Care (RHC) H2 2025 earnings summary

Executive summary

• Multi-year transformation advanced, focusing on operational efficiency, top-line growth in Australia, and improved private health insurance negotiations for FY 2025 and FY 2026.

• New leadership structure and key executive appointments implemented to drive operational and commercial excellence.

• Strategic focus on expanding procedural capacity in Australia, operational improvements in the U.K. and Elysium, and digital transformation.

• FY25 saw 6.3% revenue growth to $17.8bn, with underlying NPAT up 1.7% to $305.3m, driven by strong Australian and UK hospital performance, offset by challenges in Elysium and Europe.

Financial highlights

• Net profit after tax and non-controlling interest for FY 2025 was AUD 24 million, with underlying NPAT from continuing operations up 1.7% to AUD 305.3 million.

• Group revenue increased 6.7%, driven by activity growth and improved indexation in Australia and the U.K.

• Group EBIT pre-non-recurring items: $1.0bn (+0.8% vs FY24); EPS pre-non-recurring items: 125.3cps (+1.2%); DPS: 80cps (payout ratio 63.7%).

• Operating cash flow up 14.5% to $1.48bn, driven by improved collections in France.

• Group capital expenditure at $777m, focused on procedural capacity in Australia.

Outlook and guidance

• FY26 EBIT growth expected in Australia, supported by private hospital momentum and improved indexation.

• Joondalup Public Campus to face a negative EBIT impact of AUD 37 million due to new funding mechanism.

• Group capital expenditure forecast for FY 2026 is AUD 755 million–AUD 835 million; dividend payout expected to remain in the 60%-70% range of NPAT after minority interests, excluding non-recurring items.

• Net financing expense forecast at $600–620m for FY26.

• Effective tax rate for FY 2026 expected to be around 32.5%.