Ramsay Health Care (RHC) H2 2025 earnings summary

Executive summary

• Multi-year transformation focused on operational efficiency, top-line growth in Australia, and cultural evolution, with 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 leveraging digital and AI.

• Group-wide transformation segmented into horizons, with initial focus on strengthening core hospital business.

• Transformation initiatives improved theatre utilisation by 3ppt in Q4 FY25.

Financial highlights

• FY25 revenue rose 6.8% to $17,791.6m, with underlying NPAT from continuing operations up 1.7% to $305.3m.

• Net profit after tax and non-controlling interests dropped to $24.0m, reflecting significant non-recurring items.

• Group EBIT pre-non-recurring items: $1.0bn (+0.8% vs FY24); underlying EPS up 1.2% to 125.3¢.

• Fully franked final dividend of 40¢ per share, full year 80¢; payout ratio 63.7% of underlying NPAT.

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

Outlook and guidance

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

• Joondalup Public Campus EBIT to be negatively impacted by new funding mechanism, estimated at $37m annual reduction.

• Group capex forecast for FY26 is $755–835m; dividend payout ratio expected at 60–70% of underlying NPAT.

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

• Effective tax rate for FY26 expected to be around 32.5%.