Ramsay Health Care (RHC) H2 2026 earnings summary

Executive summary

• Achieved strong transformation momentum in Australia, with 11.2% underlying EBIT growth and 30bps margin expansion, driven by activity growth, higher acuity, improved theatre utilisation, and cost management.

• All regions delivered EBIT growth in local currency, with the UK and Elysium offsetting NHS volume declines through private work, cost controls, and turnaround initiatives.

• Ramsay Santé separation is progressing, aiming for completion in late 2026, with a shareholder vote scheduled for November 2026.

• All businesses were net cashflow positive after capex, supporting a strong balance sheet and leverage below 2x.

• High patient NPS and clinical excellence maintained across all regions.

Financial highlights

• Revenue reached $18.7bn, up 5.1% year-over-year, with Australia up 7.8% and group underlying EBIT up 11.8% to $1,162m.

• Underlying NPAT rose 22.9% to $364m, reported NPAT was $329m, and underlying EPS grew 27% to 151.0cps.

• Group ROIC increased by 60bps to 6.3%, Funding Group ROCE up 124bps to 14.8%, and leverage reduced to 1.83x.

• Final fully franked dividend of 48.5cps, full-year dividend 91cps, up 13.8%, payout ratio 60.3%.

• Free cash flow was $697m, and operating cashflow increased 46% year-over-year.

Outlook and guidance

• FY27 targets EBIT and margin growth in Australia and UK, driven by activity, capacity utilisation, and operational improvements.

• National Capital Private Hospital acquisition expected to be EPS accretive in first 12 months, with $9–11m transition costs in FY27.

• Funding Group capex guidance for FY27 is $480–520m; dividend payout ratio expected at 60–70% of underlying NPAT.

• Ramsay Santé to be reported as discontinued business post-separation, with demerger costs detailed in future disclosures.

• Margin expansion expected from activity growth, improved utilisation, and operational initiatives, with $10–15m increase in IT and transformation investment.