Sonic Healthcare (SHL) H1 2025 earnings summary

Executive summary

• Revenue rose 8.4% to A$4.669 billion for H1 FY2025, with 6.1% organic growth and further gains from acquisitions, driving strong margin expansion and profit growth.

• Net profit increased 17% to A$237 million; diluted EPS up 15.5% to 49.2 cents.

• EBITDA grew 12.3% to A$827 million, with margin up 60 bps (90 bps excluding zero-margin acquisitions).

• Strong cash generation: 103% EBITDA to gross operating cash flow conversion, reflecting improved debtor collections.

• Margin expansion and synergy realization supported by cost controls and recent acquisitions.

Financial highlights

• Revenue: A$4,668.5 million (up 8.4% year-over-year); EBITDA: A$827.2 million (up 12.3%); net profit: A$236.7 million (up 17%).

• Earnings per share grew 15.5% to 49.2 cents; operating cash flow was A$620 million, up 37.2%.

• EBITDA margin expanded by 60 bps (90 bps excluding zero-margin acquisitions); labour cost as a percentage of revenue reduced by 50 bps.

• Interim dividend increased by 2.3% to 44 cents per share, unfranked.

• 103% EBITDA to gross operating cashflow conversion, reflecting strong collections.

Outlook and guidance

• FY2025 EBITDA guidance maintained at A$1.70–1.75 billion (constant currency), up to ~10% growth, excluding West Division sale gain.

• Depreciation as % of revenue to remain similar; net interest expense to rise ~25% due to acquisitions and higher rates.

• Effective tax rate expected at 26–27%.

• Guidance includes only completed acquisitions and assumes no new regulatory changes.

• Initial ~A$10M loss in H2 FY2025 from new UK contract, profitable from FY2026.