Sonic Healthcare (SHL) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY2026 reached A$5.445 billion, up 16.6–17% year-over-year, with organic growth of 5% and further uplift from acquisitions.

• EBITDA increased 9.7–10% to A$907 million, and net profit rose 10.9–11% to A$262 million; EPS improved by 7.7–8% to 53.1 cents.

• Interim dividend increased by 2.3% to 45 cents per share, franked to 60%.

• Management reaffirmed full-year EBITDA guidance of A$1.87–1.95 billion (constant currency), with ongoing cost control and capital management initiatives.

• US business undergoing operational review and rationalisation of anatomical pathology operations.

Financial highlights

• Adjusted EBITDA margin improved by 30 basis points year-over-year to 18.1%, reflecting synergy realisation and cost control.

• Cash generated from operations was A$682 million, up 10% year-over-year.

• Debt cover ratio at 2.5x, gearing ratio at 29.0%, and interest cover at 9.5x as of 31 December 2025.

• Net interest-bearing debt increased to A$3.6 billion due to acquisitions, with available liquidity of A$557 million.

• Dividend payout ratio targeted at 70–80% of net profit.

Outlook and guidance

• EBITDA guidance for FY2026 maintained at A$1.87–1.95 billion (constant currency); depreciation forecast A$770–780 million; interest expense expected to rise ~15%.

• Effective tax rate expected at ~27%.

• Guidance excludes property sale gains, future acquisitions, and assumes no regulatory changes.

• FX tailwind expected to moderate in H2; H2 will see less benefit than H1.

• Additional Medicare funding from November 2025 expected to support future growth.