Sonic Healthcare (SHL) H1 2026 earnings summary

Executive summary

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

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

• Management focus remains on EPS improvement, operating leverage, cost control, and capital management, with ongoing U.S. business review and rationalization of anatomical pathology operations.

• Cash generated from operations increased 10% to A$682 million.

• Full-year earnings guidance is on track.

Financial highlights

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

• Interim dividend increased by 2.3% to 45 cents per share, 60% franked, with a record date of March 5 and payment on March 19.

• Net interest-bearing debt increased to A$3.6 billion due to acquisitions; debt cover ratio at 2.5x, gearing ratio at 29.0%, and interest cover at 9.5x.

• Available headroom of ~A$1 billion before interim dividend payment.

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

Outlook and guidance

• EBITDA guidance for FY2026 reaffirmed at A$1.87–1.95 billion (constant currency).

• Depreciation forecast reduced to A$770–780 million; interest expense to rise ~15% year-over-year; effective tax rate at ~27%.

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

• FX tailwind expected to be more modest in H2; organic growth is key for achieving upper end of guidance.