Sonic Healthcare (SHL) H2 2025 earnings summary

Executive summary

• Revenue reached AUD 9.645 billion, up 8% year-over-year, with organic revenue growth of 5%.

• EBITDA was AUD 1.725 billion, up 8%, with normalized EBITDA margin expanding by 40 basis points.

• Net profit rose 7% to AUD 514 million, and EPS was AUD 1.067.

• Strong cash generation just under AUD 1.3 billion, with cash from operations up 21%.

• Major acquisitions included LADR in Germany, Cairo Diagnostics in the U.S., and National Skin Cancer Clinics in Australia, with significant integration and synergy plans underway.

Financial highlights

• Adjusted EBITDA (excluding non-recurring items) was AUD 1.73 billion on a constant currency basis.

• Total dividends for the year were AUD 1.07 per share, up 1% year-over-year, with a final dividend of AUD 0.63 per share.

• Debt cover ratio at 2.1x, gearing ratio at 24.7%, and interest cover at 10.1x.

• Net interest-bearing debt rose to AUD 2.818 billion, with available headroom of approximately AUD 1.4 billion.

• Normalized EBITDA margin expanded by 40 basis points to 18.4%.

Outlook and guidance

• FY 2026 EBITDA guidance: AUD 1.87–1.95 billion (constant currency), or AUD 1.94–2.02 billion at current exchange rates, up to 13% growth.

• EPS growth for FY 2026 expected up to 19% at current exchange rates.

• Interest expense projected to increase 15–20% due to acquisitions.

• Effective tax rate expected around 27%.

• Guidance excludes potential PAMA fee cut in the U.S. and assumes no major regulatory changes.