Sonic Healthcare (SHL) H2 2026 earnings summary

Executive summary

• FY 2026 delivered strong financial results, with revenue up 13% to AUD 10.867 billion and EBITDA up 11% to AUD 1.933 billion year-over-year.

• Net profit after tax rose 17% to AUD 621 million, and EPS increased 14% to AUD 1.26 (underlying EPS 125.6¢, statutory EPS up 15%).

• Major acquisitions included LADR in Germany and Cairo Diagnostics in the U.S., with synergy realization on track in Germany and Switzerland.

• Advanced diagnostics and direct-to-consumer testing drove significant growth across multiple geographies.

• Digital and AI transformation initiatives launched, including cloud migration, with AUD 30 million annual investment planned for three years.

Financial highlights

• Revenue: AUD 10.867 billion (+13% YoY); EBITDA: AUD 1.933 billion (+11% YoY); Net profit: AUD 621 million (+17% YoY); EPS: 125.6¢ (+14% YoY); statutory EPS up 15%.

• Depreciation: AUD 771 million; Interest expense: AUD 188 million (+19% YoY); CapEx: AUD 631 million (including AUD 280 million in strategic property investments).

• Cash generated from operations rose 8% to AUD 1.405 billion.

• Final dividend: AUD 0.63 per share; full-year dividend: AUD 1.08, franked to 60%, up 1 cent year-over-year.

• Non-recurring items included gain on Brisbane lab sale, US debtors adjustment, wage remediation, and software impairment.

Outlook and guidance

• FY 2027 EBITDA guidance: AUD 1.95–2.03 billion (constant currency), excluding AUD 30 million IT transformation costs.

• Depreciation forecast: AUD 810–825 million; Amortization: AUD 90–95 million; Interest expense to rise 6%; effective tax rate: ~27%.

• Guidance excludes property sale gains, assumes no further regulatory changes, and does not include potential U.S. PAMA fee cuts.

• Organic revenue growth expected to remain strong, with headwinds from Swiss fee cuts (~CHF 20 million) and U.K. NHS contract integration delays.

• Focus remains on organic growth, efficiency, innovation, and disciplined capital management.