Australia’s pathology and diagnostics provider Healius Limited reported a 76.6% rise in underlying EBIT to A$30.2 million for the fiscal year ended June 30, 2026, driven by cost savings and growth in clinical services. Group underlying revenue increased 2.1% to A$1.37 billion, with pathology revenue up 1.8% at A$1.33 billion. Agilex Biolabs, its contract research unit, posted a 14.1% revenue increase to A$43.6 million, with EBIT more than doubling to A$6.4 million and margins expanding 760 basis points to 14.7%.
Underlying EBITDA rose 8.1% to A$258.6 million, while net debt stood at A$32.8 million, down from a net cash position of A$57.2 million a year earlier. The company exceeded its support cost savings target, achieving A$24.4 million in annualized savings, including A$17.1 million in FY26. Genomic diagnostics grew 16.9% year-over-year, and clinical trials revenue surged 92.9%.
Pathology EBITDA reached A$247.9 million, up 6.4%, with EBITDA margins improving 80 basis points to 18.6%. Second-half FY26 EBITDA margins rose to 19.7%, a 210 basis-point increase from the first half. Consumables costs declined 3.8 percentage points to 15.3% of revenue.
Capital expenditure totaled A$42.8 million, including A$26.8 million in growth projects. Gross operating cash flow was A$227.1 million, offset by lease payments of A$229.4 million, net capex, tax outflows, and payments related to the Lumus divestment.
Non-underlying items weighed on reported earnings, with a A$332 million goodwill impairment charge and A$16.6 million in restructuring costs. The reported EBIT loss stood at A$328.9 million, while the loss after tax, including discontinued operations, reached A$415.6 million.
Healius forecast FY27 underlying EBIT of A$39.7 million, a 31.5% increase from FY26, aligning with market consensus. The outlook incorporates a 4.75% increase linked to modern awards and expects pathology cost growth to be contained to 3.5%. Shares fell 3.37% to A$0.43 after the presentation, extending a 52-week range of A$0.30 to A$1.07.
