Paragon Care Ltd reported FY26 underlying revenue of $3.7 billion, up 1.8% on a reported basis and 6.7% on a normalized basis, as the healthcare distributor emphasized growth despite a $38 million provision tied to Infinity Group debt.
Statutory earnings declined sharply, with underlying EBITDA down 42.6% to $50.8 million and a statutory net loss of $16.0 million, compared with a $20.6 million profit in the prior year. Underlying EBITDA edged up 2.1% to $97.2 million, while normalized EBITDA grew 7.4%. Underlying net profit after tax fell 13.6% to $26.0 million.
The $38 million provision, comprising a $34.9 million net debt provision for Infinity Group after GST recovery, accounted for the majority of the $46.4 million in total EBITDA-level adjustments. Other adjustments included $4.7 million in M&A costs, $6.4 million in restructuring and integration expenses, and $10.1 million in depreciation and amortization of fair-valued acquired intangibles.
Revenue growth was led by contract logistics, which surged 47% to $493.5 million, while the Asia segment expanded 58% to $160.1 million, including $45.4 million from acquisitions and $13.3 million in organic growth. Wholesale revenue declined 5.2% to $2.83 billion, though normalized growth was 1.5%. Medical technology revenue was flat at $168.9 million, with margins easing to 39.1% from 41.5%.
Capital expenditure totaled $31.6 million, primarily driven by a $15.7 million investment in the new Brisbane distribution center, which opened in June 2026. The company completed six acquisitions for $51.4 million during the year. Operating cash flow improved 89.4% to $65.8 million, translating to net cash from operating activities of $29.1 million, a 317% increase.
Net debt rose 31.3% to $284.1 million, equating to 2.5 times underlying EBITDA on a proforma basis. Total debt facilities stood at $307.7 million, including a $281 million facility from ScotPac. Return on invested capital increased to 14.6%, while return on equity reached 28.6% on a proforma basis.
Paragon Care’s share price fell 7.14% to $0.13 following the results, near the lower end of its 52-week range of $0.125 to $0.395. Management highlighted the completion of all synergies committed under its 3-2-1 strategy and signaled plans for a share buyback in FY2027, citing an undervalued share price.
