ParagonCare Limited reported solid underlying growth for fiscal 2026, driven by a completed transformation strategy and six strategic acquisitions, though statutory losses widened due to integration costs.
Underlying revenue increased 1.8% to $3.7 billion, or 6.7% on a normalized basis, while underlying EBITDA rose 2.1% to $97.2 million, up 7.4% adjusted. Statutory EBITDA fell 42.6% to $50.8 million, with a $46.4 million gap versus underlying figures driven by debt provisions, restructuring costs, and acquisition expenses. The company posted a statutory net loss of $16.0 million, compared with a $20.6 million profit in FY25, while underlying net profit after tax declined 13.6% to $26.0 million.
Cash and cash equivalents rose 16.5% to $23.7 million, and net debt stood at $284.1 million, or 2.5 times underlying EBITDA on a proforma basis. Return on invested capital improved to 14.6%, up 1.4 percentage points year-over-year. Operating cash flow surged 89.4% to $65.8 million, with net cash from operating activities up 317% to $29.1 million, including a $7.3 million tax refund.
The company completed six acquisitions in FY26, including AHP in July 2025, Somnotec in December 2025, and Fisher Biotec and Pacific Medical in February 2026, alongside Presidental and Haju Medical in April 2026. These deals expanded ParagonCare’s product portfolio, geographic reach, and service capabilities. Revenue from medical technology grew 21.4% to $329.0 million, with Asia-Pacific sales surging 58% to $160.1 million. Contract logistics revenue rose 47%, and margins expanded 52.2%.
ParagonCare’s ANZ segment reported total revenue of $3.52 billion, up 0.2% on a reported basis but up 6.1% normalized. The Asia segment’s margin contribution increased 43.4% to $67.3 million, though the margin percentage declined to 42.1% from 46.4%. The company also highlighted the integration of Australian operations onto the JDE ERP platform, completion of a new Brisbane warehouse with automation technology, and the commencement of a five-year supply contract with the Australian Defence Force.
CEO Carmen Riley noted that all synergies from the 3-2-1 strategy had been realized and partially reinvested. She described the Defence Force contract as the company’s most significant win and indicated that share buybacks would be considered given the perceived undervaluation of the stock. CFO Brendon Pentland emphasized the company’s preference for organic growth metrics.
Shares of ParagonCare fell 3.57% to $0.135, near a 52-week low of $0.125.
