Ramsay Health Care Ltd reported a 22.9% increase in underlying net profit after tax to AUD 329 million for the year ended June 30, 2026, driven by a 11.8% rise in underlying earnings before interest and tax to approximately AUD 1.2 billion. Revenue grew 4.2% in constant currency to AUD 18.6 billion, while the group’s underlying EBIT margin expanded by 30 basis points to 6.2%.
The company declared a final fully franked dividend of AUD 0.485 per share, up 21.3% year-on-year, bringing the full-year dividend to AUD 0.91 per share, a 13.8% increase. The payout ratio stood at 60.3%, supported by a 17.9% rise in funding group underlying net profit to AUD 398.4 million. Free cash flow was broadly flat at AUD 697 million, while capital expenditure totaled AUD 365 million, below the original forecast of AUD 410 million to AUD 440 million.
Regional performance showed Australia as the primary driver, with revenue up 8% and underlying EBIT rising 11.2%. The EBIT margin improved by 30 basis points to 9.4%, supported by theater utilization of 70%, including 80% to 85% at the top five hospitals. Surgical admissions grew 4.1%, medical admissions 3.2%, and rehabilitation admissions 3.8%, while overnight mental health admissions rose 0.9%. The Joondalup Health Campus faced a AUD 26 million negative impact from a new funding mechanism, partially offset by operational measures.
In the U.K., underlying EBIT increased 10.3% in constant currency, with private activity up 2.9% and average revenue per admission rising 6.7%. EBIT margins improved by 80 basis points, and labor costs as a percentage of revenue declined by 30 basis points. Elysium, the group’s mental health and complex care arm, posted a 43% rise in underlying EBIT, supported by a 4.4% average fee uplift, though restructuring costs totaled AUD 13.2 million, including AUD 9.9 million in site impairments.
Ramsay Santé, the European arm, reduced its underlying loss despite challenging tariff and funding conditions in France. The Nordic region performed strongly, aided by Sweden’s Capio S:t Göran’s Hospital under an eight-year contract. Group leverage stood at 1.83 times, below the 2.5 times target range, while return on invested capital improved by 30 basis points to 6.3% in the funding group.
Management guided FY 2027 EBIT growth, with Australia expected to see incremental year-on-year improvement. IT and technology spending is set to rise by AUD 10 million to AUD 15 million, targeting patient administration systems and smart rostering. Eleven new theaters and cath labs are planned for FY 2027, including at Hollywood in Perth, St. George in Sydney, and Westmead. The National Capital Private Hospital acquisition is expected to be underlying EPS accretive within 12 months, with transition costs of AUD 9 million to AUD 11 million. Total Australian CapEx is projected at AUD 380 million to AUD 410 million.
The planned separation of Ramsay Santé remains on track, with a shareholder vote scheduled for November 24, 2026, and completion expected in late 2026. Shares surged 15.29% in pre-market trading to AUD 50.75, near the 52-week high of AUD 50.88, valuing the company at approximately AUD 8.4 billion.
