Sonic Healthcare Group Ltd reported FY 2026 revenue of AUD 10.867 billion, up 13% year‑over‑year, and underlying EBITDA of AUD 1.933 billion, an 11% rise. Constant‑currency EBITDA came in at AUD 1.916 billion, within the company’s guidance range. Net profit after tax increased 17% to AUD 621 million, while earnings per share reached AUD 1.26, 10.6% (AUD 0.15) below the consensus forecast of AUD 1.41.
Depreciation expense was AUD 771 million and interest expense rose 19% to AUD 188 million. Capital expenditure on property, plant and equipment totaled AUD 631 million, of which AUD 351 million was classified as maintenance capex, roughly 3% of revenue. The effective tax rate fell to 26%, slightly under the 27% guidance. Sonic’s market capitalisation stands at about $52 billion, with a 12% return on equity over the past twelve months and a Piotroski score of 8.
Dividends were modestly increased, with a full‑year payout of AUD 1.08 per share, up AUD 0.01 from the prior year, and a final dividend of AUD 0.63 per share. The company highlighted a 13‑year streak of dividend raises and 33 consecutive years of payments.
The stock reacted sharply, falling 9.89% – a drop of $2.33 – to $21.23 from $23.56. The share price remains within its 52‑week range of $18.26 to $28.00.
Operationally, Sonic handled 144 million patient consultations across more than 3,000 access points in nine countries, employing roughly 47,000 staff. It retains the top market position in six of the 11 markets it serves. Group organic revenue grew 5% year‑on‑year. Notable growth in advanced diagnostics included a 15% rise for Sonic Genetics in Australia, 12% for Biovis in Germany, 7% for Australian pathology specialist referrals, and over 60% for Germany’s direct‑to‑consumer testing arm Mein Direktlabor.
Looking ahead to FY 2027, Sonic projects constant‑currency EBITDA between AUD 1.95 billion and AUD 2.03 billion, excluding an estimated AUD 30 million annual cost for back‑office IT transformation. Organic revenue growth is expected to stay around 5% at the group level, not counting the annualisation effect of the UK Hertfordshire and West Essex (HWE) NHS contract. The U.S. operating review is forecast to contribute an additional AUD 25‑30 million to earnings, while interest expense is slated to rise about 6% from FY 2026. The effective tax rate is anticipated to return to 27%, and maintenance capex should remain near 3% of revenue.
Region‑specific commentary noted a 2% organic growth in the United States after a lost Alabama payer contract and pathology restructuring, with over 70% of dermatopathology volumes processed via the PathologyWatch digital platform. In Switzerland, a regulatory fee reduction for ten high‑volume tests is expected to shave roughly 20 million Swiss francs – about 3% of revenue – from FY 2027. The United Kingdom saw 17% revenue growth, driven by the HWE NHS contract, though margin pressure persists due to slower testing volume transfers. In Australia, indexation on Medicare schedule fees added 2.4% in FY 2026 and 2.6% in FY 2027, while a gender‑pay review is projected to increase FY 2027 costs by AUD 4 million for phlebotomists and AUD 2.8 million for health professionals. A new Docklands laboratory is planned to open mid‑2027. Germany reported 43% revenue growth, underpinned by the LADR acquisition, with 40% of synergies realized in the first year.
The company disclosed a planned investment of about AUD 30 million per year for the next three years to migrate back‑office functions to the cloud.
Chief Executive Dr. Jim Newcombe said the group delivered solid results and met EBITDA guidance on an underlying basis, while CFO Chris Wilks expressed confidence in the outlook and the company’s ability to generate earnings growth and shareholder value.
