Sonic Healthcare’s shares fell 9.17% to A$21.40 on Wednesday after the company posted a 13% year-over-year revenue increase to A$10.87 billion for the fiscal year ended June 30, 2026, while underlying earnings missed analyst forecasts.
The Sydney-based pathology group reported underlying EBITDA of A$1.93 billion, an 11% increase on the prior year, and net profit after tax of A$621 million, up 17%. Earnings per share reached 125.6 cents, a 14% rise but below the A$1.41 consensus estimate, representing a roughly 10.6% miss. Cash generated from operations grew 8% to A$1.41 billion.
Revenue growth was driven by acquisitions, including the July 2025 purchase of LADR, which contributed to a 43% statutory revenue increase in Germany to A$2.73 billion. Australia reported 5% organic growth to A$2.18 billion, while the U.S. segment saw flat organic growth at A$2.05 billion despite a 3% statutory decline, partly due to the loss of an Alabama payor contract in January 2025. Switzerland achieved 9% statutory growth to A$1.19 billion, while the U.K. reported 16% revenue growth, largely from the HWE NHS outsourced contract, though margins remained under pressure.
Underlying EBITDA of A$1.92 billion on a constant-currency basis fell within the company’s guided range of A$1.87–1.95 billion. The group’s effective tax rate improved to 26%, below the 27% guidance. Capital expenditure totaled A$631 million, including A$280 million in strategic property investments, while net debt rose to A$3.07 billion from A$2.82 billion.
Sonic Healthcare reaffirmed its dividend payout target of 70–80% of net profit, declaring a final dividend of A$0.63 per share, bringing the full-year payout to A$1.08, a 0.9% increase from FY2025. The record date is set for September 3, 2026, with payment scheduled for September 17.
Looking ahead, the company guided FY2027 underlying EBITDA to A$1.95–2.03 billion on a constant-currency basis, excluding A$30 million in IT transformation costs. Depreciation is expected to rise to A$810–825 million, while amortization expenses are projected at A$90–95 million. Interest expenses are forecast to increase by approximately 6% year-over-year, and the effective tax rate is anticipated to be around 27%.
The group operates in nine countries across 11 markets, managing 144 million patient consultations through 3,200 access points and 330 laboratories, with a workforce of 47,000 employees. Strategic initiatives include the sale and leaseback of its Brisbane Bowen Hills hub laboratory to Charter Hall for A$445 million, and plans to sell surplus property at its Macquarie Park site in Sydney, expected to yield a pre-tax profit of around A$50 million.
