Ramsay Health Care profit surges as Australian hospitals drive FY26 turnaround
Key Takeaways
- •Ramsay Health Care's statutory net profit after tax reached $329.2 million in FY26, up sharply from $24 million a year earlier and above the $311.4 million Visible Alpha consensus.
- •Revenue rose to $18.7 billion from $17.84 billion in FY25, with underlying NPAT up 22.9% to $364.1 million and underlying EBIT up 11.8% to $1.162 billion.
- •The Australian hospital network was the main source of the turnaround, supported by higher patient activity, more complex cases, better theatre utilisation and improved cost control.
- •Group EBIT margin improved 30 basis points to 6.2%, returns on invested capital strengthened, and both the Australian and UK businesses recorded positive net cash flow.
- •Ramsay declared a fully franked final dividend of 48.5 cents per share, taking the full-year payout to 91 cents, and expects further EBIT growth and margin improvement in FY27.
Ramsay Health Care (ASX: RHC) reported a sharp improvement in FY26 earnings, with stronger hospital activity, improved operating performance and tighter cost control lifting both underlying and statutory profit.
The hospital operator posted net profit after tax of $329.2 million for the year ended June 30, up from $24 million a year earlier. The result also came in ahead of the $311.4 million Visible Alpha consensus.
Revenue rose to $18.7 billion from $17.84 billion in FY25. Underlying NPAT increased 22.9% to $364.1 million, while underlying EBIT climbed 11.8% to $1.162 billion. Underlying earnings per share rose 27% to 151.0 cents.
Ramsay said its Australian hospital operations continued to gain momentum, supported by higher patient activity, an increase in more complex cases, better utilisation of operating theatres and improved cost control. For a hospital operator, those operational metrics matter because they feed directly into throughput, efficiency and margins, particularly in a setting where labour, theatre time and clinical capacity are key cost and revenue drivers.
The group also recorded positive net cash flow across its Australian and UK businesses. Group EBIT margin improved by 30 basis points to 6.2%, and returns on invested capital also strengthened.
The improved earnings performance flowed through to shareholders, with Ramsay declaring a fully franked final dividend of 48.5 cents per share. That took the full-year payout to 91 cents per share.
Chief executive Natalie Davis highlighted stronger transformation across the Australian business, as well as continued clinical performance and improved capital returns. The FY26 update points to the Australian hospital network as the main source of the turnaround, while the group’s cash flow and margin progress will be closely watched as Ramsay continues balancing hospital activity with cost management and capital discipline.
Looking ahead, Ramsay expects further EBIT growth and margin improvement in FY27 as it continues to focus on hospital activity, cost management and capital discipline.
