Ramsay Health Care Limited

For FY26, Ramsay reported revenue of $18.6 billion, up 4.2% in constant currency, underlying EBIT up 11.8%, underlying NPAT up 22.9%, and reported NPAT of $329 million. Group EBIT margin improved 30 bps to 6.2%, underlying EPS grew 27% in constant currency, ROCE rose to 11%, and free cash flow was $697 million. The Funding Group generated underlying NPAT of $398.4 million, with revenue up 5.2%, ROCE up to 14.8%, leverage down to 1.83x, and interest cover at 8.94x. The final fully franked dividend was $0.485 per share, bringing the full-year dividend to $0.91 per share, up 13.8%, with a 60.3% payout ratio. Looking ahead, management said Australia is targeting incremental year-on-year EBIT growth, margin expansion, and $10 million to $15 million of additional IT/technology investment in FY27, with NatCap expected to be underlying EPS accretive in its first 12 months and transition costs of $9 million to $11 million. Total Australian CapEx is expected to be $380 million to $410 million. In the UK, management expects EBIT growth in FY27, while the Funding Group’s total net interest costs are forecast at $280 million to $300 million, and group CapEx is forecast at $480 million to $520 million.

Natalie Davis framed FY26 as a year of real progress in Ramsay’s multiyear transformation, especially in Australia, where high-acuity growth, better theater utilization, pricing/indexation, and cost control drove margin improvement. She emphasized a more disciplined capital approach, stronger commercial capability, and better patient, doctor, and team NPS, while also highlighting the planned Ramsay Santé separation as a simplification step that should sharpen focus on the core Australian business. Her tone was confident but measured, repeatedly stressing that the company is investing for a stronger long-term platform rather than chasing short-term growth.

Anthony Neilson highlighted broad-based EBIT growth by region, 30 bps of group margin improvement to 6.2%, and a 20 bps improvement in employee costs as a percentage of revenue plus a 10 bps improvement in medical supplies and consumables. He pointed to strong cash generation, including $697 million of free cash flow, a stable balance sheet, and leverage falling to 1.83x, with liquidity of $1.066 billion and no issue with the group staying below its 2.5x leverage target even after the $251 million NatCap acquisition. He also flagged FY27 headwinds/uses of cash: net interest costs of $280 million to $300 million, weighted average debt cost of about 5.5%, and higher CapEx guidance of $480 million to $520 million for the Funding Group.

Analysts pressed management on whether Australia’s FY27 EBIT growth would slow, and management declined to quantify guidance, saying it is targeting margin growth and continued high-acuity growth while absorbing an extra $10 million to $15 million of IT/technology OpEx. Questions also focused on utilization at top Australian hospitals, where Natalie said 80% to 85% is the aspiration for major sites and capacity additions are already being prioritized at high-utilization hospitals like Westmead, St George, and Hollywood. In the UK and Elysium, analysts asked about the sustainability of margin improvement and whether FY26 trends were repeatable; management said the UK benefits from higher acuity and private work while Elysium has largely completed bed rightsizing and is now focused on filling capacity and controlling costs.