Ramsay Health Care Limited

For the 6 months to 31 December 2025, Ramsay reported underlying EBIT growth of 7.3% and underlying NPAT growth of 8.1%. The interim dividend was set at $0.425 per share, up 6.3%, with a 60% payout ratio of underlying earnings. Australia was the main driver: revenue from customers increased 8.2%, hospital admissions rose 3.1%, private hospital portfolio revenue grew 8.7%, and EBIT margins excluding Joondalup improved 40 basis points. Operating cash flow improved 16.9% to $350 million, consolidated net debt was $5.1 billion, and the Funding Group leverage ratio was 2.22x. Full-year guidance was updated: net financing costs are expected to be $590 million to $610 million, the underlying effective tax rate about 35%, and the dividend payout ratio 60% to 70%. Group CapEx guidance was reduced to $755 million to $795 million, with Australian development CapEx now expected at $170 million to $190 million.

Natalie Davis said the company is making progress on three priorities: transforming the Australian hospital business, improving capital allocation and returns, and evolving culture and execution. Her tone was constructive and confident on Australia, where she highlighted higher acuity, better theater utilization, stronger NPS metrics and a more disciplined catchment-based growth strategy. She framed the Ramsay Sante distribution as a simplification move that would let the group focus on Australia, while still acknowledging that the UK and Elysium remain challenged.

Anthony Neilson emphasized that the half was driven by underlying operating strength rather than one-offs, noting $11 million of excluded items mostly tied to transaction and restructuring costs. He cited operating cash flow of $350 million, a 36% underlying NPAT tax rate, consolidated net debt of $5.1 billion, and 67% of floating-rate debt hedged at an average base rate of 3% for 2H FY26. He also pointed to the Funding Group’s 2.22x leverage, BBB- reaffirmation by Fitch, a 30 bps reduction in debt margins from refinancing, and a lower weighted average cost of debt, while reiterating a focus on cash conversion, working capital and capital discipline.

Analysts pressed management on whether Australia’s faster growth could continue, and Davis said the company is guiding only to continued year-on-year EBIT momentum, with normal second-half seasonality. Questions also focused on PHI premium increases, EBA wage pressure and whether insurers will fully pass through higher costs; management said it is still negotiating and pushing for revenue indexation that reflects genuine cost pressures, including some dynamic indexation contracts. On the UK, management said NHS activity is likely to remain negative in Q3, while Elysium is being resized through bed closures and site optimization as the turnaround gains traction.