Sonic Healthcare Limited

FY 2026 total revenue increased 13% year over year to AUD 10.867 billion. EBITDA rose 11% to AUD 1.933 billion, with constant-currency EBITDA of AUD 1.916 billion and underlying EBITDA adjusted for net non-recurring items of about AUD 51 million. Net profit after tax increased 17% to AUD 621 million, and EPS grew 14% to AUD 1.26. FY 2026 depreciation expense was AUD 771 million, interest expense was AUD 188 million, and property, plant and equipment CapEx totaled AUD 631 million, including AUD 280 million of strategic property investments. For FY 2027, Sonic guided constant-currency EBITDA to AUD 1.95 billion to AUD 2.03 billion, depreciation to AUD 810 million to AUD 825 million, amortization to AUD 90 million to AUD 95 million, and effective tax rate to about 27%; this guidance excludes any property-sale gains and about AUD 30 million of IT transformation costs, and does not include potential U.S. PAMA fee cuts.

Jim Newcombe framed FY 2026 as evidence that Sonic’s scale, medical leadership culture, and operational excellence continue to drive growth. He emphasized organic growth, advanced diagnostics, and synergies from recent acquisitions, especially LADR in Germany and the Swiss businesses, while saying the company is investing to modernize its digital infrastructure across back office, operations, and clinical front line workflows. His tone was confident and long-term oriented, with repeated references to momentum, efficiency, and the ability to mitigate near-term headwinds through Sonic’s operating platform.

Chris Wilks highlighted the main financial bridge from FY 2026 to FY 2027: EBITDA guidance of AUD 1.95 billion to AUD 2.03 billion, depreciation of AUD 810 million to AUD 825 million, amortization of AUD 90 million to AUD 95 million, and tax around 27%. He noted that net debt rose mainly because of the LADR and Cairo acquisitions, while headroom at 30 June 2026 was about AUD 1.6 billion before the final dividend, and debt cover was 2.2. He also said maintenance CapEx was AUD 351 million in FY 2026, property-related CapEx should be lower in FY 2027, and the company plans to keep prioritizing an investment-grade balance sheet, a progressive dividend, selective acquisitions, and possible buybacks.

Analysts focused on why FY 2027 EBITDA growth appears modest despite strong underlying revenue trends, and management pointed to Swiss fee cuts, the delayed UK HWE ramp-up, and U.S. operating improvements as the main moving parts. On the U.S., management said the operating review is producing savings, advanced diagnostics is growing well, and ZYPPIN is rolled out everywhere except Hawaii but is taking longer than expected to fully benefit from. Questions also probed FX sensitivity, CapEx, Fair Work wage impacts, and whether M&A or buybacks might accelerate; management said FX could be a roughly AUD 40 million to AUD 50 million EBITDA headwind at current rates, CapEx should normalize, and buybacks remain only a future consideration.