Sonic Healthcare Boosted by Strong Revenue Growth
Sonic Healthcare soared today after it reported blockbuster half year results.
Sonic Healthcare Limited (ASX: SHL)
Sonic Healthcare Limited (ASX: SHL) reported a very strong Half Year FY2026 result which pushed the stock up more than 13% by Thursday afternoon trading and lifted the company’s market capitalisation to around $11.95 billion.
For H1 FY2026, revenue increased 17% compared to last year, reaching $5,445 million whereas EBITDA went up 10% to $907 million, while net profit rose 11% to $262 million.
Earnings per share improved by 8% to 53.1 cents and Operating cash flow also increased by 10% to $682 million.
Adjusted EBITDA margins expanded to 18.1%, which is 30 basis points higher than the previous year, mainly due to synergy benefits across major markets.
Germany recorded 40% revenue growth in constant currency terms after the LADR acquisition while Australia delivered 5% organic revenue growth which was supported by Medicare indexation and private billing initiatives.
The USA business showed improved underlying organic growth after adjustments for contract losses and restructuring which reflects ongoing operational reviews and rationalisation efforts to lift profitability.
The UK achieved 24% organic growth in constant currency driven by new NHS and private contracts while Switzerland reported 2% organic growth supported by synergy benefits.
Radiology revenue grew 7% organically which was supported by demand for higher value imaging modalities such as CT, MRI and PET CT.
The company advanced its capital management plan with a proposed sale and leaseback of the Brisbane hub laboratory which is expected to generate proceeds of $450 to $500 million.
An interim dividend of $0.45 per share was declared which is 60% franked while the current annual yield stands at 4.43%.
The current P/E ratio is 22.65 which is reasonable as the group is focused on margin expansion and selective synergistic acquisitions which should lead to massive growth ahead.
Management maintained FY2026 EBITDA guidance of $1.87 to $1.95 billion in constant currency terms and the company is well-positioned to sustain momentum through the second half and beyond.
(Source: Company Announcements)
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