Full Year 2026 Healius Ltd Earnings Call Transcript
Key Points
- Group underlying EBIT increased significantly to $30.2 million, up from $17.1 million in FY25, driven by disciplined cost control and improved revenue mix.
- Pathology EBITDA improved by $15 million to $247.9 million, with flat labor costs despite Fair Work Commission increases, reflecting successful network and labor optimization.
- Agilex Biolabs delivered strong growth, with EBITDA up $4.3 million to $10.7 million and EBIT more than doubling to $6.4 million, supported by a strategic pivot to large molecule work and exit from toxicology.
- The T27 program achieved $24.4 million in annualized corporate cost savings, exceeding the $15-20 million target, and completed the major phase of digital technology implementation, including AI coworkers and a new patient app.
- Non-MBS revenue streams showed robust growth, with genomic diagnostics up 16.9% and clinical trials revenue up 92.9%, positioning the company for future margin expansion.
- The company maintained a strong balance sheet with net debt of $32.8 million, well within banking covenants at 1.2 times, and expects to be cash flow positive in FY27.
- FY27 EBIT guidance of $39.7 million is in line with consensus but reflects a significant $15 million impact from Fair Work Commission labor cost increases, delaying the T27 margin target to December 2028.
- Pathology volumes declined, with GP attendances down 0.9% and a 5% reduction in collection center footprint, partly due to the loss of major hospital contracts like Western Health and Hollywood Hospital.
- The company recorded a non-cash pre-tax impairment of $332 million against goodwill and derecognized $45.5 million in deferred tax assets, reflecting ongoing challenges in the pathology business.
- Net debt increased from a net cash position of $57.2 million in FY25 to $32.8 million, driven by one-off payments including an ATO settlement, Lumus divestment true-up, and restructuring costs.
- The sale process for Agilex Biolabs, while attracting interest, adds uncertainty, and the company faces ongoing competitive pressures in the ACC market, with 100 site closures during the year.
- Telehealth referrals continue to be a headwind, with telehealth visits generating less than half the referrals of face-to-face visits, impacting overall volume growth.
Thank you for standing by and welcome to the Healius Limited FY26 results. (Operator Instructions)
I would now like to hand the conference over to Mr. Paul Anderson, MD and CEO. Please go ahead.
Right, thank you and good morning everyone.
We're here today to announce our full year results, provide you with some additional financial information and commentary on the performance of each of our business units and of course, answer your questions. With me today is Andrew Thomson, our Chief Financial Officer, who you will hear from shortly.
Turning to slide 4 in terms of our group results. This slide summarizes the group's FY26 performance. Group underlying revenue increased by 2.1% to 1.37 billion, while pathology revenue increased by 1.8% to 1.33 billion. Agile revenues grew strongly with growth of 5.4 million or 14.1% to 43.6 million. Group underlying EBITD increased by 8.1% to 258.6 million, and underlying EBIT increased to 30.2 million.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
