Ramsay Health Care delivered underlying net profit after tax growth of 23 percent on a constant currency basis for the year ended 30 June 2026, with the result underpinned by a sustained transformation of its Australian operations and operational improvements across all regions. The strong earnings momentum, combined with improved capital discipline and cash generation, positions the healthcare operator to deliver increased shareholder returns while maintaining financial flexibility to pursue strategic initiatives.
The Australian business drove the earnings acceleration, with underlying EBIT growing 11.2 percent and EBIT margin expanding by 30 basis points despite headwinds from a new funding mechanism at Joondalup Public Campus. The transformation reflects a deliberate strategic pivot toward higher-acuity patient care and improved revenue indexation relative to cost inflation, with admissions growth of 3.3 percent and visiting medical officer numbers up the same proportion. Theatre utilisation improved by approximately 90 basis points, indicating better asset productivity and operational execution across the portfolio. Management’s focus on portfolio optimisation, including the closure of four underperforming sites and the planned sale of excess land holdings, has begun to yield material benefits as the business sheds complexity.
International operations also demonstrated resilience and management capability. UK Hospitals expanded EBIT by 10.3 percent despite an 8 percent decline in National Health Service volumes, as the business gained traction through acuity mix, private work growth, and disciplined cost management. Elysium, the group’s dental care platform, showed improving momentum following site and ward closures aimed at matching local demand while reducing central and agency costs. These results suggest that the operational improvement initiatives undertaken across the group are not confined to Australia but reflect genuine management quality and execution discipline.
Capital management improved markedly, with Funding Group leverage falling below 2 times and return on capital employed expanding 150 basis points to 14.8 percent. Capital expenditure came in below revised guidance at A$729 million on a constant currency basis, with growth and development spending concentrated in Australia and procedural capacity expansion. The group deployed this improved financial position to increase shareholder returns, with the fully franked final dividend up 21.3 percent to 48.5 cents per share and the full-year dividend up 13.8 percent to 91 cents per share.
The in-specie distribution of Ramsay Santé, the group’s French operations, remains on track for completion in 2026, subject to shareholder approval at a vote scheduled for November. Successful separation would simplify the group’s geographic and operational complexity while freeing management bandwidth to accelerate the Australian transformation and realise additional value from the international portfolio. Investors should monitor the November shareholder vote, the timing of the Ramsay Santé separation completion, and the trajectory of Australian EBIT growth and cash flow generation in coming quarters as key indicators of strategic execution. This announcement is price sensitive and has been flagged as material by the Australian Securities Exchange.
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About Ramsay Health Care Limited (ASX: RHC)
Ramsay Health Care Limited is an Australian multinational healthcare provider that operates approximately 500 facilities including hospitals, day surgery centers, clinics, and pharmacy services. The company specializes in surgery, rehabilitation, and psychiatric care across Australia, the United Kingdom, France, Scandinavia, Germany, and parts of Asia. It is one of the largest private hospital operators globally.
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