Ramsay Health Care delivered underlying earnings growth of 11.8% in FY26, with net profit after tax increasing 22.9% on a constant currency basis. The company increased its full year dividend to 91 cents per share from 75 cents, with the final dividend of 48.5 cents fully franked, reflecting management’s confidence in cash generation and improving capital returns.
Australia’s hospital business drove the results, contributing underlying EBIT growth of 11.2% through a combination of activity expansion, higher case complexity, and improved theatre utilisation. Admissions grew 3.3% while inpatient and day admission volumes increased 3.0%, with the company noting a meaningful shift toward higher acuity surgical and medical cases. Theatre utilisation improved by 90 basis points despite the addition of 22 new theatres during the year, suggesting effective execution of the capacity expansion strategy. The business also benefited from improved private health insurance indexation negotiated in FY25, which more closely matched cost inflation than in prior periods.
The UK Acute hospital business generated 10.3% underlying EBIT growth despite an 8% decline in NHS volumes. This performance matters for investors given the operational headwinds from budget constraints across the UK National Health Service. The business offset lower NHS activity through higher case acuity, growth in private pay work, and operational efficiency improvements. Elysium Healthcare, the social care business facing significant market challenges, delivered 43.5% underlying EBIT improvement as its turnaround plan gained traction through site closures, ward reductions matching demand, and agency labour cost reduction.
From a capital management perspective, Ramsay maintained disciplined spending with group capex down 6.1% in constant currency terms while completing major developments at Joondalup Private and Warringal. Funding Group leverage improved to 1.83x from 2.18x in the prior period, comfortably below the 2.5x target and the 4.0x covenant ceiling. Management expects leverage to remain within target following the expected National Capital Private Hospital acquisition completion by September 2026.
The proposed separation of Ramsay Santé, the European business, is moving toward a shareholder vote scheduled for 24 November 2026. This would simplify the consolidated group’s financial profile and allow management to focus on the transformation opportunity in the core Australian hospitals business.
A rules-based approach to leveraged ETFs
See how our quantitative strategy works and who it suits.
Explore the strategyBecome an authorised representative
Advise your clients under an established AFSL without building your own. Choose AR or CAR.
Become an AR or CARInvestors should monitor National Capital integration execution and its contribution to FY27 earnings accretion. The company has guided to incremental year-on-year EBIT growth and margin expansion in Australia for FY27, supported by continued activity growth and operational initiatives across procurement, revenue cycle management, workforce, and technology enablement.
View the full ASX announcement (PDF)
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.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
Learn to trade with a plan
Our free 5-day course covers entries, exits and risk management.
Start the free courseBecome an authorised representative
Advise your clients under an established AFSL without building your own. Choose AR or CAR.
Become an AR or CAR