Ramsay Health Care (ASX: RHC) – Ramsay Health Care 2026 Annual Report

Ramsay Health Care has announced plans to demerge its Ramsay Santé European operations through an in-specie distribution to shareholders, subject to approval at a scheme meeting scheduled for 24 November 2026. The separation represents the most significant strategic development in the 2026 annual results, addressing the fundamentally different geographic focus, strategies and capital profiles of Ramsay’s Australian and UK operations versus Ramsay Santé’s European platform. Management believes the demerger will unlock shareholder value by enabling Ramsay to focus on the transformation of its market-leading Australian hospital business, while allowing Ramsay Santé to pursue its independently managed European strategy with greater focus.

Underlying the demerger announcement are solid operational and financial results from the core Ramsay business. Reported net profit after tax reached $329.2 million, a substantial improvement from the prior year, while underlying net profit after tax excluding non-recurring items grew 22.9 percent on a constant currency basis to $364.1 million. This strong earnings growth reflects improvements across both the Australian and UK operations. The Australian business delivered an 11.2 percent increase in underlying EBIT, driven by activity growth, higher patient acuity, improved theatre utilisation despite the addition of 22 new procedure rooms, and enhanced private health insurance indexation. The company invested $150 million in development projects focused on procedural capacity in major Australian hospitals located in growth corridors.

Return on invested capital improved meaningfully across the group, with the Funding Group return on capital employed increasing 150 basis points to 14.8 percent and group ROIC improving 30 basis points to 4.6 percent. Leverage for the Funding Group improved to less than 2.0x, reflecting management’s focus on capital discipline and cash flow generation. Hospital admissions in Australia grew 3.3 percent, excluding the Peel Health Campus and Border Cancer Hospital, while the company maintained high Net Promoter Scores of 70 or above across Australia, France, Sweden and the UK operations. These metrics suggest the group’s operational improvements are translating into patient satisfaction and clinical outcomes.

Ramsay completed the acquisition of National Capital Private Hospital in Canberra in August 2026, adding to the group’s procedural capacity in a key growth market. The board declared a fully franked final dividend of 48.5 cents per share, an increase of 21.3 percent, bringing the full year dividend to 91 cents per share and up 13.8 percent from the prior period. This represents a 60.3 percent payout ratio of underlying earnings, indicating management’s confidence in cash generation.

The demerger vote on 24 November will be the key near-term event for investors. Should shareholders approve, the company expects completion in late 2026 subject to regulatory approvals. Investors should monitor the path to the vote for any indication of shareholder sentiment on the separation. The group has also scheduled an investor day for 30 November 2026 to outline progress on the transformation strategy and capital discipline initiatives across both the Australian and UK operations.

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.

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