Key Highlights

  • EBOS Group (ASX:EBO) increased FY26 Revenue 9.9% to $13.5 billion, while Underlying EBITDA rose 5.0% to $614 million.
  • Underlying NPAT declined 3.1% to $250 million, reflecting higher depreciation, Amortisation and financing costs following the group's infrastructure Investment program.
  • Animal Care revenue increased 34.6% and Underlying EBITDA rose 11.6%, while Healthcare revenue increased 8.5% and EBITDA grew 3.2%.
  • EBOS completed its four-year, $360 million distribution centre renewal program and expects FY27 Capital Expenditure to reduce to approximately $100 million.

EBOS Group (ASX:EBO) reported higher revenue and Underlying EBITDA for the financial year ended 30 June 2026, although Underlying NPAT declined as the cost of its recent investment program continued to affect earnings. Revenue increased 9.9% to $13.5 billion from $12.3 billion, while Underlying EBITDA rose 5.0% to $614 million.

Underlying NPAT fell 3.1% to $250 million from $258 million. Earnings per share on an underlying basis also declined 7.3% to 121.7 cents. By contrast, statutory NPAT increased 4.7% to $225 million from $215 million, while statutory EPS was broadly unchanged at 109.8 cents.

The final Dividend was maintained at NZ61.5 cents per share, matching FY25. The Payout Ratio was 84.5% of Underlying NPAT.

Healthcare Remains the Largest Earnings Contributor

EBOS's Healthcare division generated revenue of $12.6 billion, an increase of 8.5%. Underlying EBITDA rose 3.2% to $516 million, although the segment's EBITDA Margin declined to 4.1% from 4.3%.

Community Pharmacy revenue increased 10.2% to $7.1 billion. Growth was supported by Demand for GLP-1 therapies and other high-value medicines, while the Business maintained its PBS share despite competitive conditions. Gross Operating Revenue increased 4.3% to $613 million.

Contract Logistics also expanded, with gross operating revenue increasing 13.1% to $174 million. Hospital medicines, consumables and other revenue rose 4.3% to $3.8 billion.

Retail Pharmacy Brands continued to expand, with TerryWhite Chemmart network sales reaching approximately $2.9 billion, up 9.2%. Like-for-like network sales increased 7.6%, while like-for-like dispensary sales rose 8.5%. The total pharmacy network reached 780 stores, an increase of 86 from the previous year.

Medical Technology Adds Geographic and Product Growth

Medical Technology revenue increased 5.5%, or 8.4% on a constant-currency basis. Growth came from higher therapy participation, procedure volumes, Biologics and acquisitions across Australia, New Zealand and Southeast Asia and Hong Kong.

EBOS completed four strategic acquisitions during the year, expanding its presence in oncology, orthopaedics, plastics and reconstruction, and aesthetics. The K-Talyst Acquisition also increased its exposure to medical aesthetics in Southeast Asia and Hong Kong.

Animal Care Revenue Jumps 34.6%

Animal Care was one of the faster-growing areas of the group. Revenue increased 34.6% to $907 million, while Underlying EBITDA rose 11.6% to $138 million.

Gross operating revenue increased 13.1% to $243 million. However, the GOR margin declined to 26.8% from 32.0%, partly reflecting a greater contribution from wholesale operations following the SVS acquisition.

EBOS also expanded its premium pet food exposure through acquisitions including Next Generation Pet Foods and Paringa Pet Foods. The division is targeting further growth in premium products, veterinary channels and international sales.

Investment Cycle Completed as Capital Intensity Falls

EBOS completed its four-year, $360 million distribution centre renewal program during FY26. The major facilities are now operational, shifting the group's focus from infrastructure construction toward utilisation, productivity and network optimisation.

The company deployed approximately $400 million across capital expenditure, acquisitions and Shareholder returns during FY26. Leverage ended at 2.1 times, compared with 1.9 times a year earlier, remaining within the stated target range of 1.7 to 2.3 times.

Return on capital employed declined to 12.8% from 13.0%, reflecting the larger capital base. The completion of the investment cycle is expected to reduce capital expenditure materially, with FY27 capital expenditure forecast at approximately $100 million.

FY27 Outlook

EBOS expects Underlying EBITDA of between $635 million and $655 million in FY27. The outlook incorporates increased utilisation and productivity across Healthcare, further Retail Pharmacy Brands expansion, continued growth in Medical Technology and additional product and customer opportunities in Animal Care.

Depreciation and amortisation are expected to increase to approximately $152 million to $162 million, while net finance costs are forecast at approximately $138 million to $148 million. The company expects leverage to remain within its target range, with cash generation anticipated to improve as capital expenditure falls.

Conclusion

EBOS entered FY27 after completing a major infrastructure investment program, with FY26 revenue and EBITDA increasing despite higher costs and competitive pressures. The decline in Underlying NPAT and ROCE highlights the earnings impact of depreciation, amortisation and financing costs associated with the enlarged capital base. At the same time, growth across Healthcare, Retail Pharmacy Brands, Medical Technology and Animal Care, combined with lower expected capital expenditure, provides the operating backdrop for the group's FY27 earnings and cash-flow objectives.