Highlights

  • Revenue increased 9.9% to $13.5 billion, while Underlying EBITDA rose 5.0% to $614 million.
  • Underlying NPAT fell 3.1% to $250 million due to costs from a now-completed $360 million distribution centre program.
  • Animal Care Revenue jumped 34.6% to $907 million, with Underlying EBITDA surging 11.6% to $138 million.
  • FY27 Capital Expenditure is forecast to fall to approximately $100 million as the Investment cycle ends, with EBITDA guidance of $635–$655 million.

EBOS Group (ASX:EBO) shares moved higher to $19.73 on 19 August 2026, up 8.23%, as the healthcare and animal care distributor announced FY26 results showing revenue growth, improving operational Leverage and the completion of a major Capital Investment cycle. Revenue increased 9.9% to $13.5 billion from $12.3 billion, while Underlying EBITDA rose 5.0% to $614 million. Underlying NPAT, however, declined 3.1% to $250 million — a result that initially looks contradictory but actually sets up a more attractive outlook.

Why Profit Fell Even as EBITDA Grew

The Earnings decline came from higher depreciation, Amortisation and financing costs tied to the company's now-completed four-year, $360 million distribution centre renewal program. That investment has created a modern, efficient infrastructure base, and the worst earnings drag is now behind the company. FY27 capital expenditure is forecast to drop sharply to approximately $100 million, a reduction expected to release significant Cash Flow and earnings uplift.

Healthcare Remains the Core

Healthcare, representing 93% of revenue, generated $12.6 billion, up 8.5%. Underlying EBITDA rose 3.2% to $516 million, though EBITDA Margin compressed slightly to 4.1% from 4.3%. Community Pharmacy revenue climbed 10.2% to $7.1 billion, supported by strong Demand for GLP-1 therapies and other high-value medicines, with the Business maintaining competitive PBS share.

Contract Logistics expanded robustly, with gross Operating Revenue up 13.1% to $174 million, while hospital medicines, consumables and other revenue rose 4.3% to $3.8 billion. TerryWhite Chemmart, EBOS's retail pharmacy banner, continued its expansion, with network sales reaching approximately $2.9 billion, up 9.2%, while like-for-like network sales increased 7.6%.

Medical Technology Growth Through Acquisition

Medical Technology revenue advanced 5.5%, or 8.4% on a constant-currency basis, driven by four strategic acquisitions during the year that expanded EBOS's presence in oncology, orthopaedics, plastics and reconstruction, and aesthetics. The K-Talyst Acquisition also bolstered medical aesthetics exposure in Southeast Asia and Hong Kong.

Animal Care: The Standout Performer

Animal Care was the standout division. Revenue jumped 34.6% to $907 million, while Underlying EBITDA surged 11.6% to $138 million. Gross operating revenue rose 13.1% to $243 million, though GOR margin compressed to 26.8% from 32.0% due to a greater wholesale contribution from the SVS acquisition. EBOS has expanded its premium pet food portfolio through acquisitions including Next Generation Pet Foods and Paringa Pet Foods, positioning the division for continued growth in premium products and veterinary channels.

Balance Sheet and FY27 Guidance

Leverage ended at 2.1 times, up from 1.9 times but remaining within the company's 1.7–2.3 times target range. Return on capital employed declined to 12.8% from 13.0%, a modest decrease reflecting the larger capital base from the distribution centre investment.

For FY27, EBOS expects Underlying EBITDA between $635 million and $655 million. Depreciation and amortisation are forecast to increase to $152–$162 million, while net finance costs are expected at $138–$148 million. With capital expenditure expected to normalise at approximately $100 million, cash generation is anticipated to improve materially.

Conclusion

EBOS Group's FY26 result reflects a business emerging from a heavy capital investment cycle. With the distribution centre program complete, capex set to fall sharply and Animal Care delivering standout growth, the FY27 outlook points to improving cash generation and earnings momentum.