Highlights:

  • Helius FY2026 underlying EBITDA increased 8.1% to $258.6 million, while Revenue rose 2.1% to $1.37 billion.
  • Pathology revenue increased 1.8% despite a 1.3% decline in volumes, supported by pricing and revenue mix.
  • Agilex Biolabs revenue increased 14.1% to $43.6 million, with EBITDA up 67.2% to $10.7 million.
  • Healius expects FY2027 EBIT to be in line with consensus of $39.7 million.
  • Healius was trading at AUD 0.43, down 3.37% during the morning Trading session on 19 August 2026

Healius Limited (ASX:HLS) has reported its FY2026 results, highlighting growth in underlying earnings, cost management initiatives, digital investments and progress under its T27 transformation plan.

Healius was trading at AUD 0.43, down 3.37% during the morning trading session on 19 August 2026, while the stock remained down 46.91% over the past year. The company’s full-year update covered operational performance across its pathology business, Agilex Biolabs and its ongoing efforts to improve margins and cash flow.

FY2026 Revenue and Earnings Performance

For the financial year ended 30 June 2026, Healius reported group underlying revenue of $1.37 billion, up 2.1% compared with $1.34 billion in FY2025.

Underlying EBITDA increased 8.1% to $258.6 million, while underlying Earnings Before Interest and Tax (EBIT) increased 76.6% to $30.2 million compared with $17.1 million in the prior corresponding period.

Reported results included non-cash Impairment charges of $332.0 million against goodwill, resulting in reported EBIT of negative $328.9 million. The company stated that the impairment charge did not impact underlying earnings, Cash Flow or banking covenants.

Healius recorded reported net profit after tax including discontinued operations of negative $415.6 million for FY2026.

Pathology Business Records Revenue Growth Despite Volume Decline

Pathology remained Healius’ largest business segment, generating revenue of $1.33 billion in FY2026, up 1.8% year-on-year.

Revenue growth was achieved despite pathology volumes declining 1.3% compared with FY2025, supported by fee growth and changes in revenue mix.

The company reported growth across Genomic Diagnostics, Public Hospitals, Veterinary Pathology and Business-to-Business (B2B) services including Clinical Trials. Average fee per episode increased 4.0% during FY2026.

Pathology EBITDA increased 6.4% to $247.9 million, while EBIT reached $23.8 million for the full year. EBIT improved during the second half of FY2026 to $18.6 million, with the EBIT Margin increasing to 2.8% in the second half compared with 1.8% for the full year.

Cost Management and Digital Initiatives Continue

Healius reported that total cost growth was contained to 0.8% during FY2026, with labour costs remaining flat year-on-year despite Inflation and Fair Work Commission impacts.

Labour costs declined 2.9% in the second half of FY2026, supported by a labour optimisation program that reduced full-time equivalent headcount by approximately 5%.

Consumable costs decreased 3.8% due to changes in test mix, procurement benefits and cost management initiatives.

The company also delivered annualised corporate and support cost savings of $24.4 million by June 2026, exceeding its original target range of $15 million to $20 million following the divestment of Lumus Imaging.

Technology Platform Supports Productivity Focus

Healius has completed the major implementation phase of its digital Investment program and moved these capabilities into business-as-usual operations from 1 January 2026.

The Medway Collections Portal has been rolled out across more than 1,700 collection centres, with more than 80% of episodes processed digitally.

The company has also integrated eReferrals with major practice management software systems and implemented AI-enabled workflows to reduce manual data entry and improve operational processes.

Healius continues to use artificial intelligence across areas including workforce planning, invoicing and clinical decision support. IBEX AI is being used in complex histopathology workflows to support turnaround times for referring doctors.

Agilex Biolabs Delivers Revenue and Earnings Growth

Agilex Biolabs recorded revenue growth of 14.1% to $43.6 million in FY2026.

EBITDA increased 67.2% to $10.7 million, while EBIT increased 137.0% to $6.4 million.

The company attributed growth to Agilex’s focus on large molecule development work and expanded capabilities. The Brisbane bioanalytical laboratory, opened in August 2025, has contributed to the expansion of Agilex’s national footprint.

Healius continues to explore a potential sale of Agilex Biolabs following unsolicited approaches, with discussions ongoing.

T27 Plan Timeline Extended

Healius stated that progress has been made under its T27 Plan through technology investment, cost base changes and revenue quality initiatives.

However, the company expects the target of achieving mid-to-high single-digit EBIT margins will be delayed by approximately 18 months, with the target now expected around December 2028.

The delay reflects the expected impact of Fair Work Commission gender undervaluation costs and reduced general practitioner attendances, including changes in healthcare consultation patterns.

For FY2027, Healius expects EBIT to be in line with consensus EBIT of $39.7 million.

Balance Sheet and Dividend Update

Healius ended FY2026 with net Debt of $32.8 million, compared with net cash of $11.6 million at 31 December 2025.

The company reported a gearing ratio of 1.2x, compared with a banking covenant limit of less than 3.5x, and an interest coverage ratio of 8.8x against a covenant requirement above 3.0x.

The Board has decided not to pay a final dividend for FY2026.

Investor Takeaway

Healius’ FY2026 results show growth in underlying earnings, continued cost management and progress across digital initiatives, while the company continues working towards longer-term margin improvement targets.

Investors may continue watching pathology volume trends, implementation of productivity initiatives, Agilex Biolabs’ strategic review outcome and progress towards the revised T27 margin timeline.