Highlights

  • FY26 Revenue was AUD 18.6 billion, up 4.2%.
  • Underlying EBIT increased 11.5% to AUD 1.162 billion.
  • Underlying net profit after tax reached AUD 364.1 million.
  • Shareholder meetings on the proposed Ramsay Santé demerger are scheduled for 24 November 2026.

Ramsay Health Care Limited (ASX:RHC) operates private hospitals and healthcare services across Australia, the United Kingdom and Europe. Its FY26 results showed higher underlying Earnings while the company prepared to separate its Ramsay Santé Investment from the remaining hospital businesses. The proposed demerger is a corporate restructuring rather than a completed transaction, and its financial implications must be considered alongside regional operating results, funding costs and the approval process.

FY26 revenue, earnings and financing

For the year ended 30 June 2026, Ramsay Health Care Limited (ASX:RHC) reported revenue of AUD 18.6 billion, up 4.2%, and underlying EBIT of AUD 1.162 billion, up 11.5% on a reported basis. The underlying EBIT Margin was 6.2%, approximately 30 basis points higher. Underlying net profit after tax was AUD 364.1 million, while underlying Earnings Per Share reached 151.0 cents. Underlying interest expense was AUD 591.8 million, indicating that financing costs remain material relative to operating profit. The final Dividend was 48.5 cents per share, taking FY26 dividends to 91 cents. Underlying earnings exclude certain items, so comparisons with statutory measures require attention to the company's reconciliations.

Australian and UK hospital operations

Ramsay Health Care Limited (ASX:RHC) reported Australian underlying EBIT of AUD 639.8 million, up 11.2%. Management cited activity growth, a greater proportion of higher-acuity cases, improved theatre utilisation and cost control. In private hospitals, the relationship between insurer reimbursement rates and wages or medical Supply costs is important to margins. The UK region generated EBIT of AUD 191.6 million, up 13.2%, including contributions from the hospitals Business and Elysium. Management also reported lower NHS activity and subdued Demand in parts of Elysium's operations. The Australian and UK funding group together contributed AUD 831.4 million of underlying EBIT, a measure that will become more relevant if the proposed separation proceeds.

Ramsay Santé separation and Shareholder process

Ramsay Health Care Limited (ASX:RHC) proposes to distribute its 52.79% holding in Ramsay Santé to eligible shareholders through an in-specie demerger. The company published a demerger booklet in October 2026 and scheduled shareholder meetings for 24 November. The proposal remains conditional on the required votes, court approval and other implementation requirements. If completed, Ramsay shareholders would hold interests in the remaining Ramsay group and Ramsay Santé separately, subject to the eligibility arrangements described in the booklet. The company expects implementation in December 2026, but that timetable is conditional. Separation would reduce the scale and geographic Diversification of the remaining Ramsay business while changing its reported earnings and ownership structure.

FY27 expectations and operating risks

Ramsay Health Care Limited (ASX:RHC) expects further EBIT growth and margin improvement in its Australian and UK funding group during FY27. Management outlined additional technology and transformation operating costs of AUD 10 million to AUD 15 million in Australia and indicated Capital Expenditure of AUD 480 million to AUD 520 million. It also provided guidance for net financing expense of AUD 280 million to AUD 300 million on the relevant post-demerger reporting basis. Outcomes depend on hospital activity, insurer negotiations, labour costs and public-sector funding. The demerger adds execution and reporting risks, including shareholder approvals and the financial position of the two businesses after separation. Planned earnings improvement should not be treated as an established result.

Key Insights

Ramsay Health Care Limited (ASX:RHC) reported higher FY26 underlying earnings, with Australia contributing the largest regional EBIT amount. The proposed Ramsay Santé demerger would materially change group reporting if approved. Hospital volumes, reimbursement rates, financing expenses and the separation timetable remain central to interpreting FY27 performance.