Key Highlights

  • Underlying NPAT rose 19.3% to A$364.1 million for FY26.
  • A separation of the European arm, Ramsay Santé, is planned by in-specie distribution.
  • The separation is subject to a Shareholder vote in late November 2026.
  • If approved, the remaining Ramsay would be a narrower Business covering Australia and the United Kingdom from the first half of FY27.

How does a global hospital operator prepare to split itself in two while its Earnings are still recovering? Ramsay Health Care Limited (ASX:RHC) is doing exactly that. In its FY26 results on 27 August 2026, the company reported underlying net profit after tax (NPAT) of A$364.1 million, up 19.3%, and said a separation of its European arm, Ramsay Santé, by an in-specie distribution is subject to a shareholder vote in late November 2026. It matters because, if approved, the Ramsay that investors own from the first half of FY27 would be a different, narrower business: Australia and the United Kingdom. The period-specific figures provide context for the company’s operating performance and execution priorities.

What Ramsay does

Ramsay operates private hospitals and related services in three regions. Australia runs private acute hospitals, where Revenue depends on patient volumes, the doctors who admit patients (visiting medical officers) and funding from private health insurers. The United Kingdom includes Ramsay UK, which treats NHS and private patients, and Elysium, a mental health provider. Ramsay Santé operates across continental Europe, with France and the Nordics the main markets.

The FY26 result

For the year to 30 June 2026, compared with FY25:

Underlying NPAT after non-controlling interests A$364.1 million, up 19.3% (22.9% in constant currency).

Statutory NPAT after non-controlling interests A$329.2 million, against A$24.0 million. The FY25 base was depressed by a A$305.2 million UK impairment, so the statutory rise largely reflects that earlier charge.

Underlying EBIT A$1,162.2 million, up 11.5%.

Fully diluted underlying Earnings Per Share of 151.0 cents, up 20.5%.

Segment revenue and other income of A$18,698.6 million, up 5.1%.

A final fully Franked Dividend of 48.5 cents per share, taking the full-year dividend to 91.0 cents, up 13.8%.

The announcement did not disclose net debt. "Funding Group" is the company's measure covering the group excluding Ramsay Santé's separately funded debt. It said only that Funding Group Leverage is below two times and within the target range.

Region by region

Australia reported revenue of A$6,818.1 million, up 7.8%, and underlying EBIT of A$639.8 million, up 11.2%, with the Margin up about 30 basis points. UK region EBIT was A$191.6 million, up 13.2%: Ramsay UK contributed A$160.5 million (up 9.0%) and Elysium A$31.1 million (up 41.4%), where the company says the turnaround gained traction in the second half. UK revenue nonetheless fell 2.1% to A$2,605.0 million. Ramsay Santé's EBIT was A$330.8 million, up 11.1%, with Nordic gains partly offset by a weaker French result. Funding Group underlying EBIT was A$831.4 million, up 11.6%.

The transformation program

Management attributes improvement to its transformation program. Reported measures include activity growth of 3.3%, visiting medical officer numbers up 3.3%, theatre utilisation up about 90 basis points, and revenue indexation improving relative to cost indexation. Four sites were closed, with surplus land to be sold. Funding Group return on Capital employed rose 150 basis points to 14.8%, and group Capital Expenditure was A$729 million in constant currency, below the revised range.

Not everything was favourable. Changes to Joondalup hospital funding cost A$26 million net, partly mitigated.

The Ramsay Santé separation

The most consequential item is the proposed separation of Ramsay Santé by in-specie distribution, meaning Ramsay shareholders would receive Ramsay Santé shares directly. A shareholder vote is expected in late November 2026. If approved, Ramsay Santé will be reported as a discontinued operation from the first half of FY27. Ramsay incurred A$16 million of demerger costs to 30 June 2026.

For a reader, the practical implications are that the continuing group would be smaller and more concentrated in Australia and the UK, and that the earnings base used for comparisons would change.

FY27 guidance

Management guided to the following, which are expectations, not results:

Funding Group EBIT growth and margin improvement.

UK hospitals EBIT growth and growth at Elysium, though with weak market Demand continuing.

Net financing expense of A$280 million to A$300 million, including Lease costs, and an underlying tax rate of about 30%.

Funding Group capital expenditure of A$480 million to A$520 million.

A dividend Payout Ratio of 60% to 70% of underlying NPAT after non-controlling interests.

Sector position

Ramsay is among the largest private hospital operators in Australia, where it competes with other private operators and the public system. Industry dynamics include insurer funding, clinician availability and government policy. In the UK, NHS activity matters, and in France, tariffs set by government.

Risks and what to watch

The company lists several risks: NHS funding and activity levels, including an 8% decline in NHS activity in the UK; French hospital Tariff indexation lagging cost inflation, along with a €20 million cut in government subsidies; private health insurer indexation and pricing; competition and weak demand at Elysium; regulatory and funding decisions; geopolitical conflicts; and climate and Supply chain issues.

Key dates and developments to follow include the late November 2026 shareholder vote on the Ramsay Santé separation, completion and integration of National Capital Private Hospital, the half-year result in which Ramsay Santé would appear as discontinued if approved, and evidence that margin expansion continues beyond FY26.