Key Highlights

  • Revenue and other income increased 25.6% to $788.7 million, with Operating EBITDA up 30.3% to $164.8 million and Operating EBITDA Margin improving 80 basis points to 20.9%.
  • Operating NPAT increased 50.1% to $47.4 million, with Operating diluted EPS up 23.6% to 12.6 cents, reflecting a full year's weighting of shares on issue.
  • Net Debt to Operating EBITDA improved to 2.3x from 2.6x at 30 June 2025, with operating free Cash Flow up 30.7% to $106.4 million and cash flow conversion of 82.0%.
  • A fully franked final Dividend of 6.0 cents per share was declared, up 50.0% on the prior corresponding period, taking the total FY26 fully Franked Dividend to 9.3 cents per share.

Strong Growth Across Key Metrics

Integral Diagnostics Limited (ASX:IDX) announced its financial results for the year ended 30 June 2026, consistent with the unaudited preliminary results released on 10 August 2026. Revenue and other income increased 25.6% to $788.7 million, while Operating EBITDA rose 30.3% to $164.8 million, with Operating EBITDA margin improving to 20.9% from 20.1%. Shares in Integral Diagnostics rose 6.14% to $2.42 on the ASX following the announcement, up $0.14 on the day. Statutory NPAT increased to $22.0 million from a restated $2.8 million, an increase of 677.4%, though this figure includes $25.4 million relating to transaction and integration costs, restructuring costs, remeasurement of contingent consideration liabilities, and share-based expenses net of tax.

Operating Profit and Earnings Per Share

Operating NPAT, which excludes the non-operating items above, increased 50.1% to $47.4 million from $31.6 million. Operating diluted Earnings Per Share rose 23.6% to 12.6 cents, reflecting a full year's weighting of shares on issue following the December 2024 Acquisition of Capitol Health. Operating EBITA increased 38.8% to $97.1 million, with Operating EBITA margin improving to 12.3% from 11.1%.

Revenue Growth Drivers

The company said solid revenue growth was driven by growth in patient volumes, Medicare indexation and continued favourable mix impact, equating to 7.0% growth on a constant currency basis excluding closed or sold sites. A Medicare indexation increase of 2.4% took effect from 1 July 2025 on all diagnostic imaging services excluding PET nuclear imaging services. Organic revenue from all sources in Australia grew 7.4% compared with Medicare growth of 9.4% over the course of FY26, comprising 8.9% growth for the legacy IDX business, supported by MRI de-regulation and the National Lung Cancer Screening Program, and 5.4% growth for the legacy Capitol business, reflecting lower growth in GP attendances and referrals. Average fees per exam in Australia increased 6.5%, reflecting Medicare indexation and an ongoing shift toward higher-end CT, MRI and PET scan modalities. Organic revenue in New Zealand grew 2.1% on a constant currency basis.

Merger Integration Largely Complete

The company said its organisational structure has been further refined to support focus on patients, with annual ongoing synergies from the Capitol Health Merger reaching more than $14.0 million, compared with at least $10.0 million expected at the time of the merger. The group procurement function has driven cost savings above initial synergy projections, alongside increased teleradiology scale supported by the contribution from Capitol radiologists.

Balance Sheet and Cash Flow

The Group held cash of $51.3 million at 30 June 2026, with committed facilities of $467.4 million, of which $117.0 million remained undrawn, alongside a further $200.0 million in uncommitted facilities. The company was in compliance with all covenants under its debt facility. Net debt increased slightly by $0.9 million to $298.9 million, with net debt to Equity at 43.9%, up from 42.9%. However, net debt to EBITDA improved to 2.3x at 30 June 2026 from 2.6x a year earlier, within the company's target range of 2.0x to 2.5x. The weighted average Interest Rate on the company's core debt Facility reduced to 5.36% from 6.24%, with 51.2% of gross debt hedged at a favourable rate compared with the current BBSY rate. Capital Expenditure totalled $49.8 million during the year, including $21.0 million relating to growth initiatives.

Dividend

The Board declared a fully franked final dividend of 6.0 cents per share, up 50.0% on the prior corresponding period, taking total FY26 fully franked dividends to 9.3 cents per share, up from 6.5 cents per share in FY25, totalling $34.6 million. The Dividend reinvestment Plan will again be available, with a Record Date of 31 August 2026 and payment date of 2 October 2026.

Management Commentary and Outlook

Integral Diagnostics Managing Director and CEO Jason Martinez said the company delivered a strong FY26 result, with solid revenue growth, improved margins and disciplined execution translating into enhanced Shareholder returns. He said the company continued to make progress against its strategic priorities, including the successful integration of Capitol, ongoing investment in its network, and continued growth of its teleradiology platform, IDXt. Looking ahead, the company said it is targeting sustainable revenue growth, EBITDA margin improvement above 21.0%, increased productivity and capacity, improved patient access, and continued de-gearing, with FY27 replacement and growth capital expenditure expected to be between $50.0 million and $60.0 million.

Conclusion

Integral Diagnostics delivered a strong FY26 result, with revenue, EBITDA and operating profit all growing at double-digit rates, supported by Medicare indexation, patient Volume growth and the near-complete integration of the Capitol Health merger. The company's Leverage continued to trend down toward the lower end of its target range, supporting a 50% increase in the final dividend. With EBITDA margin improvement above 21% targeted for FY27 alongside continued network expansion and productivity initiatives, the company enters the new financial year from a position of improved financial strength following the Capitol integration.