Highlights

• Revenue grew 25.6% to $788.7 million, with Operating EBITDA rising 30.3% to $164.8 million at a 20.9% margin.

• Operating NPAT surged 50.1% to $47.4 million, with Operating Diluted EPS growing 23.6% to 12.6 cents.

• Capitol Health integration synergies exceeded initial expectations, with over $14 million in annual ongoing synergies achieved.

• A fully franked final Dividend of 6.0 cents per share was declared, representing a 50% increase on the prior period.

Integral Diagnostics Limited (ASX:IDX) is a leading provider of medical imaging services across Australia and New Zealand, employing some of Australasia's leading radiologists in a unique medical Leadership model. Following the Acquisition of Capitol Health in December 2024, IDX operates as a significantly larger integrated platform, with revenue of $788.7 million and a clinical network spanning CT, MRI, PET, nuclear medicine, and general X-ray imaging services.

Recent Development

Released on 25 August 2026, IDX announced FY26 revenue of $788.7 million (up 25.6%), with Operating EBITDA of $164.8 million (up 30.3%) at a Margin of 20.9% — up 80 basis points from FY25. Operating NPAT was $47.4 million (up 50.1%), and Operating Diluted EPS was 12.6 cents (up 23.6%). Statutory NPAT was $22.0 million, impacted by $25.4 million in transaction, integration, restructuring, and share-based costs related to the Capitol merger.

The Capitol Health integration is largely complete, with $14 million in annual ongoing synergies achieved versus an initial expectation of at least $10 million. Organic revenue in Australia grew 7.4% on a pro forma basis, supported by Medicare indexation of 2.4% effective July 2025 and the National Lung Cancer Screening Program driving MRI volumes. A fully franked final dividend of 6.0 cents was declared (total FY26: 9.3 cents, up 43%). Net Debt to EBITDA reduced to 2.3x from 2.6x, within the 2.0-2.5x target range.

Sector Context

Medical imaging is a structurally growing sector, supported by an ageing Australian population, increasing diagnostic referral rates, Medicare indexation, and the expansion of government-funded screening programs. The National Lung Cancer Screening Program is a particularly meaningful catalyst, driving high-value MRI referrals across IDX's network. The consolidation of the Australian medical imaging industry — which IDX has participated in through the Capitol Health Merger — creates scale benefits in procurement, radiologist recruitment, and teleradiology throughput.

Risks and Uncertainties

The legacy Capitol Business grew organic revenue at 5.4% in FY26 — below the 9.4% Medicare growth — reflecting lower GP attendance and referral rates as consumers navigate cost-of-living pressures. Integration complexity, while largely addressed, carries residual risk as the combined organisation refines its structure. Net debt of $298.9 million remains meaningful, and a debt-to-EBITDA Leverage Ratio at 2.3x, while within guidance, leaves limited Balance Sheet flexibility for further large acquisitions. Increased Capital Expenditure guidance of $50-60 million for FY27 (from $49.8 million in FY26) reflects ongoing network Investment requirements.

Catalysts to Watch

The FY27 target of EBITDA margin improvement above 21.0% — representing a further 10+ basis point expansion — is the key financial deliverable to track. Continued Medicare indexation benefits and the scaling of the IDXt teleradiology platform are important operational catalysts. Network expansion through selective brownfield and greenfield site investments will drive Volume growth. Any acceleration in the pace of de-gearing toward the bottom of the 2.0-2.5x target range would signal increasing balance sheet flexibility for further growth options.

Final Thoughts

Integral Diagnostics (ASX:IDX) has emerged from the Capitol Health integration as a larger, more efficient, and more profitable business. The combination of strong organic volume growth, Medicare indexation tailwinds, and merger synergies exceeding initial expectations provides a solid foundation for continued Earnings growth in FY27 and beyond.