Ramsay Health Care Posts AUD 305m Underlying NPAT, Outlines FY26 Outlook

Sonal Goyal

28 August 2025 10:32 AM AEST

Ramsay Health Care Posts AUD 305m Underlying NPAT, Outlines FY26 Outlook

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

Net profit after tax and minority interests of AUD 24.0 million reported in FY25, including a AUD 291 million non-cash impairment in the UK region.

NPAT from continuing operations excluding non-recurring items increased 1.6% to AUD 305.3 million.

Fully franked final dividend of 40 cents per share declared, taking the full-year dividend to 80 cents per share.

Ramsay Health Care Limited (ASX:RHC) has announced its financial results for the year ended 30 June 2025. The group reported a net profit after tax (NPAT) and minority interests of AUD 24.0 million. This figure incorporates a negative contribution of AUD 281.3 million from non-recurring items, primarily stemming from a AUD 291 million non-cash impairment against the value of its UK region. The impairment reflected the ongoing underperformance of the Elysium Healthcare business compared to expectations set at the time of acquisition.

Excluding non-recurring items, NPAT from continuing operations increased by 1.6% on a constant currency basis to AUD 305.3 million. This performance was supported by continued momentum in the UK hospitals business and steady results from private hospitals in Australia. These gains were partially offset by softer outcomes from Elysium and Ramsay Santé, higher funding costs driven by net financing expenses in Ramsay Santé, and a higher effective tax rate.

Balance Sheet and Dividends

The group maintained a stable balance sheet, with a debt leverage ratio of 2.18x. This remained within the company’s target range of less than 2.5x and well below its debt covenant threshold of 4.0x.

Ramsay’s Board declared a fully franked final dividend of 40.0 cents per share. Combined with the interim dividend, the full-year dividend amounted to 80.0 cents per share, representing a payout ratio of 63.7% of NPAT and minority interests from continuing operations excluding non-recurring items. The Dividend Reinvestment Plan (DRP) has been suspended indefinitely and will not apply to the FY25 final dividend.

Outlook for FY26

Looking ahead, Ramsay expects activity growth across all regions in FY26. The Australian operations are forecast to deliver EBIT growth, with the private hospital portfolio expected to benefit from improved revenue indexation and operational efficiency measures. However, the Joondalup public campus will be impacted by a new funding arrangement introduced on 1 July 2025, which is linked to the Western Australian “State Price.” This mechanism, which has not kept pace with cumulative cost inflation, is estimated to reduce EBIT by approximately AUD 37 million annually before any mitigation efforts.

At a group level, net financing expenses, including lease costs under AASB 16, are forecast in the range of AUD 600–620 million. The dividend payout ratio is expected to remain between 60% and 70% of NPAT and non-controlling interests before non-recurring items.

The company also highlighted progress in its multi-year business transformation program, which includes performance acceleration initiatives in Australia, capital discipline, and strategic executive appointments aimed at supporting future growth.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.