Key Highlights

  • Ramsay Health Care reported underlying NPAT up 19.3 per cent to $364.1 million, or 22.9 per cent in constant currency, for FY26.
  • Underlying EBIT rose 11.5 per cent to $1,162.2 million, with all regions delivering EBIT growth.
  • The Board determined a fully franked final Dividend of 48.5 cents per share, up 21.3 per cent, taking the full-year dividend to 91 cents, up 13.8 per cent.
  • Ramsay shares traded at $55.62, little changed on the day, as the S&P/ASX 200 gained 0.29 per cent.

Ramsay Health Care Limited (ASX:RHC) shares were largely steady at $55.62 on Tuesday, as the S&P/ASX 200 rose 0.29 per cent to 8,756.90 and the health care sector added 0.57 per cent for the session.

Ramsay Health Care is a global hospital operator with businesses in Australia, the United Kingdom and Europe, including its Elysium mental health and neurological care Business and a majority stake in Ramsay Santé, its European operations.

Recent Development

For the year ended 30 June 2026, Ramsay reported underlying net profit after tax of $364.1 million, up 19.3 per cent on FY25, or 22.9 per cent in constant currency, while underlying EBIT rose 11.5 per cent to $1,162.2 million. Statutory net profit after tax increased more than twelvefold to $329.2 million. In Australia, underlying EBIT grew 11.2 per cent to $639.8 million, supported by activity growth of 3.3 per cent, higher acuity and improved theatre utilisation, though the result was partly offset by a $26 million impact from a new funding mechanism at Joondalup Public Campus. Ramsay UK hospitals grew EBIT 10.3 per cent in constant currency despite an 8 per cent decline in NHS activity, as the business focused on higher-acuity and private work. Elysium's turnaround gained traction, with EBIT up 43.5 per cent in constant currency following site and ward closures and reduced agency staffing costs. Ramsay Santé, the group's European operation, grew underlying EBIT 11.4 per cent in constant currency, led by a 65.6 per cent rise in Nordics EBIT following a new contract in Sweden, partly offset by continued funding pressure in France. The Board determined a fully franked final dividend of 48.5 cents per share, up 21.3 per cent on the prior year, taking the full-year dividend to 91 cents, up 13.8 per cent. Group Capital Expenditure came in at $729 million, below the company's revised range, and Funding Group return on capital employed rose 150 basis points to 14.8 per cent.

Catalysts to Watch

Ramsay is progressing a proposed separation of Ramsay Santé, subject to a Shareholder vote in November, which would see the European business deconsolidated and reported as discontinued from FY27. The Funding Group is targeting further EBIT growth and Margin improvement in FY27, driven by growth across Australia and both UK businesses, alongside completion of the National Capital Private Hospital acquisition, expected by 1 September 2026.

Risks and Uncertainty

The proposed Ramsay Santé separation carries execution and transaction costs, with the company flagging $16 million incurred to 30 June 2026 and further demerger costs to be detailed ahead of the shareholder vote. NHS funding pressure in the UK and ongoing inadequacy of French hospital Tariff indexation relative to cost Inflation also remain headwinds for the group's European and UK operations, while National Capital is expected to carry $9 million to $11 million in transition costs in FY27.

The Bottom Line

Ramsay's FY26 result showed improvement across every operating region, with the Australian transformation program and UK cost initiatives both gaining traction. The proposed separation of Ramsay Santé represents a significant structural change for the group, and its outcome at the November shareholder vote will shape how the company is positioned heading into FY27.