Highlights

• Sonic grew FY26 revenue 13% to A$10,867 million and underlying EBITDA 11% to A$1,933 million, meeting its earnings guidance.

• Underlying net profit rose 17% to A$621 million, and the total dividend increased to A$1.08 per share.

• Sonic captured more than 40% of expected LADR synergies in year one, with the balance targeted over two years.

• FY27 EBITDA guidance is A$1,950 million to A$2,030 million in constant currency, excluding about A$30 million of IT transformation costs.

Integration in Germany and a clean-up in the United States are the two operational threads running through Sonic Healthcare Limited (ASX:SHL) after a year in which revenue rose 13% to A$10,867 million. The company met its FY26 underlying EBITDA guidance and has now put numbers on FY27. Shares were trading at A$18.89 on 23 October 2026, down 0.42%.

Growth Led by Acquisitions and Organic Gains

Underlying EBITDA for the year to 30 June 2026 rose 11% to A$1,933 million, while statutory EBITDA rose 9% to A$1,882 million. Underlying net profit increased 17% to A$621 million and statutory net profit rose 18% to A$608 million. Underlying earnings per share were 125.6 cents, up 14%. Organic revenue growth was 5%.

The final dividend is 63 cents per share, 60% franked, paid on 17 September 2026. With the interim of 45 cents, the total for the year is A$1.08, up from A$1.07. Sonic targets a payout of 70% to 80% of net profit.

Germany contributed A$2,729 million of revenue, up 43% on a statutory basis and 5% organically, and it was the largest division at 25% of the total. Australian pathology revenue was A$2,184 million, up 5% organically, while imaging revenue of A$1,037 million grew 7% organically. UK revenue of A$926 million grew 17% organically, though margin was lower.

Germany Synergies, US Overhaul

Sonic acquired the LADR Laboratory Group on 1 July 2025. More than 40% of expected synergies were captured in the first year, and the balance is expected over the next two years. Laboratory mergers in Berlin and Oldenburg are complete, and external referrals are being moved into Sonic's own specialty laboratories. Switzerland also delivered margin expansion, with revenue up 9% to A$1,173 million.

The United States is where the company is doing the most repair work. US revenue was A$2,048 million, flat organically in constant currency, with lower margin. Sonic started a comprehensive operating review, rationalised nine anatomical pathology practices, contracted procurement savings and cut corporate headcount by 10% in late FY26. It expects these initiatives to add A$25 million to A$30 million to FY27 earnings, with further steps under consideration.

Sonic also completed a sale and leaseback of its Brisbane hub laboratory as part of capital management and began digital and AI transformation work, including a global digital infrastructure modernisation program.

Balance Sheet Position

Net interest-bearing debt was A$3,069 million at 30 June 2026, compared with A$2,818 million a year earlier. Debt cover was 2.2 times against 2.1 times, and gearing was 25.9%. Both sit inside covenant limits of below 3.5 times and below 55%. Available headroom was about A$1.6 billion.

The FY27 Framework

Management guides FY27 EBITDA of A$1,950 million to A$2,030 million at constant currency, excluding about A$30 million of back-office IT systems transformation costs. Depreciation, including leased assets, is expected at A$810 million to A$825 million, and amortisation at A$90 million to A$95 million. Interest expense is expected to rise about 6%, and the effective tax rate is expected to be about 27%.

The guidance excludes property sale gains, includes only completed acquisitions and assumes no future regulatory changes, including PAMA. Management said its focus remains organic growth, efficiency, innovation and disciplined capital management.