Key Highlights

• Post-demerger Ramsay would have Revenue of A$9,414.8 million, EBIT of A$806.8 million and net profit after tax of A$386.6 million.

• The summary shows group revenue of A$18.58 billion, up 5.1%, underlying EBIT of A$1,162.2 million, up 11.5%, and underlying net profit after tax attributable to shareholders of A$364.1 million, up 19.3%.

• Execution of acquisitions and capex of A$480 million to A$520 million is another watch point, as is whether the operating improvement guided for FY27 materialises in Australia and the United Kingdom.

• According to the summaries, the Ramsay Sante demerger booklet was registered with ASIC on 19 October 2026, following the outcome of the first court hearing announced on 16 October 2026.

What does the proposed demerger of Ramsay Sante mean for Ramsay Health Care Limited (ASX:RHC) shareholders? In short, RHC holders are due to vote on a plan that would split the group into a smaller Ramsay focused on Australia and the United Kingdom and a separately held European business, Ramsay Sante, with a Shareholder meeting on 24 November 2026. They should be checked against the original ASX releases and the demerger booklet.

The central development: the demerger timetable

According to the summaries, the Ramsay Sante demerger booklet was registered with ASIC on 19 October 2026, following the outcome of the first court hearing announced on 16 October 2026. Shareholder meetings are scheduled for 24 November 2026, the Record Date is 2 December 2026 and implementation is 9 December 2026. The proposed entitlement is 0.25 Ramsay Sante securities for each RHC share held, rounded down. Ramsay Sante also held a Capital Markets Day, announced on 17 September 2026.

The summaries include pro forma FY26 figures for each business. Post-demerger Ramsay would have revenue of A$9,414.8 million, EBIT of A$806.8 million and net profit after tax of A$386.6 million. Ramsay Sante would have revenue of A$9,275.5 million, EBIT of A$298.6 million and a net loss of A$65.2 million. These are pro forma numbers prepared for the transaction documents, not audited standalone results, and they illustrate a notable contrast in profitability between the two entities.

FY26 results

Ramsay reported its FY26 results on 27 August 2026. The summary shows group revenue of A$18.58 billion, up 5.1%, underlying EBIT of A$1,162.2 million, up 11.5%, and underlying net profit after tax attributable to shareholders of A$364.1 million, up 19.3%. Statutory net profit after tax was A$329.2 million, and underlying Earnings Per Share were 151.0 cents. The final Dividend was 48.5 cents per share, fully franked, for a full-year dividend of 91.0 cents. Group Operating Cash Flow was A$1.43 billion and free cash flow A$696.5 million. Funding group Leverage was 1.83 times, against a target of below 2.5 times.

Business model and revenue drivers

Ramsay operates private hospitals and related health services. Revenue is driven by patient admissions and procedures, funded by private health insurers, governments and patients, and by the balance of public contracts and private activity. Costs are dominated by labour, so wage settlements, nurse availability and agency staffing affect margins. Funding arrangements with insurers and government are significant: changes in tariffs or rules can move earnings directly.

For FY27 the funding group guided, according to the summaries, to EBIT growth and Margin improvement including in Australia and both UK businesses, net financing expense of A$280 million to A$300 million, an effective tax rate of about 30%, and capex of A$480 million to A$520 million, of which A$380 million to A$410 million is in Australia. These are guidance figures, not outcomes.

Other recent announcements

The company also announced changes to its board and a variation to the remuneration of the Group CEO and Managing Director on 24 September 2026, lodged its Annual Report and annual meeting notice on 25 September 2026, and published a dividend notice for its preference securities on 20 October 2026. Several substantial holder notices were lodged in September and October 2026, including notices related to CGF; their significance is not described in the summaries.

Sector and competitive position

Ramsay is one of the larger private hospital operators in the markets where it operates. In Australia it competes with other private operators and with public hospitals, and relies on private Health Insurance participation and surgical demand. In the United Kingdom its Business is exposed to National Health Service referral volumes and funding. Sector pressures include workforce shortages, insurer negotiations and capital needs for upgrades and expansions, and the demerger is partly a way of letting investors judge the regions separately.

Risks and developments to monitor

Principal risks include the demerger itself, with the vote on 24 November 2026 and any court or regulatory conditions, as well as labour cost inflation, funding policy changes, UK Demand and funding, and leverage of 1.83 times in the funding group. The loss-making pro forma profile of Ramsay Sante is a distinct risk for holders who will receive its securities. Execution of acquisitions and capex of A$480 million to A$520 million is another watch point, as is whether the operating improvement guided for FY27 materialises in Australia and the United Kingdom. Investors holding through the demerger should also read the booklet's treatment of tax, costs and Capital Structure for each entity, because the pro forma figures above are only a starting point.

Upcoming items include the shareholder meetings on 24 November 2026, the annual general meeting, the record date of 2 December 2026, implementation on 9 December 2026, the first trading of the separate entities, and the half-year result.