Ramsay Health Care Limited (ASX:RHC) operates private hospitals and healthcare services across Australia, the United Kingdom and Europe. FY26 delivered higher underlying Earnings across each region, while the company continued preparations to separate its 52.79% interest in Ramsay Santé. The proposed demerger would leave Ramsay more focused on Australia and the UK if shareholders and the Court approve the transaction.

Underlying EBIT Rises 11.5%

Ramsay reported FY26 underlying EBIT of A$1.1622 billion, up 11.5% from A$1.0426 billion in FY25. Underlying NPAT attributable to shareholders increased 19.3% to A$364.1 million.

Fully diluted underlying EPS increased 20.5% to 151.0 cents. The improvement reflected higher earnings across Australia, the UK region and Ramsay Santé.

Statutory Profit Also Increases

Statutory EBIT increased to A$1.1054 billion from A$706.2 million.

Statutory NPAT attributable to shareholders reached A$329.2 million, compared with A$24.0 million in FY25. The prior-year result had included a A$305.2 million Impairment against the UK cash-generating unit, which materially affected the year-on-year comparison.

Fully diluted statutory EPS was 135.8 cents.

Australia Remains the Main Earnings Contributor

Ramsay Australia generated underlying EBIT of A$639.8 million, up 11.2%.

Activity increased 3.3%, while the EBIT Margin improved by around 30 basis points. Management attributed the result to activity growth, changes in case mix, theatre utilisation, private-health-insurance indexation and cost management.

Australia remains the largest contributor to the Funding Group and is the main focus of Ramsay’s current transformation program.

UK Region Records Higher EBIT

The UK region generated underlying EBIT of A$191.6 million, up 13.2%.

Ramsay UK contributed A$160.5 million, up 9.0%, despite an 8% decline in NHS activity. Elysium contributed A$31.1 million, up 41.4%.

The UK outlook remains dependent on patient activity, labour costs, capacity utilisation and government-related funding arrangements.

Ramsay Santé Contributes A$330.8 Million

Ramsay Santé generated underlying EBIT of A$330.8 million, up 11.1% from FY25.

Ramsay currently owns 52.79% of the European healthcare business.

That ownership structure is expected to change if shareholders approve the proposed demerger, which would distribute Ramsay’s Ramsay Santé interest directly to Ramsay shareholders.

Demerger Vote Is Set for November 24

Shareholder meetings to consider the proposed Ramsay Santé demerger are scheduled for 24 November 2026.

Under the proposal, Ramsay would distribute its full 52.79% Ramsay Santé holding to shareholders on a pro-rata basis through an in-specie distribution implemented under a scheme of arrangement.

Completion is expected in December 2026 if the required shareholder, Court and other approvals are obtained.

Shareholders Would Retain Ramsay Santé Exposure

If the transaction proceeds, existing Ramsay shares would remain in place.

Eligible shareholders would also receive Ramsay Santé shares or CHESS Depository Interests proportional to their Ramsay holdings.

Ramsay Santé is currently listed on Euronext Paris. Arrangements are being pursued so that CDIs representing Ramsay Santé shares could trade on the ASX, subject to the required approvals.

Funding Group Would Become the Main Ramsay Business

After the proposed separation, Ramsay’s continuing operations would primarily comprise Australia, Ramsay UK and Elysium.

The Funding Group generated underlying EBIT of A$831.4 million in FY26, up 11.6%.

Removing Ramsay Santé from consolidated reporting would change the group’s revenue, earnings, Leverage and geographic composition, making Funding Group performance more central to future comparisons.

Funding Group Leverage Falls Below Two Times

Ramsay reported Funding Group leverage below 2.0 times at the FY26 result.

The balance-sheet position is relevant because the retained group will continue to invest in hospital capacity, digital systems and operating improvements while funding dividends and Acquisition activity.

Capital discipline remains part of management’s FY27 priorities.

National Capital Hospital Joins the Portfolio

Ramsay completed the transition of National Capital Private Hospital into its Australian network from September 2026.

The A$251 million acquisition gives Ramsay its first hospital in Canberra.

The operation is expected to contribute to FY27 Australian earnings, although integration, activity levels and operating performance will determine the size of that contribution.

Dividend Increases to 91 Cents

Ramsay declared a fully franked final Dividend of 48.5 cents per share, up 21.3% from FY25.

Total FY26 dividends reached 91 cents per share, compared with 80 cents in the prior year.

The payout represented approximately 60.3% of underlying NPAT, broadly aligning with Ramsay’s capital-allocation framework.

FY27 Outlook Targets EBIT and Margin Growth

For FY27, Ramsay expects Funding Group EBIT growth and improved EBIT margins.

Australia is expected to benefit from operating initiatives and the National Capital contribution, while Ramsay UK and Elysium are also expected to generate EBIT growth.

The guidance remains subject to activity, labour costs, funding arrangements and execution of operating initiatives.

Financing Costs and Capex Remain Material

FY27 net financing expense is expected to range from A$280 million to A$300 million.

Capital expenditure is guided at A$480 million to A$520 million, while the effective tax rate is expected to be approximately 30%.

Ramsay expects the ordinary dividend Payout Ratio to remain between 60% and 70% of underlying NPAT after minority interests.

Technology and Hospital Operations Remain Priorities

Ramsay continues investing in digital systems, workforce management, procurement and patient administration.

Its Australian strategy also focuses on theatre utilisation, priority therapeutic areas and higher use of existing hospital capacity.

These initiatives are intended to increase Revenue from existing Assets while managing wage, procurement and infrastructure costs.

Key Risks and Areas to Watch

The Ramsay Santé demerger remains subject to Shareholder and Court approval and may not proceed on the proposed timetable.

Hospital earnings are also exposed to labour costs, clinician availability, insurer funding and government reimbursement settings.

National Capital integration, UK activity and financing costs are additional considerations.

The November vote, Funding Group margins, Australian activity and FY27 capital spending will therefore remain key indicators.