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Highlights

  • Sonic Healthcare Ltd posts higher half-year profit and maintains FY26 guidance.
  • Revenue increases 17% with organic growth across major markets.
  • EBITDA margin improves through operating leverage and cost discipline.
  • Interim dividend rises under progressive dividend policy.
  • Cash generation strengthens with double-digit operating growth.

Sonic Healthcare Limited (ASX:SHL) advanced 12.99% to AUD 24.00 on 19 February 2026 after reporting its financial results for the half-year ended 31 December 2025, with revenue growth, higher earnings per share and confirmation of full-year EBITDA guidance. The market reaction followed the earnings update, margin expansion across most regions and continued capital management initiatives.

Revenue and profit move higher

Revenue increased 17% to AUD 5,445 million, supported by organic growth of 5%. EBITDA rose 10% to AUD 907 million, while net profit grew 11% to AUD 262 million. Earnings per share improved 8% to 53.1 cents.

Cash generated from operations reached AUD 682 million, up 10% year on year. The company reported EBITDA margin improvement across the majority of its operations, reflecting operating leverage and synergy realisation alongside ongoing cost control.

Regional operations shape performance

German operations recorded organic revenue growth, supported by the LADR acquisition, with integration progress delivering early synergies and margin improvement.

Australian laboratory operations achieved 5% organic growth, aided by partial Medicare indexation, private billing initiatives and expansion in specialist and hospital services. Pathology services are scheduled to commence at Hollywood Private Hospital in Perth in the coming weeks.

In the United States, low organic growth and restructuring costs affected margins, with an operating review and rationalisation of anatomical pathology operations underway.

The Swiss business benefited from recent acquisitions, while the large Herts and West Essex contract in the UK returned to profitability with further optimisation planned.

Radiology and clinical services contribute

The radiology division delivered 7% organic revenue growth, with continued focus on higher-value modalities and investment in digital capability and greenfield sites.

Sonic Clinical Services reported 20% earnings growth following the acquisition of National Skin Cancer Clinics in April 2025 and cost management initiatives. Additional Medicare funding from November 2025 is expected to support future revenue and earnings.

Dividend and outlook maintained

The interim dividend increased by 1 cent to 45 cents per share, in line with the progressive dividend policy.

The company confirmed it remains on track to achieve its full-year EBITDA guidance range of AUD 1.87 billion to AUD 1.95 billion on a constant currency basis.

FAQs
1. Why did Sonic Healthcare shares rise on 19 February 2026?
The stock moved higher after the company reported revenue and profit growth and reaffirmed its FY26 EBITDA guidance.
2. What were the key financial figures for the half year?
Revenue was AUD 5,445 million, EBITDA AUD 907 million and net profit AUD 262 million.
3. What dividend did Sonic Healthcare declare?
An interim dividend of 45 cents per share, up 1 cent from the previous period.