Integral Diagnostics is a leading provider of diagnostic-imaging services — including X-ray, CT, MRI and ultrasound — across Australia and New Zealand, operating a network of clinics used by referring doctors and patients. Following its Merger with Capitol Health, the enlarged group has significant scale, and the realisation of merger synergies has been a central driver of its earnings.

Latest Development

For FY26, Integral Diagnostics (ASX:IDX) reported Revenue up 25.6% to A$788.7 million, with organic Australian revenue up 7.4%, and operating EBITDA up 30.3% to A$164.8 million at a Margin of 20.9%. Operating net profit after tax rose 50.1% to A$47.4 million, and statutory net profit improved sharply to A$22.0 million from A$2.8 million, while merger synergies from the Capitol Health combination exceeded A$14 million, ahead of the at-least-A$10 million originally targeted.

The company declared a fully franked final Dividend of 6.0 cents, up 50%, and set FY27 targets including an EBITDA margin above 21% and further de-gearing.

What Could Drive the Shares Next?

Catalysts include continued organic revenue growth, further synergy realisation and margin expansion toward the FY27 target above 21%, de-gearing, and any growth in imaging volumes or new clinics. Evidence that the enlarged group can keep lifting margins would support the shares.

Delivery on the FY27 margin and de-gearing targets would be the clearest positive signal.

Risks Investors Should Watch

Diagnostic imaging depends on government and private funding and referral volumes, and reimbursement changes can affect revenue. Integrating a large merger carries execution risk, and radiologist recruitment and retention are ongoing considerations.

Debt levels and the pace of de-gearing, and competition in imaging, are additional factors.

Investor Takeaway

Integral Diagnostics grew FY26 revenue 25.6% to A$788.7 million and operating EBITDA 30.3%, with Capitol Health merger synergies beating targets and a 50% higher dividend. Whether it rewards close attention depends on further synergy realisation and margin expansion. Organic growth, synergies and the FY27 margin target are the things to watch.