Key Highlights

  • Healius (ASX:HLS) shares fell 4.40% to $0.44 on 24 August 2026 following the release of its FY2026 full-year results.
  • Underlying EBITDA rose 8.1% to $258.6 million and Underlying EBIT increased 76.6% to $30.2 million, while reported NPAT showed a loss of $415.6 million, widening from a $151.2 million loss in FY25.
  • A non-cash Impairment charge of $332.0 million against Goodwill was recognised in FY2026, compared with $495.2 million in the prior year.
  • Pathology Revenue increased 1.8% to $1.33 billion despite a 1.3% reduction in volumes, while Agilex Biolabs revenue grew 14.1% to $43.6 million.

Healius Limited (ASX:HLS) shares declined 4.40%, or 2.0 cents, to $0.44 on 24 August 2026. The company released its results for the financial year ended 30 June 2026 on 19 August 2026. The results showed underlying Earnings growth alongside a substantial reported net loss driven by non-cash impairment charges.

Group underlying revenue increased 2.1% to $1.37 billion, compared with $1,344.5 million in the prior year. Underlying EBITDA rose 8.1% to $258.6 million, and Underlying EBIT increased 76.6% to $30.2 million, up $13.1 million from the prior comparative period. On a reported basis, however, EBIT was a loss of $328.9 million, compared with a loss of $527.0 million in FY25, and reported NPAT including discontinued operations was a loss of $415.6 million, compared with a loss of $151.2 million in the prior year.

Pathology Segment Performance

Pathology revenue grew 1.8% during the year, despite a 1.3% reduction in volumes compared with the prior year, supported by pricing and a favourable revenue mix. Excluding hospital contracts lost during the year and new contracts added, volumes grew 0.3%. Growth in segments including Genomic Diagnostics, Public Hospitals, Veterinary Pathology and business-to-business work such as Clinical Trials contributed to a 4.0% increase in average fee per episode.

Volumes were affected by changes to Medicare criteria for B12 and Urine testing introduced in July 2025, a 0.9% reduction in GP attendances compared with the prior corresponding period, the loss of two material hospital contracts, and a rationalisation of the Healius Aggregated Collection Centre (ACC) footprint, which decreased by 100 to 1,883 by the end of the year. EBITDA for the Pathology segment improved 6.4% to $247.9 million, with EBIT improving to $23.8 million for the full year and to $18.6 million in the second half, resulting in a full-year EBIT Margin of 1.8%, rising to 2.8% in the second half.

Cost Management, Agilex Biolabs and Impairment Charges

Cost growth for FY2026 was contained to 0.8%, with labour costs flat year-on-year, inclusive of Inflation and the Fair Work Commission's gender undervaluation determination. Labour costs reduced by 2.9% in the second half following an approximately 5% reduction in full-time equivalent headcount across the organisation. Consumable costs decreased 3.8% due to favourable test mix and procurement benefits.

Agilex Biolabs, the company's contract research subsidiary, recorded revenue growth of 14.1% to $43.6 million and EBITDA growth of 67.2% to $10.7 million. Healius is exploring a sale of Agilex Biolabs, as announced on 13 May 2026, following unsolicited approaches, with the process described as ongoing and UBS Securities Australia Limited assisting.

As required by accounting standards, Healius recognised a non-cash impairment charge of $332.0 million against goodwill in FY2026, following a $495.2 million impairment in the prior year. The company also derecognised $31.5 million of deferred tax Assets relating to carried forward tax losses, along with a further $14.0 million not recognised for FY2026, though it noted access to these tax losses is retained for use against future taxable income.

Conclusion

Healius reported growth in underlying earnings metrics for FY2026, supported by pricing gains in Pathology and expansion in Agilex Biolabs, alongside continued cost discipline. However, the reported net loss widened compared with the prior year due to a further non-cash goodwill impairment and deferred tax asset derecognition. The company also indicated that its timeline to achieve mid-to-high single-digit EBIT margins under its T27 Plan has extended by approximately 18 months, reflecting the impact of the Fair Work Commission's gender undervaluation decision and reduced GP attendances.