Highlights

  • Ramsay Health Care shares jumped 10.41% to AUD 42.14 following first-half earnings growth.
  • Underlying NPAT rose 8.1% to AUD 171.7 million, while revenue increased 9.3% to AUD 9.38 billion.
  • Full-year capex guidance was lowered to AUD 755m–AUD 795m, and the interim dividend lifted 6.3% to 42.5 cents per share.

Ramsay Health Care Limited (ASX:RHC) shares climbed 10.41% to AUD 42.14 on 26 February at 11:40 am after the hospital operator reported improved first-half earnings and announced a higher interim dividend. The rally builds on a 24.43% gain over the past year and a 16.33% rise in the past six months, as investors responded to earnings growth in Australia and revised capital expenditure guidance.

During today’s trading session, RHC reached 52-week high of AUD 43.64.

Shares Rally on Earnings Growth

Ramsay posted underlying net profit after tax (NPAT) of AUD 171.7 million for the six months to 31 December 2025, up 8.1% year-on-year. Underlying earnings before interest and tax (EBIT) rose 7.3% to AUD 536.7 million, supported by improved performance in its Australian hospital division.

Statutory NPAT came in at AUD 160.7 million, compared with a loss of AUD 104.9 million in the prior corresponding period. Fully diluted earnings per share reached 66.2 cents, reversing last year’s negative outcome.

Revenue Expands Across the Group

Total revenue and other income rose 9.3% to AUD 9.38 billion, while EBITDA increased 6.4% to AUD 1.12 billion.

In Australia, EBIT growth of 7.1% was driven by higher admissions, increased theatre utilisation and growth in higher-acuity services. EBIT margins excluding Joondalup lifted by 40 basis points.

Portfolio optimisation measures are underway, including selected site closures and service transfers. The company also confirmed the proposed acquisition of National Capital Private Hospital, expected to complete in the first quarter of FY27.

Capital Management and Dividend Increase

Ramsay reduced its full-year capital expenditure guidance to a revised range of AUD 755 million to AUD 795 million, with second-half spend forecast to be lower than the first half.

Net financing expense for FY26 is expected to range between AUD 590 million and AUD 610 million, while the effective underlying tax rate is forecast at approximately 35%.

The board declared a fully franked interim dividend of 42.5 cents per share, up 6.3% from 40.0 cents previously. The dividend payout ratio for the full year is expected to be between 60% and 70% of underlying NPAT.

FY26 Outlook

Management expects EBIT growth momentum in Australia to continue, supported by activity growth in priority therapeutic areas and revenue indexation. In the UK, NHS activity is projected to remain below prior levels in the third quarter due to budget constraints, though additional funding is anticipated from April.

European operations are expected to see second-half activity growth, partially offset by disruptions earlier in the year.

Crucial Financial Metrics

  • Share price: AUD 42.14, up 10.41%
  • Revenue: AUD 9.38 billion (up 9.3%)
  • Underlying EBIT: AUD 536.7 million (up 7.3%)
  • Underlying NPAT: AUD 171.7 million (up 8.1%)
  • Interim dividend: 42.5 cents per share (fully franked)
  • FY26 capex guidance: AUD 755m–AUD 795m

Ramsay Health Care’s double-digit share price gain followed improved half-year earnings, higher revenue and a dividend increase. Growth in the Australian hospital business and reduced capital expenditure guidance were central to the market’s response. Investors will monitor second-half activity trends and international performance as FY26 progresses.

F&Q

  1. Why did Ramsay Health Care shares rise?
    The share price increased after the company reported 8.1% growth in underlying NPAT and lifted its interim dividend.
  2. What drove earnings growth?
    Improved performance in the Australian hospital division, higher admissions and increased theatre utilisation contributed to higher EBIT.
  3. What is Ramsay’s updated capital expenditure guidance?
    The company lowered full-year FY26 capex guidance to between AUD 755 million and AUD 795 million, with lower spending expected in the second half.