Paragon Care Limited (ASX:PGC): What Do FY26 Results Reveal About Cash Flow and Expansion?

Aditi Sarkar

02 November 2026 06:03 PM AEDT

Paragon Care Limited (ASX:PGC): What Do FY26 Results Reveal About Cash Flow and Expansion?

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Highlights

Paragon Care reported FY26 Revenue of AUD 3.7 billion, up 1.8% YoY.
Underlying EBITDA reached AUD 97.2 million, while statutory NPAT was a AUD 16.0 million loss.
FY26 operating cash generation reached AUD 29.1 million, with net gearing reported at 2.5 times.

Paragon Care Limited (ASX:PGC) distributes and manufactures healthcare equipment, medical devices, pharmaceuticals and consumables across Australasia and Asia. The shares were quoted at AUD 0.155, representing a 3.33% increase in the price figures dated 2 November 2026. During 2026, the company reported its annual financial results, completed its two-year integration program and expanded its distribution and regional operating capabilities. Its latest reporting distinguishes improvements in underlying trading measures from a statutory loss, making cash conversion, customer exposures and financing relevant areas of examination.

How Did FY26 Earnings Develop?

In its 26 August 2026 results release, Paragon Care Limited (ASX:PGC) reported revenue of AUD 3.7 billion for the year ended 30 June 2026, increasing 1.8% YoY. The company reported normalised revenue growth of 6.7%, calculated after specified adjustments for exited customer contracts, currency movements and Acquisition contributions. The measures use different comparisons.

Underlying EBITDA rose 2.1% YoY to AUD 97.2 million, whereas underlying net profit after tax declined 13.6% to AUD 26.0 million. Statutory EBITDA fell 42.6% to AUD 50.8 million and statutory NPAT was a AUD 16.0 million loss. Underlying results are non-IFRS measures. The statutory outcome included a provision against Infinity Pharmacy Group receivables.

What Changed Operationally in 2026?

Paragon Care Limited (ASX:PGC) stated that its 3-2-1 integration program was completed during FY26. The initiative included Business restructuring, information technology harmonisation and relocation of certain support functions to Asian offices. Its automated Brisbane distribution centre became fully operational in June 2026. Operating efficiency remains relevant.

In Australia and New Zealand, normalised revenue growth excluding specified customer exits was 6.1%, while the regional segment Margin remained at 8.0%. The Asia segment recorded AUD 58.8 million in additional revenue, comprising AUD 45.4 million from acquisitions and AUD 13.3 million in organic growth. Management also reported a five-year Australian Defence Force Supply contract. These developments also involve integration and expense control.

Cash Flow, Borrowings and Capital Allocation

Paragon Care Limited (ASX:PGC) reported operating cash generation of AUD 29.1 million in FY26, up 317% YoY. Net Working Capital was AUD 94.1 million at 30 June 2026, a reduction of AUD 31.9 million from the previous year. Net gearing was reported as 2.5 times underlying EBITDA, including the last twelve months of EBITDA from acquired businesses. Financing requirements remain relevant to liquidity.

A 23 September 2026 audited results update revised the disclosed undrawn finance Facility limit to AUD 138.7 million, without changing reported profit, assets, liabilities, Equity or gearing. On 16 September, the company announced an on-market share buy-back. Infrastructure, acquisitions and borrowings remain financing considerations. The FY26 announcement also said no Dividend had been declared for that year.

Risks and FY27 Monitoring Points

Paragon Care Limited (ASX:PGC) reported a AUD 9.3 million estimated recovery value relating to Infinity Pharmacy Group debt, equivalent to approximately 19% recovery excluding GST. Credit recoverability and collection timing remain company-specific uncertainties. Management did not issue numerical FY27 financial guidance, citing economic instability, although it indicated an expectation of mid-single-digit revenue growth.

For Paragon Care Limited (ASX:PGC), areas to monitor include receivables collection, interest and Debt service, realised benefits from the Brisbane site, performance of acquired businesses and competition across medical technology channels. Foreign-exchange movements and logistics expenses also affect results. Expansion priorities include Asian markets, dental, aesthetics, animal health and New Zealand wholesale.

Key Insights

FY26 results show revenue growth and higher operating cash generation alongside a statutory loss, underlying NPAT decline and continuing financing exposures. Future assessments depend on the relationship between reported revenue, cash conversion, customer credit recovery and expansion costs rather than any single earnings measure.

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