Ramsay Health Care Limited (ASX:RHC), a constituent of the S&P/ASX 200, released its FY26 full-year results on 27 August 2026, reporting underlying NPAT up 23% in constant currency with all operating regions delivering EBIT growth. The Australian hospitals Business accelerated its transformation momentum, UK Hospitals grew EBIT despite soft NHS volumes, and Elysium's turnaround gained further traction. Group Funding Leverage fell to below 2 times, reflecting improved Cash Flow and Capital discipline under the new management team.

About the Company

Ramsay Health Care Limited is one of the world's largest private hospital operators, with hospitals and healthcare facilities across Australia, the United Kingdom, France, Sweden, Norway, Italy, and Indonesia. In Australia, Ramsay operates more than 70 hospitals and day surgeries, making it Australia's largest private hospital group. Its European operations include Ramsay UK (private hospitals and Elysium mental health), and Ramsay Santé (hospitals across France and Scandinavia), in which Ramsay holds a controlling but not 100% interest. The company is in the process of separating Ramsay Santé via an in-specie distribution, subject to a Shareholder vote planned for November 2026.

FY26 Results

Group EBIT was $1,105.4 million (FY25: $706.2 million), up 56.5% (56.9% constant currency). Statutory NPAT was $329.2 million (FY25: $24.0 million), up 1,271.7%. Underlying EBIT was $1,162.2 million (FY25: $1,042.6 million), up 11.5% (11.8% constant currency). Underlying NPAT was $364.1 million (FY25: $305.3 million), up 19.3% (22.9% constant currency). Group underlying EBIT ROIC improved by 150 basis points to 14.8%. Underlying diluted EPS was 151.0 cents (FY25: 125.3 cents), up 20.5%. Group capex was $729 million in constant currency, below the revised guidance range, with growth and development focused on Australia and procedural capacity. Australia: Activity growth 3.3%, visiting medical officers up 3.3%, theatre utilisation improved approximately 90 basis points. Australian underlying EBIT up 11.2% with Margin expansion of 30 basis points. Four sites were closed and excess land holdings are to be sold as part of portfolio optimisation. Ramsay completed the Acquisition of National Capital Private Hospital, expected to complete by 1 September 2026. UK Hospitals grew EBIT by 10.3% through acuity, private work, and cost management, mitigating an 8% decline in NHS activity. Elysium's turnaround gained traction through site and ward closures to match local Demand and a reduction in central and agency costs. The Joondalup Public Campus funding mechanism change had a negative impact of approximately $26 million on Australian earnings.

Distribution

The Board declared a fully franked final Dividend of 48.5 cents per share, up 21.3% on the prior corresponding period. Full-year ordinary dividend was 91 cents per share, up 13.8% on FY25. Fully diluted EPS was 135.8 cents (FY25: 3.0 cents). Underlying diluted EPS was 151.0 cents.

Index Context

Ramsay Health Care is a constituent of the S&P/ASX 200 healthcare sector and Australia's dominant private hospital operator. For S&P/ASX 200 investors, RHC provides exposure to Australia's ageing demographics and growing demand for elective and non-elective surgical procedures, as well as international private healthcare markets through its UK and European operations. The proposed separation of Ramsay Santé would, if completed, allow RHC to be more purely valued as an Australian and UK private hospital business, potentially improving clarity around capital allocation and Earnings quality.

Material Risks and Uncertainties

The Ramsay Santé separation is the largest near-term corporate risk, requiring successful shareholder approval in November 2026 and completion of a complex corporate transaction. UK NHS activity volumes declined 8% in FY26, reflecting ongoing NHS funding constraints and elective surgery backlogs that limit the Volume of public patients referred into Ramsay UK — a risk that may persist. Elysium's turnaround, while gaining traction, is not yet complete and requires continued reduction in central and agency costs. The change to the Joondalup Public Campus funding mechanism represented a $26 million Australian EBIT headwind.

Upcoming Milestones

The shareholder vote on the proposed in-specie distribution of Ramsay Santé, planned for November 2026, is the single most important corporate milestone for Ramsay shareholders. A successful vote and completion of the separation would simplify Ramsay's portfolio and unlock the value of the Santé business as a separately traded entity. Completion of the National Capital Private Hospital acquisition (expected 1 September 2026) adds scale to the Australian portfolio. The '2030 ambitions' strategy — particularly achieving the 'Big 5' hospital initiative targets for high-acuity growth — will be reported progressively.