Ramsay Health Care profit surges as Australian hospitals drive FY26 turnaround

Ramsay Health Care (ASX: RHC) has delivered a sharp improvement in FY26 earnings, with stronger hospital activity, improved operating performance and tighter cost management helping the healthcare group lift both underlying and statutory profit.

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The hospital operator reported net profit after tax of $329.2 million for the year ended June 30, compared with $24 million a year earlier. The result was ahead of the $311.4 million Visible Alpha consensus.

Revenue increased to $18.7 billion, from $17.84 billion in FY25, while underlying NPAT rose 22.9% to $364.1 million. Underlying EBIT also increased 11.8% to $1.162 billion, with underlying earnings per share rising 27% to 151.0 cents.

Ramsay said its Australian hospital operations continued to build momentum, with higher patient activity, an increase in more complex cases, better utilisation of operating theatres and improved cost control supporting the result.

The group also recorded positive net cash flow across its Australian and UK businesses. Group EBIT margin improved by 30 basis points to 6.2%, while returns on invested capital also strengthened.

The improved earnings performance has flowed through to shareholders, with Ramsay declaring a fully franked final dividend of 48.5 cents per share, taking the full year payout to 91 cents per share.

Chief executive Natalie Davis pointed to stronger transformation across the Australian business, alongside continued clinical performance and improvements in capital returns.

Looking ahead, Ramsay expects further EBIT growth and margin improvement in FY27 as it continues to focus on hospital activity, cost management and capital discipline.

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