Earnings call transcript: Ramsay Health Care surges on H2 2026 margin gains

Ramsay Health Care reported strong earnings for the year ending June 30, 2026, with full-year revenue rising 4.2% in constant currency to AUD 18.6 billion. The Australian company's underlying EBIT increased by 11.8%, and net profit attributable to shareholders (NPAT) grew by 22.9%. The company also raised its full-year dividend by 13.8% to AUD 0.91 per share.

Shares surged 15.29% in pre-market trading, reaching $50.75, near the top of their 52-week range. The Australian hospital segment led growth, with an 8% increase in revenue, driven by higher surgical admissions, better theater utilization, and revenue indexation. Theater utilization improved to 70% from 69% in the prior year, with top five hospitals running at 80%-85% utilization.

The U.K. hospitals business also showed improvement, with underlying EBIT up 10.3% despite a decline in NHS activity. Ramsay's mental health and complex care business, Elysium, posted a 43% growth in underlying EBIT. The company's leverage fell to 1.83 times, below its target range of 2.5 times. The stock's strong reaction to the results indicates investor confidence in Ramsay's turnaround strategy, which focuses on improving Australian hospital business, capital discipline, and innovation.