The Sonic Healthcare Ltd (ASX: SHL) share price is in focus after the company reported full-year FY25 revenue of $9.6 billion, up 8%, and net profit of $514 million, up 7%. Earnings per share lifted 6%, and cash generated from operations surged 21%.
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What did Sonic Healthcare report?
- Revenue: $9,645 million, up 8% year-on-year
- EBITDA: $1,725 million, up 8%
- Net profit: $514 million, up 7%
- Cash generated from operations: $1,297 million, up 21%
- Organic revenue growth: 5%
- Final dividend: 63 cents per share (35% franked), full-year increase of 1 cent
What else happened in FY2025?
Sonic Healthcare completed the major acquisition of LADR Laboratory Group in Germany on 1 July 2025, further strengthening its leading presence in the German market. LADR generated €370 million in revenue for 2024 and brings immediate earnings benefits.
During the year, the company also entered into new agreements, including a significant contract for Hertfordshire and West Essex NHS in the UK, which transferred 600 staff and delivered organic growth of 14% for its UK operations. In Australia, Sonic renewed the National Bowel Screening contract and secured new private hospital laboratory service wins.
The Radiology division stood out with robust growth, achieving 10% organic revenue and 12% EBITDA growth. The US business faced headwinds but returned to positive organic growth in July 2025.
What did Sonic Healthcare management say?
Commenting on the result, CEO and Managing Director Dr Colin Goldschmidt said:
Sonic Healthcare's businesses performed strongly during the 2025 financial year, with the group achieving 5% organic revenue growth and 40 basis points of margin expansion on a normalised basis. Having achieved our earnings guidance range for the 2025 financial year, Sonic's management teams globally are now acutely focussed on meeting expectations for 2026 by driving organic growth, tightly controlling costs, and progressing the many workstreams required to further realise the synergies we expect from the significant acquisitions we have made in Switzerland, Germany and the USA, including the most recent acquisitions of the LADR Laboratory Group and Cairo Diagnostics.
What's next for Sonic Healthcare?
Looking to FY2026, Sonic Healthcare expects strong earnings growth, with EPS guidance of up to 19%. This outlook is driven by continued organic growth, synergy realisation from recent acquisitions in Switzerland, Germany, and the USA, and the integration of LADR and Cairo Diagnostics.
Management says synergy benefits will ramp up over the next two years, and new contract wins are expected to support operational leverage and further strengthen the company's market positions.
Sonic Healthcare share price snapshot
Taking into account today's 8% decline, Sonic shares are down 4% over the past year. That compares to a 12% increase for the S&P/ASX 200 Index (ASX: XJO).
