Sonic Healthcare holds AGM after posting strong FY25 growth and reaffirming FY26 outlook

Sonic Healthcare booked 8% FY25 sales growth, reaffirmed its FY26 outlook, and completed a major acquisition.

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Key points

  • Sonic Healthcare reported an 8% rise in both statutory revenue to A$9,645 million and EBITDA to A$1,725 million for FY2025, alongside a 6% EPS increase to 106.7 cents.
  • The company confirmed FY26 EBITDA guidance of A$1.87–1.95 billion, supported by acquisitions like LADR Laboratory Group in Germany and strong revenue growth.
  • Looking forward, Sonic plans to maintain organic growth, focus on cost control and EPS enhancement, and continue its progressive dividend strategy amid recent market underperformance.

The Sonic Healthcare Ltd (ASX: SHL) share price is in focus after the company reaffirmed its FY26 earnings guidance and posted 8% revenue and EBITDA growth for FY2025.

What did Sonic Healthcare report in FY25?

  • Statutory revenue for FY2025 rose 8% year-over-year to A$9,645 million
  • EBITDA increased by 8% to A$1,725 million
  • Net profit climbed 7% to A$514 million
  • Earnings per share improved by 6% to 106.7 cents
  • Total FY2025 dividends of $1.07 per share, up 1% on the prior year
  • Cash generated from operations jumped 21% to A$1,297 million

What else do investors need to know?

Sonic Healthcare confirmed its FY26 EBITDA guidance range of A$1.87–1.95 billion (on constant currency), targeting up to 13% growth on FY25. Year-to-date statutory revenue as of October 2025 grew 17%, with organic revenue up 5%, supported by recent acquisitions and contract wins.

The company completed the acquisition of LADR Laboratory Group in Germany, marking a significant milestone. This deal, partly funded by issuing new Sonic shares, is expected to deliver immediate earnings per share accretion and strong returns after synergies.

What's next for Sonic Healthcare?

Looking ahead, Sonic Healthcare expects first-half weighting for FY2026 earnings to follow historical patterns, after an atypical FY2025. The company plans to sustain organic growth through innovation in pathology and diagnostics as well as pursue further targeted acquisitions.

Management is focused on controlling costs, boosting earnings per share, and extracting value from recent acquisitions, while maintaining a progressive dividend policy supported by ongoing strong cash flows.

Sonic Healthcare share price snapshot

Over the past 12 months, Sonic shares have fallen 23%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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