Integral Diagnostics (IDX) H2 2025 earnings summary

Executive summary

• Completed a transformational merger with Capital Health, creating the second largest radiology provider in Australia with 145 clinics and 460 radiologists across Australia and New Zealand.

• Revenue grew 33.7% to $628 million, with standalone revenue up 6.7% year-over-year and a six-month contribution from the Capitol merger.

• Operating EBITDA increased 38.3% to $126.5 million, with margin up to 20.1%.

• Operating NPAT rose 74.4% to $31.6 million; diluted EPS increased by 32.9% to 10.2 cps.

• Declared a fully franked final dividend of $0.04 per share, up 21.2%.

Financial highlights

• Operating EBITDA margin expanded from 19.5% to 20.1% year-over-year; pro forma margin was 20.4% with synergies.

• Operating free cash flow rose 42.9% to $80 million, with a conversion rate of 85.4%.

• Leverage reduced from 2.8x to 2.6x, or 2.4x pro forma for annualized synergies.

• Replacement capex was $28 million; growth capex $27.3 million, focused on new clinics and equipment upgrades.

• Statutory NPAT was $4.8 million, impacted by $26.8 million in transaction and integration costs.

Outlook and guidance

• FY 2026 revenue and EBITDA margin expected to expand, driven by full-year synergies, greenfield ramp-up, and scale benefits.

• FY 2026 capex expected between $45 million and $55 million.

• MRI deregulation and the National Lung Cancer Screening Program to support further growth.

• July FY26 revenue grew 7.0% like-for-like, adjusted for closed/sold clinics.

• Ongoing labor shortages and cost pressures expected to partially offset gains.