Netcare (NTC) H2 2025 earnings summary

Executive summary

• Achieved strong financial performance in FY 2025, meeting all strategic objectives and maintaining a robust financial position with improved ROIC and cash conversion.

• Advanced digital and AI strategy delivered operational efficiencies, cost savings, and improved care quality, with 92 publicly reported quality outcomes, 29 peer-reviewed publications, and R587m cumulative savings from CareOn EMR since 2022.

• Returned ZAR 1.8 billion to shareholders via dividends and share buybacks.

• Environmental sustainability initiatives are ahead of schedule, with significant reductions in energy and water usage.

Financial highlights

• Revenue increased by 4.5% year-over-year to ZAR 26.344 billion; EBITDA rose 8.4% to ZAR 4.912 billion; operating profit up 11.3% to ZAR 3.559 billion.

• Adjusted headline EPS grew 20.7% to ZAR 1.372; total annual dividend up 21.4% to ZAR 0.85.

• EBITDA margin expanded by 60 bps to 18.6%; net debt-to-EBITDA improved to 1.1x from 1.2x.

• Cash conversion rate at 111.3%; ROIC improved by 90 bps to 12.6%.

Outlook and guidance

• Patient day growth for acute hospitals guided at 0.8%-1.5%, total group at 1.8%-2.4%; revenue growth expected between 4%-5% for FY 2026.

• EBITDA margin anticipated to benefit from operational efficiencies, building on a high 2025 base of 18.6%.

• CapEx planned at ZAR 1.9 billion, with ZAR 566 million for expansionary projects.