Paragon Care (PGC) H1 2026 earnings summary

Executive summary

• Revenue for the half-year reached $1.9 billion, up 2.9–3% year-over-year, with normalized growth at 10.5% driven by ANZ Contract Logistics, Wholesale, and Asia.

• Underlying EBITDA was $49.0 million, up 3.1%, while statutory EBITDA was negative $0.4 million due to a full provision for Infinity Group debt.

• Underlying NPAT was $13.3 million, but a statutory net loss after tax of $21.3 million was recorded, reflecting the Infinity Group provision.

• Recent acquisitions, including Somnotec Group and AHP Dental & Medical, contributed positively, with further acquisitions post-period expected to enhance future results.

• Strategic focus remains on integration completion, operational efficiency, and continued expansion in Asia and contract logistics.

Financial highlights

• Underlying EBITDA margin held steady at 2.57%, with solid margin maintenance despite integration and M&A costs.

• Net debt increased to $287.5 million, up 26.9% from June 2025, mainly due to acquisition financing and seasonal working capital needs.

• Net Debt/EBITDA (proforma) rose to 2.81x, targeted to reduce to approximately 2x by June, excluding Infinity recovery.

• Cash flow from operations improved year-over-year, with cash at period end of $30.9 million, up 42.5% from the prior year.

• Organic revenue growth was $114 million, with a 7.1% net organic growth rate after adjusting for Infinity and acquisitions.

Outlook and guidance

• Full-year revenue guidance reaffirmed at $3.6–$3.7 billion, with underlying EBITDA expected between $97–$107 million.

• Net debt/underlying EBITDA targeted at around 2x by year-end, with no assumptions for Infinity debt recovery included.

• Integration of acquisitions and completion of the 3-2-1 strategy by June are key priorities.

• No interim dividend declared; dividend policy to be reviewed at year-end.

• Strategic focus on expanding presence in Asia and leveraging new contract wins such as the Australian Defence Force contract.