Highlights:

• Underlying revenue increased 2.1% to AU$1.37 billion, while underlying EBIT climbed 76.6% to AU$30.2 million.
• Pathology EBIT improved 65.3% to AU$23.8 million, supported by pricing, revenue mix and disciplined cost management.
• Shares rose 19.047% to $0.500 as investors responded to improving operational performance and margin recovery.

A Sharp Move Sparks Fresh Investor InterestHealius Limited (ASX: HLS) delivered a stronger underlying performance in FY2026, with its shares jumping 19.047% to $0.500. The company’s results for the year ended 30 June 2026 showed underlying revenue increasing 2.1% to AU$1.37 billion, while underlying EBIT surged 76.6% to AU$30.2 million.

The improvement was supported by tighter cost controls, stronger second-half Pathology margins and a focus on improving revenue quality. Underlying loss after tax narrowed to AU$13.2 million from AU$24.8 million a year earlier. However, statutory results remained heavily impacted by a AU$332 million non-cash goodwill impairment charge, contributing to a reported loss after tax of AU$415.6 million.Pathology Shows Signs of RecoveryHealius’ core Pathology division generated underlying revenue of AU$1.33 billion, up 1.8%, despite a 1.3% decline in volumes. Pricing and a favourable revenue mix helped offset weaker activity, while growth in Genomic Diagnostics, public hospitals, veterinary pathology and B2B services supported average fee growth.

Underlying Pathology EBITDA rose 6.4% to AU$247.9 million, while EBIT increased 65.3% to AU$23.8 million. The EBIT margin improved to 2.8% in the second half, signalling progress from the business’ restructuring and productivity initiatives.Cost Discipline and Digital TransformationHealius delivered AU$24.4 million in annualised corporate and support cost savings, exceeding its initial target of AU$15 million to AU$20 million. The company also expanded automation and AI across workforce planning, laboratory processes and administrative functions.

Agilex Biolabs also delivered strong growth, with revenue increasing 14.1% and EBIT rising 137% to AU$6.4 million.The Road AheadThe sharp share price reaction suggests investors may be focusing on Healius’ improving underlying earnings rather than its statutory loss. With margin recovery, cost savings and technology-led productivity becoming increasingly visible, the company enters FY2027 with a potential pathway towards stronger cash flow and sustainable profitability.

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