Ramsay Health Care Slightly Down Despite European Divisions Revenue Rise

Highlights:

• Ramsay Health Care Limited (ASX: RHC) slipped 1.1% to AU$30.92 at the time of writing, despite a revenue lift from its European arm, Ramsay Santé.
• Ramsay Santé posted €1.21 billion in Q1 revenue, up 2.6% reported and 1.9% like-for-like, with EBITDA increasing 6.5%.
• Market sentiment remained cautious due to modest growth, inflation-driven cost pressures, and the division’s high net financial debt of €3.82 billion.

Revenue uptick in Europe, but shares slip

Ramsay Health Care Limited (ASX: RHC) – at the time of writing – saw its stock fall by about 1.1 per cent to AU$30.92, even though its European subsidiary Ramsay Santé, which the company owns a 52.79 per cent stake in, reported a modest revenue increase for the quarter ended 30 September 2025.

What the European business delivered

Ramsay Santé reported unaudited group revenue of €1.21 billion for the quarter, up 2.6 per cent on a reported basis, and 1.9 per cent on a like-for-like basis. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 6.5 per cent to €112 million despite challenging funding conditions from public payors and inflationary cost pressure. The net financial debt of the division as at 30 September 2025 stood at about €3.82 billion, representing roughly 5.2 times leverage on a pre-IFRS16 basis.

Why the stock dipped anyway

While the European arm showed growth, the broader context is less optimistic. Investors seem cautious because:

• The growth is modest (only ~2–3 per cent) and not dramatic.
• Cost inflation in staffing and services remains only partly offset by tariff increases.
• Ramsay’s global portfolio includes underperforming segments (for example, its UK mental-health division) which may be weighing sentiment.
• The debt load of the European unit is high, which adds risk.

So despite the positive numbers from Ramsay Santé, the market appears to be pricing in the headwinds.

What to watch next

Keep an eye on how Ramsay Health Care manages the following:

• Whether it can accelerate growth beyond the low single digits in Europe, including better cost-control and productivity improvements.
• The future of tariff negotiations and public-funding support, especially in France and the Nordic countries where Ramsay Santé operates.
• The performance of other segments globally — strong or weak results elsewhere could offset or compound the European story.
• Any strategic decisions about the European business, such as asset sales or restructuring, which could impact investor sentiment.

In summary: At the time of writing, Ramsay Health Care’s shares are down despite the European division delivering modest revenue and earnings growth, because the improvement is relatively small, and investors remain wary of broader cost and debt challenges.

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