The Sonic Healthcare Ltd (ASX: SHL) share price is down 13% after the ASX healthcare share announced its FY25 result.
Sonic Healthcare is one of the largest global pathology businesses.
Sonic Healthcare FY25 result
Here are some of the highlights from the result for the 12 months to 30 June 2025:
- Revenue grew 8% to $9.6 billion
- EBITDA (EBITDA explained) rose 8% to $1.7 billion
- Net profit grew 7% to $514 million
- Operating cashflow soared 21% to $1.3 billion
- Final dividend per share flat at $0.63
- Total dividend per share up 1% to $1.07
Sonic Healthcare said it achieved its EBITDA earnings guidance, with organic revenue growth.
The business reported organic revenue growth of 5%, which combined with cost efficiency programs to drive profit margin expansion. The ‘normalised’ EBITDA margin expanded by 40 basis points (0.40%).
Divisional breakdown
In terms of the different segments, USA revenue fell 2%, impacted by the sale of the West Division in the second half of FY24. Organic growth was impacted by the loss of payor contract in Alabama and Change Healthcare cyber disruption.
In the Australian pathology division, it achieved organic revenue growth of 6%. Earnings were enhanced by revenue growth and tight cost management.
In its radiology segment, it delivered organic revenue growth of 10%. The Sonic Clinical Services division grew revenue by 2%.
In Germany, revenue growth was 10%, with organic revenue growth of 4%. The organic revenue growth was impacted in the second half by changes to the minimum KV quota for the statutory insurance fee schedule.
Switzerland revenue growth was 21%, with organic growth of 4%. It has rebranded all separate businesses into Sonic Suisse. It’s focused on capturing synergies from recent large acquisitions.
In the UK, revenue growth was 19%, with organic growth of 14%. The Hertfordshire and West Essex NHS outsource contract started on 1 March 2025 and it has commissioned to new laboratories for those hospital sites. A new contract has been secured for pathology services for one of the largest private specialist outpatient healthcare centres in the UK, starting in October 2025.
In Belgium, the smallest segment, revenue rose 3% with organic growth of 2%.
Outlook for the Sonic Healthcare share price
The business provided guidance for FY26.
EBITDA is projected by the business to be between $1.87 billion to $1.95 billion in same currency terms, equating to $1.94 billion to $2.02 billion of EBITDA using current exchange rates.
But, Sonic Healthcare also said that the interest expense will increase by between 15% to 20%, reflecting acquisitions.
The market was clearly expecting more and the growth it’s expecting wasn’t enough.
Despite that, I think it’s one of the reliable ASX dividend shares, with ongoing dividend growth expected to be funded by earnings growth. It currently has a dividend yield of 4.25%.
