• Revenue up 8.4% to A$4.7 billion
• EBITDA up 12.3% to A$827 million
• Net profit up 17.0% to A$237 million

Sonic Healthcare has reported a strong financial performance for the first half of the 2025 financial year. Revenue increased by 8.4% to A$4.7 billion, driven by 6.1% organic growth as well as contributions from recent acquisitions. EBITDA grew by 12.3% to A$827 million, reflecting the revenue growth as well as a 60 basis point improvement in EBITDA margin. Excluding the impact of the recent zero-margin acquisitions, the EBITDA margin expansion would have been around 90 basis points. Net profit attributable to shareholders increased by 17.0% to A$237 million. The company's cost reduction initiatives, particularly in labour costs, contributed to the margin expansion. Sonic also reported strong cash flow, with 103% of EBITDA converted to gross operating cash flow. The company's balance sheet remains in a strong position, with net debt to EBITDA at 2.0 times. Sonic is on track to achieve its full-year earnings guidance provided in August 2024, which includes EBITDA in the range of A$1.70 to A$1.75 billion on a constant currency basis. The company also announced that it will maintain its progressive dividend policy, with a 2.3% increase in the FY2025 interim dividend to 44 cents per share.

Sonic's FY2025 earnings guidance includes EBITDA in the range of A$1.70 to A$1.75 billion on a constant currency basis, representing up to ~10% growth on FY2024 EBITDA (excluding the gain relating to the West division). Depreciation (including of leased assets) is expected to be a similar percentage of revenue in FY2025 as in FY2024. Net interest expense is expected to increase by ~25% from the FY2024 level (on a constant currency basis), and the effective tax rate is expected to be 26-27%.

Sonic remains on track to achieve its full-year earnings guidance for FY2025. The company's organic growth initiatives, cost reduction programs, and synergies from recent acquisitions are expected to continue driving margin expansion. Sonic also announced the upcoming acquisition of the LADR Laboratory Group in Germany, which is expected to complete on 1 July 2025.