Australian Unity Reports $2.6B Revenue and $136.2M Adjusted EBITDA in FY2025

A Year of Financial Progress Amid Transformation

Australian Unity Limited has unveiled a markedly improved financial performance for the fiscal year ending June 30, 2025, reporting consolidated revenues of $2.6 billion and an Adjusted EBITDA of $136.2 million. This represents a substantial uplift compared to the previous year, reflecting the early fruits of a comprehensive transformation program initiated in FY2023.

The Group’s statutory profit after tax climbed to $26.6 million, a $49.3 million improvement, underscoring the positive momentum across its diversified portfolio. These results come despite ongoing challenges in the regulatory environment, particularly delays in the implementation of the Aged Care Act 2024 reforms, which have impacted sector-wide operations.

Strategic Portfolio Adjustments and Technology Overhaul

Central to Australian Unity’s progress has been a multi-year, multi-faceted program focused on reshaping its portfolio and technology infrastructure. The Group has concentrated its efforts on four core operational platforms, Home Health, Insurances, Residential Aged Care, and Wealth & Capital Markets. Notably, the Insurances platform underwent a rebranding and structural change following the transfer of its banking business to Bank Australia, a move expected to complete by November 2025.

Investment in technology has been a key pillar, with the Group embedding a strategic technology provider to enhance scalability and operational efficiency. Integration efforts continued for acquisitions such as myHomecare Group and IOOF Ltd (now Australian Unity Life Bonds Pty Ltd), aiming to streamline systems and improve customer service delivery.

Transformation Costs and Future Outlook

The Group invested $70.2 million in non-recurring transformation expenses during FY2025, up from $43.8 million the previous year. These costs are expected to taper off as the program nears completion by the end of 2025, with an estimated $38 to $48 million remaining. However, the timeline and cost projections remain sensitive to potential delays in regulatory reforms, particularly those affecting aged care.

Despite these headwinds, Australian Unity has maintained stable policyholder numbers in its Insurances platform and continued to deliver improved services in Home Health. The Group’s commitment to community and social value is evident, with $2.38 billion delivered in CSV during the year.

Corporate Activity and Sector Challenges

Alongside operational improvements, Australian Unity progressed significant corporate transactions, including the sale of Australian Unity Investments Limited to Newmark Capital and the repurposing of assisted living apartments at The Alba in South Melbourne into Residential Aged Care facilities. The Group also secured a Project Delivery Deed for new medical and healthcare faculty facilities at Queensland University of Technology, signaling ongoing investment in community infrastructure.

Nevertheless, the sector’s environment remains complex, with regulatory delays and a fractious private healthcare landscape posing ongoing challenges. The deferral of 83,000 home care packages has particularly affected service delivery and workforce recruitment, underscoring the delicate balance between reform and operational stability.

Leadership Perspective

Group Managing Director Rohan Mead highlighted the encouraging financial uplifts as validation of the Group’s strategic direction. He emphasized that while transformation costs remain significant, the emerging results position Australian Unity well to fulfill its purpose of positively impacting wellbeing across communities.