Austco Healthcare has reported a robust first half of 2026, with revenue surging 31% and EBITDA jumping 60%, underpinned by solid contract backlog and debt-free balance sheet.
- Revenue increased 30.7% to $48.2 million
- EBITDA rose 60.1% to $8.3 million with margin expansion
- Net profit before tax up 62.1% to $6.3 million
- Unfilled contracted revenue steady at $47.2 million
- Debt-free with $15.2 million cash on hand
Strong Half-Year Performance
Austco Healthcare Limited has delivered a standout first half for the 2026 financial year, posting record revenue and profit growth. The company’s revenue climbed 31% to $48.2 million, driven by a combination of organic growth and contributions from recent acquisitions, notably G&S Technologies. This growth was particularly pronounced in North America and the Australia-New Zealand region, reflecting Austco’s expanding footprint in key healthcare markets.
EBITDA surged by 60% to $8.3 million, with margins improving from 14.0% to 17.1%. This margin expansion underscores the company’s operational leverage and disciplined cost management, as overheads grew at a slower pace than revenue. Net profit before tax rose 62.1% to $6.3 million, highlighting the effective translation of top-line growth into bottom-line profitability.
Robust Contract Backlog and Cash Position
Austco’s unfilled contracted revenue (UCR) remains a key highlight, standing firm at $47.2 million. This backlog provides strong visibility into future earnings and is well diversified geographically, with North America accounting for over half the UCR. The steady UCR level since August 2024 signals sustained demand and successful sales execution across the group.
Financially, Austco is in a strong position with no debt and $15.2 million in cash at the end of December 2025. The company’s cash generation from operations has supported acquisition earn-out payments and ongoing investment in research and development, particularly in its Tacera clinical communications platform. This focus on innovation is central to Austco’s strategy to maintain its competitive edge in healthcare technology.
Outlook and Strategic Focus
Despite the strong results, Austco has chosen not to declare a dividend, opting instead to reinvest earnings to fuel organic growth and meet acquisition obligations. The company’s leadership expresses confidence in sustaining earnings growth, supported by a differentiated product offering and operational efficiencies. The healthcare funding environment remains dynamic, but Austco’s balance sheet strength and market positioning provide a solid foundation for continued expansion.
Looking ahead, investors will be watching how Austco leverages its contract backlog and R&D investments to drive further growth, particularly in competitive international markets. The company’s ability to integrate acquisitions and scale its operations efficiently will be critical to maintaining momentum.
Bottom Line?
Austco’s record half-year sets the stage for sustained growth, but execution risks remain as it scales.
Questions in the middle?
- How will Austco capitalise on its unfilled contracted revenue in the coming quarters?
- What impact will ongoing R&D investment in Tacera have on future product competitiveness?
- Could Austco pursue further acquisitions to accelerate growth, and how might that affect margins?