Integral Diagnostics Limited has reported a robust half-year performance, with revenues soaring 55.6% and EBITDA nearly doubling, driven by strong patient volume growth and successful integration of Capitol Health. The company also declared a fully franked interim dividend of 3.3 cents per share.
- Revenue up 55.6% to $393.5 million
- EBITDA increased 91.4% to $67.1 million
- EBIT surged 161.8% to $30.2 million
- Fully franked interim dividend raised to 3.3 cents per share
- Capitol Health integration exceeds synergy expectations
Strong Financial Momentum
Integral Diagnostics Limited (IDX) has delivered a compelling half-year result for the six months ending 31 December 2025, showcasing significant growth across key financial metrics. Revenue climbed 55.6% to $393.5 million, a leap largely attributed to increased patient volumes, Medicare indexation, and the prior acquisition of Capitol Health. EBITDA nearly doubled, rising 91.4% to $67.1 million, while EBIT more than doubled, surging 161.8% to $30.2 million.
This performance marks a clear turnaround from the previous period, which included losses and only a partial contribution from Capitol Health following its acquisition in December 2024. The company’s profit after tax attributable to owners reached $8.96 million, a notable improvement from a loss in the prior comparable period.
Operational Drivers and Market Context
Organic growth remains a key driver, with Australian operations benefiting from a 7.4% revenue increase, supported by Medicare indexation of 2.4% effective July 2025 and favourable service mix shifts towards higher-end imaging modalities such as CT, MRI, and PET scans. The legacy IDX business saw 8.5% growth, buoyed by MRI deregulation and the National Lung Cancer Screening Program, while the legacy Capitol business experienced a more modest 5.4% growth, expected to improve with the recent GP Bulk Billing Incentive Program.
New Zealand operations also contributed, with a 2.0% organic revenue increase on a constant currency basis. The Group’s operating EBITDA margin improved by 230 basis points to 20.6%, reflecting operational efficiencies and synergy realisation.
Capitol Health Integration and Synergies
The integration of Capitol Health is progressing well, with synergies now expected to exceed $14 million annually, surpassing the initial $10 million target set at the time of acquisition. The company has refined its organisational structure to enhance patient focus and operational effectiveness, while employee engagement scores remain strong. Procurement initiatives have also contributed to cost savings beyond initial projections.
Balance Sheet and Capital Management
Integral Diagnostics maintains a solid financial position, with net debt increasing slightly to $317.9 million and a net debt to EBITDA leverage ratio improving to 2.5 times. The Group holds $34.1 million in cash and has access to committed debt facilities totaling $466.8 million, with $114.5 million undrawn. The weighted average interest rate on core debt has fallen to 4.56% from 6.62% in the prior period, aided by interest rate swap contracts covering over half the drawn debt.
Capital expenditure for the half-year was $24.9 million, including $8 million invested in growth initiatives such as greenfield projects and equipment upgrades.
Outlook and Strategic Focus
Looking ahead, Integral Diagnostics plans to continue driving organic earnings growth through radiologist recruitment, productivity improvements, and operational efficiencies. The company is accelerating adoption of teleradiology, digital technologies, and artificial intelligence to enhance patient and referrer experiences. Environmental, social, and governance (ESG) initiatives remain a priority, alongside completing the Capitol merger integration and exploring further merger and acquisition opportunities in a consolidating market.
Reflecting confidence in its outlook, the company declared a fully franked interim dividend of 3.3 cents per share, up from 2.5 cents in the prior corresponding period, with a dividend payout ratio of 55.2% of operating net profit after tax.
Bottom Line?
Integral Diagnostics’ strong half-year results and successful Capitol integration set the stage for sustained growth, but investors will watch closely for execution on digital innovation and further synergy realisation.
Questions in the middle?
- How will ongoing Medicare indexation and government programs impact future revenue growth?
- What are the risks and timelines associated with fully realising Capitol Health merger synergies?
- How aggressively will Integral Diagnostics pursue further acquisitions in a consolidating diagnostic imaging market?