Monash IVF Group reported an underlying net profit after tax of $10.41 million for the half-year ended December 2025, meeting guidance despite a 34% decline from the prior year. Revenue dipped slightly due to softness in domestic IVF cycles but was partly offset by international growth and genetics services.
- Underlying NPAT of $10.41 million, down 34% year-on-year
- Revenue declined 1.8% to $137.86 million, impacted by Australian market softness
- EBITDA fell 15.3% to $30.16 million amid cost pressures and IT investments
- International IVF and genetics services showed growth
- Declared fully franked interim dividend of 1.2 cents per share
Financial Performance Overview
Monash IVF Group Limited has released its half-year results for the period ending 31 December 2025, reporting an underlying net profit after tax (NPAT) of $10.41 million. This result sits at the upper end of the company’s November 2025 guidance but represents a significant 34% decline compared to the same period last year. Revenue for the half-year fell slightly by 1.8% to $137.86 million, reflecting ongoing softness in the Australian stimulated IVF cycle market and a modest decline in ultrasound volumes.
Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 15.3% to $30.16 million, influenced by reduced domestic market share and increased investments in technology and infrastructure.
Segment Performance and Market Dynamics
The Australian IVF and ultrasound segment experienced a 2.9% revenue decline, primarily due to a 2.5% drop in market share for stimulated cycles and a 3% reduction in ultrasound scan volumes, particularly in Sydney. Price increases in some states partially offset these declines. Genetics and ancillary services bucked the trend, growing by $2.5 million, driven by increased preimplantation genetic testing activity and donor and storage income.
Conversely, the international segment, covering clinics in Kuala Lumpur, Singapore, Johor Bahru, and Bali, posted a 14.3% revenue increase to $10.43 million. Stimulated cycles grew by 6.9%, with particularly strong growth in Johor Bahru and Bali. However, earnings were tempered by continued investment in marketing and business development.
Capital Investment and Operational Initiatives
Monash IVF is progressing with significant capital expenditure, including the ongoing construction of a new fertility clinic and day hospital in Brisbane, with $6 million spent in the half-year. Total capital expenditure for FY26 is expected to be between $16 million and $17 million, with a return to more typical levels of around $10 million anticipated in FY27.
The company is also investing in an enhanced patient management system, OxHealth, aimed at improving operational efficiency and patient experience. These IT investments contributed to a 10.6% increase in depreciation and amortisation expenses during the period.
Balance Sheet and Dividend Update
Net debt increased to $94.86 million, up $5.28 million from the prior period, reflecting capital investments and operational cash flows. Despite this, leverage remains conservative at 2.0 times EBITDA, well within banking covenant limits. Interest cover remains strong at 9.3 times.
The Board declared a fully franked interim dividend of 1.2 cents per share, signalling confidence in the company’s cash flow and financial position. The dividend policy targets a payout ratio of 60% to 70% of underlying earnings.
Outlook and Risks
Monash IVF maintains its FY26 underlying NPAT guidance of $20 million. The company expects the new Brisbane clinic to become operational in the latter part of the fiscal year, potentially boosting future revenue and capacity. However, the domestic IVF market remains challenging, with softness in stimulated cycle volumes and competitive pricing pressures.
Legal claims related to prior incidents have been settled or are covered by insurance, with no material exposures anticipated. The company also faces ongoing costs related to IT system rollout and clinic operations, which will require careful management.
Bottom Line?
Monash IVF’s disciplined capital investment and international growth offer a buffer against domestic softness, but market share pressures and cost headwinds warrant close monitoring.
Questions in the middle?
- Will the Brisbane clinic’s opening materially improve domestic market share and profitability?
- How will ongoing IT system investments impact operational costs and efficiency in FY27 and beyond?
- What strategies will Monash IVF deploy to counteract softness in the Australian stimulated IVF cycle market?