Healius (ASX:HLS) Announces Pathology Strategy and $300M Dividend at Investor Day 2025
Financial Performance
Healius reported a 6.2% increase in revenue and a 4.0% rise in pathology volumes year to date up to February 2025. The company refinanced its debt facilities and plans to repay existing debt with a new $300 million facility.
Pathology Strategy
Healius introduced a new Pathology Strategy & National Operating Model aimed at delivering high single digit EBIT margins by June 2027. The strategy focuses on customer service, laboratory modernization, emerging diagnostics, and technology enablers, with ongoing cost reductions targeting $15-$20 million post Lumus sale.
Special Dividend
The company announced its intention to pay a special dividend of approximately $300 million, contingent upon the completion of the Lumus Imaging sale to Affinity Equity Partners by 1 May 2025. This includes 41.3 cents per share fully franked, with a franking credit of 17.7 cents per share.
Strategic Developments
Healius expects to sell Lumus Imaging for $965 million, enhancing its financial position. The company is focusing on optimizing its Pathology and Agilex Biolabs businesses, implementing strategic cost reductions, and advancing its T27 plan for margin expansion.
Outlook
Healius maintains a conservative balance sheet with plans for future revenue growth through improved customer service, emerging diagnostics, and strategic acquisitions. The company forecasts sustained operational efficiencies and margin improvements by 2027.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.