HLS: FY26 guidance downgraded, exploring sale of Agilex

Research evidence excerpt

HLS: FY26 guidance downgraded, exploring sale of Agilex

EQUITY RESEARCH QUICK TAKE

Royal Bank of Canada, Sydney Branch

Craig Wong-Pan (Analyst)

Taj Wesson, CFA (Associate)

May 12, 2026

Healius Limited

FY26 guidance downgraded, exploring sale of Agilex

ASX: HLS | AUD 0.49 | Sector Perform | Price Target AUD 0.75

Sentiment: Negative

Summary: HLS has issued a weak trading update and now expects FY26 earnings to be significantly lower than consensus numbers

(management underlying EBIT guidance of $30-35m vs consensus $44m). We calculate HLS’ trading update implies their pathology

volume growth deteriorated from +1.2% in 1H26 to -2.8% in 2H26 and pathology revenue growth deteriorated from +3.5% in

1H26 to +0.7% in 2H26. We believe HLS has lost share in the 2H26 period given Medicare pathology volume and benefits paid

growth for the 3 mths to Mar 26 were +1.9% and +1.6% respectively. HLS management highlighted the Federal budget contains no

new funding for pathology (we outlined in our 'Australian Federal Budget 2026-27: implications for Australian healthcare stocks'

note that there is actually a 0.74% reduction in diagnostic imaging and pathology spending) and pressure on the sector continues

to build due to significant wage increases. The company is exploring the potential sale of Agilex given it has received several

unsolicited approaches from credible parties.

Key points from HLS' announcement:

1. Healius has downgraded FY26 guidance and now expects group underlying EBITDA to be $259m-$264m (vs RBCe $277m,

Consensus $273m) and underlying EBIT of $30m-$35m (vs RBCe $47m, Consensus $44m). At the interim result management

was guiding for underlying EBIT to be in-line with consensus estimates of $48m, which implies a 27%-38% downgrade to prior

guidance.

2.