Operating cash flow more than doubled to $548.6m as capex normalised

This is the most material movement in the result because it inflects the cash profile of the business after several years of heavy plant investment. Revenue rose 27.8% to $2b – the group's first $2bn year – with Hospital revenue of $1.3b (63.3% mix) and Homecare of $739.9m. Profit before tax grew 53.4% to $503.3m and NPAT grew 50.7% to $377.2m. The net cash position widened from $37.7m to $200.5m.

Operating cash flow outpaced NPAT growth by roughly 2.5x (+130.3% versus +50.7%) and FCF coverage of 113.3% means reported earnings were fully backed by cash this period. For an investor, this matters because it removes the question of whether the profit step-up is accrual-driven – in aggregate, it is not.

Capex intensity has reset. Capital spend dropped from 13.4% to 5.1% of revenue. The release does not characterise this as a new structural level, so it could reflect timing between investment cycles rather than a permanent lower run rate. If the lower intensity persists, the FCF profile changes materially; if another build wave is required to support volumes, FY25 FCF will overstate the steady state.

Working capital is sending mixed signals. Receivable days lengthened by 6.0 days to 47.5 while inventory days fell 22.5 to 61.9. The inventory unwind contributed positively to cash this year and is not repeatable at the same magnitude. The debtor stretch is the more concerning of the two – it implies tighter cash dynamics in FY26 if the trend continues.

The first-half shape (HY25 revenue of $951.2m at 47.1% of the full year, NPAT of $153.2m at 40.6%) shows a clearly second-half-weighted year, with implied H2 revenue of $1.1b and H2 NPAT of $224.0m. That weighting is consistent with sequential momentum through the period, but without management guidance there is no quantified bar to test against. The $2bn revenue milestone and the H2 exit rate set the read for FY26 directionally; neither is a target.

FCF at 113.3% of NPAT, net cash of $200.5m (versus $37.7m), and ROE at 20.0% (versus 14.3%) all point to durable improvement rather than one-period accounting effects. Capex normalisation is the only meaningful timing-versus-structural question and it cuts both ways: if structural, FY25 FCF understates the new run rate; if cyclical, FY25 overstates it.

The tax line introduces a small distortion. The effective tax rate moved from 23.7% to 25.1%, which is why NPAT growth (50.7%) lagged PBT growth (53.4%) by 2.7 percentage points. PBT is the cleaner operating read. On working capital, the inventory unwind (22.5 fewer days of inventory) contributed materially to the cash result and will not repeat at this magnitude. Receivable lengthening (+6.0 days) is a yellow flag for FY26 cash conversion. The full-year dividend of 42.5cps (final component 24.0cps) implies a payout ratio of 66.0% of NPAT (versus 53.1% prior), which is well-covered by FCF at 58.3%.

This briefing cannot assess product-level demand dynamics or constant-currency growth contributions beyond what the canonical extraction supplies.