Medical services-led NPAT growth of 27.5% on 4.2% revenue lift

Medical services revenue grew 8.1% to $165.8m and its segment result jumped to $26.0m from $19.5m. Pharmacy services — still 69.6% of revenue — grew revenue only 2.7% to $380.2m and its segment result moved modestly to $22.2m from $21.5m.

Green Cross Health Full Year Results to 31 March 2026 show operating cash flow rose 3.7% to $54.6m, well behind NPAT growth. Capex stepped up 65.5% to $9.6m, taking free cash flow before leases to $45.0m from $46.8m. The group moved to a net cash position of about $8.6m, and a 5.5 cent final dividend was declared.

That segment contributed roughly $6.5m of the $7.3m increase in combined segment results, so the 27.5% NPAT headline is essentially a Medical services story rather than a broad-based lift. Pharmacy services result growth of around 3.5% on a business that contributes the majority of revenue is the more relevant base-rate read. This matters because the release does not disclose what drove the Medical services step-up, and FY27 depends on whether it repeats.

Cash conversion deteriorated. Operating cash flow grew 3.7% against PBT growth of 24.3% and NPAT growth of 27.5%, and free cash flow before leases actually fell as capex rose 65.5% to 1.8% of revenue (1.1% prior). This matters because reported earnings outran cash generation, so the quality of the headline percentages is weaker than they appear on first read.

Leverage strengthened. Cash rose to $28.4m and gross borrowings fell to about $19.8m, taking the group to a net cash position. That creates capacity for further investment or distributions but does not, on its own, validate the underlying earnings shape.

Using HY26 as the shape anchor, the first half delivered 48.4% of full-year revenue but only 35.2% of full-year NPAT, so the second half carried a disproportionate share of profit. Implied second-half NPAT was about $13.2m on $281.5m of revenue — a meaningfully stronger margin shape than the first half.

That implied second-half profit run-rate is the central forward question. Either it reflects an exit margin that should sustain into FY27, or it reflects one-off second-half contributions that should not be annualised. The release does not disaggregate the drivers, so the next-year read depends on Medical services momentum continuing and Pharmacy services result growth not slipping further.

The harder quality question is cash. Operating cash flow conversion fell well behind earnings, and free cash flow before leases declined despite NPAT rising sharply, because the capex line stepped up materially. This means the reported earnings improvement is not yet visible in higher cash generation, and the durability of FY26 depends on whether the new capex base begins to drop through to revenue or margin.

The full-year dividend per share rose to 5.75 cents from 4.5 cents and is comfortably covered, with payout ratios of 40.5% of NPAT and 18.4% of free cash flow before leases. Combined with the segment concentration of growth, however, the durability test is clear: whether Medical services repeats, whether Pharmacy services result growth re-accelerates from low single digits, and whether the elevated capex begins to convert into cash.

This briefing cannot assess the underlying drivers of the Medical services segment uplift or the specific composition of the FY26 capex step-up.