Austco Healthcare Posts Record FY26 Revenue as Recurring Income Builds

Austco Healthcare (ASX: AHC) delivered a 15.8% revenue increase in FY26 to a record $94.2 million, as organic growth and a full-year contribution from G&S Technologies supported expansion in Australia, New Zealand, and North America.

EBITDA increased 14.0% to $14.9m, while gross margin improved by 140 basis points to 53.4% as lower input costs and integration efficiencies supported profitability.

Net profit after tax rose 51.8% to $9.0m and Austco finished June with $16.3m in cash and no material borrowings after generating $12.5m from operating activities during the year.

Equipment revenue increased 12.1% to $51.9m and installation revenue rose 21.4% to $31.0m, leaving project-related activity as the majority of Austco’s business while the recurring revenue layer continued to expand.

Stronger Order Book

Austco also lifted software and Software Maintenance Agreement (SMA) revenue by 19% to $11.4m, while its contracted order book strengthened after year-end as new awards outpaced project deliveries.

Software is generally recognised when perpetual licences are sold, while SMA revenue is recognised over agreements running from one to five years, giving Austco a growing income stream from healthcare facilities where its systems are already installed.

That model was reinforced in July when the company secured a 10-year, $4.2m SMA covering Ng Teng Fong General Hospital and Jurong Community Hospital in Singapore, following the original Tacera installation and subsequent extension of the relationship.

Austco now supports more than 5,000 healthcare facilities across over 60 countries, providing a substantial installed base for additional software, maintenance and clinical workflow products over the life of each system.

The company invested $4.8m in Tacera development during FY26 as it continued work across nurse call, enterprise reporting, mobile workflow, and real-time location services, with $2.0m of that expenditure capitalised.

Recent Contract Wins

Unfilled contracted revenue stood at $51.2m on 17 August, up 13% from the end of June, with the contracted work converting to revenue as equipment is delivered and installations are completed.

Recent project wins include $1.85m of phase-one purchase orders for a Tacera retrofit at Hospital Israelita Albert Einstein in Brazil and a $1.1m nurse call contract for the Warrnambool Base Hospital redevelopment in Victoria.

The group experienced a softer second half as the timing of larger hospital projects shifted and US tariff-related supply-chain uncertainty influenced customer decisions, although management characterised the delays as timing effects rather than lost work.

Austco enters FY27 with four reseller acquisitions integrated, the benefits of lower input costs still flowing through, and a healthy sales pipeline, while the board has retained cash for organic and acquisition-led growth rather than declaring a dividend.