Austco Healthcare Posts 62% EBITDA Growth on $81.4M Revenue in FY25
Austco Healthcare Limited reported a record $81.4 million in revenue for FY25, driven by organic growth and acquisitions including G&S Technologies. EBITDA jumped 62% to $13 million, reflecting strong operational leverage.
- Record FY25 revenue of $81.4 million, up 40%
- EBITDA increased 62% to $13 million with improved margins
- Net profit after tax of $5.9 million, impacted by prior year tax credits and one-off expenses
- Acquisition of G&S Technologies expands New Zealand market presence
- R&D investment of $4.8 million focused on Tacera clinical communications platform
Robust Revenue Growth and Profitability
Austco Healthcare Limited has delivered a standout financial performance for the year ended 30 June 2025, posting record revenues of $81.4 million, a 40% increase over the prior year. This growth was fueled by a combination of strong organic expansion and strategic acquisitions, notably the May 2025 purchase of Guild & Spence Technologies (G&S), a key reseller in New Zealand.
The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) surged 62% to $13 million, underscoring improved operational efficiency and leverage. EBITDA margins expanded to 16%, up from 13.8% in FY24, reflecting Austco’s ability to scale its business profitably amid integration of acquired entities.
Net Profit and Tax Considerations
Net profit after tax (NPAT) was $5.9 million, down from a record $7.1 million in FY24. This decline primarily stems from a $1.4 million tax credit recognised in the prior year and a one-off $2.2 million contingent consideration expense related to acquisition earn-outs, which was not tax deductible. Adjusted for these factors, underlying profitability remained consistent with the previous year’s results.
Strategic Acquisition of G&S Technologies
The acquisition of G&S Technologies has bolstered Austco’s footprint in the New Zealand healthcare communications market, enhancing direct sales capabilities and expanding its integrated nurse call, security, and access control offerings. G&S contributed approximately $2 million in revenue and $183,000 in net profit in the short period post-acquisition, with goodwill recognised reflecting workforce and profitability synergies.
This move aligns with Austco’s strategy to deepen market penetration and broaden its product suite, positioning the company for sustained growth in the region.
Investment in Innovation and Product Development
Research and development expenditure rose slightly to $4.8 million, with $2 million capitalised towards the development of Austco’s Tacera clinical communications platform. Tacera continues to be a core driver of product innovation, integrating nurse call and clinical workflow solutions designed with direct input from healthcare professionals.
The company’s focus on embedding software directly into hardware products is contributing to higher gross margins and competitive differentiation.
Financial Position and Outlook
Cash on hand increased to $14.5 million, supporting acquisitions without incurring new debt or equity raises. Austco’s unfilled contracted revenue reached $53.8 million as of August 2025, indicating a strong pipeline of future sales. The company’s balance sheet remains solid, with net cash position and manageable lease liabilities.
Directors and management remain confident in sustaining earnings growth into FY26, leveraging operational efficiencies, market demand, and the expanded product portfolio.
Bottom Line?
Austco’s FY25 results and strategic acquisitions set the stage for continued growth, but investors will watch closely for organic momentum and margin expansion in FY26.
Questions in the middle?
- How will Austco integrate G&S Technologies to maximise synergies and margin improvement?
- What is the outlook for organic revenue growth excluding acquisition impacts?
- How might foreign exchange volatility and US tariffs affect future supply chain costs and profitability?
