Austco Healthcare Projects Strong FY26 Growth Driven by US Rollout and New Contracts

Austco Healthcare (ASX: AHC) has provided an upbeat trading update for FY26, forecasting robust growth across its key financial metrics.

The company expects FY26 revenue to range between $90 million and $95 million, representing an increase of 11% to 17% over FY25 figures.

Net profit after tax (NPAT) is projected to see a significant jump, forecast between $9 million and $9.4 million, marking a 52% to 58% increase on FY25.

This uplift is supported by an expected improvement in gross margin, which is anticipated to reach around 52.8% from 52.0% in FY25.

US Pulse Mobile Rollout and Contract Wins

A major growth driver for FY26 is the planned US rollout of Austco's Pulse Mobile system.

The company has secured a contract with its largest US customer to deploy Pulse Mobile across approximately 180 hospitals during calendar 2026.

Further boosting its pipeline, Austco recently secured several new contracts including an NZ residential portfolio RFP valued at approximately NZ$1.1 million, the Warrnambool Hospital Expansion in Australia worth around A$1.1 million, and a North York General Hospital long-term care project in Canada for approximately A$0.9 million.

Notably, the NPBT/NPAT forecast for FY26 includes a one-off benefit of approximately A$1.0 million resulting from a reduction in G&S contingent consideration, which was recognised in prior periods.

FY26 EBITDA and Margin Outlook

For FY26, Austco anticipates EBITDA to be in the range of $14 million to $14.6 million.

The EBITDA margin is expected to be around 15.5%, a slight contraction from FY25's 16.0%.

This slight margin adjustment reflects continued investment in people, capability, and group-wide performance.

However, the overall margin uplift is primarily driven by improvements in gross margin and increased contributions from recurring software and maintenance revenues.

Strong 1H26 Performance

Austco Healthcare's FY26 outlook builds on a strong first half of FY26.

In 1H26, the company reported record revenue of $48.2 million, marking a 30.7% increase. EBITDA grew by an impressive 60.1% to $8.3 million.

During this period, the EBITDA margin improved significantly to 17.1% from 14.0% in 1H25, demonstrating operational leverage.

As of February 2026, Austco maintained a healthy $47.2 million in unfilled contracted revenue (UCR), providing solid earnings visibility.

Operational Challenges and Deferrals

Despite the positive outlook, Austco is navigating some operational challenges.

Management has noted higher logistics costs and longer freight transit times, partially due to geopolitical disruptions.

Additionally, extended component lead times are being experienced due to strong AI-driven demand for advanced semiconductors.

Some installations have been deferred due to slower construction programs in certain regions.

However, the company is confident that these instances represent a shift in revenue recognition and pipeline conversion to later periods, rather than lost opportunities.