News

Salient features

• 4.8% increase in Group revenue to R13 281 million
• 6.6% growth in normalised Group EBITDA to R2 501 million
• 21.9% increase in adjusted HEPS to 71.7 cents
• R948 million returned to shareholders in ordinary dividends and share buybacks in H1 2026
• 22.2% increase in interim dividend to 44.0 cents per share
• Wearable monitoring technology pilot underway and advancing as planned
• Wind power purchase agreement on track to deliver up to 100% renewable electricity at selected facilities
• CEO succession announced

The Netcare Group, which provides innovative, quality healthcare across South Africa, has delivered a strong set of results for the six months ended 31 March 2026 (H1 2026), notwithstanding a competitive operating environment and a fluid medical schemes landscape.

Total paid patient days (PPD) increased by 0.7% compared to the prior period, driven by a 0.4% increase in acute PPD and a 3.4% increase in mental health PPD.

Group revenue for H1 2026 increased by 4.8% to R13 281 million from R12 677 million in the six months ended 31 March 2025 (H1 2025 or the prior period). Normalised Group EBITDA for H1 2026 improved by 6.6% to R2 501 million (H1 2025: R2 347 million). Following a sustained focus on operational efficiencies, the Group EBITDA margin increased by 30 basis points to 18.8% in H1 2026 from 18.5% in H1 2025.

Profit for the period increased by 11.9% to R924 million (H1 2025: R826 million) and adjusted Headline Earnings per Share (HEPS) increased by 21.9% to 71.7 cents (H1 2025: 58.8 cents).

Netcare CEO, Dr Richard Friedland, commented, “Performance was underpinned by resilient demand for private healthcare services together with the ongoing benefits of our digitisation and AI strategy, which continues to deliver a meaningful digital dividend, and the continued execution of the Group’s share buyback programme. Our strategy remains a key point of differentiation and supports the Group’s growth trajectory”.

Share buyback programme continuing
In line with Netcare’s capital allocation strategy of returning excess cash to shareholders, the Group continued with its share buyback programme.  A total of 21.6 million ordinary shares were acquired in the market between 1 October 2025 and 31 March 2026 at an average price of 1 618 cents per share. A further 11.1 million ordinary shares have been purchased post 31 March 2026 at an average price of 1 723 cents per share. 

Since the commencement of the share buyback programme in September 2023, Netcare has bought back 181.7 million shares (12.6% of total ordinary shares in issue at 30 September 2023) at an average price of 1 338 cents per share.

The Board of Directors has declared an interim dividend of 44.0 cents per share, representing 61.4% of adjusted HEPS.

At 31 March 2026, the Group‘s cash resources and available undrawn committed facilities amounted to R3.0 billion. In H1 2026, the Group paid R626 million in ordinary and preference dividends (H1 2025: R543 million), alongside the utilisation of R351 million to buy back shares (H1 2025: R473 million).

Digital strategy moves into next phase of innovation
Dr Friedland added, “Our strategy of person-centred health and care that is digitally enabled, and data and AI-driven, continues to strengthen our competitive position, and we have established a strong digital foundation from which to scale the next phase of innovation. Our advanced analytics capabilities provide real-time, actionable insights that support improved consistency of care, better outcomes and greater cost efficiency, translating into measurable clinical and financial benefits”.

Netcare’s pilot of wearable monitoring technology in general wards at a flagship facility is advancing. These devices enable continuous, clinical-grade monitoring of vital signs, including continuous blood pressure monitoring, thereby extending predictive analytics and early-warning capabilities beyond the ICU. Subject to the success of the pilot, the intention is to scale this capability across the Group. The planned rollout, which would be the largest of its kind globally, has the potential to materially enhance patient safety and outcomes.

Full transition to renewable energy sources underway
The Group’s second phase of its environmental sustainability strategy, which commenced in 2022, is focused on achieving net zero Scope 2 emissions by 2030 through a full transition to renewable energy sources. In addition, the Group is targeting a combined 84% reduction in Scope 1 and Scope 2 emissions. This phase also places increased emphasis on waste, water and backup energy resilience. “Notably”, said Dr Friedland, “we are on track to achieve our objective of zero general waste to landfill in 2026, with Netcare Blaauwberg Hospital recently certified as the first Green Hospital in Africa. Similarly, our initial target of a 20% reduction in freshwater utilisation was exceeded in FY 2025, with a 28% reduction achieved”.

Netcare’s wind power purchase agreement, covering six Eskom supplied hospitals, remains on track to deliver up to 100% renewable electricity to these facilities from September 2026. Ongoing engagements position the Group well to extend wind power to a further 56 municipally supplied acute hospitals, Akeso and Medicross facilities, with up to 100% supply of wind power to these facilities from March 2027, lifting the Group’s renewal energy utilisation to approximately 60.0% and accelerating progress towards its 2030 targets.

Outlook and guidance
“We are encouraged by the gradual improvement in certain South African macroeconomic indicators, as well as the confirmation that medical tax credits will continue to increase broadly in line with inflation, which will provide ongoing relief to medical scheme members. However, certain medical schemes are proactively amending benefit structures and plan designs, which has introduced some in-year variability in volumes within the acute hospital segment,” Dr Friedland concluded.

The underlying demand for quality private healthcare remains resilient, supported by structural drivers such as an ageing insured population and the rising burden of disease. Netcare’s ecosystem and extensive national footprint, supported by its digital, data and AI strategy, ensures that the Group remains well positioned to deliver quality patient care and continued improvements in operational and financial performance in FY 2026 and beyond.

CEO succession
The Board has announced the appointment of Ms Melanie Da Costa as Netcare’s incoming CEO. To ensure a smooth, well-managed transition of executive authority, Ms Da Costa will assume the role of CEO Designate on 1 June 2026, working alongside Dr Friedland, who will now formally retire from the Board on 31 December 2026. Ms Da Costa will assume the role of CEO on 1 January 2027. At the Board’s request, Dr Friedland will remain a strategic advisor to the Board and CEO on a consultancy basis until 30 June 2027.

Ends.

Editor’s notes

About Netcare
The Netcare Group (JSE: NTC) offers a unique, comprehensive range of medical services across the healthcare spectrum, enabling us to serve the health and care needs of each individual who entrusts their care to us. Our focus on implementing sophisticated digital systems will enable us to provide care that is fully integrated and an enhanced experience across our Group's operations. At Netcare, we are striving to change healthcare for the better. In addition to its world-class acute private hospital services, Netcare provides:

• radiosurgery, radiotherapy, chemotherapy, bone marrow transplant and robotic-assisted surgery through Netcare Cancer Care;
• primary healthcare services through Netcare Medicross;
• emergency medical services through Netcare 911;
• occupational health and employee wellness services through Netcare Occupational Health;
• mental health and psychiatric services through Netcare Akeso;
• innovative solutions to increase access to quality and affordable private healthcare through NetcarePlus; and
• renal dialysis services through National Renal Care (NRC).

Netcare is also a leading private trainer of emergency medical and nursing personnel in the country.

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