Diagnostyka reported fiscal year 2025 revenue of PLN 2,410 million on Tuesday, posting a 23.6% year-on-year increase that slightly exceeded analyst expectations of PLN 2,404 million and the company’s stated guidance of low-to-mid 20% growth.
The company said organic revenue rose 17.9%, supported by a 15% rise in the average price per test and an 8.1% increase in test volumes. These drivers underpinned the top-line beat even as profitability metrics lagged.
Adjusted EBITDA grew 15.3% to PLN 586.4 million, but this result came in below the consensus forecast of PLN 616 million. As a consequence, the adjusted EBITDA margin narrowed to 24.3% from 26.1% in fiscal 2024, missing analyst projections of 25.7% and falling short of management’s aim to keep margins close to the prior year.
Management identified several factors contributing to the margin contraction. Changes in business mix and the consolidation of diagnostic imaging operations weighed on profitability. Personnel expenses rose materially following implementation of the Healthcare Sector Minimum Wages Act in July 2025. Service costs also increased sharply, climbing 41.5% year-on-year.
Net profit for the year was PLN 251.6 million, which was 8.2% below the consensus estimate of PLN 274 million. Capital expenditure for the period totalled roughly PLN 205 million, above the guidance range of PLN 130 million to PLN 170 million.
Despite the EBITDA and net profit misses, free cash flow remained robust at PLN 541.2 million, with a conversion rate of 92.6% compared with 85.3% in the prior year. The company proposed a dividend of PLN 4.4 per share.
Looking ahead, Diagnostyka provided guidance for fiscal 2026 that anticipates revenue growth in the low-to-mid teens percentage range. Within that top-line outlook, the company expects test volumes to increase in the low-to-mid single digits and average price per test to rise in the high single digits. Management also signalled that adjusted EBITDA margin is expected to remain close to the 24.3% level recorded in fiscal 2025.
Executives scheduled a conference call to elaborate on the results and the outlook at 9 AM UK time on Monday.
Operational context and implications
The report shows a clear revenue-leveraged growth pattern driven primarily by pricing and volume mix. However, conversion of revenue into operating profit was dampened by mix shifts, consolidation costs in imaging, regulatory-driven wage inflation, and a substantial rise in service costs. Capital spending outpaced guidance, and while that weighed on near-term cash deployment it did not prevent strong free cash flow generation for the year.
What the results mean for markets and sectors
- Healthcare services and diagnostics - the company’s topline strength highlights sustained demand, but margin pressure underscores rising cost inputs and integration effects.
- Labor cost-sensitive operations - the impact of the Healthcare Sector Minimum Wages Act is evident in elevated personnel expense.
- Capital-intensive activities - higher-than-guided capex will affect near-term investment and cash allocation decisions.