Netcare lifts revenue as margins improve despite industry pressure

Netcare Limited has delivered a resilient operational performance for the five months ended 28 February 2026, reporting a 4.5% increase in group revenue.

Read: Netcare boosts earnings, hikes dividend

Despite navigating a landscape defined by “tighter managed healthcare interventions” and significant shifts in medical scheme benefit structures, the private healthcare provider successfully expanded its earnings before interest, tax, depreciation and amortisation (Ebitda) margins through disciplined cost containment.

Navigating industry shifts and seasonal dynamics

Activity levels within Netcare’s acute hospitals were affected by changes in scheme member utilisation patterns into the 2026 calendar year.

Total normalised paid patient days across the group grew by 0.8%, with the mental health division outperforming acute facilities with a 2.9% growth rate.

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To drive momentum into the second half of the year, Netcare is focusing on capacity optimisation, including the addition of 53 new beds at established acute sites and the conversion of 36 existing beds into higher-demand medical disciplines.

The mental health segment is expected to receive a further boost following the commissioning of the 87-bed Netcare Akeso Polokwane facility on 16 March 2026.

Management noted that while certain disciplines at Netcare Pretoria East Hospital were disrupted by a fire in late 2024, restoration efforts are ongoing to return the facility to full operational capacity.

Capital allocation and market confidence

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Underpinning its financial strategy, Netcare has continued its aggressive share buyback programme.

Since October 2025, the group has deployed R292 million to repurchase 18.1 million ordinary shares.

This brings the total shares repurchased since September 2023 to 167.1 million, representing 11.6% of the group’s total shares in issue at the start of the programme.

Management remains constructive on the long-term outlook for the South African healthcare sector, citing moderating inflation and improving consumer confidence as supportive factors for continued operational momentum.

Netcare is scheduled to release its formal interim results on 25 May 2026.

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