Australian Clinical Labs Ltd. (ACL.AX) ACL FY26 Result: Cost control delivers earnings upgrade ACL.AX 12m Price Target: A$2.26 Price: A$2.70 Downside: 16.3% The key driver for ACL's FY26 earnings outperformance was largely driven by stronger cost control. The reduction in consumables cost (~80bps reduction as % of revenue 2H vs pcp) was a function of better pricing outcomes, with key suppliers noting the partial assistance by a change in test mix. This cost discipline appears set to continue in FY27 with AC ...

ACL delivered a solid FY26 result with Underlying EBIT ahead of GSe and VA cons by ~8%/7% respectively. Revenue was softer (-1% vs. Gse/-0.4% vs. VA cons) but this appears largely driven by mix given the EBIT performance. Reported NPAT was a miss (-9% vs. GSe/-12% vs. VA cons) largely driven by a non cash write off of a prepayment to a supplier as part of the Medlab acquisition in 2022. The FY27 guide is also weaker on a revenue basis (~1% at the mid-point vs. VA cons) with EBIT at the mid-point, ~3% ahead ...