Spire Healthcare grows annual profits, but NHS outlook uncertain in 2026

(Sharecast News) - Takeover target and Spire Healthcare reported a small rise in adjusted profits over 2025 which it hailed as a "resilient performance" against a backdrop of significant cost headwinds, though the outlook for 2026 was proving more uncertain due to a drop in NHS commissioning activity. Group revenues rose 4.5% to £1.58bn last year, with hospital revenues rising 4.3% to £1.45bn. Adjusted EBITDA was up 3.2% at £269m, helped by £30m of new cost savings from the company's transformation programme.

The firm had to contend a £15m in extra costs during the year from increases in National Insurance and the National Minimum Wage, alongside an energy hedge rolling off.

"Today's results demonstrate a resilient performance against a backdrop of increased costs and changes in the NHS commissioning environment towards the end of the year," said chief executive Justin Ash.

"We doubled down on our strategy which allowed us to respond effectively, delivering a planned £30m in savings and improved free cashflow generation while maintaining care quality, optimising pricing, and exercising discipline across activity mix and investment."

Spire confirmed in January that private equity firms Bridgepoint and Triton were among the parties it was in talks with about a potential takeover following the launch of a strategic review last September to maximum shareholder value. Under 'put up or shut up' takeover rules, Spire's potential acquirers have until 21 March to announce a firm offer for the company or walk away.

As for 2026's performance, Spire expects adjusted EBITDA to be in line with 2025.

Momentum in the private healthcare market - which accounts for 70% of hospital revenues - has continued to improve during the first few months. However, revenues from NHS commissioning (30% of hospital revenues) are set to fall 25% in the first quarter due to increased cessation of NHS activity at some sites.

Looking ahead, with NHS commissioning plans resetting in April with the start of the health service's new 2026/27 financial year, committed funded activity is yet to be discussed or agreed, resulting in "material uncertainty", Spire said. As a result, a return to NHS revenue growth is not expected.

Spire was down 1.9% at 191.2p by 1114 GMT.