Fisher & Paykel Healthcare Corporation Limited (FPLB) Q4 2026 Earnings Report

The earnings call conveyed a predominantly positive operational and financial performance: strong top-line growth, substantial NPAT expansion, margin improvement, robust cash flow, higher dividends and continued investment in capacity and R&D. The company provided constructive FY'27 guidance but also clearly articulated material near-term headwinds — notably U.S. tariffs, surcharges from the Middle East conflict, FX/hedging losses, and the risk of hardware growth normalizing after an exceptional year. Management stressed that continuous improvement and manufacturing/network flexibility should offset many of these pressures, but several macro and policy risks remain.

Management guided FY27 operating revenue of NZ$2.45–2.57 billion (implying ~6–11% growth, midpoint ≈9%) and net profit after tax of about NZ$500–550 million, built on assumptions including a 10% U.S. tariff on certain New‑Zealand‑made respiratory products for the full year (estimated ~70 basis‑point adverse gross‑margin impact, ~20 bps improvement versus FY26), continued Middle East‑related surcharges of ~45 bps (raw materials) and ~25 bps (freight) (netting to ~50 bps negative to gross margin year‑on‑year after tariff movement) that management expects to more than be offset by continuous‑improvement savings; FY27 capital expenditure is expected at ~NZ$230 million (including ~NZ$125m on land and buildings), operating expenses (R&D and SG&A) are guided to mid‑ to high‑single‑digit growth (R&D was NZ$235.5m, 10% of revenue in FY26), and management highlighted FX and air‑freight as risks (FY26 hedging losses ~$21m pretax; end‑April FY27 hedging loss estimate ~$17m and ~$1m translation loss; ~NZ$2–3m NPAT sensitivity per 1% currency move).