Telix (ASX:TLX) Could Be A Turnaround Story (Investing for FY26)

Illuccix Still Prints, Gozellix Adds a New Growth Leg

Telix saw a small rerate this morning after releasing its full year results, and for us it comes back to two core priorities the company is executing on.

First, the imaging business is performing well. Illuccix, its main prostate imaging product, is continuing to show strong growth. On top of that, the launch of Gozellix looks to be off to a solid start and is already generating strong gross profit, which matters because it supports the quality of earnings, not just the revenue headline.

Second, Telix is intentionally reinvesting substantial capital to extend the growth runway. That includes continued investment behind Gozellix, alongside the launch of new products such as Pixclara and Zircaix. Management is targeting full year FY26 revenue of $950m to $970m, which signals confidence in the next phase of the rollout.

The market has been tough on Telix for a while, but there are signs to a genuine turnaround setup. If the commercial rollout of new products keeps landing and global expansion continues to track, it is clear why many analysts have price targets in the $20s.

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Gozellix Gains Traction as the Pipeline Spend Accelerates

Top line was a strong result. Revenue came in at US$803m, up 56%. Precision Medicine delivered US$621.9m, up 22%, driven by higher Illuccix volumes and the successful US launch of Gozellix. The RLS acquisition, including around 30 radiopharmacies, also contributed to the revenue uplift.

Gross profit increased to US$426m, up 27%, but group gross margin fell. The main reason is mix and cost. RLS brings manufacturing and distribution into the group, and those activities are structurally lower margin than the core imaging economics. With RLS now a larger part of the group, the blended margin compresses, and higher manufacturing and supply chain costs inside RLS amplified that effect.

Operating profit was US$29m, down 46%, and this is where the market will focus. Expenses grew faster than revenue, largely because management is deliberately investing behind the next wave of growth and upcoming launches, rather than trying to defend the current base.

You can see it in the cost lines:

R&D up 34% to US$171.2m

Selling and marketing up 73% to US$96.8m

Manufacturing and distribution up 168% to US$44.6m

When you strip it back to the core value driver, the Precision Medicine segment, the underlying picture is much cleaner. Segment margins were stable at 64%, and operating profit rose to US$209m, up 28%. That is roughly a 33% EBIT margin for Precision Medicine, which tells you the core commercial franchise is scaling while staying disciplined on pricing and operations.

Turnaround Potential, If Margins Stabilise and Launches Land

The investor takeaway here is that Telix has had a bumpy ride. FDA setbacks, acquisition costs, and the reality that synergies take time to show up have all created noise in the numbers, especially as the company integrates networks and works through margin mix impacts.

But we still think Telix can be a genuine turnaround story over the next few years. The key point is that the current capital investment cycle looks deliberate and healthy. Management is spending to scale a growing commercial base, integrate acquired capability, and build launch readiness for the next products, rather than spending defensively to fix core economics.

Near term, the market will keep watching integration execution and whether profit margins stabilise as the revenue mix normalises. If that tracks on, Telix’s earnings quality and growth profile should start to look a lot cleaner.