emeis (EMEIS) H2 2025 earnings summary

Executive summary

• 2025 marked a turning point with operational targets exceeded, strong recovery in quality, satisfaction, and employee engagement, and significant strengthening of the financial structure.

• Revenue reached €5,895m, up 6.1% like-for-like, with 2/3 from nursing homes and strong momentum in international markets.

• EBITDAR grew 19.2% like-for-like to €872m, EBITDA (excl. IFRS 16) surged 58.3% to €380m, and EBIT rose to €173m from €2m in 2024.

• Net profit group share remained negative at -€298m, but improved by €114m year-over-year despite high non-recurring expenses.

• Real estate portfolio valued at €5.6bn, with 44% of beds owned and a 1.5% like-for-like valuation increase.

Financial highlights

• Revenue grew 6.1% like-for-like to €5,895m, with occupancy rates up to 87.6% and EBITDAR margin at 14.8%.

• Free cash flow reached €347m, supported by €2.35bn in asset disposals since mid-2022.

• Net operating cash flow improved from €15m in 2024 to €190m in 2025.

• Net debt reduced by €1bn to €3.8bn pro forma, leverage ratio improved to 9.9x from 19.5x.

• Average cost of debt post-refinancing is ~5.0%, with average maturity of 5.1 years.

Outlook and guidance

• 2025 guidance exceeded, with EBITDAR €10–30m above target.

• 2026 EBITDAR expected to grow over 10% like-for-like, with a CAGR of over 15% between 2024 and 2026.

• Medium-term (2024–2028) guidance: revenue CAGR of 4–5%, EBITDAR CAGR of 12–16%.

• Leverage ratio anticipated to fall below 6.5x before the end of 2029, well below debt covenants.

• 90% of 2026 energy costs hedged, reducing inflation risk.