Eureka Group Holdings (EGH) H2 2025 earnings summary

Executive summary

• Revenue increased 11% year-over-year to $45.8m, driven by strong resident demand, rental growth, acquisitions, and property valuations.

• Underlying EBITDA rose 11% to $16.9m, with like-for-like village EBITDA up 8%.

• Net operating cash flow improved 33% to $10.8m, and net tangible assets per share grew 14% to 55.0 cents.

• Occupancy in the seniors' rental portfolio reached 98%, with several challenging villages turned around and improvement from 97% at December 2024.

• Portfolio value increased by $18.4m, reflecting maintainable earnings and stable capitalisation rates.

Financial highlights

• Underlying profit before tax increased 31% year-over-year to $12.0m.

• Underlying EPS was 3.13 cps, surpassing guidance, and reported EPS was 5.24 cps, up 20%.

• Net tangible assets per share increased 14% to 55.0 cents.

• Final dividend of 0.73 cps, a 4% increase from the prior year.

• Assets under management grew by $60m (18%) due to acquisitions, developments, and revaluations.

Outlook and guidance

• Targeting FY26 underlying EPS growth of 7.5-10% (3.37-3.44 cps) and underlying EBITDA growth of 20-25% ($20.2m-$21.1m).

• Proforma underlying EPS growth expected to exceed FY24 by over 19% once capital raise proceeds are fully deployed, anticipated in FY26.

• Guidance influenced by timing of acquisitions, occupancy, rental growth, and interest expense.