Oceania Healthcare (OCA) H1 2026 earnings summary

Executive summary

• Achieved a significant turnaround with improved sales, cost efficiencies, and disciplined capital management, including a 5% increase in sales volumes and strong presales at key developments.

• Realized $4 million in cost savings in 1HY26, with $13.2 million on track for FY26 and annualized cost savings of $20.4 million identified.

• Gearing reduced to 34.8%, within the 30–35% target range, and divestments of four sites are progressing for completion in FY26.

• Operating cash flow strengthened, positioning the business for further improvement in the second half.

• Integrated care model and strategic focus on sales, business excellence, and capital management drive improved results.

Financial highlights

• Total comprehensive income rose to $40.4 million, up $28.6 million year-over-year, driven by property revaluations and improved operational performance.

• Proforma underlying EBITDA increased 23.2% to $41.9 million, and proforma underlying NPAT rose 18.9% to $24.1 million.

• Operating cash flow grew 12.2% to $79.0 million, and net tangible assets per share increased 3.8% to $1.57.

• Net debt decreased to $608.9 million, with $116 million headroom on facilities and total assets surpassing $3.0 billion.

• No interim dividend declared, with focus on free cash flow sustainability before resuming payments.

Outlook and guidance

• FY26 remains a stabilization year, with focus on lifting sales cadence, reducing unsold and aged stock, and delivering $13.2 million in targeted savings.

• Targeting full recovery of development costs at The Helier by March 2026 and completion of Stage One at Franklin, with four divestments targeting $40 million in capital release.

• Management expects at least similar or higher sales volumes in the second half, with strong application momentum supporting settlements.

• Plans to implement $20.4 million in annualized cost-out initiatives from FY27 and return to positive free cash flow before resuming dividends.

• Development activity will be paced to market conditions, targeting 100–150 units per year.