Oceania Healthcare (OCA) H1 2026 earnings summary

Executive summary

• Achieved a significant turnaround with improved sales, cost efficiencies, and disciplined capital management, supported by a strategic focus on sales performance, business excellence, and capital management.

• Sales initiatives, cost reduction, and divestments have led to growing sales momentum and improved operating cash flow.

• Integrated care model supports seamless resident transitions and reinforces reputation for quality care.

• Promising momentum in applications and occupancy, especially at key developments like Helia and Franklin.

• Realized $4.0m in cost savings during 1HY26, with $13.2m on track for FY26, and annualized cost savings of $20.4m identified for FY27.

Financial highlights

• Total comprehensive income rose to $40.4 million, up $28.6 million year-over-year, mainly due to positive property revaluations.

• Proforma underlying EBITDA increased 23.2% to $41.9 million; proforma underlying NPAT up 18.9% to $24.1 million.

• Operating cash flow grew 12.2% to $79.0 million; free cash flow from operations improved 30% to $(8.4) million.

• Net tangible assets per share increased 3.8% to $1.57.

• Net debt decreased to $608.9 million, with $116 million of headroom on current facilities.

Outlook and guidance

• FY 2026 is a stabilization year, with focus on lifting sales cadence, reducing unsold and aged stock, and delivering $13.2 million in targeted cost savings.

• Targeting full recovery of development costs at The Helier by March 2026 and completion of Stage One at Franklin with presales above 35%.

• Four divestments targeting ~$40 million in capital release in FY26.

• Dividend payments may resume when free cash flow and market conditions allow; new policy aligns payouts with operating cash flows.

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