Radius Residential Care (RAD) H1 2026 earnings summary

Executive summary

• Net profit after tax rose 221% year-over-year to NZD 6.3 million for the half-year, driven by strong operational performance and disciplined capital management.

• Underlying EBITDA grew 41% to NZD 14.9 million, in line with guidance, reflecting high occupancy and improved bed mix.

• Revenue increased 17% to NZD 100.2 million, driven by higher occupancy (95%), improved resident mix, and increased accommodation supplements.

• Acquisition and rapid integration of St Allisa care home contributed to growth and network expansion.

• Maintained a highly engaged workforce with staff turnover at a record low of 17%.

Financial highlights

• Earnings per share rose from NZD 0.007 to NZD 0.022 year-over-year, and a fully imputed dividend of NZD 0.01 per share will be paid, up 54% from the prior period.

• Available funds from operations nearly doubled to NZD 7.2 million, supporting higher dividends and debt reduction.

• Net debt reduced by 6% to NZD 63.7 million, with leverage ratio improved to 2.3x, below the medium-term target of 2.5x.

• Underlying EBITDA per care bed (annualized) increased to NZD 29,900 from NZD 27,900.

• Revenue from aged care segment reached NZD 93.7 million, with retirement village segment contributing NZD 1.9 million.

Outlook and guidance

• Occupancy remained above 95% into October and November, with trading in the second half expected to be consistent with the first half.

• Targeting occupancy rates of 98-99% in the next financial year.

• Brownfield and greenfield developments, including Belfast and Hokitika, are expected to commence construction in the next year.

• No late-stage due diligence on acquisitions currently, but growth pipeline remains robust with 15 new development opportunities being pursued.