Radius Residential Care (RAD) H2 2025 earnings summary

Executive summary

• Achieved record EBITDA per bed of $28,000, leading the industry in New Zealand, and record operating and financial performance for FY25.

• Underlying EBITDA grew 20% year-over-year, with net profit before and after tax both increasing significantly.

• Occupancy averaged 92.8% for the year, peaking at 95% recently, with year-end occupancy at 93.9% and record-low staff turnover of 17%.

• Expanded portfolio with the acquisition of St Allisa care home and a 51% stake in Cibus Catering, enhancing service offerings.

• Benefited from favorable industry dynamics, including rising demand for high-acuity aged care services.

Financial highlights

• Underlying EBITDA rose 20% year-over-year to $23.5m, adjusted for the sale of one care home.

• Operating cash flow increased 42% year-over-year to $20.1m, supporting higher dividends and debt reduction.

• Net profit after tax surged 187% to $7.4m; total revenue grew 4% to $177.4m.

• Both drawn and net debt reduced by approximately $6 million, with net debt at $67.7m and lower aggregate interest costs.

• Final dividend of $0.008 per share (fully imputed), total cash dividend of $0.0145 per share for the year, up 14% from prior year, with a payout ratio of 47% of FO/AFFO.

Outlook and guidance

• FY26 expected to exceed FY25 in key metrics, with strong trading start, April occupancy at 94.5%, and all key metrics forecast to improve.

• Full-year contribution from Cibus Catering and addition of St Allisa's 109 beds to further boost FY26 results.

• Earnings-accretive acquisitions and further M&A expected to drive growth.