Ryman Healthcare (RYM) H2 2025 earnings summary

Executive summary

• FY25 marked a significant operational and financial reset, with a focus on cost reduction, operational transformation, and capital structure optimization, supported by a $1.0 billion equity raise that reduced gearing to 28.1% and net interest-bearing debt by $840 million to $1,665 million.

• Achieved all FY25 targets set during the February equity raise, including outlook, cost savings, and capital management, with $23 million in annualized cost savings in 2H25 and a target to double this by end of FY26.

• Completed a comprehensive two-year financial reporting review, resulting in improved transparency, adoption of more conservative accounting policies, and an unqualified audit from PwC.

• The business is prioritizing value realization from existing assets, disciplined growth, and a portfolio positioned to deliver cash and returns as housing and economic cycles improve.

• Industry leadership maintained, with high occupancy and positive resident sentiment despite challenging market conditions.

Financial highlights

• Operating revenue rose 12.1% year-over-year to $771.1 million; operating EBITDAF increased 207% to $45.5 million, driven by DMF growth, pricing changes, and cost control.

• Achieved highest ever number of units and beds completed at 950, marking a record build year and expansion to 49 operational villages.

• Free cash flow improved by $92.7 million year-over-year to negative $94.2 million, reflecting a 50% reduction in cash outflow and movement towards break-even.

• Net profit after tax was a loss of $436.8 million, impacted by restatements, impairments, and one-off items.

• Net tangible assets per share declined to 418.2cps from 589.7cps, mainly due to valuation changes, restatements, and the equity raise.

Outlook and guidance

• FY26 guidance targets 1,100–1,300 ORA sales at higher DMF, annualized cost savings of $46 million, and a build rate of 266–330 units/beds.

• Capex for FY26 guided at $260–320 million, with $180–230 million for development and $80–90 million for existing operations, and further reductions expected in FY27.

• Cash performance in FY26 to benefit from lower cost structures, reduced capital spend, and lower interest costs.

• Stock levels to peak in FY26, then reduce as sales and resales improve.

• Continued focus on cost reduction, cash release from stock and land bank, and improved sales effectiveness.