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 $23 million in annualised cost savings in 2H25, with a target to double this by end of FY26, and completed a comprehensive two-year financial reporting review resulting in improved transparency and an unqualified audit from PwC.

• All FY25 targets set during the February equity raise were met, including cost savings and capital management, with a disciplined approach to future growth and value realization from existing investments.

• Achieved record build rate and completed four main buildings, expanding to 49 operational villages.

• 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, reflecting improved operational performance.

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

• Free cash flow improved to -$94.2 million from -$186.9 million year-over-year, reflecting a 50% reduction in cash outflow and moving towards break-even.

• Net interest-bearing debt reduced by $840 million to $1,665 million, following the equity raise.

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

Outlook and guidance

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

• Capex expected at $260–320 million, with $180–230 million for development and $80–90 million for existing operations.

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

• Sales expected to be weighted to the second half of FY26, with stock levels peaking before reducing as sales improve.

• Continued focus on cost reduction, cash release from unsold stock, and disciplined capital management.