Ryman Healthcare (RYM) H2 2026 earnings summary

Executive summary

• Achieved first positive free cash flow in over a decade at NZD 188 million, with operating EBITDAF up 94% to NZD 88 million year-over-year, marking an operational inflection point and improved balance sheet strength.

• Strategy refresh focused on care-centric living, recurring earnings growth, portfolio optimization, and disciplined growth, with clear differentiation in earnings streams.

• Significant cost reductions, including a 39-40% decrease in non-village headcount and NZD 57 million in annualized savings since FY 2024.

• Portfolio quality improved through closure of older villages and transfer of residents to newer facilities.

• Customer NPS scores improved year-on-year, with continued industry awards and stable team engagement.

Financial highlights

• Operating revenue increased 10% year-over-year to NZD 849 million, driven by fee growth, new aged care capacity, and premium growth.

• Operating EBITDAF doubled to NZD 88.3 million, with group operating margin expanding by 4 percentage points to 10%.

• Free cash flow improved by NZD 282.5 million to NZD 188.3 million; net debt reduced by NZD 94 million to NZD 1.57 billion, with gearing at 27.8%.

• Capex spend fell to NZD 221.8 million, below guidance, with development activity reduced to two active sites.

• Net tangible asset value per share at NZD 4.00 (400.5cps), down from 410.6cps.

Outlook and guidance

• FY 2027 priorities include growing aged care recurring earnings, reducing vacant stock, and releasing capital from land and development.

• Targeting operating EBITDAF per care bed of NZD 20,000–25,000 and a build rate of 157–168 units/beds.

• Capex guidance for FY27 set at NZD 150–180 million.

• Strategic focus on cash flow generation, capital management, and cost base reduction, with quarterly updates due to global uncertainty.

• Long-term fundamentals remain strong, with the 80+ population expected to double by 2050, supporting demand.