Oceania Healthcare (OCA) H2 2025 earnings summary

Executive summary

• Underlying EBITDA rose 4.1% to $86.0m for FY25, with total comprehensive income up 5.8% to $74.6m, reflecting steady sales momentum and stock sell down at key sites like Helia and Redwood.

• Total sales volume increased 9.2% to 520 units, driven by strong execution, incentives, and a sharpened strategy focused on operational optimisation and debt reduction.

• Enhancement and business optimisation programmes are underway, targeting $15–$20m in cost savings by FY27.

• No final dividend declared for FY25; dividend policy under review with a revised policy to be announced at the annual meeting in June.

• Successful $500m bank refinance expanded the lender syndicate, improved debt tenor, and secured competitive terms.

Financial highlights

• Underlying EBITDA reached $86.0m, up 4.1% year-over-year; total comprehensive income rose 5.8% to $74.6m.

• Operating cashflow increased 6.7% to $110.3m; ORA receipts up 30.1% to $294.5m.

• Net profit after tax was $30.4m, slightly down 3.5% year-over-year; underlying NPAT fell 15.5% to $52.5m due to interest charges.

• Total assets grew to $2.9b, up $158m from FY24; NTA per share increased 5.9% to $1.51.

• Realised capital gains increased 22.6% to $83.2m.

Outlook and guidance

• Business optimisation and transformation programmes target $15–$20m in cost savings by FY27, with $5m to be realised in FY26.

• Focus on reducing unsold stock, improving sales cadence, and maintaining a modern, high-demand portfolio.

• CapEx for FY26 expected to be around $70m, mainly for key developments and demolitions.

• Receivables balance expected to normalize to $60–$70m as new product introductions slow.

• Dividend policy under review, with a revised policy to be announced at the ASM in June.