Ryman Healthcare turnaround driven by record cash flow

Ryman Healthcare (ASX:RYM) announced its financial results for the year ended March 31, showcasing a year of progress driven by a comprehensive two-year business reset.

The company achieved its first positive free cash flow in over a decade, reaching NZ$188 million, which was heavily underpinned by strong cash releases from developments.

The milestone marks a dramatic turnaround, reflecting an almost doubling of operating profitability and the implementation of a refreshed strategy and capital management framework.

Operating revenue climbed 10% to NZ$849 million, propelled by growing numbers of retirement living residents on new pricing terms, increases in aged care premiums, and filling new aged care capacity.

Operating earnings before interest, tax, depreciation, amortisation, and fair value movements (EBITDAF) surged by 94% to NZ$88 million.

Loss before tax and fair value movements per share narrowed substantially to -NZ$73 million (-7.2cps), down from -NZ$385 million (-54.1cps) in FY25.

CEO Naomi James stated that the reset of the operating model is delivering materially improved financial performance despite mixed market conditions.

Ryman remains on track to deliver an NZ$150 million sustainable cash flow improvement from existing operations by FY29.

The company completed a balance sheet reset, achieving the lowest-in-sector gearing at 27.8%, with no bank maturities until FY31 and a high proportion of drawn debt secured on fixed rates.