Oceania Healthcare logs FY26 earnings amid strategic reset

Oceania Healthcare (ASX:OCA) delivered its financial performance for FY26, driven by strong sales momentum and aggressive capital management initiatives under its recent strategic reset.

The aged care and retirement village operator reported a 20% rise in proforma underlying EBITDA to NZ$97.7 million, alongside a 16% increase in total sales volumes, settling 603 units with a gross value of NZ$375 million.

CEO Suzanne Dvorak highlighted that right-sizing initiatives—including a 20% reduction in support office staff costs—delivered NZ$13.2 million in savings, with annualised cost-outs projected to reach NZ$20.4 million.

Care profitability thrived, with Care EBITDA per occupied bed climbing 40% to NZ$27,000.

The company also optimised its balance sheet, reducing net debt by NZ$121.4 million to NZ$506.7 million, aided by NZ$51.1 million in cash proceeds from the divestment of seven sites.

This brought gearing down to 30.1%, positioning it at the lower end of Oceania’s target range. Total assets subsequently grew by 4.6% to NZ$3.1 billion.

Statutory net profit after tax plummeted to NZ$0.1 million from NZ$30.4 million in FY25, heavily impacted by lower property revaluations and the closure of the Wesley Institute of Nursing Education.

Operating cash flow also remained constrained, posting a NZ$15 million outflow, though this represented a 64% improvement over the prior year.

Management expects to achieve positive operational cash flow in FY27.