Oceania Healthcare Posts Record FY26 EBITDA as Debt Falls $121M
Oceania Healthcare delivers record FY26 results as debt falls and sales momentum builds
Oceania Healthcare (NZX/ASX: OCA) has reported a record financial result for the year ended 31 March 2026, with Proforma Underlying EBITDA rising 20% to $97.7m and total sales volumes up 16% to 603 units. The gross value of settled sales increased 20% to $375m, while net debt fell by $121.4m, returning gearing to 30.1% at the lower end of the company’s 30–35% target range. The FY26 outcome represents a meaningful step-change in performance, with stronger earnings, an improving cash flow trajectory, and a leaner operating base heading into FY27.
CEO Suzanne Dvorak
“Executing the FY26 strategic initiatives has set Oceania up to operate with greater clarity, pace and discipline. Our strategic reset has already delivered tangible operational and financial benefits and will continue to improve cash performance.”
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Breaking down the FY26 numbers
Earnings and profitability
Proforma Underlying EBITDA of $97.7m, up 20% on FY25, anchors the record result. Care EBITDA per occupied bed rose 40% to $27k, while underlying care profitability, excluding development and resale gains, improved 43%, reflecting operational gains from the company’s premiumisation initiatives.
Statutory Net Profit after Tax (NPAT) came in at $0.1m, down from $30.4m in FY25. That decline is attributable to lower property revaluations compared with the prior year and the closure of the Wesley Institute of Nursing Education, not deterioration in operating performance. Total Comprehensive Income of $75.0m was broadly flat on FY25.
| Metric | FY26 Result | FY25 Comparison | Change |
|---|---|---|---|
| Proforma Underlying EBITDA | $97.7m | FY25 | +20% |
| Total Sales Volumes | 603 units | FY25 | +16% |
| Gross Value of Settled Sales | $375m | FY25 | +20% |
| Net Debt | $506.7m | Prior year | –$121.4m |
| Net Tangible Assets per Share | $1.62 | FY25 | +7.3% |
| Free Cash Flow from Operations | –$15.0m outflow | FY25 | +64% improvement |
| Total Assets | $3.1bn | FY25 | +4.6% |
| Gearing | 30.1% | Target range: 30–35% | Lower end of range |
Cost-out and operational efficiency
Operating efficiency initiatives delivered $13.2m in cost-out savings during FY26 and remain on track to reach $20.4m in annualised savings in FY27. Ongoing automation and simplification across the support office has already resulted in an approximate 20% reduction in annual staff costs.
Looking into FY27, the company is targeting approximately $30m in total cash and cost savings through three key levers:
- Working capital improvements
- Lower stock levels
- Capital expenditure initiatives
What is Proforma Underlying EBITDA and why does it matter for retirement village investors?
EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortisation. It is a measure of operating profitability that strips out financing costs, tax charges, and non-cash accounting items. The “Proforma Underlying” version goes further, removing non-recurring items such as the impact of the Wesley Institute of Nursing Education closure, to give a clearer view of the business’s ongoing earnings capacity. As disclosed in the announcement, this is a non-GAAP measure and methodology may differ between companies in the retirement village sector.
Investors in this sector typically focus on Proforma Underlying EBITDA rather than Statutory NPAT because property revaluations, which are required under accounting standards, can swing the reported profit figure materially from one year to the next without reflecting any change in how well the business is actually operating. Stripping those movements out allows for a more consistent year-on-year comparison of underlying performance.
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Sales pipeline, development activity, and the road to FY27
Portfolio sales and unsold stock reduction
Resale activity increased 20% in FY26, with 402 units settled during the year and gains of $37m delivered. A shift in mix towards independent units and firmer resale pricing contributed to a 4% increase in the average price across all settled units.
At The Helier, Oceania’s premium Auckland retirement village, 74% of apartments have been sold or are under application. Full development recovery, including interest, now sits at 97%, placing the company close to a significant capital recovery milestone. Adjoining land provides the option to add 16 large apartments in a future stage.
Unsold stock fell by $115m (a 34% net reduction) to $227m at year end. Notably, $79m of that remaining stock comprised newly developed units added during FY26, meaning the underlying absorption of existing inventory was stronger than the headline figure implies.
Development pipeline and FY27 targets
Oceania delivered 71 new units in FY26, comprising 31 villas and 40 care suites. The FY27 build rate targets 81 new units across three sites:
- 28 new villas at Franklin (Pukekohe) — Stage 2 enabling works have commenced following a highly successful launch; 80% of Stage 1 villas are sold or under application
- 23 new villas at Bream Bay
- 30 villa and apartment conversions at Elmwood
Free Cash Flow from Operations was an outflow of $15.0m in FY26, a 64% improvement on the prior year. The company has stated it is on track to achieve positive Free Cash Flow from Operations in FY27.
No dividend was declared for FY26. Oceania’s dividend policy targets a payout of between 40% and 60% of Free Cash Flow from Operations, excluding development cash flows. The Board has indicated it will reassess resuming dividend payments once Free Cash Flow from Operations turns positive.
Chair Liz Coutts
“The Board is delighted with the progress made this year. Oceania enters FY27 in a materially stronger position, with sustained demand for our care suite product and retirement living experience.”
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