emeis (EMEIS) H1 2025 earnings summary

Executive summary

• H1 2025 marked a significant operational turnaround, with revenue reaching €2.91bn, up 6.2% organically and 4.9% year-over-year, driven by strong performance in nursing homes and improved occupancy rates.

• EBITDAR rose 18.5% to €401m, with EBITDA (excl. IFRS 16) up 79% to €158m, reflecting robust operational recovery and margin expansion.

• Net income remains negative at -€137m, but improved by €120m year-over-year, with positive free cash flow for the first time in a decade.

• Over €2.1bn in real estate disposals and partnerships achieved or secured since mid-2022, exceeding targets and materially reducing net debt.

• Transformation under a five-year strategic plan includes new mission-driven status, improved employee engagement, and enhanced ESG commitments.

Financial highlights

• Revenue: €2,908m (+6.2% organic, +4.9% yoy); EBITDAR: €401m (+18.5% yoy); EBITDA (excl. IFRS 16): €158m (+79% yoy).

• Operating margins improved: EBITDAR margin at 13.8% (+1.6pts), EBITDA margin (excl. IFRS 16) at 5.4% (+2.1pts).

• Net operating cash flow and free cash flow turned positive at €62m and €26m, respectively.

• Net debt (excl. IFRS 16 & IFRS 5) at €4.8bn, down €233m post-IFRS 5; pro forma net debt expected below €3.8bn after real estate deal.

• Net debt/EBITDA ratio improved to 15.4x (from 19.5x at Dec 2024), with further reduction to ~13x expected post-transaction.

Outlook and guidance

• 2025 EBITDAR expected to grow 15–18% like-for-like; revenue CAGR of 4–5% and EBITDAR CAGR of 12–16% projected through 2028.

• Operational recovery trajectory confirmed, with further margin improvement anticipated as occupancy normalizes and cost control continues.

• Medium-term momentum supported by demographic trends and structural supply shortages in core markets.