Eureka Group Holdings (EGH) H1 2025 earnings summary

Executive summary

• Achieved 11% revenue growth and 16% underlying EBITDA growth year-over-year, driven by strong resident demand, rental growth, and asset acquisitions.

• Reported half-year profit before tax of $9.21m (up from $9.09m) and profit after tax of $6.36m (up from $6.30m) compared to the same period last year.

• Maintained high portfolio occupancy at 97–97.3% as of half-year end, with 31 communities at full occupancy and waitlists.

• Completed transformative $70.4m capital raise to fund acquisitions, developments, and debt reduction.

• Board and management refreshed, with new CEO and Chair appointments.

Financial highlights

• 1H25 revenue of $22.6m, up 11% on 1H24; underlying EBITDA of $8.2m, up 16%; underlying profit before tax of $5.4m, up 24%.

• Underlying EPS of 1.57 cps (from 1.44 cps 1H24); reported EPS of 1.86 cps (from 2.09 cps 1H24).

• Dividend of 0.73 cps, up 4% on 1H24; NTA per share increased 8% to 52.3 cents.

• Net cash from operating activities was $1.2m, down 67% year-over-year due to one-off costs and timing of payments.

• Net assets increased to $229.3m (from $154.2m at June 2024); cash and cash equivalents rose to $3.25m.

Outlook and guidance

• FY25 underlying EBITDA growth revised to 11% on FY24; underlying EPS growth revised to 2.6% on FY24 due to minor transactional delays and occupancy softness.

• Fully deployed pro forma underlying EPS growth of at least 19% on FY24 remains unchanged.

• Pipeline of over $100m in accretive acquisitions under assessment; funds from capital raise expected to be fully deployed in CY2025.

• Focus on operational efficiencies, cost reduction, and capital recycling through divestment of non-core assets.

• Pipeline includes greenfield developments in Kingaroy and Gladstone, Qld.