Eureka Group Holdings (EGH) H2 2025 earnings summary

Executive summary

• Revenue increased 11% year-over-year to $45.8m, driven by strong resident demand, rental growth, and property valuations.

• Underlying EBITDA rose 11% to $16.9m, with like-for-like village EBITDA up 8%.

• Net operating cash flow improved 33% to $10.8m, and net tangible assets per share grew 14% to 55.0 cents.

• Occupancy in the seniors' rental portfolio reached 98%, with several challenging villages turned around.

• Six acquisitions since November 2024 added 673 sites, expanding the portfolio and development pipeline.

Financial highlights

• Underlying profit before tax increased 31% year-over-year to $12.0m.

• Underlying EPS was 3.13 cps, surpassing guidance, and reported EPS was 5.24 cps, up 20%.

• Underlying EBITDA margin was 36.8%, slightly down from 36.9% due to delayed acquisitions and higher overheads.

• Profit after tax rose 52% to $20.1m.

• No cash tax payable due to carry-forward tax losses; effective tax rate was 31%.

Outlook and guidance

• Targeting FY26 underlying EPS growth of 7.5-10% (3.37-3.44 cps) and underlying EBITDA growth of 20-25% ($20.2m-$21.1m).

• Guidance influenced by timing of acquisitions, occupancy, rental growth, and interest expense.

• Significant acquisition pipeline and expectation that capital raised in November 2024 will be fully deployed in 2025.