Radius Residential Care (RAD) H1 2026 earnings summary

Executive summary

• Net profit after tax rose 221% year-over-year to $6.3m for 1H26, driven by strong operational performance, disciplined capital management, and the acquisition of St Allisa Care Home.

• Revenue increased 17% to $100.2m, with underlying EBITDA up 41% to $14.9m, reflecting high occupancy (95%) and improved resident mix.

• Earnings per share rose to 2.2c, up from 0.7c year-over-year, and a fully imputed interim dividend of 1.0c per share was declared, up 54%.

• Occupancy averaged 95%, up from 92.3%, with five care homes at full capacity and aspirations to reach 98-99%.

• Maintained a highly engaged workforce with staff turnover at a record low of 17%.

Financial highlights

• Underlying EBITDA reached $14.9m, up 41% year-over-year and within guidance.

• EBITDAR per bed for the 12 months ended 30 September 2025 was $29.9k, up 7% from FY25.

• Available funds from operations nearly doubled to $7.2m, supporting higher dividends and debt reduction.

• Operating cashflow increased 102% to $13.3m.

• Net debt reduced by 6% to $63.7m; net bank debt leverage at 2.3x, below the 2.5x target.

Outlook and guidance

• Occupancy remained above 95% into October and November, with 2H26 trading expected to be consistent with 1H26.

• Targeting occupancy rates of 98-99% in the next financial year.

• Brownfield and greenfield developments, including Belfast and Hokitika, are expected to commence construction in the next year.

• Continued focus on capital-light growth, with 15 new development opportunities being pursued.

• No late-stage due diligence on acquisitions currently, but growth pipeline remains robust.