Ryman Healthcare’s FY26 recovery gains momentum with 10% revenue rise
Ryman posts first positive free cash flow in a decade
- Major turnaround: NZ$188m free cash flow result ends years of cash burn
- Earnings jump: Operating EBITDAF up 94% in FY26
- Australia leads: Care bed earnings more than double New Zealand
- New strategy: Ryman cuts development exposure to rebuild shareholder value
The owner and operator of 47 integrated retirement villages across New Zealand and Australia has released its FY26 results.
A two-year business restructure is beginning to deliver stronger financial results, with operating profitability nearly doubling and Ryman recording its first positive free cash flow result in more than a decade.
The NZ$188 million (A$154 million) free cash flow outcome reflects a shift in strategy, with Ryman reducing development activity, divesting non-core sites and generating stronger returns from existing villages and care operations.
The operator said stronger earnings were largely driven by growth in its Australian aged care operations, which generated AUD$26,721 per bed compared to AUD$12,339.37 per bed in New Zealand.
CEO Naomi James said: “The reset of our operating model is delivering materially improved financial performance despite mixed market conditions and creating a more sustainable business. With our refreshed strategy and new capital management framework, Ryman is firmly focused on unlocking value for shareholders, while delivering a high-quality experience for residents.”
The FY26 financial highlights include:
- Positive free cash flow of NZ$188 million – the first such result in more than a decade – supported by cash generated from development activity;
- FY26 results in-line with market guidance across retirement living sales, cost out initiatives and build targets, with capex under guidance;
- Operating revenue up 10% to NZ$849 million driven by new aged care capacity filling, growth in aged care premiums, and growing numbers of retirement living residents on new pricing terms;
- Operating earnings before interest, tax, depreciation, amortisation and fair value movements (EBITDAF) up 94% to NZ$88 million and loss before tax and fair value movements (PBTF) per share reduced to NZ$73 million (-7.2cps) from -$385 million in FY25 (-54.1cps);
- On track to deliver NZ$150 million sustainable improvement in cash flow from existing operations by FY29, with $47 million delivered in FY26;
- Significant progress towards NZ$500m cash release target by FY29, with NZ$169m delivered in FY26 and land divestment target lifted from NZ$200 million to NZ$250 million;
- The company also refreshed its strategy, focusing on care-led living, recurring earnings growth, portfolio optimisation and more disciplined expansion; and
- Balance sheet reset complete with lowest-in-sector gearing of 27.8%, no bank maturities until FY31 and a high proportion of drawn debt on fixed rates.
“Ryman’s model is centred on meeting customer needs as they change, with choice, control, community, and a home for life,” said Naomi.
