Ryman Healthcare (RH7) Q4 2026 Earnings Report

The call reported clear operational progress: doubled operating EBITDAF, strong aged-care performance (EBITDAF per bed +31%), significant cost savings ($57m), positive free cash flow of $188m, reduced development exposure and a strengthened balance sheet (refinancing, lower interest costs). Management acknowledges remaining challenges — resale stock and margins, timing of DMF cash benefits, one-off transformation costs, FX effects and regional market competitiveness — and provided targets and actions (sales/marketing investment, land divestments, product changes, and a $150m CFEO improvement target to FY'29). Overall the positives — particularly cash generation, cost-out, and aged care momentum — materially outweigh the current lowlights, supporting a constructive outlook while risks from market conditions and timing remain.

Ryman’s guidance emphasizes cash generation, disciplined development and growing care earnings: management is targeting to lift retirement‑living resales to match turnover by end FY'27, expects lower FY'27 build and CapEx with only 2 active construction sites and ~50% of FY'27 development CapEx already locked (committed cost‑to‑go on main buildings ~$190m), and is prioritising care where EBITDAF per bed is targeted at $25,000–$30,000 by FY'29 (H2 FY'26 was $20,200/bed; FY'26 country run‑rates were NZD15,000 in NZ and ~NZD32,000 in AU). Medium‑term financial targets remain a $150m improvement in sustainable CFEO by FY'29 (already $47m achieved in year one) and a $500m cash‑release program (FY'26 delivered $169m, with a further $75m locked in and $147m of land sales contracted — $72m cash received to date; management has raised the land‑divestment ambition to ~ $250m), plus targets to reduce normalized non‑village costs to < $100m by FY'29. Balance‑sheet guidance: FY'26 free cash flow was $188m, net debt $1.57bn with $675m facility headroom, gearing <28%, and average cost of debt ~5.9% (annualized gross interest down $68m since Feb‑2025).