Oceania Healthcare Limited Analysis

Overview

Oceania operates in the New Zealand residential aged care and retirement village sectors, offering residents villas and apartments within its retirement villages, and also providing a full range of residential aged care services (including rest home, hospital and dementia level care) at its aged care facilities. Oceania is currently New Zealand's third largest provider of residential aged care, and New Zealand's sixth largest retirement village business. Oceania is the freehold owner of 47 of its 50 nationwide sites, comprising 48 aged care and retirement village facilities and two sites held for redevelopment purposes.

Oceania is also an experienced brownfields developer of aged care and retirement village facilities throughout New Zealand.

Oceania Healthcare Limited first listed on the New Zealand and Australian Stock Exchanges on 5 May 2017 under the code "OCA".

Performance

The following information was extracted from Oceania Healthcare's Full year results, released 22 May 2026

Delivered Record Results

Oceania Healthcare (NZX/ASX: OCA) delivered a record result, with sales volumes increasing 16%, Proforma Underlying EBITDA1 growing 20%, and net debt reducing by $121.4m. The result marks a step-change in performance, with improved sales momentum, stronger earnings and gearing at the lower end of the target range.

Financial and operational highlights2

• Total Comprehensive Income: $75.0m, flat on FY25

• Statutory Net Profit after Tax: $0.1m, down from $30.4m reflecting lower property revaluations compared with FY25 and the closure of the Wesley Institute of Nursing Education.

• Proforma Underlying EBITDA: $97.7m, up 20% on FY25

• Free Cash Flow from Operations: $15.0m outflow, improved 64% on FY25

• Total sales volumes: 603, up 16% on FY25

• Right sizing: $13.2m of cost out savings delivered

• Divestments: $51.1m of cash proceeds from the sale of 7 sites

• Total assets: increased to $3.1bn, up 4.6% on FY25

• Net Tangible assets: $1.62 per share, up 7.3% on FY25

• Net debt: $506.7m, down $121.4m on FY25

• Gearing: 30.1%, at the lower end of the 30% to 35% target range

Financial performance

Oceania delivered a record financial result in FY26, reporting Proforma Underlying EBITDA1 of $97.7m, an increase of 20% on the prior comparative period. The improved FY26 financial performance benefited from continued execution of targeted cost out and capital management initiatives, and the further refinement of the portfolio to larger integrated villages with a mix of both aged care and retirement units.

Care EBITDA per occupied bed increased 40% to $27k. Excluding development and resale gains, underlying care profitability increased 43%, reflecting operational performance improvements and the continued benefits of Oceania’s premiumisation initiatives.

Operating efficiency initiatives generated an initial $13.2m of cost out savings in FY26 and remain on track to deliver $20.4m of annualised savings in the coming financial year. Ongoing automation and simplification across the support office has improved efficiency. The support office team has been right sized with an annual staff cost reduction of approximately 20%.