Highlights

  • Radius Care reported strong profit growth and record Earnings across key financial metrics in FY26.
  • The company increased its final Dividend by 50% following higher occupancy and improved Cash Flow.
  • Expansion projects, acquisitions, and new healthcare initiatives are expected to support future growth.

Overview

Radius Residential Care Limited (NZX:RAD) delivered a strong financial performance for FY26, reporting significant growth in profit, cash flow, occupancy, and dividends as Demand for aged care services remained robust. Net profit after tax rose 34% while available funds from operations increased 44%, supported by stronger occupancy levels, improved operating efficiencies, and lower interest costs. The company also lifted its final dividend by 50%, reflecting confidence in ongoing earnings growth and cash generation. Radius Care continued expanding its national footprint through acquisitions, new care home developments, and retirement village projects while also broadening its home support and healthcare product offerings across New Zealand.

How Did Radius Care Achieve Strong Earnings Growth in FY26?

Radius Care’s earnings growth was driven by higher occupancy levels, disciplined cost management, and improved operational performance across its care facilities. Average occupancy reached 94.9% during the year, helping lift Revenue and profitability metrics throughout the Business. Lower bank interest expenses also contributed to stronger bottom-line growth compared with the previous financial year. Revenue increased as the company benefited from accommodation supplement growth and continued demand for aged care services. Management said operational efficiencies and strong performance across its care network supported record earnings, while stable cash flow generation strengthened the company’s financial position and enabled increased Shareholder returns through higher dividends.

What Growth Initiatives Are Supporting Radius Care’s Future Expansion?

Radius Care is continuing to expand through acquisitions, greenfield developments, retirement village projects, and healthcare innovation initiatives. The company recently acquired Karori Village, marking its entry into the Wellington region and immediately adding earnings growth potential. Construction activity has also begun in Belfast, Christchurch, where Radius plans to develop its first purpose-built hospital-level and dementia care Facility alongside a retirement village project. In addition, the company is expanding home support services nationwide while launching new aged-care healthcare products under the Luma® Brand. Management believes these initiatives will strengthen Long-term Growth, improve scale efficiencies, and further expand Radius Care’s presence across New Zealand.