Highlights

  • Ryman Healthcare reported $188 million in positive free Cash Flow, marking its first positive result in more than 10 years.
  • Revenue/">Operating Revenue rose 10% to $849 million, while operating EBITDAF surged 94% to $88 million in FY26.
  • Ryman completed its Balance Sheet reset, lowering gearing to 27.8% and outlining a pathway to resume dividends by FY28.

Overview

Ryman Healthcare Limited (NZX:RYM) said FY26 marked a major year of progress as the retirement village and aged care operator delivered stronger financial performance and strategic improvements. The company reported its first positive free cash flow result in over a decade at $188 million, supported by cash released from developments and improved operating efficiency. Revenue increased 10% to $849 million, while operating EBITDAF nearly doubled to $88 million. Ryman also made significant progress on its long-term FY29 financial targets, including cash flow improvement and Capital release goals. Management said its refreshed strategy, balance sheet reset, and disciplined capital framework are helping create a more sustainable Business, with a pathway toward restoring Shareholder value and potentially resuming dividends from FY28.

How Did Ryman Healthcare Improve Financial Performance in FY26?

Ryman Healthcare’s FY26 performance reflected the impact of a major business reset undertaken over the past two years. The company reported positive free cash flow of $188 million, driven by strong cash release from developments and improved operational efficiency. Operating revenue increased 10% to $849 million as aged care occupancy improved, premiums rose, and more retirement living residents shifted to updated pricing structures. Operating EBITDAF surged 94% to $88 million, while losses narrowed significantly compared with FY25. Management said broad cost-saving initiatives, procurement efficiencies, and better aged care margins also contributed to improved performance. The results indicate that Ryman’s operating model reset is starting to translate into stronger financial outcomes despite mixed market conditions.

Can Ryman Healthcare Sustain Growth and Return to Dividends?

Ryman said it remains on track to meet its FY29 financial targets, supported by stronger recurring Earnings, capital release initiatives, and disciplined growth. The company delivered $47 million toward its $150 million sustainable cash flow improvement target and made progress on its $500 million cash release goal. Ryman also strengthened its balance sheet, lowering gearing to 27.8%, refinancing Debt, and extending bank maturities to FY31. Management said this provides financial flexibility and resilience in uncertain market conditions. A new capital management framework, combined with the company’s refreshed strategy, provides a pathway to restoring sustainable dividends in FY28, subject to performance and board approval.