Emeis reported full-year 2025 financials showing a clear improvement in operating profitability alongside a modest shortfall in sales versus market expectations. The European dependency-care provider logged revenue of 5.895 billion, a like-for-like increase of 6.1%, missing forecasted revenue of 5.933 billion.
Management attributed the top-line advance to three main contributors: a 3.3% price effect from tariff adjustments, a 1.7 percentage point uplift from improved occupancy, and a 1% gain from recently opened facilities. The company said nursing homes, which account for 65% of total sales, were the primary growth engine with like-for-like revenue up 8.1%, helped by a 2 percentage point increase in occupancy. Clinics expanded more slowly, with a 2.5% like-for-like rise.
Regional performance was uneven. Northern Europe led growth at 10.6%, Southern Europe followed with 9.6%, and France recorded the weakest increase at 1.7%.
Profitability measures showed stronger momentum. EBITDAR reached 872 million, a 19% like-for-like increase that exceeded the companys stated target range of 15-18% growth. EBITDAR margin expanded by 170 basis points to 14.8%. EBITDA pre-IFRS 16 rose to 376 million, up 57% year on year, and the corresponding margin improved to 6.4% from 4.3% a year earlier.
On cash flow, recurring free cash flow remained negative at -59 million for the full year, though the company emphasised significant improvement and said recurring free cash flow turned positive during the second half of 2025.
Balance-sheet metrics improved as well. Net debt excluding IFRS 16 declined to 4.475 billion, and the net debt to EBITDA ratio narrowed sharply to 10.0x from 19.5x at the end of 2024. The company reported that its property portfolio value stabilized at 5.6 billion, with the average capitalization rate edging up to 6.38% from 6.33% at the end of 2024.
Looking ahead, management guided to continued improvement in operating performance, forecasting EBITDAR growth above 10% in 2026 on a constant perimeter basis. The company also reiterated its medium-term targets: a 4-5% compound annual growth rate in revenues and 12-16% compound annual growth in EBITDAR over the 2024-28 period.
Summary
Emeis posted revenue of 5.895 billion for FY25, a 6.1% like-for-like rise but below the 5.933 billion expectation. Profitability improved materially, with EBITDAR of 872 million (up 19% LFL) and EBITDA pre-IFRS 16 at 376 million (up 57%). Recurring free cash flow remained negative at -59 million but turned positive in H2 2025. Net debt excluding IFRS 16 declined to 4.475 billion and the debt-to-EBITDA ratio fell to 10.0x. The property portfolio value was 5.6 billion and the average cap rate rose to 6.38%.
Key points
- Revenue grew 6.1% like-for-like to 5.895 billion, slightly below the 5.933 billion target; tariff increases, rising occupancy and new openings were the drivers.
- Profitability strengthened: EBITDAR 872 million (up 19% LFL) with a 14.8% margin, and EBITDA pre-IFRS 16 376 million (up 57%) with margin expansion to 6.4%.
- Balance sheet and cash-flow indicators improved: net debt excluding IFRS 16 at 4.475 billion and net debt/EBITDA reduced to 10.0x; recurring free cash flow remained negative for the year but turned positive in H2 2025.
Risks and uncertainties
- Revenue fell short of analyst expectations (5.895 billion versus 5.933 billion), indicating sensitivity to demand and pricing dynamics in the care market.
- Recurring free cash flow remained negative at -59 million for FY25, posing near-term liquidity and operational flexibility risks despite improvement in H2 2025.
- Although leverage decreased, net debt excluding IFRS 16 remains at 4.475 billion with a net debt/EBITDA ratio of 10.0x, which could limit financial flexibility until earnings and cash flow continue to strengthen.