Emeis H1 2025 slides: EBITDA surges 79% as healthcare provider shows strong recovery

Emeis SA (EMEIS) presented its H1 2025 unaudited results on July 31, 2025, revealing significant improvements in profitability and occupancy rates as the healthcare provider continues its recovery trajectory. The presentation highlighted a 79% year-over-year increase in EBITDA and stable net debt, with the company’s strategic disposal program progressing according to plan.

Executive Summary

Emeis reported revenue of €2.91 billion for the first half of 2025, representing 6.2% organic growth compared to the same period last year. The company’s EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) reached €401 million, up 20% on a like-for-like basis, while EBITDA jumped 79% to €158 million.

"We are happy to share with you the point that these encouraging achievements... lead our figures to grow in line with our ambition," stated Laurent Guillot, CEO of Emeis SA, during the earnings call.

As shown in the following comprehensive financial overview, the company maintained a stable net debt position of €4.77 billion with a cash position of €398 million at the end of June:

The market responded positively to these results, with Emeis stock rising 6% in pre-market trading following the announcement. The stock is currently trading at $15.30, up from its 52-week low of $4.44 but still below its 52-week high of $16.19.

Detailed Financial Analysis

Emeis reported revenue growth across all geographic regions, with particularly strong performance in Northern Europe, which saw an increase from €796 million in H1 2024 to €870 million in H1 2025. The company’s nursing homes segment, which accounts for 65% of total revenue, grew by 8.6% organically.

The geographic breakdown of revenue shows diversification across European markets:

A key driver of the improved financial performance was the significant increase in occupancy rates, which rose by 170 basis points to reach 87.0% overall. Nursing homes occupancy increased to 86.5% (up 1.9 percentage points year-over-year), while clinics reached 89.1% (up 1.1 percentage points).

The following chart illustrates the steady improvement in occupancy rates across the company’s portfolio:

France and Germany, Emeis’s largest markets, both showed positive momentum in occupancy rates, with France nursing homes increasing from 81.8% to 83.6% and clinics from 92.3% to 94.0%. Germany saw improvement from 82.9% to 85.5%.

The company’s operating margins showed significant recovery, with EBITDAR margin expanding from 12.1% in H1 2024 to 13.8% in H1 2025. This improvement was driven by better cost control, with staff costs decreasing from 68.4% to 67.4% of revenue and other costs falling from 19.4% to 18.8%.

The following waterfall chart demonstrates the components of EBITDAR growth:

Strategic Initiatives

Emeis continues to make progress on its strategic disposal program, which is a key component of its deleveraging strategy. The company has achieved or secured €1.15 billion in disposals since mid-2022, with an additional €2 billion under discussion, of which more than €1 billion is in advanced negotiations.

The following chart shows the progression of the disposal program:

In H1 2025 alone, Emeis completed €482 million in disposals, including €346 million in real estate assets and €136 million in operating disposals. The real estate disposals were geographically diverse, with 45% in France, 37% in the Netherlands, and the remainder spread across other European countries.

Another significant strategic development was Emeis’s transition to a "mission-driven company" status on June 26, 2025. This new status commits the company to four social and societal objectives, including improving care for vulnerable populations, enhancing recognition of healthcare professions, contributing to social cohesion, and leveraging innovation for sustainable care delivery.

Outlook & Guidance

Emeis confirmed its guidance for 2025, expecting EBITDAR to grow between 15% and 18% on a like-for-like basis compared to 2024. The company also reiterated its ambition to reach €1.5 billion in disposals.

"We have not changed our mind... we will be investing approximately €300 million this year," stated CFO Jean-Marc Boursier during the earnings call, indicating continued commitment to maintenance, IT infrastructure, and new residences.

The following summary highlights the key takeaways from the presentation:

Despite the positive operational trends, it’s worth noting that Emeis reported a negative EPS of -$0.85 for the quarter. Analysts don’t anticipate profitability this year, forecasting an EPS of -$1.58 for the full year 2025, according to the earnings call transcript.

Market Context

Emeis shares have shown strong momentum over the past year, delivering a 175% return despite the current negative earnings. The company’s market capitalization stands at approximately $2.87 billion, with a free cash flow yield of 14%, according to InvestingPro analysis.

While the company has made significant progress in its recovery, it still faces challenges including regulatory changes affecting clinic growth, potential impacts from healthcare reforms on pricing, and execution risks in achieving its ambitious disposal targets. Managing operational expenses amid inflationary pressures also remains a concern.

Nevertheless, the substantial improvements in occupancy rates and operating margins, combined with the stable debt position, suggest that Emeis’s recovery strategy is gaining traction. Investors appear to be focusing on the operational improvements and potential for further recovery rather than the current negative earnings.

Full presentation:

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