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Shares jump nearly 15% as healthcare provider reports strong operational improvements
Introduction & Market Context
Emeis SA (EMEIS) shares surged 14.76% on Thursday after the global healthcare and senior care provider presented its H1 2025 Sales & Business Update, showcasing significant improvements in both financial and operational metrics. The company reported robust organic growth, margin expansion, and progress on its deleveraging strategy through asset disposals.
The healthcare provider, which became a mission-driven company following its June 26 shareholder meeting, has shown consistent improvement in occupancy rates and operating margins, signaling a successful turnaround strategy implementation.
Executive Summary
Emeis reported H1 2025 revenue of €2,908 million, representing a 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 excluding IFRS 16 effects jumped 79% to €158 million.
As shown in the following comprehensive summary of key performance indicators:
The company maintained a stable net debt position of €4.77 billion compared to the end of 2023, with a cash position of €398 million at the end of June 2025. Emeis 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.
Quarterly Performance Highlights
Occupancy rates, a critical metric for healthcare facilities, improved across all geographies, increasing by 170 basis points on average to 87% (88.2% on mature perimeter). This represents a significant recovery of nearly 6 percentage points since 2021.
The following chart illustrates this consistent improvement in occupancy rates:
Nursing homes, which account for 65% of the company’s revenue, showed particularly strong momentum with 9% organic growth. The clinics segment, representing 30% of revenue, also demonstrated positive performance.
Revenue increased across all geographical regions, with positive price effects and occupancy improvements contributing to growth in each market:
Detailed Financial Analysis
Emeis’s financial recovery is evident in the substantial improvement in operating margins. The company’s EBITDAR increased by 18.4% (19.5% on a like-for-like basis) compared to H1 2024, reaching €401 million.
The following chart demonstrates how supportive top-line trends and controlled operating expenses contributed to this margin recovery:
Operating expenses were effectively managed, with staff costs decreasing from 68.4% to 67.4% of revenue, other costs reducing from 19.4% to 18.8%, and rent expenses declining from 8.9% to 8.2% compared to H1 2024.
This cost control, combined with revenue growth, resulted in a significant improvement in EBITDA, as illustrated below:
The preliminary H1 2025 key figures demonstrate improvements across multiple metrics:
Strategic Initiatives
A cornerstone of Emeis’s strategy is its disposal program aimed at deleveraging the company. Since mid-2022, Emeis has achieved or secured €1.15 billion in disposals, with €482 million cashed-in or secured in H1 2025 alone.
The following chart shows the progress of the disposal program:
The H1 2025 disposals of €482 million were divided between real estate assets (€346 million) and operating disposals (€136 million), with properties sold across multiple countries including France, the Netherlands, Spain, Ireland, and Poland.
The company’s net debt remained stable during H1 2025, supported by improved recurring cash flow and contained development capital expenditures:
Forward-Looking Statements
Emeis has reiterated its guidance for 2025, expecting EBITDAR to grow between 15% and 18% on a like-for-like basis compared to 2024. The company also confirmed its ambition to reach €1.5 billion in disposals from mid-2022 to the end of 2025, a target that management now believes is "increasingly likely to be exceeded" given the advanced negotiations for more than €1 billion in additional disposals.
The key takeaways from the presentation highlight the company’s continued positive momentum:
As Emeis continues its transformation into a mission-driven company, it has outlined four core social and societal commitments focused on vulnerable people, recognition of healthcare professions, local social cohesion, and innovation in care delivery that respects both people and the planet.
With solid operational improvements, strengthening financial performance, and progress on strategic initiatives, Emeis appears well-positioned to continue its recovery trajectory through the remainder of 2025.
Full presentation:
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