Australian Unity Delivers Strong FY2025 Profit Amid Major Transformation
Australian Unity Limited reported robust FY2025 financial results, driven by strategic acquisitions and ongoing transformation efforts, returning to profitability with a $26.6 million net profit. The company is poised to complete its multi-year transformation by year-end and focus on growth amid rising demand for aged care and health services.
- Revenue surged to $2.6 billion, up $505.6 million year-on-year
- Adjusted EBITDA from continuing operations rose 94% to $136.2 million
- Net profit after tax returned to $26.6 million from prior year loss
- Banking business transfer to Bank Australia progressing, expected November 2025
- Transformation programs nearing completion with focus on Home Health and technology
Overview of FY2025 Performance
Australian Unity Limited has posted a strong financial turnaround for the full year ended 30 June 2025, reporting consolidated revenues of $2.6 billion, a significant increase of over $500 million compared to the previous year. This growth was underpinned by strategic acquisitions, notably the full-year contribution from the myHomecare Group, and ongoing portfolio transformation initiatives.
The company’s adjusted EBITDA from continuing operations nearly doubled to $136.2 million, reflecting improved operational efficiencies and integration of new businesses. Importantly, Australian Unity returned to profitability with a net profit after tax of $26.6 million, reversing a loss of $22.7 million in FY2024. The board declared an interim fully franked dividend, signaling confidence in the company’s financial health.
Transformation and Portfolio Optimization
FY2025 marked a pivotal year in Australian Unity’s multi-year transformation agenda, which began in FY2023 and is expected to be substantially complete by the end of 2025. The company invested $70.2 million in non-recurring transformation and integration expenses, focusing on reshaping its Home Health platform, upgrading technology systems, and streamlining corporate structures.
Key acquisitions such as myHomecare Group and Australian Unity Life Bonds Limited have been successfully integrated, contributing to revenue growth and operational scale. The company also announced the acquisition of Plena Healthcare post balance date, further expanding its clinical capabilities and service offerings in Home Health.
Segment Highlights and Strategic Moves
The Home Health segment showed strong growth, with revenue rising to $954.1 million and adjusted EBITDA increasing to $55.8 million. This segment delivered over 228 million safe minutes of care, reflecting increased demand and operational scale. The company is preparing for the delayed government Support at Home regulatory regime, now commencing November 2025, which will shape future service delivery.
In the Residential Aged Care platform, revenue grew through higher occupancy and government funding increases, with occupancy rates exceeding sector averages. The company is repurposing assisted living apartments at The Alba into residential aged care, unlocking additional value.
The Insurances platform, now excluding the banking business following its transfer agreement with Bank Australia, faced competitive pressures with a slight decline in private health insurance policyholders and higher claims costs impacting EBITDA.
Wealth & Capital Markets benefited from improved retirement living operations and property developments, despite a reduction in funds under management due to strategic portfolio exits.
Outlook and Market Context
Looking ahead, Australian Unity aims to finalize its transformation programs in FY2026 while identifying new growth opportunities. The company is mindful of demographic trends, notably the projected tripling of Australians turning 80 annually by 2027, which will drive demand for aged care and integrated health services.
Australian Unity also continues to enhance its social impact reporting and environmental sustainability efforts, reflecting its commitment as a mutual entity to community wellbeing beyond financial performance.
Bottom Line?
As Australian Unity nears the completion of its transformation, investors will watch closely how it leverages demographic shifts and regulatory changes to sustain growth.
Questions in the middle?
- How will the delayed Support at Home regulatory regime impact Home Health margins and growth?
- What are the integration risks and synergies expected from the Plena Healthcare acquisition?
- How sustainable is the dividend given ongoing transformation costs and competitive pressures in insurance?
