Eureka Group Holdings reported a 19.7% rise in revenue and an 11.2% increase in underlying EBITDA for the half-year to December 2025, while statutory profit after tax declined due to acquisition costs and GST adjustments. The company’s $60 million acquisition spree has boosted its village portfolio and occupancy rates.
- Revenue up 19.7% to $27 million
- Underlying EBITDA rises 11.2% to $9.08 million
- Statutory profit after tax down 18.2% to $5.21 million
- Portfolio expanded to 41 villages with high occupancy
- Interim dividend maintained at 0.73 cents per share
Revenue and Earnings Growth
Eureka Group Holdings Limited has reported solid growth in revenue and underlying earnings for the six months ended 31 December 2025. Revenue climbed nearly 20% to $27 million, driven by organic growth in existing rental villages and contributions from recent acquisitions. Underlying EBITDA increased by 11.2% to $9.08 million, reflecting improved operational performance across the group’s seniors and all-age rental communities.
Profitability Impacted by One-Off Costs
Despite the positive top-line momentum, statutory profit after tax fell 18.2% to $5.21 million. This decline was largely due to acquisition transaction costs related to newly acquired properties and a $1.47 million non-recurring GST adjustment following an Australian Taxation Office review. These charges weighed on reported earnings but are not expected to affect cash flow going forward.
Portfolio Expansion and High Occupancy
The group’s portfolio grew substantially during the period, with $60.3 million invested in acquisitions, developments, and capital improvements. Key purchases included four all-age rental communities across Queensland, New South Wales, Victoria, and Western Australia, expanding the total village count to 41. Occupancy rates remained robust at 97% for seniors’ rental villages and 86% for all-age communities, underscoring strong demand for affordable housing options.
Capital Management and Dividend Policy
Eureka’s balance sheet shows increased drawn debt of $113.4 million, reflecting the acquisition activity, with undrawn facilities of $71.6 million available. The company successfully converted its debt facilities into social loans aligned with sustainability principles, signaling a commitment to responsible financing. The board declared an interim dividend of 0.73 cents per share, consistent with the prior period, supported by the Dividend Reinvestment Plan.
Looking Ahead
Post-period, Eureka acquired a mixed-use residential home village and caravan park in Nagambie, Victoria, further extending its footprint in the all-age rental sector. The group also entered into an interest rate collar to manage exposure to variable borrowing costs, reflecting prudent risk management amid uncertain interest rate environments. Investors will be watching how the integration of new assets and execution of value-add initiatives influence the company’s earnings trajectory in the second half of FY26.
Bottom Line?
Eureka’s growth strategy is clear, but the impact of acquisition costs and market conditions on future profits remains a key watchpoint.
Questions in the middle?
- How will the recently acquired Nagambie asset contribute to earnings in FY26?
- What is the outlook for occupancy and rental rates amid evolving market conditions?
- How might the interest rate collar affect financing costs and profitability going forward?