Orpea S.A.

emeis said H1 2026 like-for-like revenue rose 6%, with price effect contributing 3.4% and occupancy contributing 2.6% including new openings. EBITDA before IFRS 16 reached EUR 228 million, up 46% like-for-like, and EBITDA margin before IFRS 16 increased to 7.6%, up 2.2 points. EBIT rose 83% to EUR 187 million, while net income remained negative at minus EUR 40 million, though improved by EUR 97 million year over year. Occupancy rose 2.9 points in nursing homes to 89.4%, and group occupancy was above 90% in Q2. On cash flow, operating contribution was offset by a EUR 94 million working-capital increase and EUR 164 million of nonrecurring items. Net debt fell by EUR 566 million since the start of the year to EUR 3.9 billion pre-IFRS, and net debt-to-EBITDA improved to 8.7x from 11.8x at end-December and 15.4x a year ago. Cash was EUR 601 million at end-June, and 85% of debt was hedged or fixed rate. For full-year 2026, management raised like-for-like EBITDA growth guidance to 12% to 14%; midterm EBITDA CAGR guidance for 2024-2028 remains 12% to 16%.

Laurent Guillot framed the quarter as evidence that emeis is returning to normalcy, emphasizing that the results were audited earlier than in recent years and came in ahead of initial expectations. He highlighted stronger marketing, better pricing discipline, the Boost cost program, and recovering performance in France, Southern Europe, and Germany. His tone was confident but still cautious, stressing that the turnaround is early-stage and that there is still room for further occupancy, margin, and balance-sheet improvement.

Jean-Marc Boursier focused on the financial conversion of the operating recovery. He said revenue grew 6% like-for-like, EBITDA before IFRS 16 rose 46% to EUR 228 million, EBITDA margin before IFRS 16 reached 7.6%, EBIT was EUR 187 million, and net income was minus EUR 40 million but up EUR 97 million year over year. He also pointed to the main cash-flow offsets: a EUR 94 million working-capital increase from supplier-payment normalization and EUR 164 million of nonrecurring items tied to exiting safeguard proceedings, while noting EUR 114 million of disposals in H1, EUR 156 million more expected, net debt of EUR 3.9 billion, leverage of 8.7x, cash of EUR 601 million, and 85% of debt hedged or fixed.

Analysts pressed management on the sale-and-leaseback pricing, wage inflation, pricing into H2, clinic recovery, staff costs, central costs, disposal gains, and the pace of occupancy improvement. Management said the sub-5% sale-and-leaseback yield reflected selectivity and a favorable geographic mix, including Switzerland, and that it will now be more opportunistic on disposals. On costs and inflation, they said pricing actions, productivity gains, and Boost should offset wage pressure, while H2 should not see a worse cost impact; on clinics, they said corrective actions on private-room sales started in 2025 and should keep helping in H2. They also said turnover has improved sharply, temporary workers are being reduced, and Boost is being rolled out beyond France.