Orpea S.A.

H1 2026 like-for-like revenue grew 6%. EBITDA margin excluding IFRS 16 increased by 2.2 points to 7.6%, and EBITDA excluding IFRS 16 rose 46% like for like to EUR 228 million. EBIT increased 83% year over year to EUR 187 million, with margin at 6.2% versus 3.5% last year. Net income was negative EUR 40 million but improved by EUR 97 million year over year. Net debt fell by EUR 566 million since the start of the year to EUR 3.9 billion pre-IFRS, and leverage improved to 8.7x from 11.8x at December and 15.4x a year ago. Cash was EUR 601 million at end-June. Management raised full-year 2026 guidance to like-for-like EBITDA growth of 12% to 14%; it also said the midterm target remains EBITDA CAGR of 12% to 16% between 2024 and 2028.

Laurent Guillot framed the half as evidence of emeis' return to normalcy, pointing to audited results earlier than in prior years, stronger resident confidence, and what he called a structurally improving occupancy trend. He emphasized that the group is still in an early stage of recovery, but said France is catching up, Southern Europe and Germany are performing particularly well, and the company will remain selective on disposals and growth. His tone was upbeat and confident, while still stressing discipline on pricing, costs, and deleveraging.

Jean-Marc Boursier highlighted the financial translation of operating momentum: 6% like-for-like revenue growth, EBITDA margin excluding IFRS 16 up to 7.6%, EBIT up 83% to EUR 187 million, and leverage down to 8.7x. He said operating cash generation was strong but was temporarily offset by a EUR 94 million working-capital increase and EUR 164 million of nonrecurring items tied to the group’s normalization, which kept net operating cash flow and recurring free cash flow broadly stable. He also noted EUR 114 million of H1 disposals, an expected EUR 156 million more in coming quarters, EUR 3.9 billion of net debt pre-IFRS, EUR 601 million cash, and that 85% of debt is hedged or fixed rate.

Analysts focused on pricing, wage inflation, clinic recovery, Boost, and capital allocation. Management said pricing should be broadly similar in H2, with occupancy giving it more ability to pass through prices, and said wage pressure is being offset by productivity gains and Boost, with no expectation of a bigger H2 impact. On clinics, management said corrective action last year to improve private-room sales already helped in H2 2025 and H1 2026, with further benefits expected in H2 2026. They also said Boost is broader than supplier renegotiation, is focused on operational transformation across food, transport, equipment, maintenance, energy, laundry, and more, and is much more advanced in France than elsewhere in Europe.