Third Age Health FY25 profit surges, bolstered by acquisitions

Third Age Health Services (NZX:TAH) announced strong financial results for FY25, marked by a NZD 2,478k net profit after tax, a substantial 79.2% increase year-over-year. Underlying NPATA also saw significant growth of 69.0% to NZD 2,886k. The company attributed this performance to improved operating leverage and enhanced efficiency across the group. A key factor in Third Age Health's success was the acquisition of Hub Aged Care in April 2024, which has been successfully integrated and performed above expectations. This expansion, coupled with organic growth, has significantly boosted revenue and operating scale within the company's aged residential care (ARC) business. The company also launched a proprietary digital clinical portal that streamlined clinical workflows. The organization remains focused on strategic capital allocation, including repaying debt, selective share buybacks (repurchasing 0.50% of shares), and continuous dividend payments. While cautiously optimistic about FY26, the company anticipates more moderate organic growth in revenue and earnings moving forward.