Bastide Leaps by 8.2% Organically, But Operating Margin Narrows
On Wednesday, Bastide Group released its half-year results for 2025-2026, showcasing strong commercial dynamics with an organic revenue growth of 8.2%, and a spectacular debt reduction. However, this financial progress is tempered by a compression of the operating margin, directly linked to repeated price reductions in the sleep apnea sector, with another 4% decrease expected in April 2026.
Robust Revenue Growth in the First Half
In the first half of 2025-2026, Bastide recorded a revenue of 260.4 million euros, marking an organic growth of 8.2%. This increase is driven by a strong dynamic in home health care services. Activities involving higher technicality showed particularly notable performances: respiratory assistance surged by 11.0% organically, while diabetes soared with an increase of 27.8%. The Home Maintenance activity progressed by 6.5%, with a notable acceleration in community services jumping by 12.2%. These figures reflect market share gains and the structural growth of the home health sector in Europe.
Operating Profitability Shows Warning Signs
Despite this sustained growth, operational profitability shows warning signs. The current operating margin stands at 9.0%, down by 30 basis points from the first half of the previous fiscal year. This decline occurs as EBITDA increased by 10.4% to 57.7 million euros, indicating that the gross operational improvement does not fully translate into net results. The culprit: a 5% price reduction on sleep apnea treatments effective from April 1, 2025, which squeezed the gross margin, retreating by 80 basis points to 67.6%. The group reduced personnel expenses and stabilized external charges, but this cost control effort was insufficient to offset the tariff impact. Another 4% decrease is expected in April 2026, extending this pressure.
Significant Improvement in Financial Structure
The real highlight of the semester is the spectacular improvement in the financial structure. Net financial debt decreased by 87 million euros, dropping from 385.7 million euros in June 2025 to 298.7 million euros in December 2025, largely due to asset disposals including the sale of Baywater for 76.2 million euros received. As a direct consequence, the financial leverage significantly improved, moving from 3.41 times to 2.77 times EBITDA. The group now has a cash reserve of 25.5 million euros. Operational free cash flow also dramatically recovered, reaching 24.3 million euros compared to just 7.0 million euros in the first half of 2024-2025. This turnaround in cash generation, coupled with debt reduction, should lower financial expenses in the second half. Bastide confirms its targets for the fiscal year 2025-2026: a revenue of at least 510 million euros and an operating margin around 9.0%, despite the upcoming tariff headwinds.
