The Gym Group raises FY2026 guidance due to strong trading momentum

Investing.com – The Gym Group stated on Wednesday that its FY2025 EBITDA will be 2% above market expectations and has raised its FY2026 guidance to the high end of analyst forecasts.

The budget gym operator reported an EBITDA of £56.7 million after normalizing for rent in FY2025, beating the consensus estimate of £55.5 million, a 19% year-over-year increase. Revenue grew 8% to £245 million, with a like-for-like growth rate of 3%.

Membership numbers increased 4% year-over-year to 945,000, with average monthly revenue per member rising 4% to £21.60. The company opened 16 new gyms this fiscal year, expanding its network to 260 locations.

The Gym Group reduced net debt by £2 million to £59 million on a basis before the implementation of IFRS-16.

For FY2026, the company expects normalized EBITDA to reach the high end of the market forecast of £60.7 million, 1% above the current consensus estimate of £60.1 million.

Trading data for January and February show revenue up 9% year-over-year, with a like-for-like growth rate of 3%.

The company plans to open at least 20 new gyms in FY2026, exceeding the previous guidance of around 20, and aims to open approximately 75 new gyms over the next three years. Expansion will be funded through free cash flow.

The Gym Group expects same-store revenue growth of 3% in FY2026, with same-store cost inflation of 3% to 4%, mainly concentrated in the first half.

Return on invested capital for mature gyms increased from 25% to 27%, and excluding 13 gyms that rely heavily on labor, it rises to 30%.

The company’s network expanded by 6% in FY2025, with an expected 8% growth in FY2026, and a target of 9% compound annual growth rate during FY2025-2028.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.