Limes Schlosskliniken AG Signals Growth with First Dividend and Strong Q1

Limes Schlosskliniken AG's supervisory board has approved the FY25 annual accounts, recommending a €10.00 per share dividend. This marks the group's inaugural dividend, demonstrating financial maturity. The total payout of €2.9 million represents approximately 73% of the FY25 free cash flow (FCF) of €4.0 million. Despite capital expenditures linked to new clinics, future dividend growth and network investments are anticipated as capex normalizes.

The company reported promising results for FY26, with Q1 sales reaching €15.5 million, a 38% increase year-over-year. EBITDA stood at €3.9 million, reflecting a 25% margin. This strong performance suggests rapid progress of new clinics Abtsee and Bergisches Land. Expected annual sales could surpass €65.6 million.

LIMES's strategy capitalizes on unmet demand for psychiatric care, enhancing its brand's reputation and fueling growth beyond initial investment phases. Currently, shares trade at a 6.4x FY26e EV/EBITDA ratio, affirming a BUY recommendation with a target price of €710.