Regis Healthcare (REG) investor relations material

Executive summary

• Revenue from services rose 18.4% year-over-year to $667.7 million, driven by acquisitions, higher room prices, and improved occupancy; underlying EBITDA increased 4% to $70.6 million, and underlying NPAT was stable at $29.7 million.

• Statutory NPAT declined 45% to $13.4 million due to one-off acquisition and integration costs.

• Net operating cash flow surged 40% to $291.7 million, with net RAD cash inflows up 108% to $178.5 million.

• Interim dividend of 9.0 cents per share (100% franked) declared, representing 92% of underlying NPAT.

• CEO transition underway, with Dr Linda Mellors resigning after six years; global search for replacement ongoing.

Financial highlights

• Revenue from services increased 18.4% year-over-year to $667.7 million, with 55% of uplift from acquisitions.

• Underlying EBITDA up 4% to $70.6 million; EBITDA margin moderated to 10.6% from 12.1% in prior period.

• Net cash position at period end was $198 million, supporting ongoing growth and investment.

• Staff costs increased 22% due to acquisitions, wage increases, and higher care minute targets; staff expenses as a percentage of revenue rose to 77.7%.

• Capital expenditure rose to $102.1 million, focused on greenfield developments, land, and refurbishments.

Outlook and guidance

• FY26 underlying EBITDA expected in the range of $130m–$135m, with expectation to reach top end of range.

• Targeting 10,000 quality beds by FY28, with 300–450 from greenfield developments and the rest via acquisitions.

• Margin contraction expected in H2 FY2026 due to AN-ACC funding changes, partially offset by contributions from recent acquisitions.

• Well positioned for sector reforms, demographic tailwinds, and improved workforce availability.

• New Aged Care Act and funding model changes expected to support stronger earnings over time.