Regis Healthcare Limited (REG) investor relations material

Executive summary

• Revenue from services rose 15% year-over-year to $1.161 billion, with underlying EBITDA up 17% and underlying NPAT up 37%, driven by high occupancy, acquisitions, and increased government funding.

• Statutory NPAT increased to $49 million from a prior year loss, reflecting improved operational performance and one-off items.

• Mature homes maintained high occupancy at 95.6%, with improved star ratings and increased care minutes per resident.

• Board declared a final dividend of 8.13 cents per share (70% franked), with total FY25 dividends representing 100% of NPAT.

• Completed and announced several acquisitions, expanding the portfolio to 72 homes and 8,200 beds, supporting the target of 10,000 beds by FY 2028.

Financial highlights

• Underlying EBITDA reached $125.8 million (up 17%), with a margin of 10.8%.

• Net operating cash flow increased 21% to $306.1 million; net cash position at year-end was $192.5 million, up 197%.

• Net RAD cash inflow was $195.4 million, up 39%.

• Capital expenditure increased to $88.1 million, focused on greenfield developments and refurbishments.

• Basic EPS improved to 16.25 cents, up from a loss of 7.11 cents in FY24.

Outlook and guidance

• Expecting continued benefit from funding reforms, demographic tailwinds, and improved workforce availability.

• Targeting 10,000 residential aged care beds by FY 2028, with growth underpinned by strong free cash flow and a $367 million undrawn debt facility.

• New Aged Care Act from 1 November 2025 expected to improve long-term provider returns.

• CapEx for FY26 expected to be around $100 million, supporting ongoing development and refurbishment.

• Anticipates base business EBITDA margin to remain relatively flat in FY26, with RAD retention becoming a key driver of future margin growth.