Regis Healthcare (REG) H1 2025 earnings summary

Executive summary

• Revenue from services rose 17.5% to AUD 564.2 million for H1 FY25, with underlying EBITDA up 31% to AUD 68.1 million and net profit after tax up 301% to AUD 24.4 million, driven by higher occupancy, government funding, and acquisitions.

• Mature homes average occupancy increased to 95.7%, with spot occupancy at 96%, and improved star ratings and care minutes delivered.

• Strategic focus on expanding residential aged care footprint through acquisitions, developments, and home care, leveraging technology for operational efficiency.

• Continued investment in workforce, safety, and clinical care, resulting in improved care indicators and reduced injury rates.

• Net cash position improved to AUD 179.9 million, and an interim dividend of 8.09 cents per share (60% franked) was declared.

Financial highlights

• Net operating cash flow was AUD 208.6 million, up 37%, including AUD 73.3 million in government funding received in advance.

• Underlying EBIT surged 522.9% to AUD 44.4 million; underlying EBITDA margin increased to 12.1%.

• Net RAD cash inflow doubled to AUD 85.8 million; capital expenditure was AUD 32.7 million, focused on development and refurbishment.

• Basic EPS was 8.09 cents, up from a loss of 4.03 cents per share in H1 FY24.

• Interim dividend of AUD 0.0809 per share, 60% franked, representing 100% of net profit after tax.

Outlook and guidance

• Expecting continued high occupancy (96%+) in mature homes for the second half of FY25.

• Anticipate increased government funding from 1 March 2025 to fully cover Fair Work nurse wage increases.

• CapEx for the full year projected at AUD 35–40 million, reflecting ongoing refurbishments and developments.

• Government reforms and new Aged Care Act (effective 1 July 2025) expected to improve funding and provider returns.

• Strong balance sheet and undrawn debt facilities support aggressive pursuit of growth initiatives.