Regis Healthcare (REG) H1 2026 earnings summary

Executive summary

• Revenue from services rose 18.4% year-over-year to AUD 668 million, with underlying EBITDA up 3.7% to AUD 70.6 million and underlying NPAT stable at AUD 29.7 million, driven by acquisitions and higher room prices.

• Statutory NPAT was AUD 13.4 million, impacted by one-off acquisition and integration costs.

• Operated 74 residential aged care homes with approximately 8,400 beds and managed over 400 retirement village units as of 31 Dec 2025.

• CEO transition underway, with Dr Linda Mellors resigning after six years and a focus on strategy execution and operational excellence.

• Two major acquisitions (Rockpool and OC Health) added 830 beds, supporting growth and portfolio quality.

Financial highlights

• Net operating cash flow increased 40% year-over-year to AUD 291.7 million; net RAD cash inflows more than doubled to AUD 178.5 million.

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

• Interim dividend of AUD 0.09 per share, 100% franked, representing 92% of underlying NPAT.

• Capital expenditure rose to AUD 102.1 million, focused on greenfield developments, refurbishments, and technology.

• Staff costs increased 22% due to acquisitions, wage increases, and higher care minute targets; employee turnover reduced to 20.2%.

Outlook and guidance

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

• Targeting 10,000 beds by FY2028 through greenfield developments and 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.