Regis Healthcare (REG) H2 2025 earnings summary

Executive summary

• Revenue from services rose 14.5% year-over-year to AUD 1,161.3 million, with underlying EBITDA up 17.4% and underlying NPAT up 37.3%.

• Statutory NPAT increased 328.6% year-over-year to AUD 49.0 million, reversing a prior year loss and reflecting improved operational performance and one-off items.

• Mature homes average occupancy reached 95.6%, with further improvements in star ratings and care minutes delivered.

• Announced acquisition of four premium homes from Rockpool, adding 600 beds and expanding to 72 homes and 8,200 beds post-completion.

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

Financial highlights

• Underlying EBITDA was AUD 125.8 million (+17.4%), with a margin of 10.8%.

• Underlying NPAT was AUD 53.4 million (+37%), statutory NPAT at AUD 49 million, reversing a prior year loss.

• Net operating cash flow rose 21.3% to AUD 306.1 million; net cash position of AUD 192.5 million (+196.6%).

• Net RAD cash inflow increased 39% to AUD 195.4 million; paid-up RAD balance up 16% to over AUD 1.8 billion.

• Capital expenditure increased to AUD 88.1 million, focused on greenfield development and refurbishments.

Outlook and guidance

• Targeting 10,000 residential aged care beds by FY 2028, supported by acquisitions and greenfield developments.

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

• Expecting base business EBITDA margin to remain relatively flat in FY 2026, with growth driven by RAD retention.

• CapEx guidance for FY 2026 is around AUD 100 million, up from AUD 88 million in FY 2025.

• High and stable occupancy expected, supported by demographic trends and strategic capex.