Regis Healthcare (REG) H2 2025 earnings summary

Executive summary

• Revenue from services rose 15% year-over-year to $1,161.3 million, with underlying EBITDA up 17% and underlying NPAT up 37%, while statutory NPAT increased 329% to $49.0 million, reflecting strong operational and financial performance.

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

• Announced acquisition of four premium homes from Rockpool (600 beds), 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.

• Continued focus on growth through acquisitions, greenfield developments, and operational excellence.

Financial highlights

• Underlying EBITDA reached $125.8 million (+17%), with a margin of 10.8%; underlying EBIT was $77.3 million (+26%).

• Net operating cash flow increased 21% to $306.1 million; net cash position of $192.5 million (+197%).

• Net RAD cash inflow was $195.4 million, up 39% year-over-year; paid-up RAD balance up 16% to over $1.8 billion.

• Capital expenditure totaled $88.1 million, up 32% year-over-year, focused on new developments and refurbishments.

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

Outlook and guidance

• Targeting 10,000 residential aged care beds by FY28, supported by acquisitions and greenfield developments.

• Expects to benefit from new funding reforms, demographic trends, and improved workforce availability.

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

• Staff expenses expected to increase slightly in FY26, with government funding anticipated to offset wage rises.

• CapEx guidance for FY26 is around $100 million, up from $88 million in FY25.