Regis Reports FY25 Revenue of $1.16B and Targets 10,000 Beds by FY28
Regis Healthcare reported robust FY25 financial results and outlined ambitious expansion plans targeting 10,000 beds by FY28, while urging urgent government reforms to address the sector’s undersupply of quality aged care.
- FY25 revenue up 14.5% to $1.16 billion, underlying EBITDA up 17.4% to $125.8 million
- Strong improvements in care quality, employee engagement, and safety outcomes
- Targeting 10,000 residential aged care beds by FY28 through acquisitions and greenfield developments
- New Aged Care Act 2024 introduces RAD retention fees and means-based co-contributions
- Calls for accelerated government funding reform to address critical bed shortages amid ageing population
Strong Financial Performance and Operational Excellence
Regis Healthcare Limited (ASX, REG), one of Australia’s largest aged care providers, delivered a solid financial performance for FY25, reporting revenue growth of 14.5% to $1.16 billion and a 17.4% increase in underlying EBITDA to $125.8 million. The company’s results underscore its ability to generate strong cash flow, with operating cash flow reaching $306.1 million, and a net cash position of $192.5 million at year-end.
Beyond the numbers, Regis highlighted meaningful improvements in resident care outcomes, including enhanced quality of life and reduced physical restraint use. Employee engagement soared to an industry-leading 87%, while worker safety metrics improved significantly, contributing to lower insurance costs and a more stable workforce environment.
Growth Strategy, Acquisitions and Greenfield Developments
Regis is aggressively pursuing growth to meet rising demand driven by Australia’s ageing population. The company currently operates 72 residential aged care homes with approximately 8,200 beds and has recently acquired four premium homes from Rockpool, adding 600 beds in South-East Queensland. The pending acquisition of OC Health will add another 230 beds, pushing the total to over 8,400.
Complementing acquisitions, Regis is expanding its greenfield development pipeline, with construction underway at Toowong (QLD) and Carlingford (NSW), and plans to commence work at Belrose (NSW) in 2026. The company has secured nine development sites in total, aiming to reach 10,000 beds by FY28. This growth is underpinned by a disciplined capital deployment strategy, leveraging strong free cash flow and a $367 million undrawn debt facility.
Sector Challenges and Funding Reform Imperatives
The company’s leadership did not shy away from addressing the broader sector challenges. With only 802 net new beds added in FY25, far below the estimated 9,300 needed annually, Australia faces a critical undersupply of quality aged care beds. This shortage has led to thousands of older Australians remaining in hospital or at home awaiting appropriate care, a situation described by Regis’ Chair as a looming community crisis.
The new Aged Care Act 2024, effective November 2025, introduces significant funding reforms, including the reintroduction of a 2% retention fee on Refundable Accommodation Deposits (RADs) and means-based co-contributions for non-clinical care. While these reforms are steps forward, Regis calls for a more holistic review of funding settings, advocating for increased accommodation supplements and a higher RAD retention rate to ensure sector sustainability and incentivise new developments.
Outlook and Market Positioning
Looking ahead, Regis expects FY26 underlying EBITDA between $130 million and $135 million, supported by sustained high occupancy rates averaging 95.8% in mature homes and strong net RAD inflows. The company remains confident in its ability to leverage demographic tailwinds, regulatory reforms, and operational efficiencies to drive margin expansion and shareholder returns.
Regis’ strategic focus on quality, scale, and financial discipline positions it well to navigate the evolving aged care landscape. However, the company’s calls for accelerated government action highlight the sector’s fragility and the urgent need for policy alignment to meet Australia’s growing aged care demands.
Bottom Line?
Regis Healthcare’s robust growth and operational gains come amid urgent calls for government funding reforms to avert a looming aged care capacity crisis.
Questions in the middle?
- How will the government’s accommodation pricing review impact Regis’ profitability and development incentives?
- Can Regis sustain its aggressive expansion while maintaining high care quality and employee engagement?
- What are the potential risks if government funding reforms fail to keep pace with demographic demand?