Regis Healthcare Reports 16% Revenue Growth and 10% EBITDA Rise in FY26

Financial Performance Surpasses Guidance

Regis Healthcare (ASX:REG) delivered a solid financial year ending June 2026, with revenue from services climbing 16.3% to $1.35 billion and underlying EBITDA increasing by 9.7% to $138 million. Statutory net profit after tax rose 13.8% to $55.7 million, reflecting operational strength despite rising wage and care costs. The company maintained a strong cash position of $173.8 million, supported by net operating cash flow of $336.3 million and net refundable accommodation deposits (RADs) cash inflow of $250.5 million.

Underlying earnings per share grew 3.9% to 18.42 cents, while the Board declared a final fully franked dividend of 9.40 cents per share, bringing total dividends for FY26 to 18.40 cents, up 13.4% on the prior year. This dividend increase signals confidence in Regis’ ongoing earnings quality and cash generation.

Occupancy and Portfolio Expansion Drive Growth

Occupancy across mature homes improved to 96.0%, up from 95.6% in FY25, with total occupied bed days rising 8% to 2.85 million. Newly commissioned homes Camberwell and Oxley completed their ramp-ups, achieving 99% occupancy and generating net RAD inflows of nearly $98 million combined. These strong ramp-ups demonstrate Regis’ ability to efficiently bring new capacity online in a tight market.

Strategic acquisitions remain a key growth lever. The company completed the purchase of Rockpool RAC Holdings in September 2025, adding four premium homes and 600 beds in South-East Queensland, and acquired two high-quality Victorian homes from OC Health in December 2025, adding 230 beds. These acquisitions have been integrated smoothly and contributed positively to earnings and RAD inflows, with net RAD cash inflows exceeding $100 million from these deals, effectively reducing net capital outlay.

Regis also divested two homes in Far North Queensland in March 2026, realising a one-off pre-tax gain of $25.4 million, part of its portfolio renewal strategy focused on quality and sustainability.

Investing in Growth, Technology and Quality Care

Capital expenditure surged 62.4% to $143.1 million, reflecting increased investment in greenfield developments, land acquisitions, and refurbishments. The greenfield pipeline now includes nine sites across five states with approximately 1,300 beds, including the well-advanced Toowong development in Brisbane, set to open in summer 2026/27.

Digital transformation remains a priority, with the rollout of a new clinical management system across 56% of homes during FY26 and full implementation expected by calendar year-end. This platform enhances clinical governance, real-time resident monitoring, and reduces administrative burden. Regis also expanded its digital catering and food safety platform, improving dining experiences and nutritional outcomes, especially for residents requiring texture-modified diets.

Employee engagement improved markedly, with turnover dropping to 18% from 23% the previous year. Workforce planning initiatives reduced reliance on agency and overtime, helping control costs amid mandated wage increases and care minute requirements. Regis reported an industry-leading lost time injury frequency rate, underscoring its commitment to safety.

Leadership Transition and Strategic Focus

FY26 saw a smooth leadership transition with Andrew Kinkade appointed Managing Director and CEO in July 2026, succeeding Linda Mellors who stepped down after nearly seven years. Kinkade brings extensive aged care and healthcare experience, with a focus on operational excellence and growth. The Board welcomed Carmel Monaghan, former Ramsay Health Care CEO, as an independent director in February 2026, strengthening governance expertise.

Regis continues to navigate a complex regulatory environment shaped by the new Aged Care Act 2024, which came into effect in November 2025. The Act introduced strengthened quality standards, consumer protections, and funding reforms including RAD retention and the Higher Everyday Living Fee (HELF). Regis supports ongoing sector reforms aimed at sustainable funding and increased capacity.

Climate Report and ESG Commitments

For the first time, Regis published a comprehensive climate report aligned with Australian Sustainability Reporting Standards, disclosing Scope 1 and 2 greenhouse gas emissions and detailing governance, risk management, and sustainability initiatives. The company identified physical climate risks such as extreme rainfall, flooding, bushfires, and heatwaves, as well as transition risks including regulatory compliance and asset upgrades. While these risks are considered manageable with existing controls, Regis is advancing its Energy Resilience Program, incorporating solar generation, battery storage, and sustainable building design across developments and refurbishments.

Supplier engagement and waste management programs further support the company’s ESG agenda, aiming to reduce environmental impacts and enhance operational resilience. The Board and management have embedded climate-related considerations into strategic planning and capital allocation, with 10% of the Executive General Manager, Property’s remuneration linked to climate objectives.

Looking Ahead

Regis is well positioned to capitalize on demographic tailwinds and sector reforms, targeting growth beyond 10,000 residential aged care beds through a balanced mix of acquisitions and greenfield developments. The company plans to continue raising room prices, expanding HELF offerings, and investing in portfolio renewal to support premium pricing and occupancy.

Regulatory funding changes expected in late 2026 and early 2027, including AN-ACC price adjustments and accommodation supplement increases, may influence earnings. Meanwhile, the company’s digital investments aim to improve care quality and operational efficiency, supporting sustainable margin improvements despite wage and care cost pressures.

Recent announcements include the pending acquisition of Royal Freemasons’ home care business in Victoria, adding approximately 480 clients and boosting home care revenue by $10 million annually, funded from existing cash reserves. The CFO transition to Stuart Hooper effective September 2026 marks another leadership evolution as Regis embarks on its next growth phase.