Highlights

  • Regis Healthcare reported FY26 Revenue from services of AUD 1,350.6 million, up 16.3% from AUD 1,161.3 million in FY25.
  • REG shares were trading at AUD 6.32, down 1.10% during the afternoon Trading session on 24 August 2026.
  • Underlying EBITDA increased 9.7% to AUD 138.0 million, while statutory NPAT rose 13.8% to AUD 55.7 million.
  • Mature home occupancy increased to 96.0%, while net RAD cash inflow rose 28.2% to AUD 250.5 million.
  • The Board declared a fully franked final Dividend of 9.40 cents per share, taking total FY26 dividends to 18.40 cents per share.

Regis Healthcare (ASX:REG) has reported FY26 Earnings above its guidance range, with higher revenue, occupancy, Cash Flow and profit supported by increased aged care funding, acquisitions and the ramp-up of newer homes. At the same time, rising workforce and care delivery costs continued to pressure margins, leaving funding adequacy and cost control as important issues heading into FY27.

Regis shares were trading at AUD 6.32, down 1.10%, or AUD 0.070, during the afternoon trading session on 24 August 2026. The stock remained down 24.40%, or AUD 2.04, over the past year.

Regis is one of Australia’s larger aged care operators, providing services to more than 10,000 older Australians across residential aged care, home care, day therapy, respite and retirement living.

Revenue Growth Supported by Occupancy and Acquisitions

Revenue from services increased 16.3% to AUD 1,350.6 million from AUD 1,161.3 million in FY25.

The increase reflected higher AN-ACC pricing, the hotelling supplement, acquired homes and improved occupancy.

Underlying EBITDA rose 9.7% to AUD 138.0 million from AUD 125.8 million, while underlying EBIT increased 7.7% to AUD 83.2 million.

Underlying NPAT was AUD 55.6 million, up 4.2% from AUD 53.4 million.

Statutory NPAT increased 13.8% to AUD 55.7 million from AUD 49.0 million.

Underlying Basic Earnings Per Share rose to 18.42 cents from 17.73 cents, while statutory basic EPS increased to 18.44 cents from 16.25 cents.

Occupancy Moves Higher Across Mature Homes

Operationally, mature home average occupancy increased to 96.0% from 95.6% in FY25.

Total occupied bed days rose 8% from 2.63 million to 2.85 million.

The Camberwell and Oxley homes both completed their ramp-up periods and reached 99% occupancy by the end of FY26.

Together, these homes generated AUD 97.9 million of net RAD cash inflow during the year, comprising AUD 42.1 million from Camberwell and AUD 55.8 million from Oxley.

Managing Director and CEO Andrew Kinkade said the result reflected occupancy performance, new home ramp-ups and higher RAD inflows alongside integration of acquired assets.

Higher Labour Costs Keep Pressure on Margins

While revenue and earnings increased, the underlying EBITDA Margin declined to 10.2% from 10.8%.

Staff expenses rose 18.7% to AUD 1,055.1 million from AUD 889.0 million.

The increase reflected higher wage costs following Fair Work Commission Work Value Case decisions, the 3.5% Annual Wage Review increase from 1 July 2025 and enterprise agreement pay increases.

Regis also employed a larger frontline workforce and increased hours to meet government-mandated care minute requirements.

Staff expenses represented 78.1% of revenue from services, up from 76.6% in FY25.

The company said lower-than-expected AN-ACC price indexation from 1 October 2025 did not fully offset increases in labour and care delivery costs.

However, staff turnover declined to 18% from 23%, while reliance on agency labour and overtime also decreased.

Operating Cash Flow and RAD Inflows Increase

Net Operating Cash Flow increased 9.8% to AUD 336.3 million from AUD 306.1 million.

This included net RAD cash inflow of AUD 250.5 million, up 28.2% from AUD 195.4 million.

Regis said RAD inflows benefited from increased occupancy, a higher proportion of residents paying RADs and improved accommodation pricing.

The average incoming RAD increased 20% to AUD 697,200.

Operating cash flow supported AUD 326.1 million of Investment across Capital Expenditure and acquisitions during FY26.

At 30 June 2026, Regis held net cash of AUD 173.8 million, compared with AUD 192.5 million a year earlier.

Capital Spending Steps Up With Development Program

Capital expenditure increased 62.4% to AUD 143.1 million from AUD 88.1 million.

This included AUD 55.6 million for land settlements, AUD 42.5 million for greenfield development work and AUD 40.2 million for refurbishment and upgrades across existing homes.

Regis is progressing a greenfield development pipeline of approximately 1,300 beds across nine sites.

Construction of its 123-bed Toowong Facility in Brisbane is nearing completion, with opening planned for summer 2026/27.

Construction at Carlingford is also underway.

Management sees the development pipeline as a route to expanding its portfolio while targeting occupancy, accommodation pricing and RAD inflows from new homes.

Rockpool and OC Health Add 830 Beds

Regis completed two acquisitions during FY26.

The Rockpool Acquisition was completed on 1 September 2025 and added four residential aged care homes with 600 beds in South-East Queensland.

Net consideration was AUD 138.4 million.

Since acquisition, Rockpool generated AUD 64.7 million of net RAD cash inflow, reducing the net investment to AUD 73.7 million.

Regis also completed the OC Health acquisition on 1 December 2025, adding two homes with 230 beds in Victoria for net consideration of AUD 44.7 million.

The acquisition established a presence in the Greater Geelong region.

Portfolio Recycling Generates One-Off Gain

Regis also continued to recycle capital through asset sales.

In March 2026, the company divested two residential aged care homes in Ayr and Home Hill in Far North Queensland.

The transaction generated a one-off profit before tax of AUD 25.4 million.

Other one-off items during FY26 included a AUD 1.9 million Fair Value gain on investment property, AUD 13.7 million of acquisition and integration costs, AUD 2.5 million related to employee entitlements, AUD 2.4 million in historical employee underpayment-related professional costs and AUD 4.3 million invested in IT systems.

The overall net impact of one-off items was a gain of AUD 4.4 million before tax.

Room Repricing Could Support Future RAD Cash Flow

During July and August 2026, Regis repriced approximately 70% of rooms across its portfolio.

Average advertised room prices increased by 10%.

As incoming residents enter care, the company expects the progressive repricing of existing paid-up RADs toward current advertised prices to generate more than AUD 500 million of net operating cash inflow over time.

Regis also expects recurring RAD retention earnings to generate more than AUD 50 million annually once fully phased in.

The company said these funding changes should help offset some of the margin pressure associated with care delivery costs.

Fully Franked Dividend Increases

The Board resolved to pay a fully franked final dividend of 9.40 cents per share.

The Record Date is 9 September 2026, with payment scheduled for 23 September 2026.

Total FY26 dividends amount to 18.40 cents per share, up 13% on the previous corresponding period.

What Investors May Be Watching

Regis enters FY27 with higher occupancy, increased RAD inflows and an active development and acquisition pipeline, but labour costs and funding indexation remain key operating considerations.

Investors may watch the rollout of the 1,300-bed greenfield pipeline, particularly the opening of Toowong and progress at Carlingford.

The impact of room repricing and RAD retention will also be relevant given management’s expectation of more than AUD 500 million in net operating cash inflow from progressive repricing and more than AUD 50 million in annual recurring RAD retention earnings once fully phased in.

At the same time, margin performance will depend partly on how government funding evolves relative to workforce and care delivery costs.