Regis Healthcare Ltd (ASX:REG) is one of the largest aged care operators in Australia. Founded more than 30 years ago, it provides services to more than 10,000 older Australians through residential aged care homes, home care service hubs, day therapy and respite centres, and retirement villages. Regis employs more than 13,000 nurses, carers and support professionals. Andrew Kinkade is Managing Director and CEO.

On 2 October 2026, Regis shares were trading at $4.43, up 1.37%. The company's full-year results, released in August, reported Revenue and Earnings growth, completed acquisitions and an update on room repricing following the new Aged Care Act.

The company's portfolio is largely made up of freehold residential aged care homes, and it is pursuing a greenfield development pipeline of about 1,300 beds across nine sites.

Recent Developments

On 24 August 2026, Regis released its FY26 financial results. Key figures include:

  • Revenue from services increased 16% to $1,350.6 million.
  • Underlying EBITDA rose 10% to $138.0 million.
  • Underlying NPAT increased 4% to $55.6 million, and statutory NPAT rose 14% to $55.7 million.
  • Net Operating Cash Flow increased 10% to $336.3 million, including net refundable accommodation deposit (RAD) inflows of $250.5 million.
  • Net cash was $173.8 million at 30 June 2026.
  • The final Dividend was 9.40 cents per share, fully franked, payable on 23 September 2026, bringing FY26 dividends to 18.40 cents, up 13%.
  • Mature homes average occupancy was 96.0%, up from 95.6%.

Total occupied bed days rose 8% to 2.85 million. Camberwell and Oxley homes completed ramp-ups with 99% occupancy and generated net RAD inflows of $97.9 million. Regis completed the Rockpool Acquisition of four homes with 600 beds in South-East Queensland and the OC Health acquisition of two homes with 230 beds in Victoria. It also divested two homes in Far North Queensland, generating a one-off profit before tax of $25.4 million.

Staff expenses rose 19% to $1,055.1 million, reflecting Fair Work Commission decisions, the 3.5% Annual Wage Review increase and care minute requirements, while staff turnover fell to 18% from 23%. The underlying EBITDA Margin was affected by lower-than-expected AN-ACC price indexation from 1 October 2025. The new Aged Care Act commenced on 1 November 2025, reintroducing RAD retention of 2% a year for new residents. During July and August 2026, Regis repriced about 70% of rooms, lifting average advertised prices by 10%, which it expects to generate more than $500 million of net operating cash inflow over time. Recurring RAD retention earnings are projected to exceed $50 million a year once fully phased in.

Regis noted that its acquisitions added high-quality homes to the portfolio. On 1 September 2025, it completed the Rockpool acquisition for net consideration of $138.4 million, and since then has collected $64.7 million of net RAD inflows from that business, reducing its net Investment to $73.7 million. The OC Health acquisition, completed on 1 December 2025 for $44.7 million, established a presence in the Greater Geelong area. The average incoming RAD rose 20% to $697,200. Capital Expenditure increased to $143.1 million, including $55.6 million for land settlements, $42.5 million on greenfield developments and $40.2 million on refurbishments. The underlying EBITDA margin was 10.2%, compared with 10.8%.

One-off items included a $1.9 million Fair Value gain on investment property, $13.7 million of acquisition and integration costs, including $10.1 million in landholder and stamp duty, $2.5 million related to the Fair Work Commission's Work Value Case, and $4.3 million of strategic investment in IT systems.

Sector Context

Australia's aged care sector is undergoing significant reform, with the new Aged Care Act changing funding arrangements, accommodation pricing and quality standards. Demand is supported by an ageing population, while providers face rising labour costs and mandated care minutes.

Government funding through AN-ACC covers direct care costs, but indexation may not keep pace with wage increases. Accommodation deposits provide a source of funding for providers, and changes to RAD rules can affect cash flow and earnings. Larger operators with modern facilities and access to capital may be better positioned to invest in new homes and acquisitions.

The new Aged Care Act, which commenced on 1 November 2025, introduced means-testing of the hotelling supplement for new residents and lifted the maximum RAD room price that can be charged without approval to $789,686 from 1 July 2026. These changes are intended to make the sector more financially sustainable while maintaining quality standards. Providers that can attract residents to modern, well-located homes may be best placed to benefit.

Risks and Uncertainties

Regis' margins are sensitive to the gap between government funding indexation and wage and care costs, which affected FY26. Staff costs continue to rise, and future wage decisions could add pressure. Integration of acquisitions carries execution risk. Greenfield developments require capital and face construction risks. Regulatory changes in the aged care sector could affect operations and funding. Net cash fell during the year due to capital expenditure and acquisitions.

Regis recorded one-off costs in FY26, including acquisition and integration costs and expenses related to a historical employee entitlements underpayments program. Any further workforce or compliance issues could result in additional costs.

Higher capital expenditure and acquisition spending reduced net cash during the year.

Catalysts Investors Can Watch

Investors may watch for the opening of the 123-bed Toowong home in summer 2026/27, progress at Carlingford and other greenfield sites, the effect of room repricing on RAD inflows, and further acquisitions. AN-ACC indexation decisions will also be relevant.

Investors may also follow the growth of RAD retention earnings, which Regis expects to exceed $50 million a year once fully phased in, and progress toward its goal of expanding the portfolio beyond 10,000 beds.

Wrapping Up

Regis' FY26 result showed revenue and earnings growth, higher occupancy and acquisitions, with funding reforms expected to support earnings over time. Funding indexation and cost management remain key factors.