Regis Healthcare Surges, quality acquisitions driving sustainable growth

The company shared its half year FY26 update on 23 February 2026 giving a clear view of its financial and operational progress. It shows how the business performed in the first six months and what direction it is taking ahead. 

Regis Healthcare Ltd (ASX: REG) 

on 23 February 2026 shared its H1 FY26 results showing steady progress. Revenue from services reached $667.7 million which is an 18% rise compared to the previous period. 

Underlying EBITDA came in at $70.6 million with a 4% increase. Underlying NPAT stood at $29.7 million showing only slight growth of 0.1%. Statutory NPAT was lower at $13.4 million due to one-off costs mainly linked to acquisitions. 

Net operating cash flow was strong at $291.7 million which is 40% higher than before. This included $178.5 million from net RAD inflows. Net cash improved to $198.0 million marking a 10% rise. 
The board approved an interim dividend of 9.0 cents per share fully franked to be paid on 9 April 2026.

Operational Progress 

Operational performance showed clear improvement across key areas. Average occupancy in mature homes reached 96.0% compared to 95.7% earlier. Occupied bed days increased from 1.31 million to 1.41 million which equals 7% growth. 

Quality indicators also improved with the average star rating moving from 3.56 in Q1 FY25 to 3.92 in Q1 FY26. Care delivery rose as average minutes per resident per day increased from 210.1 in Q1 FY25 to 220.0 in Q2 FY26. 

Full compliance with accreditation standards was maintained during the half. The Camberwell facility reached 96% occupancy by the end of the period and generated $56 million in RAD inflows since opening in November 2024.

Costs Cash Flow Developments 

Revenue growth was supported by pricing changes higher occupancy and recent acquisitions. Staff expenses rose to $519.1 million reflecting wage increases and additional workforce hours needed to meet care requirements. Despite higher costs staff turnover reduced to 20.2% from 25.6% which shows better retention. Use of agency labour and overtime also declined. 

Construction is ongoing at Toowong and Carlingford while work at Belrose is planned to begin in 2026. Land settlements were completed in several locations to support future expansion. 

The Rockpool acquisition added four homes with 600 beds and generated $36 million in RAD inflows reducing net investment. The OC Health deal added two homes with 230 beds and offers future earnings potential.

Policy Changes Growth Plans and Outlook

The new Aged Care Act began on 1 November 2025 bringing key funding updates. Clinical care remains funded by AN-ACC while the hotelling supplement became means tested for new residents. 

RAD retention was reintroduced allowing providers to retain 2% per year capped at five years. The maximum RAD price without approval increased to $750,000 from 1 January 2025. 

REG goals to reach 10,000 beds by FY28 increased from about 8,400 at December 2025. Greenfield projects are expected to add 300 to 450 beds with further growth from acquisitions. Strong cash flow and available funding support this plan. 

For FY26 underlying EBITDA is expected to be between $130 million and $135 million.

(Source: Company Report)