The Regis Healthcare Ltd (ASX: REG) share price is in focus after the company announced FY26 underlying EBITDA is expected at about $135 million, hitting the top end of its guidance amid strong occupancy across mature homes.
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What did Regis Healthcare report?
- FY26 underlying EBITDA expected to be approximately $135 million
- Average Q3 FY26 occupancy in mature homes reached 95.9%, up on the prior period
- Net refundable accommodation deposit (RAD) inflows of $223 million year to date (March FY26)
- Total paid-up RAD balance at $2.3 billion as at 31 March 2026
- One-off profit before tax of $25 million from divestment of two homes in Far North Queensland
What else do investors need to know?
Regis Healthcare's ongoing momentum was supported by targeted sales initiatives and a tightening market for available beds. The company's recent acquisitions, including Rockpool and OC Health, and room pricing adjustments also helped drive RAD inflows.
A structured cost-savings program is underway, focusing on streamlining management, improving operational efficiency, and adopting data analytics and AI tools to optimise workforce planning and automate processes. Regis is actively recycling capital, through both acquisitions and divestments, to strengthen its portfolio's quality and earnings profile.
Regis is closely monitoring the Federal Government's accommodation funding reforms and a new $3 billion package to support sector sustainability, with further details expected in the May 2026 Budget.
What did Regis Healthcare management say?
Managing Director and CEO Dr Linda Mellors said:
The release of the Accommodation Pricing Review and the Government's initial funding response represent an important step toward improving the long-term sustainability of residential aged care. While further detail and consultation will be important, the direction of reform is positive and aligns with the sector's need for a more sustainable funding and capital framework.
What's next for Regis Healthcare?
Regis intends to keep investing in quality acquisitions and new developments in attractive locations, while continuing its efficiency and capital management push. Management will be watching the Federal Government Budget and aged care policy updates closely, considering their potential impact on funding and resident mix.
Over time, the progressive repricing of RADs is expected to deliver substantial operating cash inflows, supporting future growth and earnings.
Regis Healthcare share price snapshot
Over the past 12 months, Regis Healthcare shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
