Aged and Home Care earnings slashed: Australian Unity 1H26

The ASX-listed mutual organisation, also Australia's largest home care provider, has reported lower earnings across all its businesses.

Revenue rose 3.6% from the previous corresponding period (pcp) to $1,130.6 million in 1H FY26, mainly reflecting the acquisition of the mobile allied health service provider Plena Healthcare in July 2025.

But adjusted EBITDA from continuing operations was $28.1 million, about half the result achieved in the pcp.

The earnings decline reflects higher expenses associated with the Plena Healthcare acquisition. In the Residential Aged Care business, wages were also higher due to Fair Work Commission decisions, and integration and transformation spending rose across all operations.

Reform delays cut Home Health margins

Earnings in the Home Health business were also impacted by the delayed release of home care packages during the period.

"Expected Home Health earnings ... did not materialise as planned due to the delayed introduction of the Aged Care Act 2024 and the subsequent backlog of 83,000 support packages from government," the results state.

"The delay has had a direct impact to the Group’s expected financial performance in the period."

Commencement of Support at Home on 1 November 2025 also saw a "wide reduction in the earnings margin per customer".

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During the six-month period, Australian Unity also sold The Oaks Retirement Community in Kilsyth, Victoria, for $6.5 million and acquired the Herston Quarter’s Edith Cavell building in Brisbane, Queensland.

The retirement living portfolio achieved 86 resale settlements, a 7.5% increase on the prior year.

Australian Unity operates 12 residential aged care homes, co-located with their retirement villages across New South Wales, Victoria and Queensland. Since the acquisition of Plena Healthcare last year, it has about 160,000 customers in its Home Health business. It has 22 retirement villages.