The ASX-listed aged care provider's shares jumped 1.2% to $8.36 on Monday (25 August), close to record highs achieved earlier this month, after the company reported its full year result.
Regis' FY25 earnings before interest, tax, depreciation and amortisation (EBITDA) was $125.8 million, up 17% on the previous year, while revenue rose 14.5% to $1.2 billion.
The result was driven primarily by:
- acquisitions – the provider bought two aged care homes from Ti Tree Operations on Victoria’s Mornington Peninsula during the year, and acquired BodeWell Community Care's home care business for a net $4.4 million,
- an increase in occupancy from 94.1% as of 30 June 2024 to 95.6% (for mature homes) as of 30 June 2025, and
- increases in the AN-ACC starting price from $253.82 at the start of the year to $280.01 on 1 October 2024 and to $282.44 on 1 March 2025, to cover the Fair Work Commission's Work Value Cases and the Annual Wage Review, and AN-ACC funding rising to cover increased care minute targets.
Net cash at the end of the year was nearly triple the amount at the end of the previous year, rising 196.6% to $192.5 million, helped by a 38.6% increase in net RAD cash inflow to $195.4 million. Regis' average RAD rose 18% in the six months from 1 January 2025, after the cap was increased to $750,000. The number of RAD-paying residents also increased.
10,000 bed target
Regis has set a target of achieving 10,000 aged care beds by FY28, facilitated by the incoming RAD retention policy, improved economies of scale, and higher RADs. The results presentation noted the "core business generates substantial free cash flow", enabling an aggressive acquisition and greenfield development program.
Regis also restated plans to open two to three greenfield sites annually. Its greenfield 112-bed Camberwell development opened in November 2024. Two homes – Toowong (QLD) and Carlingford (NSW) – are currently under construction. In total, the operator has nine greenfield development sites – with plans to acquire more.
In addition, Regis has acquired four aged care homes in South-East Queensland from Rockpool, with 600 beds, in a deal expected to be completed on 1 September 2025 (next week).
The operator has also estimated future acquisitions totalling 1,200 beds (see chart right).
Chief Financial Officer Rick Rostolis told the investor presentation that CapEx was likely to be $100 million in FY26, up from $88.1 million in FY24.
As of 30 June 2025, Regis has 68 aged care homes, 7,246 aged care residents, and 2,578 home care clients.
For our in-depth interview with Regis Managing Director and CEO Dr Linda Mellors about the results, read this week's SATURDAY, out on Friday.
