Regis Healthcare tracks top end of FY26 underlying earnings guidance
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The news: Aged care provider Regis Healthcare expects to report underlying EBITDA of $135 million in FY26, hitting the top end of its guidance range, citing strong occupancy rates and cash generation in the third quarter.
The numbers: In the three months to 31 March, average occupancy in mature homes was at 95.9%, slightly higher than 95.5% recorded in the prior corresponding period.
Regis generated net refundable accomodation deposit (RAD) inflows of $44.5 million during the period, bringing total year-to-date cash inflows to $223 million.
The divestment of its two residential aged care homes generated a one-off profit before tax of $25 million, which will be recognised in the FY26 results.
The context: Regis stated that aside from the higher occupancy rate and stronger RAD cash inflows, the positive outlook was also supported by the Federal Government’s release of the independent review into residential aged care accomodation pricing, in which a $3 billion funding package was announced on 22 April to deliver more beds and expand in-home care services.
The company noted it will continue to assess the details of the review, but expects these measures to be supportive of the sector’s long-term sustainability.
What they said: “The release of the Accomodation Pricing Review and the Government’s initial funding response represent an important step toward improving the long-term sustainability of residential aged care,” CEO Linda Mellors said.
“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,” she added.
The source: ASX
