Shares of Regis Healthcare Ltd rallied on Monday following the release of the company’s first-half financials, with the Sydney-listed aged-care operator pointing to stronger occupancy and acquisitions as contributors to revenue growth.
For the six months ended Dec. 31, revenue from services increased 18% year-on-year to A$667.7 million. Underlying EBITDA rose 4% to A$70.6 million over the same period. Underlying net profit after tax was A$29.7 million, effectively unchanged from A$29.6 million a year earlier as higher wage costs and spending linked to expansion offset the top-line gains.
Market reaction was immediate. Regis shares climbed as much as 12% to A$7.20 during trading, reaching their highest level since Dec. 23.
Operational metrics showed progress that the company highlighted. Average occupancy at mature homes increased to 96.0% from 95.7% previously, and occupied bed days grew 7% to 1.41 million over the half.
The board declared a fully franked interim dividend of 9.0 Australian cents per share, up from 8.0 cents in the prior corresponding period.
Looking ahead, the company has issued guidance for future profitability and capacity. Regis forecast underlying EBITDA for FY26 in a range of A$130 million to A$135 million and reiterated a capacity target of about 10,000 beds by FY28.
Analysis
The half-year results present a mixed but constructive picture. Revenue growth was robust, supported by improved utilisation and acquisitions, while margins and reported underlying profitability were constrained by higher labour expenses and investment in expansion. The dividend increase signals a degree of confidence in cash flow, even as the company balances near-term cost pressures with growth initiatives.
Investors reacted positively to the combination of top-line momentum, higher occupancy metrics and the company’s guidance for FY26, which together underpinned the share price jump.
Key metrics
- Revenue from services: A$667.7 million - up 18% year-on-year
- Underlying EBITDA: A$70.6 million - up 4% year-on-year
- Underlying net profit after tax: A$29.7 million - broadly unchanged from A$29.6 million
- Average occupancy at mature homes: 96.0% (previously 95.7%)
- Occupied bed days: 1.41 million - up 7%
- Interim dividend: 9.0 Australian cents per share (fully franked), up from 8.0 cents
- FY26 underlying EBITDA guidance: A$130 million to A$135 million
- FY28 bed target: about 10,000 beds