How Regis Healthcare’s Strategic Acquisitions Fuel FY25 Growth and Future Expansion

Robust Financial Performance Amid Sector Challenges

Regis Healthcare has delivered a strong FY25 performance, reflecting both operational resilience and strategic foresight in a rapidly evolving aged care sector. The company’s revenue from services climbed 14.5% year-on-year to $1.161 billion, underpinned by a mature homes average occupancy rate of 95.6%, up from 94.1% in the prior year. This increase in occupancy, alongside government funding uplifts and higher resident acuity, has driven an underlying net profit after tax (NPAT) growth of 37.3% to $53.4 million.

Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) also rose 17.4% to $125.8 million, highlighting improved operational efficiency despite rising staff expenses linked to mandated care minute increases and wage adjustments following Fair Work Commission rulings.

Strategic Acquisitions and Development Pipeline Expansion

Regis has actively expanded its footprint through acquisitions and greenfield developments. The December 2024 acquisition of Ti Tree added 262 high-quality beds in Victoria, increasing the company’s Victorian presence by 15%. The April 2025 purchase of BodeWell broadened Regis’s home care services into South-East Queensland, adding approximately 2,500 clients. Looking ahead, the pending Rockpool acquisition, expected to complete in September 2025, will add 600 premium beds in Queensland, further enhancing the company’s scale and portfolio quality.

Simultaneously, Regis is progressing multiple greenfield projects, including new homes in Toowong, Carlingford, and Belrose, with a land bank expanded to nine sites. The company targets opening two to three new developments annually, aiming to reach 10,000 beds by FY28, up from approximately 7,600 beds at June 2025.

Navigating Regulatory Changes and Funding Reforms

Regis is preparing for the implementation of the new Aged Care Act on 1 November 2025, which introduces the Higher Everyday Living Fee (HELF) and reintroduces refundable accommodation deposit (RAD) retention. These reforms are expected to improve provider returns and support sustainable funding models. The company has already factored in recent AN-ACC funding increases and wage case outcomes, passing these through to staff and care delivery enhancements.

Operationally, Regis has improved average care minutes per resident to 226.7 minutes, reflecting compliance with government mandates and a commitment to quality care. The company also reported an improved average star rating of 3.78, signaling enhanced resident satisfaction and service standards.

Financial Strength and Shareholder Returns

Regis maintains a robust balance sheet with net cash of $192.5 million, nearly tripling from the prior year, supported by strong net RAD cash inflows and disciplined capital expenditure. The company invested $88.1 million in capital projects, including new developments and refurbishments, while managing acquisitions and dividend payments prudently. The board declared a final dividend of 8.13 cents per share, fully franked, reflecting confidence in ongoing cash flow generation.

Commitment to ESG and Future Readiness

Beyond financials, Regis is advancing its Environmental, Social, and Governance (ESG) agenda with a focus on climate resilience, sustainability in new developments, and social impact initiatives such as repurposing furniture and equipment to reduce landfill waste. The company’s workforce strategy has yielded a high staff engagement score of 87% and reduced turnover to 23%, supporting continuity of care and operational stability.

Looking forward, Regis is well-positioned to capitalize on demographic tailwinds, including the growing population aged 85 and over, and the ongoing undersupply of aged care beds nationally. Its disciplined approach to acquisitions, development, and operational excellence sets a solid foundation for sustainable growth in a complex regulatory environment.