Regis Faces Workforce and Regulatory Risks Despite Strong FY25 Gains

Strong Financial Turnaround

Regis Healthcare Limited has reported a significant financial turnaround for the year ended 30 June 2025, posting a statutory net profit after tax of $48.95 million, a 328.6% increase from a loss of $21.42 million in the prior year. This was underpinned by a 14.5% rise in revenue to $1.161 billion and a 17.4% increase in underlying EBITDA to $125.8 million, reflecting operational improvements and growth initiatives across the business.

The company’s earnings per share swung from a loss of 7.11 cents to a positive 16.25 cents, signaling a strong recovery and enhanced shareholder value. Regis declared a final dividend of 8.13 cents per share, 70% franked, bringing total dividends for FY25 to 16.22 cents per share, up from 12.92 cents in FY24, underscoring confidence in the company’s cash flow and profitability.

Growth Through Acquisitions and Developments

Regis has actively expanded its aged care portfolio through strategic acquisitions and greenfield developments. Notably, the acquisition of two residential aged care homes from Ti Tree Operations in Victoria added 262 beds, while the purchase of BodeWell Community Care doubled the scale of its home care operations, extending its footprint into South-East Queensland.

Further growth is anticipated with the pending acquisition of four near-new homes from Rockpool in South-East Queensland, adding 600 beds and expected to be earnings accretive in FY26. Concurrently, Regis is progressing greenfield projects including the recently opened 112-bed Regis Camberwell and developments underway at Toowong and Carlingford, with additional sites secured in Melbourne and Adelaide.

Operational Excellence and Innovation

Regis continues to focus on care and service excellence, achieving an average occupancy rate of 95.6% and delivering 226.7 care minutes per resident per day, exceeding mandated requirements. The company’s average star rating improved to 3.78, reflecting enhanced resident experience and compliance.

Innovation is a key pillar of Regis’ strategy, with investments in digital transformation including the rollout of AlayaCare for home care and pilot programs leveraging artificial intelligence to streamline clinical workflows and improve care responsiveness. These initiatives aim to reduce administrative burdens and enable staff to focus more on resident care.

Navigating Regulatory Reform and Sector Challenges

The company is well positioned to benefit from the new Aged Care Act 2024, effective 1 November 2025, which introduces strengthened quality standards, revised funding models, and the reintroduction of a refundable accommodation deposit retention scheme. Regis welcomes these reforms as they enhance sector sustainability and support investment in new and upgraded facilities.

Despite positive momentum, Regis acknowledges ongoing sector challenges including workforce shortages, occupancy pressures, and climate-related risks. The company’s comprehensive workforce strategy, including participation in the Pacific Australia Labour Mobility scheme, and its sustainability initiatives focused on energy resilience and environmental stewardship, demonstrate proactive management of these risks.

Governance and Leadership Stability

Leadership stability remains a strength, with the Board and executive team maintaining a clear strategic focus on disciplined growth and operational excellence. The retirement of co-founder Bryan Dorman marked the end of an era, but the company continues to benefit from experienced directors and a strong governance framework aligned with evolving regulatory requirements.

Regis’ robust balance sheet, with net cash of $192.5 million and undrawn debt facilities of $366.5 million, provides financial flexibility to pursue further acquisitions and developments, supporting its ambition to reach 10,000 available beds by 30 June 2028.