Did Regis Healthcares Strong Half-Year Results Just Spark a Fresh Rally in Aged Care Stocks?

Source: Kapitales Research

Highlights:

• Strong operating performance: Regis Healthcare Limited (ASX: REG) reported service revenue of $667.7 million and underlying EBITDA of $70.6 million, both coming in ahead of expectations and lifting investor sentiment.
• Growth driven by occupancy and acquisitions: Higher AN-ACC funding, improved occupancy at 96%, and recent aged care home acquisitions supported revenue expansion despite rising wage costs.
• Cash flow strength and dividend boost: Net operating cash flow jumped 40% year-on-year, allowing the company to declare a fully franked interim dividend of 9.0 cents per share.

Revenue and EBITDA beat expectations

Regis Healthcare Limited (ASX: REG) caught investors’ attention after releasing solid first-half FY26 results that pushed its share price higher. At the time of writing, the stock was trading around $6.920, up roughly 7.45%, as the market responded positively to stronger-than-expected operating performance.

The aged care provider reported service revenue of $667.7 million, representing an 18% increase compared to the prior corresponding period. Underlying EBITDA came in at $70.6 million, showing steady growth despite cost pressures across the sector. While statutory net profit fell to $13.4 million, management said this was largely impacted by one-off acquisition-related expenses rather than core business weakness.

Occupancy growth and acquisitions drive momentum

Regis highlighted improving occupancy levels across mature homes, which reached 96.0%, alongside a rise in occupied bed days and enhanced care standards. Higher government funding under the AN-ACC model, combined with strategic acquisitions, supported revenue expansion during the half. The company completed several acquisitions, including additional residential aged care homes in Queensland and Victoria, expanding its national footprint. Management also pointed to strong cash generation, with net operating cash flow climbing 40% year-on-year, supported by higher refundable accommodation deposit inflows.

Dividend confidence and expansion plans ahead

Reflecting confidence in its financial position, Regis declared a fully franked interim dividend of 9.0 cents per share, payable in April 2026. The company said it remains focused on greenfield developments and further merger and acquisition opportunities to capture rising demand for aged care services. Although wage increases and sector reforms continue to influence costs, Regis believes its strategy of improving occupancy, expanding services, and investing in new facilities positions the business for long-term growth. Investors appear encouraged by the strong operating momentum, suggesting the aged care sector may be regaining market confidence.

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