Source: Kapitales Research

Highlights

• FY26 underlying EBITDA expected at ~AU$135 million, reaching the top end of guidance.
• Occupancy levels remained strong at 95.9%, reflecting sustained demand across mature homes.
• Net RAD inflows remained robust, supporting cash generation and long-term earnings visibility.

Regis Healthcare Limited (ASX: REG) gained 2.311%, with its share price rising by AU$0.139 to AU$6.640. The increase follows a positive trading update, with the company signalling strong earnings performance and continued operational momentum across its aged care portfolio.

Earnings Outlook Strengthens Confidence

The company expects FY26 underlying EBITDA to reach approximately AU$135 million, positioning results at the top end of its guidance range. This reflects stable operating performance supported by high occupancy, improved pricing, and sustained demand across facilities.

High Occupancy Driving Operational Stability

Average occupancy across mature homes stood at 95.9% during Q3 FY26, up from 95.5% in the prior corresponding period. This performance is underpinned by improved hospital discharge pathways, targeted sales initiatives, and a structural shortage of aged care beds, supporting consistent revenue generation.

Strong RAD Inflows Support Cash Position

Regis generated net refundable accommodation deposit (RAD) inflows of AU$44.5 million during the quarter, taking year-to-date inflows to AU$223 million. The total paid-up RAD balance reached approximately AU$2.3 billion, providing a stable and recurring funding base for the business.

Cost Efficiency and Capital Recycling Strategy

The company is actively implementing cost-saving initiatives through streamlined operations, workforce optimisation, and the use of data-driven tools. Additionally, Regis continues to recycle capital through selective divestments and targeted acquisitions, including the sale of two Queensland facilities, generating a one-off profit of AU$25 million.

Favourable Policy Environment Supports Growth

Government initiatives, including a AU$3 billion funding package and reforms to aged care pricing, are expected to improve sector sustainability. While details are pending, these measures could enhance long-term growth prospects and funding visibility for providers like Regis.

Note- All data presented is based on information available at the time of writing.

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