Regis Healthcare Ltd reported a 16% year-over-year increase in service revenue to AUD 1.35 billion for the six months ended December 31, 2025, driven by acquisitions and pricing actions.
Underlying earnings before interest, tax, depreciation and amortization grew 10% to AUD 138 million, while underlying net profit after tax rose 4% to AUD 55 million. Statutory net profit after tax increased 16% to AUD 55.7 million. Net operating cash flow climbed 10% to AUD 336 million, supported by a 28% rise in net RAD cash inflows to AUD 250 million. The company ended the period with a net cash position of AUD 174 million.
Regis declared a final dividend of AUD 0.094 per share, fully franked, marking the third consecutive annual increase. The dividend yield stands at 3.97%. Revenue per occupied bed day rose 7% to AUD 462, while staff expenses per occupied bed day increased 8% to AUD 341. Total staff costs jumped 19% to just over AUD 1 billion, primarily reflecting higher wages and agency labor expenses.
Acquisitions of Rockpool and OC Health contributed approximately AUD 97 million to revenue growth, accounting for half of the total revenue uplift. The transactions added 830 beds and generated AUD 65 million in RAD inflows since acquisition. One-off costs related to the deals totaled AUD 13.7 million, including AUD 10 million in stamp duty. Capital expenditure rose to AUD 143 million, while other income surged 44% to AUD 189 million, driven by a AUD 25 million gain on the sale of Ayr and Home Hill homes.
Occupancy levels improved, with mature home occupancy reaching 96% and average occupancy at 95.8%, up from 95.1% in the prior period. Total occupied bed days increased 8% to 2.85 million, supported by an 8% rise in average available beds to 8,142. Agency labor hours declined to 0.7% of total worked hours, down from a post-COVID peak of 6%. Employee turnover fell to 18%.
Looking ahead, Regis expects capital spending to exceed AUD 150 million in fiscal 2027, excluding land acquisitions, with a focus on construction projects. Three to four greenfield developments, including Toowong, Carlingford and Coburg, are slated for completion next year, while the Belrose project has been deferred. Staff costs are projected to remain around 78% of revenue, assuming stable AN-ACC funding.
Managing Director and CEO Andrew Kinkade noted that the company has raised prices on 70% of rooms by an average of 10%, which is expected to support future earnings growth. He highlighted ongoing cost-saving initiatives and opportunities to leverage data and AI as the business scales. CFO Rick Rostolis emphasized improved workforce planning and reduced employee turnover as key contributors to operational efficiency.
Regis Healthcare trades on a price-to-earnings ratio of 25.6 and a PEG ratio of 0.66, with a Piotroski score of 8. The stock closed at AUD 6.76, up 5.79% on the day, bringing its 52-week range to between AUD 5.62 and AUD 9.40.
