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Regis Healthcare Limited (ASX:REG)

ALERT: Price-sensitive ASX Announcement for REG
Current share price for REG : $6.170 -0.27 (-4.19%)+
Announcement
Release
23 Feb 2026 8:44AM
Price at Release
$6.440
Full Release
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Summary
Regis Healthcare Limited reported a substantial increase in its financial performance for the first half of FY26, with a notable 18% rise in revenue to $667.7 million. Staff expenses increased by 22% due to higher wage costs following regulatory decisions and expanded workforce requirements. A significant improvement in net operating cash flow, up 40% to $291.7 million, was noted, supported by increased RAD inflows and investments in greenfield developments. The capital expenditure of $102.1 million was primarily directed toward land settlements and development projects at Toowong and Carlingford. The company has set a strategic target to grow its bed count to 10,000 by FY28, facilitated by new developments and acquisitions. An interim dividend of 9.0 cents per share has been declared, and Regis projects its FY26 underlying EBITDA to range between $130 million and $135 million. Notably, CEO Dr. Linda Mellors announced her resignation, prompting a search for her successor. Key legislative changes under the new Aged Care Act, such as the re-introduction of RAD retention and an increased cap on RAD room prices, are expected to bolster future earnings.
Key Points
  • Revenue from services increased by 18% to $667.7 million.
  • Staff expenses rose by 22% to $519.1 million due to wage adjustments and increased workforce.
  • Net operating cash flow increased by 40% to $291.7 million.
  • Capital expenditure reached $102.1 million, largely for land and development projects.
  • Regis aims to reach 10,000 beds by FY28, adding 300 to 450 beds from new developments.
  • Regis expects FY26 underlying EBITDA to be between $130m and $135m.
  • Interim dividend of 9.0 cents per share declared, amounting to $27.2 million.
  • CEO Dr. Linda Mellors announced resignation, and a search for a new CEO is underway.
  • New Aged Care Act changes include RAD retention and increased maximum RAD room prices.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.