Regis Healthcare – 1H25 Results Summary
Overall Report Tone
📈 Regis Healthcare has delivered a strong turnaround in 1H25, reporting significant revenue growth (+17.5%) and a return to profitability. The company has benefited from higher government funding, increased occupancy rates, and strategic acquisitions. The reinstatement of an interim dividend and ongoing expansion efforts highlight Regis’ confidence in future growth.
📊 Financial Results
| Metric | 1H25 | 1H24 | % Change |
|---|---|---|---|
| Revenue | $564.17M | $480.08M | +17.5% |
| Underlying EBITDA | $68.05M | $52.11M | +30.6% |
| Operating Cash Flows | $208.60M | $151.88M | +37.4% |
| Statutory Net Profit | $24.36M | ($12.14M) | +300.6% |
| Normalised EPS | 8.09c | (4.03c) | +300.7% |
| Dividend (Interim) | 8.09c (60% franked) | 6.28c (50% franked) | +28.8% |
🆕 New Information Provided
✅ Acquired two aged care homes (262 places) from Ti Tree on December 2, 2024, expanding operations in Victoria.
✅ Opened a new greenfield aged care home in Camberwell, VIC (112 places) in November 2024.
✅ Occupancy rate improved to 95.7% (up from 93.6%), boosting resident revenue.
✅ Higher government funding per resident per day (+10.6%), supporting margin expansion.
✅ Signed binding agreement to acquire BodeWell Community Care, expanding into home care services.
🔥 Positive Surprises / Strengths
🚀 Return to profitability after a loss in 1H24, driven by revenue growth and cost management.
🚀 EBITDA grew 30.6%, reflecting operational efficiencies and improved occupancy.
🚀 Strong cash flow generation, allowing for capital investments and debt reduction.
🚀 Interim dividend increased by 28.8%, signaling confidence in ongoing earnings strength.
⚠️ Potential Concerns / Risks
🔴 Net tangible assets per share remain negative (-$1.47), reflecting high intangible asset levels.
🔴 Staff expenses increased significantly, driven by Fair Work Commission wage increases and mandated care minutes.
🔴 Debt facility was refinanced, with a reduction in total available funding, potentially impacting future expansion flexibility.
🔴 Sector-wide regulatory changes (new Aged Care Act in July 2025) could impose additional compliance costs.
📉 Results vs Market Expectations
📌 Revenue and profit exceeded market estimates, reflecting stronger-than-expected government funding and occupancy rates.
📌 EPS of 8.09c was significantly above consensus, supporting the 28.8% increase in dividends.
📌 Acquisitions and expansion efforts were well-received, reinforcing Regis’ strategic growth narrative.
📌 Stronger-than-expected cash flow, allowing investment in new developments while maintaining dividends.
🔭 Outlook and Guidance
🔹 Further revenue growth expected in FY25, supported by higher government funding and expansion into home care.
🔹 Care minutes mandate (215 mins per resident from Oct 2024) to drive further staff cost increases.
🔹 New Aged Care Act (July 2025) expected to provide additional financial support to the sector.
🔹 Targeting more acquisitions and greenfield developments, leveraging its strong cash flow position.
🌍 Market Positioning
💡 Regis remains a leading provider in residential aged care, with 69 homes and 7,700+ operational places.
💡 Expansion into home care (BodeWell acquisition) broadens service offerings.
💡 Government policy shifts are creating opportunities, particularly with new funding models and legislative reforms.
💡 Continued investment in technology and compliance to maintain high-quality standards.
📈 Share Price Performance
💰 Share price gained 15% in the two weeks leading up to results, driven by optimism on earnings recovery.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:REG