Regis Healthcare Limited (ASX: REG) has signalled a strong financial performance for FY26, forecasting underlying EBITDA of approximately $135 million, at the top end of its guidance, amid sustained high occupancy and robust cash generation.
In an ASX trading update released on 30 April, the aged care provider pointed to continued operational momentum through the third quarter, underpinned by historically high occupancy across its mature home portfolio and solid refundable accommodation deposit (RAD) inflows.
Average occupancy across mature homes reached 95.9 per cent in Q3 FY26, up from 95.5 per cent in the prior corresponding period, reflecting strong demand and constrained bed supply across the sector. The company attributed the performance to targeted sales strategies, improved hospital discharge pathways and broader market dynamics.
One of its newer additions, Regis Oxley, acquired as part of the Rockpool transaction in September 2025 reached full occupancy in March, around 12 months after opening.
RAD inflows also remained a key driver of financial strength. Regis reported net RAD cash inflows of $44.5 million for the quarter, bringing year-to-date inflows to $223 million as at 31 March 2026. The total paid-up RAD balance stood at approximately $2.3 billion.
The group said inflows were supported by recent acquisitions, pricing adjustments and a higher proportion of residents opting to pay RADs. It also flagged a longer-term opportunity to generate around $400 million in net operating cash inflows through the progressive repricing of existing RADs as resident turnover occurs.
Alongside revenue growth, Regis is pursuing a structured cost-savings program in response to ongoing funding constraints. The initiative focuses on streamlining management structures, improving roster efficiency and leveraging data analytics and AI-enabled tools to optimise workforce planning and automate routine processes.
The provider is also continuing its capital recycling strategy, targeting higher-quality assets while divesting lower-performing operations. In March, Regis completed the sale of two residential aged care homes in Far North Queensland, generating a one-off pre-tax profit of $25 million to be recognised in FY26.
The update comes as the Federal Government moves ahead with significant aged care reform, following the release of the Independent Review of Residential Aged Care Accommodation Pricing on 22 April. A $3 billion funding package has been flagged, with further details expected in the Federal Budget.
Proposed measures include targeted capital subsidies, increased accommodation supplements and structural changes to better support facilities with higher proportions of supported residents. Broader recommendations under consideration include reforms to RAD pricing, expanded access to interest-free government loans and streamlined approval processes for accommodation pricing.
