REGIS HEALTHCARE LIMITED (REG)
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26/08/2025

1

Buy

$9.00

14.65%

Regis Healthcare announced a robust FY25 result, as noted by Ord Minnett. Underlying net profit after tax lifted 38%, a beat by 4%, and operating cash flow growth increased 21% on the prior year.

The analyst considers the outlook for FY26 to be good, with high occupancy at spot 95.7% and higher Refundable Accommodation Deposit (RAD) pricing, up 18% in 2H25. The increase in RAD retention is expected to assist near-term earnings and growth.

The analyst sees upside risks to the Government's reviews into accommodation supplements and continues to like the stock around current levels.

Maintain Buy rating. Target lifts to $9 from $8.60. Ord Minnett tweaks its EPS forecasts by plus/minus 1% for FY26/FY27.

FORECAST
Ord Minnett forecasts a full year FY26 dividend of 21.10 cents and EPS of 21.10 cents.
Ord Minnett forecasts a full year FY27 dividend of 28.00 cents and EPS of 28.00 cents.

28/08/2025

2

Overweight

$8.30

5.73%

The highlight of Regis Healthcare's FY25 result in Jarden's view was very strong inflow from Refundable Accommodation Deposit. The broker sees ongoing opportunity from resident mix shift and government reforms to support concessional residents.

The FY25 underlying net profit was in line with the broker's forecast, while revenue beat by 1.6%, though EBITDA margin missed by -20bps. Higher nursing costs and an 8% increase in non-staff costs impacted margins.

The broker cut FY26 underlying net profit forecast by -5.4% and FY27 by -5.3% on higher costs related to compliance with regulatory standards and to improve service levels.

Target rises to $8.30 from $8.05. Overweight retained.

FORECAST
Jarden forecasts a full year FY26 dividend of 16.50 cents and EPS of 23.30 cents.
Jarden forecasts a full year FY27 dividend of 21.50 cents and EPS of 30.40 cents.