Australia's Regis Healthcare plunges on government funding shortfall

Regis Healthcare

22/09/2025 05:23

** Shares of aged care operator Regis Healthcare REG.AX crashes 26.2% to A$6.8, their lowest since April 30

** Stock on track for worst session ever; top loser on ordinary index .AORD, which is up 0.6%

**  Co says Federal Government's 4.7% base price increase for Australian National Aged Care Classification falls short of expectations

**  Expects funding increase of only 2.6%, creating funding gap for operations

** Separately, forecasts FY26 underlying EBITDA of A$130 mln - A$135 mln ($85.70 mln - $88.99 mln), up 3%-7% from FY25

** Trading volume spikes to 3.3 mln shares, 3x 30-day average

** YTD, stock up 13% vs AORD's 8.2% gain

($1 = 1.5170 Australian dollars)

 (Reporting by Jasmeen Ara Shaikh in Bengaluru)

 ((JasmeenAraIslam.Shaikh@thomsonreuters.com;))