Aged care giant Regis Healthcare (ASX:REG) reported a sharp 45.1% decline in statutory net profit for the first half of FY26, falling to $13.4 million.
The downturn was primarily attributed to $12.8 million in one-off costs stemming from the strategic acquisitions of Rockpool and OC Health.
Despite the hit to the bottom line, the company's underlying performance remained resilient, with underlying net profit edging up slightly to $29.7 million, compared to $29.6 million in the prior year.
Operational growth was evident as service revenue grew to $667.7 million, a jump from the $564.2 million reported year-on-year.
The revenue boost helped lift underlying EBIT by 0.9% to $44.8 million.
However, the statutory result was further weighed down by $4.4 million in employee entitlement costs and a $1.6 million investment in IT infrastructure.
The board declared a fully franked interim dividend of 9 cents per share.
Looking ahead, Regis provided FY26 EBITDA guidance in the range of $130 million to $135 million.
The company is also currently navigating a leadership transition, confirming that the search for a new CEO has commenced following the resignation of Linda Mellors in December.
At the time of reporting, Regis Healthcare's share price was $7.20.