The Ensign Group Reports Third Quarter 2025 Results; Raises Annual Earnings and Revenue Guidance

Core Insights - The Ensign Group, Inc. reported strong operating results for Q3 2025, with GAAP diluted earnings per share of $1.42 and adjusted earnings per share of $1.64, reflecting increases of 6.0% and 18.0% respectively compared to the prior year quarter [1][7]. Operating Results - The company achieved record financial results driven by exceptional healthcare outcomes from its clinical teams, emphasizing a patient-focused culture [4]. - Occupancy rates for same store and transitioning facilities reached all-time highs of 83.0% and 84.4%, respectively, attributed to increased market share and trust from communities [5]. - The company has added 73 new operations since 2024, many of which are performing above expectations, indicating significant organic growth potential [6]. Financial Performance - Total skilled services revenue for the quarter was $1.24 billion, a 19.9% increase year-over-year, while consolidated GAAP and adjusted revenue reached $1.30 billion, up 19.8% [7]. - GAAP net income for the quarter was $83.8 million, a 6.9% increase from the previous year, and adjusted net income was $96.5 million, up 18.9% [7]. - The company raised its annual earnings guidance for 2025 to between $6.48 and $6.54 per diluted share, reflecting an 18.4% increase over 2024 results [8]. Acquisition Growth - The company accelerated growth by adding 22 new operations during the quarter, bringing the total for 2025 to 45, with a focus on both multi-facility portfolios and single facility opportunities [9][10]. - Ensign's liquidity remains strong, with approximately $443.7 million in cash and $592.6 million available under its line-of-credit [9]. Real Estate and Portfolio Expansion - Ensign's portfolio now consists of 369 healthcare operations across 17 states, with 155 real estate assets, indicating a robust strategy for both leasing and acquiring healthcare real estate [12]. - Recent acquisitions include several skilled nursing and senior living facilities in California and Texas, enhancing the company's operational footprint [11][12]. Dividend and Financial Health - The company declared a quarterly cash dividend of $0.0625 per share, maintaining a strong history of dividend payments [14]. - The financial statements indicate a solid cash flow position, with net cash provided by operating activities amounting to $380.95 million for the nine months ended September 30, 2025 [29].