Post-acute care operator reported $1.44 billion in quarterly revenue, added 20 operations with real estate assets, and said occupancy, skilled mix and Medicare trends improved.
The Ensign Group raised its 2026 earnings and revenue outlook after reporting stronger second-quarter results, with GAAP diluted EPS of $1.68 and adjusted EPS of $1.92 for the quarter ended June 30, 2026. GAAP net income rose to $99.7 million and adjusted net income reached $114.3 million, while consolidated revenue increased 17.3% to $1.44 billion. The company said demand remained strong across its portfolio, with higher occupancy and skilled mix revenue in both Same Facility and Transitioning Facility operations. Operationally, Same Facility occupancy was 84.1% and Transitioning Facility occupancy was 84.7%, while skilled mix revenue rose 10.1% and 14.0%, respectively. Medicare revenue improved 9.8% and 9.6%, and managed care revenue increased 6.1% and 16.2%, respectively. Ensign also highlighted clinical performance, saying Same Facilities posted CMS (U.S. Medicare and Medicaid agency) quality measure ratings 23% better than industry peers in its operating states, with over 80% of skilled nursing operations earning 4 or 5 stars. None of its 398 affiliated facilities are designated as CMS Special Focus Facilities. Management increased annual 2026 diluted EPS guidance to $7.75 to $7.85 from $7.48 to $7.62, and lifted revenue guidance to $5.87 billion to $5.92 billion from $5.81 billion to $5.86 billion. The midpoint of the earnings range implies growth of 18.7% over 2025 and 41.8% over 2024, the company said. Ensign added that guidance assumes approximately 59.5 million diluted weighted average common shares outstanding, a 25.0% tax rate, normalized insurance costs, acquisitions expected to close through the third quarter of 2026, and current expectations on reimbursement rates, while excluding certain non-routine charges. The acquisition strategy remained a major growth driver. Ensign said it accelerated expansion by adding 20 new operations during the quarter and since, all with real estate assets. Since 2024, it has sourced, underwritten, closed and transitioned 102 new operations across several markets. Standard Bearer, its real estate segment, generated $44.1 million in quarterly revenue and $24.7 million in FFO (funds from operations, a real estate cash-flow metric). The company ended the quarter with about $262.3 million in cash on hand and $591.6 million of available capacity under its line of credit, and said it paid a quarterly cash dividend of $0.065 per share. Ensign said a conference call and webcast to discuss second-quarter 2026 results is scheduled for July 29, 2026 at 10:00 a.m. Pacific time.