Earnings

Ensign Group Raises 2026 Earnings Outlook To $7.94-$8.02 A Share As Medicare Revenue Climbs

The nursing-home operator also lifted the low end of its revenue range to $5.89 billion and moved into Florida.

Ensign Group, which runs skilled nursing and senior living facilities, raised its 2026 earnings guidance to $7.94 to $8.02 per diluted share on Tuesday, up from an original $7.75 to $7.85, after third-quarter profit rose 23.9% per share. CEO Barry Port pointed to fuller beds and a richer mix of skilled patients.

Beds fuller, Medicare stronger

Third-quarter revenue reached $1.48 billion, up 14.5% from a year earlier. Earnings were $1.76 a share on a standard-accounting basis, up 23.9%, and $2.03 adjusted, up 23.8%. Net income was $104.3 million.

At Same Facilities, the long-held buildings, occupancy was 84.1%, up 1.6% from a year earlier. Skilled mix revenue rose 10.7% and Medicare revenue rose 11.1%. Port said patients, families and hospital systems keep choosing Ensign-affiliated operations "because of the outcomes our teams achieve."

The company raised the low end of its 2026 revenue forecast to $5.89 billion and kept the top at $5.92 billion. Port said the earnings midpoint is 21.5% above 2025 and 45.5% above 2024. Guidance assumes about 59.5 million diluted shares and a 25.0% tax rate.

Into Florida, 22 operations at a time

Ensign, a holding company whose independent subsidiaries run skilled nursing and senior living, has also been buying and leasing facilities. During the quarter and since, it added 22 operations: three real estate assets and 19 leased operations. It also bought five properties it had been operating under lease.

The additions include its entrance into Florida, which Chief Investment Officer Chad Keetch called a continuation of a Southeast push that began in Tennessee, South Carolina and Alabama. Since 2024, he said, Ensign has sourced, closed and transitioned 122 new operations.

Ensign now has 418 healthcare operations across 18 states and owns 189 real estate assets. Its real estate arm, Standard Bearer, posted rental revenue of $47.7 million, up 46.3%.

Cash and the next call

Chief Financial Officer Suzanne Snapper said Ensign held about $337.6 million of cash and had $731.6 million available under its credit line. The company paid a quarterly dividend of $0.065 a share.

Management discusses the results on a webcast Wednesday at 10:00 a.m. Pacific.

The webcast on Wednesday at 10:00 a.m. Pacific is the next chance to hear management on the raised outlook.