Ensign raises 2026 earnings range to $7.94–$8.02 per share after third-quarter revenue growth
Key Facts
Ensign Group raised its 2026 diluted earnings guidance to $7.94–$8.02 per share after reporting growth in third-quarter earnings and revenue, according to a company statement dated October 27. Its original annual earnings range was $7.75–$7.85 per share, while the low end of its revenue forecast rose to $5.89 billion, with the high end unchanged at $5.92 billion. Chief Executive Barry Port said third-quarter strength and confidence in the fourth quarter prompted the company to raise its guidance. Diluted earnings under generally accepted accounting principles were $1.76 per share, up 23.9% from the same period a year earlier. Adjusted diluted earnings were $2.03 per share, up 23.8% year over year.
Consolidated revenue was $1.48 billion in the third quarter, up 14.5% from the same period a year earlier, while net income under generally accepted accounting principles reached $104.3 million, an increase of 24.4%. The results reflect year-over-year growth in revenue and earnings, with adjusted earnings per share rising faster than revenue. For 2026 guidance, the midpoint of the new earnings range represents an increase of 21.5% over 2025 and 45.5% over 2024, Port said. In 2025, Ensign reported consolidated revenue of $5.06 billion, up 18.7% from the prior year, and adjusted diluted earnings of $6.57 per share. The comparison shows the new guidance follows a year of strong growth in revenue and adjusted earnings.
Operationally, occupancy at same-facility operations was 84.1% in the third quarter, while transitional operations recorded 86.1%, increases of 1.6 and 3.9 percentage points year over year, respectively. Skilled mix revenue rose 10.7% at same-facility operations and 10.5% at transitional operations, while skilled days increased 7.2% and 7.9%, respectively. Managed care revenue also grew 9.1% at same-facility operations and 7.2% at transitional operations. Managed care days rose 3.1% and 3.8%, respectively, from the year-earlier quarter. These indicators link improved occupancy and growth in skilled services and managed care with the operating performance that preceded the guidance increase.
Ensign added 22 new operations during and after the third quarter, including 3 owned real estate assets and 19 leased operations, and acquired the real estate of 5 facilities it had operated under lease agreements. The company’s portfolio comprises 418 healthcare operations in 18 states, including 34 operations that also include senior living facilities, and it owns 189 real estate assets, according to its statement. As of September 30, 2026, available cash was about $337.6 million, along with $731.6 million in available capacity under its line of credit. These figures provide a snapshot of the portfolio’s scale and available financial resources as the company continues to expand its operations. Management said its annual guidance assumes about 59.5 million weighted average diluted common shares and a 25.0% tax rate, along with normal insurance costs and expected acquisition transactions through the fourth quarter of 2026.
The company statement said the latest data from the Centers for Medicare & Medicaid Services showed that annual inspection results for same-facility operations were better than the state average by 15% and the county average by 28%. The company’s quality measure results also exceeded those of its peers in the states where it operates by 21%. Ensign scheduled a live webcast to discuss third-quarter results for October 28, 2026, at 10:00 a.m. Pacific time, or 1:00 p.m. Eastern time. A replay will remain available through November 27 at 5:00 p.m. Pacific time. The call follows the earnings release and guidance increase, giving management an opportunity to discuss quarterly performance and the annual outlook.