Ensign Group Reports Strong Q2 2025 Results and Raises Annual Guidance

The Ensign Group, Inc., a prominent provider of post-acute healthcare services, has released its financial results for the second quarter of 2025. The company reported significant growth in earnings and revenue, prompting an upward revision of its annual guidance.

Financial Highlights

For the quarter ended June 30, 2025, Ensign Group reported a GAAP diluted earnings per share (EPS) of $1.44, marking an 18.0% increase over the same period last year. Adjusted EPS stood at $1.59, reflecting a 20.5% year-over-year growth. The company's GAAP net income was $84.4 million, an 18.9% increase from the prior year, while adjusted net income reached $93.3 million, up by 22.1%.

Total revenue for the quarter was $1.23 billion, an 18.5% increase compared to the previous year. The skilled services segment contributed $1.17 billion to the total revenue, representing an 18.4% year-over-year growth. The Standard Bearer segment reported revenue of $31.5 million, a 34.7% increase from the prior year.

Business and Operational Highlights

Ensign Group's occupancy rates for Same Facilities and Transitioning Facilities improved to 82.1% and 84.0%, respectively. Skilled services revenue for these facilities increased by 6.5% and 11.6%, respectively. Additionally, the company saw a 7.4% increase in skilled days for Same Facilities and a 13.5% increase for Transitioning Facilities.

The company continued its expansion by acquiring eight new operations, including three real estate assets. These acquisitions are expected to enhance Ensign's presence in key markets and contribute to its long-term growth strategy.

Strategic Initiatives and Corporate Developments

Ensign Group has raised its annual 2025 earnings guidance to between $6.34 and $6.46 per diluted share, up from the previously raised guidance of $6.22 to $6.38. The company also increased its annual revenue guidance to a range of $4.99 billion to $5.02 billion, reflecting the strong performance in the current quarter and anticipated acquisitions.

The company maintains a robust liquidity position with approximately $364.0 million in cash on hand and $592.6 million of available capacity under its line of credit. Ensign also paid a quarterly cash dividend of $0.0625 per share, continuing its long history of dividend payments.

Management's Perspective

Barry Port, Ensign's Chief Executive Officer, highlighted the company's strong performance and the dedication of its local teams. He emphasized the improvements in occupancy and skilled mix as key drivers of success. Chad Keetch, Chief Investment Officer, noted the company's strategic acquisitions and commitment to sustainable growth. Suzanne Snapper, Chief Financial Officer, reaffirmed the company's strong liquidity and financial health.

Future Outlook

Ensign Group is optimistic about its growth trajectory for the remainder of 2025. The company plans to continue its acquisition strategy and expects several transactions to close in the coming months. Management remains confident in the company's ability to manage and innovate while integrating newly acquired operations.

SEC Filing: ENSIGN GROUP, INC [ ENSG ] - 8-K - Jul. 24, 2025