The Ensign Group’s fourth quarter was marked by robust acquisition activity and continued progress in clinical specialization, drawing a favorable response from the market. Management emphasized that improvements in occupancy, skilled patient mix, and the integration of newly acquired facilities were central to quarterly performance. CEO Barry Port pointed to “record same-store occupancy” and noted that organic growth potential remains strong, reflecting consistent operational execution. Leadership credited clinical outcomes and staff retention—especially reduced turnover among directors of nursing—as critical to maintaining performance, with COO Spencer Burton citing examples where specialized care capabilities led to measurable financial and reputational gains.
Is now the time to buy ENSG? Find out in our full research report (it’s free for active Edge members).
The Ensign Group (ENSG) Q4 CY2025 Highlights:
- Revenue: $1.43 billion vs analyst estimates of $1.50 billion (25.9% year-on-year growth, 4.8% miss)
- EPS (GAAP): $1.61 vs analyst expectations of $1.67 (3.3% miss)
- Adjusted EBITDA: $167.3 million vs analyst estimates of $160.5 million (11.7% margin, 4.2% beat)
- EPS (GAAP) guidance for the upcoming financial year 2026 is $7.51 at the midpoint, beating analyst estimates by 9.4%
- Operating Margin: 8.7%, in line with the same quarter last year
- Sales Volumes rose 16.2% year on year (48% in the same quarter last year)
- Market Capitalization: $11.76 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From The Ensign Group’s Q4 Earnings Call
-
Clarke Murphy (Truist Securities) asked about the acquisition pipeline and changes in valuation trends. Chad Keetch, Executive Vice President, confirmed a healthy pipeline and rising valuations, but stressed disciplined selection and a preference for newer, high-quality assets.
-
Clarke Murphy (Truist Securities) inquired about the company's labor strategy and agency staffing reduction. COO Spencer Burton explained that improvements in leadership stability and director of nursing retention have reduced turnover and overtime reliance across facilities.
-
Benjamin Hendrix (RBC Capital Markets) sought details on adapting to new Medicare value-based purchasing metrics. CFO Suzanne Snapper highlighted the company's proactive data tracking and quality dashboards, while COO Burton noted that established clinical foundations position the company well for regulatory changes.
-
Raj Kumar (Stephens) questioned the sustainability of organic growth via occupancy gains. CEO Barry Port indicated that organic growth is likely to mirror recent years, with some seasonality, and that mature facilities still have room to increase occupancy.
-
James Kurek (UBS) asked about the expansion of managed care and behavioral health programs. CEO Barry Port described recent facility expansions dedicated to behavioral patients and a strategy to grow these offerings where market demand warrants.
Catalysts in Upcoming Quarters
As we look to future quarters, the StockStory team will monitor (1) the pace and financial impact of integrating new acquisitions, (2) further improvements in occupancy and skilled mix, and (3) the effectiveness of operational initiatives such as leadership development and technology adoption. We will also track the company’s progress in expanding specialty care programs and managing reimbursement changes.
The Ensign Group currently trades at $194.50, up from $173.18 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
The Best Stocks for High-Quality Investors
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
