Despite The Ensign Group Inc.’s fourth quarter revenues narrowly missing estimates, the company said it achieved record same-store occupancy rates, a key metric for growth.
The San Juan Capistrano-based operator of post-acute care services on Feb. 4 reported that same-store and transitioning occupancy increased to 83.8% and 84.9% during the quarter, marking all-time highs.
Chief Executive Barry Port said the increases point to the company’s organic growth potential.
“While we are thrilled with our current record same-store occupancy, we are actually excited that it’s as low as it is,” Port said in a statement.
“At 83%, we have enough organic growth potential left in our organization to sustain our consistent earnings and revenue growth, even if we stopped acquiring.”
Fourth quarter revenue of $1.49 billion fell just short of estimates of $1.50 billion, while adjusted quarterly earnings of $1.82 beat the $1.75 per share expected by analysts.
Ensign issued annual revenue guidance of $5.77 billion to $5.84 billion and earnings guidance of $7.41 to $7.61 per diluted share. At the midpoint, the earnings outlook represents 14.3% growth from 2025, the company said.
The results sent shares up 14% to $197.16 and an $11.3 billion market cap in the trading session following the announcement (Nasdaq: ENSG). The shares have been on a roll in the past three years when they have almost tripled.
Acquires More Skilled Nursing Facilities
A day before earnings, Ensign announced that it has acquired a series of skilled nursing facilities in Arizona, Texas and Wisconsin, adding to its portfolio of 378 healthcare operations.
The facilities were acquired by Standard Bearer Healthcare REIT Inc., a subsidiary of Ensign that owns 160 properties.
Port previously told the Business Journal that part of Ensign’s strategy is to own much of its real estate through Standard Bearer, unlike other skilled nursing operators, which typically lease from third parties.
He added that the company is eyeing further expansion in Alabama, Alaska and Oregon, where it’s already active.
Ensign operates on a cluster model, which facilitates collaboration among independently run facilities that are geographically close, making compensation linked to a cluster’s combined financial success.
Envista Shares Soar on Q4 Earnings
Brea-based Envista Holdings Corp. reported fourth quarter earnings the same week as Ensign.
Envista, a maker of dental products, reported that sales grew 11% to $751 million, surpassing analysts’ expectations of $678.7 million. The company also reported adjusted earnings per share of 38 cents, above estimates of 32 cents.
“With our disciplined focus on growth, operations and people, Q4 2025 marked another quarter of continued progress for Envista,” Envista Chief Executive Paul Keel said in a statement.
Shares in Envista rose 18% to $29.10 with the stock hitting a 52-week high of $29.82 in the two trading sessions following the earnings announcement. The shares have doubled since a 52-week low of $14.22 last April. It currently has a $4.8 billion market cap (NYSE: NVST).
BofA raised the firm’s price target for Envista to $32 from $28 and maintained its Buy rating.
The company said it saw growth across all major businesses, driven by a 30% increase in customer training.
Last year, Envista had four new launches within its Spark clear aligner business, which is one of the company’s fastest-growing products, and said that another wave of launches is planned for 2026.
