The Ensign Group Reports 16.1% Revenue Growth to $1.173 Billion in Q1 2025

The Ensign Group, Inc. reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $1.173 billion, a 16.1% rise from $1.010 billion in the same period of 2024. The company's net income attributable to Ensign shareholders also saw a notable increase, rising to $80.3 million, or $1.37 per diluted share, compared to $68.8 million, or $1.19 per diluted share, in the prior year. This growth was primarily driven by improved occupancy rates and increased revenue per patient day across its skilled nursing facilities.

In terms of operational metrics, Ensign's Same Facilities occupancy rate improved to 82.6%, up from 80.3% a year earlier, while Transitioning Facilities saw an even larger increase to 83.5%. The company added 13 new operations during the quarter, contributing to a total of 340 facilities across 15 states, with a combined capacity of approximately 34,900 skilled nursing beds and 3,200 senior living units. The expansion included the addition of 11 stand-alone skilled nursing operations and one senior living operation, which collectively added 1,365 operational skilled nursing beds and 132 senior living units.

The Ensign Group's strategic focus on acquisitions and operational improvements has been evident, with the company investing $194.2 million in acquisitions during the quarter, a substantial increase from $2.9 million in the same period last year. The company also reported a 27.9% increase in rental revenue, totaling $28.4 million, driven by real estate purchases and annual rent increases. The Standard Bearer segment, which manages the company's real estate portfolio, reported a segment income of $8.6 million, up from $7.3 million in the previous year.

Despite the positive financial results, the company faced challenges, including increased costs associated with new acquisitions and rising insurance expenses. Total expenses for the quarter were $1.072 billion, up from $928 million in the prior year, primarily due to higher costs of services and general administrative expenses. The company’s effective tax rate increased to 24.6% from 23.0% year-over-year, reflecting the impact of excess tax benefits from stock-based compensation.

Looking ahead, Ensign Group remains optimistic about its growth trajectory, emphasizing its commitment to enhancing patient care and expanding its operational footprint. The company plans to continue pursuing strategic acquisitions and operational improvements to drive future revenue growth, while also managing costs effectively in a challenging economic environment.