NHC

NHC is putting up its best numbers in years. FY2025 revenue grew 16.1% to $1.52B and net income rose 17.7% to $120M, with operating income jumping 42.8% to $128M — meaningfully outpacing the top line and pointing to real operating leverage as the August 2024 White Oak acquisition (15 SNFs, 1,928 beds plus ancillary assets in the Carolinas) is absorbed. Occupancy at owned/leased SNFs improved for the third straight year to 89.7% (vs. 88.6% in 2024 and 87.9% in 2023), and the company runs at 62.5% 4-and-5-star rated facilities versus an industry 38.6% — a quality edge that matters under CMS's value-based purchasing regimes the filing flags.

The balance sheet is the standout. Long-term debt fell 74.9% YoY to just $32.5M against $1.07B of equity (L/E 0.42x) and $92.8M cash, while operating cash flow surged 72.5% to $185M against only $36.4M of capex — leaving ample cover for the $38.7M dividend and $14.7M of buybacks. Retained earnings rose 10.7% to $833M. This is not a company under financial stress, and the de-leveraging post the White Oak deal is notable.