PACS Group (PACS) 2026 Jefferies Healthcare Services and Technology Conference summary

Business overview and strategy

• Operates 358 skilled nursing facilities nationwide, focusing on turning around underperforming locations.

• Growth driven by acquiring distressed facilities and deploying a leadership-focused operational model.

• Emphasizes quality care as the foundation for improved clinical outcomes, reimbursement, and occupancy.

• Maintains a locally led, centrally supported structure with strong back-office support.

• Invests heavily in leadership development, including a robust Administrator in Training program.

Financial performance and outlook

• Initial 2026 EBITDA guidance was $565M, raised to $650M after strong first-half results.

• Mature facilities operate at 94% occupancy and mid-teens margins, with company-wide occupancy at 90%.

• Significant margin expansion potential remains in ramping and mature facilities.

• Same-store growth is around 6% year-to-date, with further upside expected.

• Balance sheet leverage is minimal (0.1x), supporting continued acquisition-driven growth.

Growth, acquisitions, and capital allocation

• Recent acquisitions include 34 Aduro facilities (31 closed, 3 pending) and 32 Florida facilities closing in Q4.

• Integration focuses on leadership assessment, IT upgrades, and community engagement.

• Maintains a healthy acquisition pipeline and prioritizes capital allocation based on risk-adjusted returns.

• Real estate ownership strategy is flexible, focusing on optimal capital use rather than a fixed owned/leased ratio.

• Sees ongoing industry consolidation, positioning as a leading high-quality operator.