Healthcare Services Group Inc
NASDAQ:HCSG
Healthcare Services Group Inc
Healthcare Services Group, Inc. engages in the provision of keeping, laundry, and dietary services to long-term care and related health care facilities. The company is headquartered in Bensalem, Pennsylvania and currently employs 39,200 full-time employees. The firm operates through two segments: housekeeping, laundry, linen and other services (Housekeeping), and dietary department services (Dietary). Its Housekeeping service involves the management of a customers’ housekeeping department, which is responsible for the cleaning, disinfecting and sanitizing resident rooms and common areas of a customers’ facilities. The firm's Dietary segment consist of managing the customers’ dietary department, which is responsible for food purchasing, meal preparation and providing professional dietitian services, including the development of menus that meet the dietary needs of residents.
Healthcare Services Group, Inc. engages in the provision of keeping, laundry, and dietary services to long-term care and related health care facilities. The company is headquartered in Bensalem, Pennsylvania and currently employs 39,200 full-time employees. The firm operates through two segments: housekeeping, laundry, linen and other services (Housekeeping), and dietary department services (Dietary). Its Housekeeping service involves the management of a customers’ housekeeping department, which is responsible for the cleaning, disinfecting and sanitizing resident rooms and common areas of a customers’ facilities. The firm's Dietary segment consist of managing the customers’ dietary department, which is responsible for food purchasing, meal preparation and providing professional dietitian services, including the development of menus that meet the dietary needs of residents.
Revenue Growth: Fourth quarter revenue rose to $466.7 million, a 6.6% increase over last year, with full-year revenue up over 7%.
Segment Milestone: The campus division surpassed $100 million in revenue for the first time.
Margins & Execution: Both Environmental and Dietary Services segments saw margin expansion, supported by strong service execution and cost control.
Cash Flow & Balance Sheet: The company generated significant cash flow from operations and finished the year with over $200 million in cash and securities and no draw on its credit facility.
Share Repurchase: Completed a $50 million buyback ahead of schedule and announced a new $75 million repurchase plan for 2026.
2026 Outlook: Management projects mid-single-digit revenue growth, with costs managed to target ranges and ongoing margin discipline.
Industry Environment: Favorable long-term demographics and steady industry operating trends support optimism for continued growth.
