Reinhart Partners Expands Stake in AdaptHealth Amid Credit Upgrades

Reinhart Partners significantly increased its holdings in AdaptHealth (AHCO) during the first quarter of 2026, adding nearly 2 million shares to its existing position. The purchase, valued at approximately $20.2 million, represents a 24% increase to a stake that already exceeded 8 million shares, signaling growing institutional conviction in the company's business model. AdaptHealth operates a recurring-revenue model providing home medical equipment and chronic care solutions. The company is positioned to benefit from structural tailwinds associated with an aging U.S. population and increasing demand for home-based therapy, oxygen, and diabetes management tools. Recent financial results present a mixed picture. In February, the company reported revenue of $846.3 million, beating analyst estimates despite a 1% year-over-year decline. While a non-cash goodwill impairment charge and costs related to a major new capitated contract led to an earnings-per-share miss, management remains optimistic. For 2026, the company is guiding for net revenue between $3.44 billion and $3.51 billion and adjusted EBITDA between $680 million and $730 million. Further strengthening its financial position, AdaptHealth announced on April 13 the closing of a $1.1 billion senior secured credit facility. This move reduces near-term refinancing risk and follows credit rating upgrades from both S&P and Moody's. While the stock continues to trade below its pandemic-era peaks, the combination of institutional accumulation and improved credit metrics suggests a stabilizing outlook for the provider.