Select Medical Holdings Earnings Call Transcripts
Fiscal Year 2026
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Stockholders approved both the merger and executive compensation proposals, with no questions raised during the meeting. The company will report the official vote count on Form 8-K within four business days.
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Revenue grew 5% year-over-year, but adjusted EBITDA declined 6.5% due to margin pressures, especially in Critical Illness Recovery. The company is progressing with a take-private transaction and continues to expand its inpatient rehab footprint, while maintaining full-year guidance.
Fiscal Year 2025
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Q4 revenue grew over 6% year-over-year, but Adjusted EBITDA declined 10% due to higher health insurance costs. Inpatient rehab led growth, while outpatient margins fell on payer mix and discounts. 2026 guidance projects revenue of $5.6B–$5.8B and margin improvement in outpatient.
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Revenue and adjusted EBITDA grew over 7% year-over-year, with EPS up 21%. Regulatory relief from the CMS 20% transmittal rule provided a $12–$15 million EBITDA benefit. Outpatient margins declined due to Medicare headwinds, but inpatient rehab and critical illness segments outperformed expectations.
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Revenue grew nearly 5% to $1.3B, with adjusted EBITDA up and EPS rising 88% year-over-year. Inpatient rehab outperformed, while critical illness recovery faced regulatory headwinds. Guidance for 2025 is reaffirmed, with strong growth and capital allocation plans.
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Inpatient rehab delivered strong growth, offsetting challenges in outpatient and critical illness recovery due to regulatory and weather impacts. Revenue rose 2% year-over-year, but adjusted EBITDA fell 9%. 2025 guidance was slightly adjusted, with robust development plans and ongoing advocacy on regulatory issues.
Fiscal Year 2024
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Q4 and full-year results showed strong revenue and adjusted EBITDA growth, driven by expansion and operational improvements across all divisions. Guidance for 2025 anticipates continued revenue and EBITDA growth, with inpatient rehab margins temporarily constrained by startup costs but expected to rebound in 2026.
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Concentra's IPO and related debt transactions enabled significant debt reduction and a robust development pipeline, with all divisions posting year-over-year revenue and adjusted EBITDA growth. Updated 2024 guidance reflects higher revenue and earnings expectations, while leverage and labor costs continue to improve.
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Q2 saw 5% revenue and 3% adjusted EBITDA growth year-over-year, with all divisions exceeding prior year revenue. The Concentra IPO was completed, reducing debt and improving leverage, while a robust development pipeline and strong hospital performance support a positive outlook.