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 being taken private, expanding inpatient rehab, and maintaining 2026 guidance. CMS payment rate increases are expected for FY 2027.
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, driven by strong inpatient and critical illness recovery segments, while outpatient rehab faced margin pressure from Medicare cuts and payer mix. CMS's delay of the 20% transmittal rule provided a $12–$15 million EBITDA benefit.
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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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Q3 2024 saw 6% revenue and adjusted EBITDA growth, with all divisions outperforming prior year. Leverage dropped to 3.38x after Concentra's IPO and debt paydown. Updated 2024 guidance projects up to $7.15B revenue and $885M adjusted EBITDA.
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Q2 saw 5% revenue and 3% adjusted EBITDA growth, with all divisions exceeding prior year revenue. Concentra's IPO proceeds reduced debt, and guidance for 2024 was reaffirmed, factoring in higher Q4 borrowing costs. Inpatient rehab and critical illness recovery led segment growth.