Select Medical ( (SEM) ) has released its Q1 earnings. Here is a breakdown of the information Select Medical presented to its investors.
Select Medical Holdings Corporation, a leading operator of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States, has announced its financial results for the first quarter ending March 31, 2025.
Select Medical reported a 2.4% increase in revenue, reaching $1,353.2 million compared to the previous year. Despite a decline in income from continuing operations before other income and expense, which fell to $112.7 million from $118.5 million, the company saw a 21.5% rise in net income from continuing operations, net of tax, amounting to $74.7 million. Earnings per share from continuing operations also saw a significant increase of 33.3%, reaching $0.44.
The company’s performance across its segments varied, with the rehabilitation hospital segment showing a strong revenue increase of 15.7% and adjusted EBITDA growth of 14.7%. However, the critical illness recovery hospital segment experienced a decline in revenue and adjusted EBITDA, while the outpatient rehabilitation segment saw a modest revenue increase but a slight decrease in adjusted EBITDA. Additionally, Select Medical declared a cash dividend of $0.0625 per share and continued its stock repurchase program, buying back 649,804 shares in the first quarter.
Looking ahead, Select Medical has adjusted its 2025 business outlook for revenue and adjusted EBITDA, maintaining its forecast for fully diluted earnings per share. The company anticipates revenue to range between $5.3 billion to $5.5 billion and adjusted EBITDA between $510 million to $530 million, reflecting a cautious yet optimistic view of its financial trajectory for the year.