Tenet Healthcare Corp. ((THC)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Tenet Healthcare Corp. recently held its earnings call, revealing a strong financial performance marked by significant revenue and EBITDA growth. The company highlighted its robust financial health through an expansion of its share repurchase program and an increase in full-year guidance. While there were some concerns over a slight reduction in volume guidance and a decrease in USPI case volumes, the overall sentiment was positive, with the benefits outweighing the negatives.
Strong Revenue and EBITDA Growth
In the second quarter of 2025, Tenet Healthcare reported net operating revenues of $5.3 billion and a consolidated adjusted EBITDA of $1.121 billion, showcasing a 19% growth compared to the same period in 2024. The adjusted EBITDA margin improved by 280 basis points to 21.3%, reflecting efficient operations and strong same-store growth.
USPI Performance
USPI, a critical segment for Tenet, demonstrated an 11% year-over-year growth in adjusted EBITDA, achieving a margin of 39.2%. This growth was driven by a 7.7% increase in same facility revenues and a notable 12.6% rise in total joint replacements in ambulatory surgery centers (ASCs).
Hospital Segment Growth
The hospital segment saw a 25% increase in adjusted EBITDA, reaching $623 million in Q2 2025. Margins improved by 300 basis points to 15.6%, supported by a 1.6% rise in same hospital inpatient admissions, indicating a solid performance in this sector.
Share Repurchase Program Expansion
Tenet deployed $1.1 billion to repurchase 7.2 million shares in the first half of 2025. The board further authorized an additional $1.5 billion increase to the share repurchase program, reflecting confidence in the company’s financial flexibility and commitment to enhancing shareholder value.
Increased Full-Year Guidance
The company raised its full-year 2025 adjusted EBITDA guidance by $395 million, setting a new range of $4.4 to $4.54 billion. This reflects a 12% growth over 2024, underscoring Tenet’s confidence in its business fundamentals and anticipated growth.
Volume Guidance Reduction
Despite the overall positive outlook, Tenet adjusted its guidance for same hospital admissions growth, lowering it by 50 basis points to a range of 1.5% to 2.5% for 2025. This indicates a slight deceleration in expected volume growth.
USPI Case Volume Decline
USPI experienced a 0.6% decline in case volumes, attributed to a shift towards higher acuity services, which may reduce overall case volume. This shift reflects a strategic focus on more complex procedures, potentially impacting volume metrics.
Forward-Looking Guidance
Looking ahead, Tenet Healthcare remains optimistic, with raised full-year 2025 adjusted EBITDA guidance and strong cash flow generation. The company reported $743 million in free cash flow for the second quarter and $2.6 billion in cash on hand as of June 30, 2025. The expanded share repurchase program further underscores Tenet’s confidence in its financial stability and growth prospects.
In conclusion, Tenet Healthcare’s earnings call highlighted a strong financial performance with significant growth in revenue and EBITDA. Despite minor concerns over volume guidance and USPI case volumes, the company’s strategic initiatives and robust financial health paint a positive outlook for the future.