Strong Revenue and EBITDA Growth
Revenue for the second quarter increased 12% to $1.46 billion, and adjusted EBITDA increased 17.2% to $308.6 million.
Positive Discharge Growth
Total discharges for Q2 increased 7.2%, including 4.7% in same-store. Neurological conditions and stroke discharges grew 12% and 6.7%, respectively.
Expansion and New Hospital Openings
In Q2, a new 60-bed hospital was opened in Fort Myers, Florida, and 26 beds were added to an existing hospital. In July, a new 50-bed hospital was opened in Daytona Beach, Florida, and 20 beds were added to another existing hospital.
Improved Labor Costs
Contract labor and sign-on and shift bonuses declined by $4.9 million or 15.1%, with contract labor FTEs representing 1.3% of total FTEs.
Increased 2025 Guidance
The company raised its 2025 guidance with net operating revenue expected to be $5.88 billion to $5.98 billion, adjusted EBITDA of $1.22 billion to $1.25 billion, and adjusted earnings per share of $5.12 to $5.34.
Strong Free Cash Flow Growth
Q2 adjusted free cash flow increased 30.5% to approximately $186 million, bringing year-to-date adjusted free cash flow to approximately $408 million, a 31.7% increase from the first half of 2024.