Overview

• Healthcare operator's Q4 revenue rose 6.4%, beating analyst expectations

• Adjusted EBITDA for Q4 decreased compared to the prior year

• Company authorized $1 bln stock repurchase program

Outlook

• Select Medical expects 2026 revenue between $5.6 bln and $5.8 bln

• Company forecasts 2026 adjusted EBITDA between $520 mln and $540 mln

• Select Medical anticipates 2026 EPS between $1.22 and $1.32

Result Drivers

• REHABILITATION HOSPITALS - Revenue for the rehabilitation hospital segment increased 15.2% in Q4, driven by higher patient admissions and revenue per patient day

• CRITICAL ILLNESS RECOVERY - Revenue for the critical illness recovery hospital segment rose 4.9% in Q4, supported by increased admissions and revenue per patient day

• OUTPATIENT REHABILITATION - Outpatient rehabilitation segment saw a 1.6% revenue increase in Q4, but adjusted EBITDA declined significantly

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Select Medical Holdings Corp is $18.50, about 13.4% above its February 18 closing price of $16.32

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn49HxCfa

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