Select Medical Q4 EPS Miss by 31.6%, Revenues Rise 6.4% to $1.4B
Select Medical reported Q4 adjusted EPS of $0.16, missing estimates by 31.6%, while revenues rose 6.4% to $1.4 billion, beating consensus by 2.6%. Elevated costs (+3.2% to $1.3 billion) drove a 9.8% drop in EBITDA to $104.7 million and guided FY26 revenues of $5.6–$5.8 billion with EPS of $1.22–$1.32.
1. Q4 Financial Results
Select Medical posted fourth-quarter adjusted EPS of $0.16, missing estimates by 31.6%, while net operating revenues rose 6.4% year over year to $1.4 billion, exceeding consensus by 2.6%. Earnings per share declined 11.1% from the prior year.
2. Expense Impact and EBITDA
Total costs and expenses increased 3.2% year over year to $1.3 billion, driven by higher service costs, resulting in adjusted EBITDA falling 9.8% to $104.7 million, below the prior estimate of $126.7 million.
3. Segment Performance
The Rehabilitation Hospital segment delivered 15.2% revenue growth to $339.2 million with an 11.1% EBITDA gain, while Critical Illness Recovery Hospital revenues rose 4.9% to $629.7 million. Outpatient Rehabilitation saw visits up 4.9% but revenue per visit dipped 3.9%, leading to a 57.9% decline in adjusted EBITDA to $11.2 million.
4. FY26 Outlook and Capital Actions
Management forecasts FY2026 revenues of $5.6–$5.8 billion and EPS of $1.22–$1.32, with adjusted EBITDA of $520–$540 million. The company repurchased $96.5 million in shares during 2025 and approved a 6.25-cent cash dividend payable on March 12.