Full Press Release Details
Select Medical Holdings
Corporation Announces Results
For Its Third Quarter
Ended September 30, 2025 and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- October 30, 2025 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its third quarter ended September 30, 2025, and the declaration of
the third quarter ended September 30, 2025, revenue increased 7.2% to $1,363.4 million, compared to $1,271.6 million for the same
quarter, prior year. Income from continuing operations before other income and expense increased 32.9% to $73.0 million for the
third quarter ended September 30, 2025, compared to $54.9 million for the same quarter, prior year. Income from continuing
operations, net of tax, increased 7.0% to $44.2 million for the third quarter ended September 30, 2025, compared to $41.3 million
for the same quarter, prior year. Adjusted EBITDA increased 7.5% to $111.7 million for the third quarter ended September 30, 2025,
compared to $103.9 million for the same quarter, prior year. Earnings per common share from continuing operations increased 21.1% to
$0.23 for the third quarter ended September 30, 2025, compared to $0.19 for the same quarter, prior year. Adjusted earnings per
common share from continuing operations, net of tax, was $0.23 for the third quarter ended September 30, 2025, compared to $0.26
for the same quarter, prior year. The definition of Adjusted EBITDA and a reconciliation of income from continuing operations, net of
tax, to Adjusted EBITDA are presented in table IX of this release. A reconciliation of earnings per common share from continuing operations,
net of tax, to adjusted earnings per common share from continuing operations, net of tax, is presented in table X of this release.
For the nine months ended
September 30, 2025, revenue increased 4.7% to $4,056.2 million, compared to $3,874.5 million for the same period, prior year. Income
from continuing operations before other income and expense increased 10.1% to $272.2 million for the nine months ended September 30,
2025, compared to $247.2 million for the same period, prior year. Income from continuing operations, net of tax, increased 25.9% to $176.8
million for the nine months ended September 30, 2025, compared to $140.4 million for the same period, prior year. Adjusted EBITDA
was $388.5 million for the nine months ended September 30, 2025, compared to $394.4 million for the same period, prior year. Earnings
per common share from continuing operations increased 44.9% to $1.00 for the nine months ended September 30, 2025, compared to $0.69
for the same period, prior year. Adjusted earnings per common share from continuing operations, net of tax, increased 31.6% to $1.00
for the nine months ended September 30, 2025, compared to $0.76 for the same period, prior year. The definition of Adjusted EBITDA
and a reconciliation of income from continuing operations, net of tax, to Adjusted EBITDA are presented in table IX of this release.
A reconciliation of earnings per common share from continuing operations, net of tax, to adjusted earnings per common share from continuing
operations, net of tax, is presented in table X of this release.
On November 25, 2024, Select
completed a tax-free distribution of 104,093,503 shares of common stock of Concentra Group Holdings Parent, Inc. ("Concentra")
to its stockholders. Following the completion of the distribution, the Company no longer owns any shares of Concentra common stock. The
results of Concentra are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment
results for the three and nine months ended September 30, 2024.
Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation
clinics in the United States based on number of facilities. Select Medical's reportable segments include the critical illness recovery
hospital segment, the rehabilitation hospital segment, and the outpatient rehabilitation segment. As of September 30, 2025, Select
Medical operated 105 critical illness recovery hospitals in 29 states, 36 rehabilitation hospitals in 14 states, and 1,922 outpatient
rehabilitation clinics in 39 states and the District of Columbia. At September 30, 2025, Select Medical had operations in 40 states
and the District of Columbia. Information about Select Medical is available at www.selectmedical.com.
Critical Illness Recovery Hospital Segment
For the third quarter ended
September 30, 2025, revenue for the critical illness recovery hospital segment increased 4.6% to $609.9 million, compared to $583.0
million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 10.5% to $56.1
million for the third quarter ended September 30, 2025, compared to $50.8 million for the same quarter, prior year. The Adjusted
EBITDA margin for the critical illness recovery hospital segment increased to 9.2% for the third quarter ended September 30, 2025,
compared to 8.7% for the same quarter, prior year. Certain critical illness recovery hospital key statistics are presented in table VII
of this release for the third quarters ended September 30, 2025 and 2024.
For the nine months ended
September 30, 2025, revenue for the critical illness recovery hospital segment increased 0.2% to $1,848.1 million, compared to $1,843.8
million for the same period, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $199.0 million for the
nine months ended September 30, 2025, compared to $238.5 million for the same period, prior year. The Adjusted EBITDA margin for
the critical illness recovery hospital segment was 10.8% for the nine months ended September 30, 2025, compared to 12.9% for the
same period, prior year. Certain critical illness recovery hospital key statistics are presented in table VIII of this release for the
nine months ended September 30, 2025 and 2024.
Rehabilitation Hospital Segment
For the third quarter ended
September 30, 2025, revenue for the rehabilitation hospital segment increased 16.2% to $328.6 million, compared to $282.7 million
for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 13.0% to $68.0 million for the third
quarter ended September 30, 2025, compared to $60.1 million for the same quarter, prior year. The Adjusted EBITDA margin for the
rehabilitation hospital segment was 20.7% for the third quarter ended September 30, 2025, compared to 21.3% for the same quarter,
prior year. Certain rehabilitation hospital key statistics are presented in table VII of this release for the third quarters ended September 30,
For the nine months ended
September 30, 2025, revenue for the rehabilitation hospital segment increased 16.4% to $949.8 million, compared to $816.2 million
for the same period, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 14.1% to $209.4 million for the nine
months ended September 30, 2025, compared to $183.5 million for the same period, prior year. The Adjusted EBITDA margin for the
rehabilitation hospital segment was 22.1% for the nine months ended September 30, 2025, compared to 22.5% for the same period, prior
year. Certain rehabilitation hospital key statistics are presented in table VIII of this release for the nine months ended September 30,
Outpatient Rehabilitation Segment
For the third quarter ended
September 30, 2025, revenue for the outpatient rehabilitation segment increased 4.3% to $325.4 million, compared to $312.0 million
for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $24.2 million for the third quarter ended
September 30, 2025, compared to $28.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 7.4% for the third quarter ended September 30, 2025, compared to 9.1% for the same quarter, prior year. Certain outpatient
rehabilitation key statistics are presented in table VII of this release for the third quarters ended September 30, 2025 and 2024.
For the nine months ended
September 30, 2025, revenue for the outpatient rehabilitation segment increased 3.2% to $960.3 million, compared to $930.7 million
for the same period, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $79.0 million for the nine months ended
September 30, 2025, compared to $82.0 million for the same period, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 8.2% for the nine months ended September 30, 2025, compared to 8.8% for the same period, prior year. Certain outpatient
rehabilitation key statistics are presented in table VIII of this release for the nine months ended September 30, 2025 and 2024.
On October 29, 2025,
Select Medical's Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about November 25,
2025, to stockholders of record as of the close of business on November 12, 2025.
There is no assurance that
future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of Select Medical's
Board of Directors after taking into account various factors, including, but not limited to, Select Medical's financial condition,
operating results, available cash and current and anticipated cash needs, the terms of Select Medical's indebtedness, and other
factors Select Medical's Board of Directors may deem to be relevant.
Stock Repurchase Program
The Board of Directors of
Select Medical has authorized a common stock repurchase program to repurchase up to $1.0 billion worth of shares of its common stock.
On October 29, 2025, the Board of Directors extended the common stock repurchase program from December 31, 2025, to December 31, 2027.
The common stock repurchase program will remain in effect until then, unless further extended or earlier terminated by the Board of Directors.
Stock repurchases under this program may be made in the open market or through privately negotiated transactions, and at times and in
such amounts as Select Medical deems appropriate. Select Medical funds this program with cash on hand and borrowings under its revolving
During the nine months ended
September 30, 2025, Select Medical repurchased 6,375,512 shares at a cost of approximately $96.5 million, or $15.13 per share, which
includes transaction costs. From the inception of the common stock repurchase program through September 30, 2025, Select Medical