Full Press Release Details
Select Medical Holdings Corporation Announces
For Its Fourth Quarter and Year Ended December 31,
2025, Its 2026 Business Outlook, and Cash Dividend
MECHANICSBURG, PENNSYLVANIA
- February 19, 2026 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"
or "our") (NYSE: SEM) today announced results for its fourth quarter and year ended December 31, 2025, its 2026 business
outlook, and the declaration of a cash dividend.
For the fourth quarter ended
December 31, 2025, revenue increased 6.4% to $1,396.6 million, compared to $1,312.6 million for the same quarter, prior year. Income
from continuing operations before other income and expense increased 203.1% to $63.9 million for the fourth quarter ended December 31,
2025, compared to $21.1 million for the same quarter, prior year. Income from continuing operations, net of tax, increased 461.0% to $37.7
million for the fourth quarter ended December 31, 2025, compared to loss from continuing operations, net of tax, of $10.5 million
for the same quarter, prior year. In connection with the distribution of Concentra Group Holdings Parent ("Concentra") common
stock to our stockholders, there was a one-time acceleration of $45.9 million of stock compensation expense, which reduced income (loss)
from continuing operations for the quarter ended December 31, 2024. Additionally, during the quarter ended December 31, 2024,
we recognized a loss on early retirement of debt of $17.9 million. Adjusted EBITDA was $104.7 million for the fourth quarter ended December 31,
2025, compared to $116.0 million for the same quarter, prior year. Earnings per common share from continuing operations increased 184.2%
to $0.16 for the fourth quarter ended December 31, 2025, compared to diluted loss per common share from continuing operations of
$0.19 for the same quarter, prior year. Adjusted earnings per common share from continuing operations, net of tax, was $0.16 for the fourth
quarter ended December 31, 2025, compared to $0.18 for the same quarter, prior year. Prior year adjusted earnings per common share
excludes the one-time acceleration of stock compensation expense, the loss on early retirement of debt, and certain transaction costs
associated with the Concentra transaction. 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
For the year ended December 31,
2025, revenue increased 5.1% to $5,452.8 million, compared to $5,187.1 million for the prior year. Income from continuing operations before
other income and expense increased 25.3% to $336.2 million for the year ended December 31, 2025, compared to $268.3 million for the
prior year. Income from continuing operations, net of tax, increased 65.0% to $214.5 million for the year ended December 31, 2025,
compared to $130.0 million for the prior year. In connection with the distribution of Concentra, there was a one-time acceleration of
$45.9 million of stock compensation expense, which reduced income from continuing operations for the year ended December 31, 2024.
Additionally, during the year ended December 31, 2024, we recognized a loss on early retirement of debt of $28.8 million. Adjusted
EBITDA was $493.2 million for the year ended December 31, 2025, compared to $510.4 million for the prior year. Earnings per common
share from continuing operations, net of tax, increased 127.5% to $1.16 for the year ended December 31, 2025, compared to $0.51 for
the prior year. Adjusted earnings per common share from continuing operations, net of tax, increased 23.4% to $1.16 for the year ended
December 31, 2025, compared to $0.94 for the prior year. Prior year adjusted earnings per common share excludes the one-time acceleration
of stock compensation expense and the loss on early retirement of debt. 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,
we completed a tax-free distribution of 104,093,503 shares of common stock of Concentra to our stockholders. Following the completion
of the distribution, we no longer own any shares of Concentra's common stock. The results of Concentra, and related transaction
costs, have been reflected as discontinued operations in the prior period consolidated statements of operations.
On November 24, 2025,
the Company received a non-binding indication of interest from Robert A. Ortenzio, our Executive Chairman, Co-Founder and Director, to
acquire all of the Company's outstanding shares for cash consideration of $16.00 to $16.20 per share of our common stock (the "Proposal"
and such transaction, the "Take Private Transaction"). Mr. Ortenzio publicly announced the Proposal on November 24,
2025 in a Schedule 13D filing with the SEC. On November 25, 2025, in connection with the Proposal, the disinterested members of the
Board of Directors met and voted to form an independent special committee of the Board of Directors (the "Special Committee").
The Special Committee is carefully reviewing and evaluating the Proposal in consultation with their advisors and will determine the appropriate
course of action in the best interests of the Company and its stockholders. In connection therewith, the Special Committee is evaluating
other potential strategic alternatives to maximize stockholder value.
Select 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 December 31, 2025, Select Medical
operated 104 critical illness recovery hospitals in 28 states, 38 rehabilitation hospitals in 15 states, and 1,917 outpatient rehabilitation
clinics in 39 states and the District of Columbia. At December 31, 2025, Select Medical had operations in 39 states and the District
of Columbia. Information about Select Medical is available at www.selectmedical.com.
Critical Illness Recovery Hospital Segment
For the fourth quarter ended
December 31, 2025, revenue for the critical illness recovery hospital segment increased 4.9% to $629.7 million, compared to $600.4
million for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment increased 5.3% to $66.4 million
for the fourth quarter ended December 31, 2025, compared to $63.1 million for the same quarter, prior year. The Adjusted EBITDA margin
for the critical illness recovery hospital segment was 10.5% both the fourth quarters ended December 31, 2025 and 2024. Certain critical
illness recovery hospital key statistics are presented in table VII of this release for the fourth quarters ended December 31, 2025
For the year ended December 31,
2025, revenue for the critical illness recovery hospital segment increased 1.4% to $2,477.8 million, compared to $2,444.2 million for
the prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $265.4 million for the year ended December 31,
2025, compared to $301.6 million for the prior year. The Adjusted EBITDA margin for the critical illness recovery hospital segment was
10.7% for the year ended December 31, 2025, compared to 12.3% for the prior year. Certain critical illness recovery hospital key
statistics are presented in table VIII of this release for the years ended December 31, 2025 and 2024.
Rehabilitation Hospital Segment
For the fourth quarter ended
December 31, 2025, revenue for the rehabilitation hospital segment increased 15.2% to $339.2 million, compared to $294.4 million
for the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 11.1% to $69.2 million for the fourth
quarter ended December 31, 2025, compared to $62.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation
hospital segment was 20.4% for the fourth quarter ended December 31, 2025, compared to 21.2% for the same quarter, prior year. Certain
rehabilitation hospital key statistics are presented in table VII of this release for both the fourth quarters ended December 31,
For the year ended December 31,
2025, revenue for the rehabilitation hospital segment increased 16.1% to $1,289.0 million, compared to $1,110.6 million for the prior
year. Adjusted EBITDA for the rehabilitation hospital segment increased 13.4% to $278.6 million for the year ended December 31, 2025,
compared to $245.7 million for the prior year. The Adjusted EBITDA margin for the rehabilitation hospital segment was 21.6% for the year
ended December 31, 2025, compared to 22.1% for the prior year. Certain rehabilitation hospital key statistics are presented in table
VIII of this release for the years ended December 31, 2025 and 2024.
Outpatient Rehabilitation Segment
For the fourth quarter ended
December 31, 2025, revenue for the outpatient rehabilitation segment increased 1.6% to $324.6 million, compared to $319.6 million
for the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $11.2 million for the fourth quarter ended
December 31, 2025, compared to $26.6 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation
segment was 3.4% for the fourth quarter ended December 31, 2025, compared to 8.3% for the same quarter, prior year. Certain outpatient
rehabilitation key statistics are presented in table VII of this release for the fourth quarters ended December 31, 2025 and 2024.
For the year ended December 31,
2025, revenue for the outpatient rehabilitation segment increased 2.8% to $1,284.9 million, compared to $1,250.3 million for the prior
year. Adjusted EBITDA for the outpatient rehabilitation segment was $90.2 million for the year ended December 31, 2025, compared
to $108.6 million for the prior year. The Adjusted EBITDA margin for the outpatient rehabilitation segment was 7.0% for the year ended
December 31, 2025, compared to 8.7% for the prior year. Certain outpatient rehabilitation key statistics are presented in table VIII
of this release for the years ended December 31, 2025 and 2024.
On February 12, 2026,
Select Medical's Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about March 12,