Strong Q3 Results and Cash Dividend from Select Medical
Select Medical Holdings Corporation (NYSE: SEM) has recently shared its impressive financial results for the third quarter, marking a significant increase in revenue and earnings, alongside the announcement of a cash dividend. This highlights the company's resilience and growing position in the healthcare sector.
Financial Highlights of Q3
For the third quarter ended September 30, 2025, Select Medical reported a revenue growth of 7.2%, leading to a total revenue of $1,363.4 million compared to $1,271.6 million during the same quarter last year. The income from continuing operations demonstrated an outstanding increase of 32.9%, reaching $73 million, up from $54.9 million in the prior year.
Moreover, the company's income from continuing operations net of tax grew by 7.0%, reflecting a robust performance in core operations, amounting to $44.2 million versus $41.3 million in the previous year. This performance aligns with Select Medical's strategic objectives and operational efficiencies.
Adjusted EBITDA Performance
In terms of adjusted EBITDA, Select Medical reported an increase of 7.5%, resulting in $111.7 million for the third quarter of 2025, compared to $103.9 million in 2024. This demonstrates the company’s effective management of resources and a solid operational framework. The adjusted earnings per share from continuing operations net of tax remained steady at $0.23, consistent with prior reporting periods, showcasing stability in earnings amidst growth.
Performance Overview for the Year to Date
Looking at the performance over the nine months concluded September 30, 2025, Select Medical recorded a total revenue of $4,056.2 million, a 4.7% increase from $3,874.5 million in the previous year. Income from continuing operations before other income and expense surged by 10.1%, reaching $272.2 million compared to $247.2 million for the corresponding period the previous year.
Additionally, the company achieved significant growth in income from continuing operations, net of tax, showcasing a remarkable 25.9% increase with a total of $176.8 million for the nine-month period. This reflects Select Medical's consistent focus on delivering quality healthcare services and establishing a solid market presence.
Critical and Rehabilitation Hospital Segments
Within the critical illness recovery hospital segment, revenue enhanced by 0.2% totaling $1,848.1 million for the nine months ended September 30, 2025. The adjusted EBITDA for this segment was reported at $199 million, highlighting a margin of 10.8%. Meanwhile, the rehabilitation hospital segment saw a robust revenue increase of 16.4%, boosting revenue to $949.8 million.
Dividend Declaration and Shareholder Value
On October 29, 2025, Select Medical's Board of Directors declared a cash dividend of $0.0625 per share, payable to stockholders approximately on November 25, 2025. This decision highlights the company’s commitment to delivering shareholder value while maintaining financial health and operational investment.
Stock Buyback Program
Furthermore, the Board authorized a stock repurchase program allowing up to $1 billion of common stock to be repurchased by the company. The program has been extended to December 31, 2027, demonstrating Select Medical's proactive approach to managing its capital resources and returning value to its shareholders.
Business Outlook
Looking forward, Select Medical is optimistic about its business outlook for 2025. The company expects full-year revenue between $5.3 billion to $5.5 billion, with adjusted EBITDA projected to range from $510 million to $530 million. This affirms the management’s strategies and operational initiatives to maximize performance and sustainability.
Frequently Asked Questions
What are the key financial highlights for Select Medical in Q3 2025?
Select Medical reported a revenue increase of 7.2% to $1,363.4 million and a 32.9% increase in income from continuing operations, totaling $73 million.
How has Select Medical's adjusted EBITDA performed?
Adjusted EBITDA increased by 7.5% to $111.7 million for Q3 2025 compared to the previous year.
Is there a dividend declared by Select Medical?
Yes, the Board declared a cash dividend of $0.0625 per share, payable on or about November 25, 2025.
What is Select Medical's stock buyback program?
The company has authorized a repurchase program for up to $1 billion of common stock, extended to December 31, 2027.
What is the outlook for Select Medical going into 2025?
Select Medical expects revenue between $5.3 billion to $5.5 billion and adjusted EBITDA between $510 million and $530 million for the full year 2025.
