Select Medical (SEM) Q4 2024 earnings summary

Executive summary

• Completed the spinoff of Concentra, now reflected as discontinued operations, focusing results on three remaining business lines.

• Revenue for Q4 2024 rose 7.8% year-over-year to $1,312.6 million; full-year revenue increased 7.5% to $5,187.1 million.

• Adjusted EBITDA for Q4 2024 grew 3.8% to $116.0 million; full-year Adjusted EBITDA up 14.4% to $510.4 million.

• Net income from continuing operations for 2024 was $130.0 million, up 17.7% year-over-year; diluted EPS from continuing operations was $0.51, up 10.9%.

• Board declared a $0.0625 per share cash dividend, payable March 13, 2025.

Financial highlights

• Q4 revenue from continuing operations increased 8% year-over-year; adjusted EBITDA grew 4% to $116 million.

• Full-year revenue from continuing operations grew 7%, with adjusted EBITDA up 14% to $510.4 million and margin improving to 9.8%.

• Adjusted EPS from continuing operations for Q4 2024 was $0.18, up 50% year-over-year; full-year adjusted EPS was $0.94, up 74.1%.

• Q4 2024 loss from continuing operations, net of tax, was $10.5 million, impacted by a $45.9 million one-time stock compensation expense and $17.9 million loss on early debt retirement.

• Cash flow from operations for 2024 was $517.9 million; cash and equivalents at year-end were $59.7 million.

Outlook and guidance

• 2025 revenue expected between $5.4 billion and $5.6 billion; adjusted EBITDA between $520 million and $540 million.

• Adjusted EPS for 2025 projected at $1.09–$1.19; capital expenditures expected at $160–$200 million.

• Inpatient rehab margins expected to be constrained in 2025 due to startup losses, with significant double-digit EBITDA growth anticipated in 2026–2027 as new facilities mature.

• Leverage expected to remain at 3–3.1x in 2025, declining in 2026 and beyond.