SEM Research | Milton Maxwell

SEM

Select Medical Holdings Corporation

15.27

-0.37-2.37%

Dec 16, 4:00:02 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q1 '26)

No earnings call transcript available yet

Last Quarter (Q4 '25)

FY Q4 '25

Unpacks Q4 misses, outpatient fixes

2/19/26Feb 19, 2026

Q&A drilled into Q4's EBITDA shortfall, quantifying $15M surprise health costs company-wide and $6M outpatient receivable write-offs, alongside payer mix erosion and staffing softness in select markets—deemed largely one-offs. Inpatient rehab shone same-store at 23%+ margins, startup losses mere timing blips totaling ~$15M for 2026. Outpatient rebound eyed via 2% Medicare boost, critical illness cautiously flat. Buybacks paused amid takeover review; minor weather and CMS demo risks flagged. Management non-committal on M&A process. Q&A reaffirmed inpatient strength. Watch outpatient traction.

Key Stats

Market Cap

1.89B

P/E (TTM)

18.62

Basic EPS (TTM)

0.82

Dividend Yield

0.02%

Recent Filings

8-K

Merger at $16.50/share announced

3/3/26Mar 3, 2026

Select Medical signed a merger deal on March 2, 2026, with a consortium led by insiders Ortenzio and Jackson plus WCAS, paying $16.50 per share in cash—enterprise value $3.9 billion. Special committee blessed it as fair; needs majority non-affiliate stockholder nod and HSR clearance, eyeing mid-2026 close. Deal's fully financed. Risks loom if approvals fail.

8-K

Q4 results, dividend, buyout bid

2/19/26Feb 19, 2026

Select Medical reported Q4 revenue up 6.4% to $1.4B and full-year revenue up 5.1% to $5.5B, with continuing ops income surging 65% to $214.5M; rehab hospitals drove growth at 15.2% quarterly revenue rise, yet outpatient EBITDA plunged 58%. Board declared $0.0625/share dividend payable March 12. Special Committee reviews Executive Chairman's $16-$16.20/share take-private bid.

10-K

FY2025 results

2/19/26Feb 19, 2026

Select Medical Holdings posted FY2025 revenue of $5.5B, up 5% y/y, with critical illness recovery hospitals at $2.5B (45% of total) steady on flat admissions but 2% higher revenue per patient day to $2,230; rehab hospitals surged 16% to $1.3B on 8% more patient days despite 82% occupancy dip; outpatient clinics grew 3% to $1.3B via 3% visit gains, yet margins squeezed to 7%. Q4 momentum shone in rehab with accelerating admissions, but CIRH and outpatient lagged on cost pressures. Cash from operations funded $229M capex and $100M buybacks; revolver holds $469M availability. No annual guidance disclosed. Labor shortages risk quarterly momentum.

8-K

CEO Mullin employment deal

12/19/25Dec 19, 2025

Select Medical locked in CEO Thomas P. Mullin with a new employment agreement dated December 17, 2025, effective January 1, 2026. It sets a $700,000 base salary, 12 months' severance for non-cause termination, and two-year non-compete plus non-solicit restrictions. Leadership continuity secured. Yet change-of-control falls to a prior letter.

8-K

Take-private bid at $16-$16.20/share

11/25/25Nov 25, 2025

Select Medical received a non-binding take-private proposal from Executive Chairman Robert A. Ortenzio on November 24, 2025, offering $16.00 to $16.20 per share in cash. Disinterested board members are reviewing it with advisors. No outcome assured. Board acts for stockholders.

About

Select Medical Holdings Corporation, through its subsidiaries, operates critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics in the United States. It operates through three segments: Critical Illness Recovery Hospital, Rehabilitation Hospital, and Outpatient Rehabilitation. The Critical Illness Recovery Hospital segment consists of hospitals that provide services for heart failure, infectious disease, respiratory failure and pulmonary disease, surgery requiring prolonged recovery, renal disease, neurological events, and trauma. Its Rehabilitation Hospital segment offers therapy and rehabilitation treatments, including rehabilitative services for brain and spinal cord injuries, strokes, amputations, neurological disorders, orthopedic conditions, pediatric congenital or acquired disabilities, and cancer. The Outpatient Rehabilitation segment operates rehabilitation clinics that provide physical, occupational, and speech rehabilitation programs and services; and specialized programs, such as functional programs for work related injuries, hand therapy, pelvic health rehabilitation, post-concussion rehabilitation, pediatric and cancer rehabilitation, and athletic training services. Select Medical Holdings Corporation was founded in 1996 and is headquartered in Mechanicsburg, Pennsylvania.

CEO

Mr. Robert A. Ortenzio

IPO

9/25/2009

Website

https://www.selectmedical.com

Employees

30,000

Sector

Healthcare

Industry

Medical Care Facilities