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Mar 31
Tenet Healthcare Q1 2025 Earnings Report
Tenet Healthcare Corporation reported strong first quarter 2025 results with increased net income, adjusted diluted earnings per share, and consolidated adjusted EBITDA.
Key Takeaways
Tenet Healthcare Corporation announced strong first quarter 2025 results, with net income available to common shareholders at $406 million and adjusted diluted earnings per share increasing by 35.4% to $4.36. Consolidated Adjusted EBITDA rose 13.6% to $1.163 billion, driven by strong same-hospital admissions and ambulatory net revenue per case.
Net income available to common shareholders in Q1 2025 was $406 million, or $4.27 per diluted share.
Adjusted diluted earnings per share increased 35.4% to $4.36 in Q1 2025 compared to $3.22 in Q1 2024.
Consolidated Adjusted EBITDA increased 13.6% to $1.163 billion in Q1 2025, with an Adjusted EBITDA margin of 22.3%.
Ambulatory Care Adjusted EBITDA increased 15.7% to $456 million over Q1 2024.
Tenet Healthcare
Tenet Healthcare
Tenet Healthcare Revenue by Segment
Revenue by Segment
Ambulatory Care Revenue
CapyFin.comHospital Operations and Services Revenue
CapyFin.com Forward Guidance
Tenet Healthcare expects full year 2025 net operating revenues to be between $20.6 billion and $21.0 billion, with Adjusted EBITDA projected to be in the range of $3.975 billion to $4.175 billion.
Positive Outlook
- Net operating revenues are projected to be strong, ranging from $20.6 billion to $21.0 billion.
- Adjusted EBITDA is expected to be between $3.975 billion and $4.175 billion, indicating continued profitability.
- Adjusted diluted earnings per share are forecasted to be between $11.99 and $13.12.
- Free cash flow is anticipated to be between $1.8 billion and $2.05 billion.
- Ambulatory segment same-facility system-wide revenue is expected to increase by 3.0% to 6.0%.
Challenges Ahead
- The company does not generally forecast impairment charges, acquisition-related costs, and litigation costs and settlements due to indeterminable accuracy.
- The company does not generally forecast net gains on sales, consolidation and deconsolidation of facilities or losses from early extinguishment of debt due to indeterminable accuracy.
- Capital expenditures are projected to be between $700 million and $800 million, representing a significant outflow.
- NCI cash distributions are expected to be between $750 million and $800 million.
- The outlook does not provide specific negative trends but highlights the inherent uncertainties in forecasting certain financial items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income