Select Medical

Select Medical (SEM) Q1 2025 Earnings

Reported May 1, 2025 at 4:36 PM ET · SEC Source

Q1 25 EPS

$0.44

MISS 1.54%

Est. $0.45

Q1 25 Revenue

$1.35B

MISS 3.02%

Est. $1.40B

vs S&P Since Q1 25

-41.1%

TRAILING MARKET

SEM -7.9% vs S&P +33.2%

Market Reaction

Did SEM Beat Earnings? Q1 2025 Results

Select Medical delivered a tale of two segments in Q1 2025, with a 33.3% surge in earnings per share to $0.44 masking a meaningful deterioration in its largest business line. Total revenue grew 2.4% year-over-year to $1.35 billion, but the headline n… Read more Select Medical delivered a tale of two segments in Q1 2025, with a 33.3% surge in earnings per share to $0.44 masking a meaningful deterioration in its largest business line. Total revenue grew 2.4% year-over-year to $1.35 billion, but the headline numbers tell only part of the story. The critical illness recovery hospital segment, the company's biggest revenue driver, saw sales fall 2.9% to $637.03 million while Adjusted EBITDA collapsed 25.3% to $86.65 million, compressing margins from 17.7% to 13.6%. Carrying the other side of the ledger, the rehabilitation hospital segment posted a 15.7% revenue jump to $307.39 million as the company expanded to 35 hospitals. Much of the EPS strength came from a 28.5% decline in interest expense following the November 2024 Concentra spinoff rather than core operating momentum, a distinction investors will weigh against management's updated full-year 2025 outlook, which calls for revenue of $5.30 billion to $5.50 billion and Adjusted EBITDA of $510 million to $530 million, with EPS guidance of $1.09 to $1.19 reaffirmed.

Key Takeaways

  • Rehabilitation hospital segment revenue grew 15.7% driven by expansion to 35 hospitals from 33, 6.9% growth in admissions, and 6.6% increase in revenue per patient day
  • Interest expense declined 28.5% to $29.1 million, boosting net income despite lower operating income
  • Critical illness recovery hospital segment EBITDA margin declined from 17.7% to 13.6% due to lower revenue per patient day, fewer admissions, and increased cost of services
  • Income tax expense declined 19.6% contributing to 21.5% growth in income from continuing operations
  • Cost of services increased 4.6% year-over-year, outpacing 2.4% revenue growth
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SEM YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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SEM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26