Select Medical (SEM) Q2 2025 Earnings
How Did SEM Stock React to Q2 2025 Earnings?
Did SEM Beat Earnings? Q2 2025 Results
Yes. Select Medical reported Q2 2025 earnings of $0.32 a share on Jul 31, 2025, beating the $0.24 consensus estimate by 35.2%. Revenue was $1.3B against a $1.3B estimate.
Select Medical delivered a standout earnings beat in Q2 2025, with EPS from continuing operations of $0.32 clearing the $0.24 consensus estimate by 35.19%, even as revenue of $1.34 billion came in just shy of expectations by 0.66%. The top line still grew a healthy 4.5% year-over-year, powered in large part by a 17.2% surge in the rehabilitation hospital segment — which expanded to 36 facilities from 33 — while the critical illness recovery hospital segment weighed on results with a modest revenue decline and notable margin compression, squeezing Adjusted EBITDA margins from 11.9% to 9.4% in that unit. Income from continuing operations climbed 53.8% to $57.88 million, though the absence of Concentra earnings following its tax-free spinoff last November caused reported net income to fall nearly by half. Despite the mixed optics, management reaffirmed its full-year 2025 outlook, projecting revenue of $5.30 billion to $5.50 billion and fully diluted EPS of $1.09 to $1.19, signaling confidence that rehabilitation momentum can offset lingering pressures elsewhere in the portfolio.
- Rehabilitation hospital segment revenue grew 17.2% driven by expansion to 36 hospitals from 33, with admissions up 9.3% and patient days up 7.6%
- Outpatient rehabilitation visits grew 3.8% to 2,934,026
- Income from continuing operations surged 53.8% year-over-year due to lower interest expense and reduced income tax expense
- Critical illness recovery hospital occupancy rate improved to 69% from 67%
- Rehabilitation hospital revenue per patient day increased to $2,236 from $2,113
What Was Select Medical's Outlook in Q2 2025?
Select Medical reaffirmed its full-year 2025 business outlook: revenue in the range of $5.3 billion to $5.5 billion, Adjusted EBITDA of $510.0 million to $530.0 million, and fully diluted earnings per share of $1.09 to $1.19. The outlook reconciliation shows expected income from continuing operations, net of tax, attributable to Select Medical in the range of $141 million to $154 million.
SEM YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.3B | $1.3B | +4.5% |
| Operating Income | $86.5M | $73.9M | +17.2% |
| Net Income | $57.9M | $77.6M | −25.4% |
SEM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.