Select Medical Holdings Corporation

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.