Tenet Healthcare Raises 2025 EBITDA Guidance to $4.54B, Driven by High Acuity and USPI Growth

Tenet Healthcare has raised its 2025 EBITDA guidance to up to $4.54B, driven by high acuity and USPI growth. In Q2 2025, the company reported net operating revenues of $5.3B and consolidated adjusted EBITDA of $1.121B, a 19% increase from 2024. CEO Saumya Sutaria emphasized strong performance across all business segments.

Tenet Healthcare Corporation (NYSE: THC) has raised its full-year 2025 EBITDA guidance to $4.54 billion, driven by strong performance across its hospital and ambulatory care segments. The healthcare provider reported net operating revenues of $5.3 billion and consolidated adjusted EBITDA of $1.121 billion for the second quarter of 2025, representing a 19% increase from the same period in 2024 [1].

The company's robust performance is attributed to high acuity and the growth of its United Surgical Partners International (USPI) segment. The hospital segment showed 25% adjusted EBITDA growth and a 15.6% adjusted EBITDA margin, while the ambulatory care segment, operated through USPI, achieved 11% adjusted EBITDA growth and a 39.2% adjusted EBITDA margin. Same-facility revenue growth in the ambulatory care segment reached 7.7%, and the company added 8 new facilities during the quarter [1].

CEO Saumya Sutaria emphasized the strong performance across all business segments. "The underlying demand environment, when you compare it to a multiyear basis, still seems strong to me," he said during the earnings call. Sutaria also noted that the company's strategy of shifting procedures to an outpatient setting, driven by recent policy changes, plays to its advantages and could offer new opportunities for growth [2].

Tenet's financial strength is evident in its cash flow generation and capital allocation. The company reported second-quarter free cash flow of $743 million and has been aggressive with share repurchases, buying back approximately 4.6 million shares for $747 million in the second quarter alone. The Board of Directors authorized a $1.5 billion increase to the share repurchase program, signaling confidence in the company's future prospects [1].

Looking ahead, Tenet expects adjusted diluted earnings per share between $15.55 and $16.21 for the full year 2025, with free cash flow projected between $2.03 and $2.28 billion. The company anticipates ambulatory same-facility system-wide revenue growth of 4-7% and inpatient admissions growth of 2-3% [1].

References:
[1] https://www.investing.com/news/company-news/tenet-healthcare-q2-2025-presentation-ebitda-surges-19-guidance-raised-93CH-4145487
[2] https://www.fiercehealthcare.com/providers/tenet-healthcare-raises-2025-outlook-q2s-strong-revenues-earnings-concerns-linger-over