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Acadia Healthcare Q2 Earnings Beat on Growing Admission Volumes
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Key Takeaways
ACHC reported Q2 earnings of $0.83 per share, down 8.8% year over year but above estimates.
Revenue rose 9.2% year over year to $869.2M, exceeding the consensus estimate by 4%.
Adjusted EBITDA was $201.8M in Q2, up 7.6% year over year and above the $178.4M estimate.
Acadia Healthcare Company, Inc. (ACHC - Free Report) reported adjusted second-quarter earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. However, the bottom line declined 8.8% year over year.
Total revenues increased 9.2% year over year to $869.2 million. The top line beat the consensus mark by 4%.
The better-than-expected quarterly results benefited from increased patient days and revenues per patient day, and higher admissions, which were partially offset by lower average length of stay and higher expenses.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Same-facility revenues of $851.2 million rose 9.5% year over year and topped our estimate of $827.8 million. The year-over-year improvement was driven by a 1.8% increase in patient days. Admissions grew 1.4% year over year. The average length of stay rose 0.4% year over year but missed our growth estimate of 16.2%. Revenue per patient day increased 7.5% year over year.
In the overall facility, patient days improved 1.7% year over year, while admissions grew 2.8% year over year. Revenue per patient day increased 7.4% year over year, which missed our growth estimate of 1.3%. The average length of stay declined 1.1% year over year against our estimated increase of 2%.
Total adjusted EBITDA increased 7.6% year over year to $201.8 million and came higher than our estimate of $178.4 million.
Total expenses of $819.2 million rose 18.8% year over year and were higher than our estimate of $760.2 million. The year-over-year increase was due to higher salaries, wages and benefits, other operating expenses and supply costs.
Financial Update (as of June 30, 2025)
Acadia Healthcare exited the second quarter with cash and cash equivalents of $131.4 million, which increased from $76.3 million at the 2024-end level. It had a leftover capacity of $828.3 million under its $1 billion revolving credit facility at the second-quarter end.
Total assets of $6.3 billion increased from $6 billion at the end of 2024.
Long-term debt amounted to $2.2 billion, which rose from $1.9 billion as of Dec. 31, 2024. The current portion of long-term debt was $20.3 million.
Total equity of $3.1 billion increased 0.1% from the 2024-end level. The net leverage ratio was around 3.2 at the second-quarter end.
Net cash provided by operations totaled $145 million in the first half of 2025 against $150.1 million used in the prior-year comparable period.
Acadia’s Share Repurchase Update
The company repurchased shares worth $3.2 million for the quarter under review, which brings the total year-to-date repurchases to $50.4 million. As of June 30, 2025, it had $250 million left in its share repurchase fund.
Acadia’s 2025 Guidance Reaffirmed
Revenues are still projected to be in the range of $3.3 billion-$3.35 billion. Adjusted EBITDA is estimated to remain in the range of $675-$700 million. Adjusted earnings per share (EPS) are predicted to be between $2.45 and $2.65.
Interest expenses are still anticipated to stay within the band of $130-$140 million. Depreciation and amortization expenses are expected to be in the $185-$195 million band. The tax rate is still likely to be in the range of 25-26%.
Operating cash flows are forecasted to continue in the range of $460-$485 million. Expansion capital expenditure is anticipated to be between $495 million and $535 million. Maintenance and IT capital expenditures are expected to be in the range of $105-$115 million.
Management estimates bed additions between 950 and 1,000 in 2025.
Here are three stocks in the broader Medical space that have already reported earnings for this quarter: Universal Health Services, Inc. (UHS - Free Report) ,Community Health Systems, Inc. (CYH - Free Report) & HCA Healthcare, Inc. (HCA - Free Report)
Universal Health Services reported second-quarter 2025 adjusted earnings per share (EPS) of $5.35, which beat the Zacks Consensus Estimate by 10.3%. This is driven by continued growth in admissions at its acute care facilities and behavioral health care services. Also, UHS’s net revenues rose 9.6% year over year to nearly $4.3 billion.
Community Health Systems incurred a second-quarter 2025 adjusted loss of 5 cents per share, which missed the Zacks Consensus Estimate of earnings of 5 cents, driven by a decrease in patient days and adjusted admissions. Also, CYH’s net operating revenues declined 0.2% year over year to $3.1 billion in the quarter under review.
HCA Healthcare reported second-quarter 2025 adjusted EPS of $6.84, which surpassed the Zacks Consensus Estimate by 10.5%,thanks to growing patient volumes, increased same-facility revenue per equivalent admission and expanding emergency room visits. Also, HCA’s revenues were $18.6 billion, which rose 6.4% year over year.
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Acadia Healthcare Q2 Earnings Beat on Growing Admission Volumes
Key Takeaways
Acadia Healthcare Company, Inc. (ACHC - Free Report) reported adjusted second-quarter earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 16.9%. However, the bottom line declined 8.8% year over year.
Total revenues increased 9.2% year over year to $869.2 million. The top line beat the consensus mark by 4%.
The better-than-expected quarterly results benefited from increased patient days and revenues per patient day, and higher admissions, which were partially offset by lower average length of stay and higher expenses.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote
ACHC’s Q2 Operations
Same-facility revenues of $851.2 million rose 9.5% year over year and topped our estimate of $827.8 million. The year-over-year improvement was driven by a 1.8% increase in patient days. Admissions grew 1.4% year over year. The average length of stay rose 0.4% year over year but missed our growth estimate of 16.2%. Revenue per patient day increased 7.5% year over year.
In the overall facility, patient days improved 1.7% year over year, while admissions grew 2.8% year over year. Revenue per patient day increased 7.4% year over year, which missed our growth estimate of 1.3%. The average length of stay declined 1.1% year over year against our estimated increase of 2%.
Total adjusted EBITDA increased 7.6% year over year to $201.8 million and came higher than our estimate of $178.4 million.
Total expenses of $819.2 million rose 18.8% year over year and were higher than our estimate of $760.2 million. The year-over-year increase was due to higher salaries, wages and benefits, other operating expenses and supply costs.
Financial Update (as of June 30, 2025)
Acadia Healthcare exited the second quarter with cash and cash equivalents of $131.4 million, which increased from $76.3 million at the 2024-end level. It had a leftover capacity of $828.3 million under its $1 billion revolving credit facility at the second-quarter end.
Total assets of $6.3 billion increased from $6 billion at the end of 2024.
Long-term debt amounted to $2.2 billion, which rose from $1.9 billion as of Dec. 31, 2024. The current portion of long-term debt was $20.3 million.
Total equity of $3.1 billion increased 0.1% from the 2024-end level. The net leverage ratio was around 3.2 at the second-quarter end.
Net cash provided by operations totaled $145 million in the first half of 2025 against $150.1 million used in the prior-year comparable period.
Acadia’s Share Repurchase Update
The company repurchased shares worth $3.2 million for the quarter under review, which brings the total year-to-date repurchases to $50.4 million. As of June 30, 2025, it had $250 million left in its share repurchase fund.
Acadia’s 2025 Guidance Reaffirmed
Revenues are still projected to be in the range of $3.3 billion-$3.35 billion. Adjusted EBITDA is estimated to remain in the range of $675-$700 million. Adjusted earnings per share (EPS) are predicted to be between $2.45 and $2.65.
Interest expenses are still anticipated to stay within the band of $130-$140 million. Depreciation and amortization expenses are expected to be in the $185-$195 million band. The tax rate is still likely to be in the range of 25-26%.
Operating cash flows are forecasted to continue in the range of $460-$485 million. Expansion capital expenditure is anticipated to be between $495 million and $535 million. Maintenance and IT capital expenditures are expected to be in the range of $105-$115 million.
Management estimates bed additions between 950 and 1,000 in 2025.
Zacks Rank
ACHC currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did ACHC’s Peers Perform?
Here are three stocks in the broader Medical space that have already reported earnings for this quarter: Universal Health Services, Inc. (UHS - Free Report) ,Community Health Systems, Inc. (CYH - Free Report) & HCA Healthcare, Inc. (HCA - Free Report)
Universal Health Services reported second-quarter 2025 adjusted earnings per share (EPS) of $5.35, which beat the Zacks Consensus Estimate by 10.3%. This is driven by continued growth in admissions at its acute care facilities and behavioral health care services. Also, UHS’s net revenues rose 9.6% year over year to nearly $4.3 billion.
Community Health Systems incurred a second-quarter 2025 adjusted loss of 5 cents per share, which missed the Zacks Consensus Estimate of earnings of 5 cents, driven by a decrease in patient days and adjusted admissions. Also, CYH’s net operating revenues declined 0.2% year over year to $3.1 billion in the quarter under review.
HCA Healthcare reported second-quarter 2025 adjusted EPS of $6.84, which surpassed the Zacks Consensus Estimate by 10.5%,thanks to growing patient volumes, increased same-facility revenue per equivalent admission and expanding emergency room visits. Also, HCA’s revenues were $18.6 billion, which rose 6.4% year over year.