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Tenet Healthcare 8-K Report, Financial Results (Apr 29, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed April 29, 2025
Period End
April 29, 2025
Security
THC
In the record · 2016–202610-K1110-Q338-K176

THC filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 176 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jan ’19Jan ’19
  2. Deal closed8-K · Dec ’20Dec ’20
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed April 29, 2025. Cited figures are marked; the original filing is the authoritative source.

Tenet Healthcare Corporation reported first quarter 2025 results in a press release furnished as Exhibit 99.1 to this Form 8-K.

Net income available to Tenet common shareholders was $406 milliona, or $4.27 per diluted share, compared with $2.151 billion, or $21.38 per diluted share, in the first quarter of 2024. The prior-year figure included a pre-tax gain of $2.5 billion primarily tied to the divestiture of three hospitals in South Carolina and six hospitals in California. Adjusted diluted earnings per share rose 35.4% to $4.36 from $3.22, and Adjusted EBITDA increased 13.6% to $1.163 billion from $1.024 billion, with an Adjusted EBITDA margin of 22.3%.

Net operating revenues declined to $5.223 billionb from $5.368 billion, with the filing attributing the decline mainly to 2024 hospital divestitures. Segment results were mixed. The Ambulatory Care segment (USPI) grew net operating revenues 20.0% to $1.194 billion and Adjusted EBITDA 15.7% to $456 million, driven by a 9.1% increase in same-facility net patient service revenue per case even as surgical cases fell 2.1%.

The Hospital segment's Adjusted EBITDA rose to $707 millionc from $630 million, with same-hospital admissions up 4.4%, while its net operating revenues fell 7.9%. Both periods include Medicaid supplemental revenue items, with a $40 million favorable pre-tax impact in the first quarter of 2025 versus $44 million in the first quarter of 2024. Cash generation and capital returns were strong.

Operating cash flow was $815 milliond versus $586 million a year earlier, and free cash flow was $642 million versus $346 million. Tenet repurchased 2,629,195 shares for $348 million, and the ratio of net debt to Adjusted EBITDA improved to 2.46x from 2.54x at December 31, 2024. The company issued full-year 2025 Outlook ranges, including Adjusted EBITDA of $3.975 billion to $4.175 billion, net operating revenues of $20.6 billion to $21.0 billion, and Adjusted diluted EPS of $11.99 to $13.12.

02—Key points

Key Highlights

  1. Net income available to common shareholders was $406 million, or $4.27 per diluted share, versus $2.151 billion, or $21.38 per diluted share, in Q1 2024, which included a $2.5 billion pre-tax gain on hospital divestitures.
  2. Adjusted diluted EPS increased 35.4% to $4.36 from $3.22; Adjusted EBITDA rose 13.6% to $1.163 billion with a 22.3% margin.
  3. Net operating revenues declined to $5.223 billion from $5.368 billion, primarily due to 2024 hospital divestitures.
  4. Ambulatory Care Adjusted EBITDA increased 15.7% to $456 million, driven by a 9.1% rise in same-facility net revenue per case despite a 2.1% decline in surgical cases.
  5. Hospital Adjusted EBITDA increased to $707 million from $630 million, with same-hospital admissions up 4.4% and Adjusted EBITDA margin improving to 17.5% from 14.4%.
  6. Free cash flow was $642 million versus $346 million; the company repurchased 2,629,195 shares for $348 million and reduced net debt to Adjusted EBITDA to 2.46x from 2.54x.
  7. FY 2025 Outlook calls for Adjusted EBITDA of $3.975 billion to $4.175 billion and Adjusted diluted EPS of $11.99 to $13.12.

03—Questions

Frequently Asked Questions

  1. Why did reported net income fall so sharply year over year?

    The first quarter of 2024 included a pre-tax gain of $2.5 billion ($1.856 billion after-tax, or $18.45 per diluted share), primarily from the divestiture of three hospitals in South Carolina and six hospitals in California. Quarter 2025 had no comparable gain, so reported net income available to common shareholders fell to $406 million from $2.151 billion.

  2. How did the core operating business perform?

    Adjusted EBITDA rose 13.6% to $1.163 billion, and Adjusted diluted EPS rose 35.4% to $4.36. The filing credits strong same-hospital admissions growth, higher ambulatory net revenue per case, favorable payer mix and disciplined expense management, partly offset by hospital divestitures.

  3. Which segment drove profitability?

    Ambulatory Care Adjusted EBITDA reached $456 million, up 15.7%, on a 38.2% margin. Hospital Adjusted EBITDA reached $707 million, up from $630 million, with its margin rising to 17.5% from 14.4%.

  4. What is the company's cash flow and balance sheet position?

    Operating cash flow was $815 million versus $586 million, and free cash flow was $642 million versus $346 million. The net debt to Adjusted EBITDA ratio was 2.46x at March 31, 2025, compared with 2.54x at December 31, 2024.

  5. What guidance did Tenet give for full-year 2025?

    Tenet projects net operating revenues of $20.6 billion to $21.0 billion, Adjusted EBITDA of $3.975 billion to $4.175 billion, Adjusted diluted EPS of $11.99 to $13.12, and free cash flow of $1.8 billion to $2.05 billion, with capital expenditures of $700 million to $800 million.

04—Continue

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