UHS(US:UHS)2025-07-29 12:34Financial Performance - Reported net income attributable to Universal Health Services was $353.2 million, or $5.43 per diluted share, for Q2 2025, compared to $289.2 million, or $4.26 per diluted share, in Q2 2024, representing a 22.1% increase in net income[1] - Net revenues increased by 9.6% to $4.284 billion in Q2 2025, up from $3.908 billion in Q2 2024[1] - Adjusted net income attributable to Universal Health Services for Q2 2025 was $347.9 million, or $5.35 per diluted share, compared to $292.6 million, or $4.31 per diluted share, in Q2 2024[2] - EBITDA net of noncontrolling interests was $651.4 million in Q2 2025, compared to $573.2 million in Q2 2024, reflecting a 13.6% increase[6] - For the first six months of 2025, reported net income was $669.9 million, or $10.23 per diluted share, compared to $551.0 million, or $8.08 per diluted share, in the same period of 2024[8] - Net revenues for the first six months of 2025 increased by 8.2% to $8.384 billion, up from $7.751 billion in the same period of 2024[8] - Net income attributable to Universal Health Services (UHS) for the six months ended June 30, 2025, was $669,898, an increase from $550,986 for the same period in 2024, representing a growth of 21.5%[43] - Adjusted EBITDA for the six months ended June 30, 2025, was $1,241,102, up from $1,104,477 in 2024, reflecting a year-over-year increase of 12.4%[43] - Total net revenues for the six months ended June 30, 2025, reached $8,383,536, compared to $7,751,186 in 2024, marking a growth of 8.1%[43] Forecast and Projections - The revised forecast for 2025 projects net revenues between $17.096 billion and $17.312 billion, an increase from the original forecast of $17.020 billion to $17.364 billion[25] - Adjusted EBITDA net of noncontrolling interests for 2025 is forecasted to be between $2.458 billion and $2.543 billion, up from the original forecast of $2.357 billion to $2.484 billion[25] - The revised 2025 forecasted net revenues are estimated to be approximately $17.096 billion to $17.312 billion, reflecting a change of 0.4% to -0.3% compared to the original forecast[30] - The revised 2025 forecasted Adjusted EBITDA, net of NCI, is estimated to be approximately $2.458 billion to $2.543 billion, representing increases of 4.3% to 2.4% over the original range[30] - The revised 2025 forecasted Adjusted EPS-diluted is estimated to be $20.00 to $21.00 per share, indicating increases of 8.4% to 5.3% over the original forecast[30] - Net income attributable to UHS is forecasted to be between $1,298,461 and $1,363,549 for the year ending December 31, 2025[68] - Adjusted EBITDA net of NCI is projected to be between $2,457,678 (14.4% of net revenue) and $2,543,208 (14.7% of net revenue) for the same period[68] Shareholder Actions - The company repurchased 875,000 shares at an aggregate cost of approximately $150.8 million during Q2 2025, with a total of 1.875 million shares repurchased for approximately $331.5 million in the first six months of 2025[21] Operational Metrics - Total patient revenue for the three months ended June 30, 2025, reached $23,518.12 million, a 12.1% increase from $20,979.78 million in the prior year[63] - Average daily census in behavioral health for the three months ended June 30, 2025, was 17,840.2, a 0.6% increase from 17,732.4 in the same period of 2024[63] - The number of hospitals owned and leased increased to 29 for acute care, a 7.4% increase from 27 in the prior year[63] - Average licensed beds for acute care increased to 7,112, a 5.4% increase from 6,750 in the same period of 2024[63] - Admissions in behavioral health for the three months ended June 30, 2025, were 118,974, a slight increase of 0.1% from 118,912 in the prior year[63] - The average daily census in the acute segment increased by 3.0% to 4,590.8, while the behavioral health segment saw a slight increase of 0.5% to 17,792.0[65] Cost and Expense Management - The interest expense, net for the three months ended June 30, 2025, was $35.364 million, a decrease from $48.899 million in the same period of 2024, indicating a reduction of 27.7%[37] - Total operating expenses for Acute Care Hospital Services were $2,017,870 in Q2 2025, up from $1,889,090 in Q2 2024, indicating a 6.8% increase[53] - Operating expenses for the three months ended June 30, 2025, totaled $1,483.62 million, representing 78.9% of net revenues, compared to 79.2% in the prior year[59] - Total deductions increased by 12.0% to $42,962,871, reflecting higher operational costs[65] Assets and Equity - Total assets as of June 30, 2025, were $14,985,577, an increase from $14,469,749 at the end of 2024, representing a growth of 3.6%[47] - UHS's total equity increased to $7,143,040 as of June 30, 2025, compared to $6,749,523 at the end of 2024, reflecting a growth of 5.8%[47] - The company reported a debt to total capitalization ratio of 39.5% for the six months ended June 30, 2025, down from 41.2% in the previous year[51] Risks and Challenges - The company faces risks related to changes in government healthcare programs, which could materially affect revenues and operations[33] - The increase in interest rates has significantly impacted the company's interest expense and free cash flow, posing a risk to future financial performance[33]