Tenet Health(THC) - 2025 Q3 - Quarterly Results

Financial Performance - Net income available to common shareholders in Q3 2025 was $342 million, or $3.86 per diluted share, down from $472 million, or $4.89 per diluted share in Q3 2024[4] - Adjusted diluted earnings per share increased 26.3% to $3.70 in Q3 2025 compared to $2.93 in Q3 2024[3] - Operating income decreased to $889 million in Q3 2025, down from $1,089 million in Q3 2024, reflecting a decline in operating margin from 21.2% to 16.8%[34] - Basic earnings per share decreased to $3.89 in Q3 2025 from $4.93 in Q3 2024, a decline of 21.1%[34] - Net income available to Tenet Healthcare Corporation common shareholders for the nine months ended September 30, 2025, was $1,036 million, a decrease of 64.1% from $2,882 million in the same period of 2024[36] - Net income for the nine months ended September 30, 2025, was $1,723 million, compared to $3,492 million for the same period in 2024, indicating a decrease of 50.7%[40] Revenue and Growth - Net operating revenues for Q3 2025 were $5.289 billion, up from $5.126 billion in Q3 2024, representing a growth of 3.2%[4] - For the nine months ended September 30, 2025, net operating revenues were $15,783 million, a 1.2% increase from $15,602 million in the same period of 2024[36] - FY 2025 net operating revenues are projected to be between $21.150 billion and $21.350 billion[14] - Ambulatory Care Adjusted EBITDA for Q3 2025 was $492 million, reflecting a 12.1% increase over Q3 2024[3] - Ambulatory Care segment revenues for the three months ended September 30, 2025, reached $1,275 million, a 11.93% increase from $1,139 million in 2024[42] - Hospital Operations and Services segment revenues for the three months ended September 30, 2025, were $4,014 million, slightly up from $3,987 million in 2024, showing a growth of 0.68%[42] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, were $2.809 billion, compared to $2.378 billion for the same period in 2024[7] - Free cash flow for the nine months ended September 30, 2025, was $2.163 billion, up from $1.777 billion in the prior year[7] - Free cash flow for Q3 2025 was $778 million, a decrease of 6.2% from $829 million in Q3 2024[49] - Adjusted net cash provided by operating activities for Q3 2025 was $1,061 million, compared to $1,100 million in Q3 2024[49] - The company reported a net cash provided by operating activities of $2,809 million for the nine months ended September 30, 2025, compared to $2,378 million in 2024, an increase of 18.09%[40] - The company anticipates free cash flow for FY 2025 to be between $2,275 million and $2,525 million[61] Adjusted EBITDA and Margins - Consolidated Adjusted EBITDA in Q3 2025 rose 12.4% to $1.099 billion, with an Adjusted EBITDA margin of 20.8%[3] - Adjusted EBITDA for the three months ended September 30, 2025, was $1,099 million, up from $978 million in 2024, reflecting an increase of 12.34%[42] - Adjusted EBITDA is a key performance measure, with the company regularly reviewing it for each operating segment[25] - Adjusted EBITDA margin for FY 2025 is expected to be between 21.1% and 21.4% of net operating revenues[57] Debt and Equity - The company's ratio of net debt to Adjusted EBITDA improved to 2.30x at September 30, 2025, down from 2.45x at June 30, 2025[7] - Total shareholders' equity decreased to $4,014 million as of September 30, 2025, from $4,171 million on December 31, 2024, a decline of 3.77%[38] - Total current liabilities increased to $4,560 million as of September 30, 2025, compared to $4,310 million on December 31, 2024, marking an increase of 5.79%[38] Future Projections - The company expects FY 2025 Adjusted EBITDA to be in the range of $4.47 billion to $4.57 billion, a $50 million increase at the midpoint[3] - The company projects adjusted net income available to common shareholders for FY 2025 to be between $1,450 million and $1,480 million[52] - The projected diluted earnings per share for FY 2025 is estimated to be between $14.66 and $15.37[52] - Net cash provided by operating activities for FY 2025 is projected to be between $3,150 million and $3,500 million[61]