HCA(US:HCA)2025-10-30 20:30Financial Performance - Revenues increased to $19.161 billion in Q3 2025, up 9.6% from $17.487 billion in Q3 2024[68] - Net income attributable to HCA Healthcare, Inc. was $1.643 billion, or $6.96 per diluted share, compared to $1.270 billion, or $4.88 per diluted share in Q3 2024[68] - Total revenues for Q3 2025 reached $19,161 million, a 9.6% increase from $17,487 million in Q3 2024[89] - Net income attributable to HCA Healthcare, Inc. for Q3 2025 was $1,643 million, a 29.4% increase from $1,270 million in Q3 2024[89] - Revenues increased to $56.087 billion in the first nine months of 2025, up 7.2% from $52.318 billion in the same period of 2024[102] - Net income attributable to HCA Healthcare, Inc. for the first nine months of 2025 was $4.906 billion, or $20.23 per diluted share, compared to $4.322 billion, or $16.37 per diluted share, in 2024[102] Admissions and Patient Volumes - Consolidated admissions increased by 2.8% and same facility admissions increased by 2.1% in Q3 2025 compared to Q3 2024[70] - Inpatient surgical volumes rose by 2.0% on a consolidated basis and 1.4% on a same facility basis in Q3 2025[70] - Same facility equivalent admissions increased by 2.4% in Q3 2025 compared to Q3 2024[89] - The percentage of admissions related to uninsured patients decreased to 6% in Q3 2025 from 7% in Q3 2024[83] - Average daily census for the third quarter of 2025 was 29,266, compared to 29,247 in the third quarter of 2024[130] - Emergency room visits for the first nine months of 2025 totaled 7,435,953, an increase from 7,290,836 in the same period of 2024[131] Revenue Sources - Consolidated revenue per equivalent admission increased by 6.1% in Q3 2025 compared to Q3 2024[89] - Medicare revenue for Q3 2025 was $2,728 million, representing 14.2% of total revenue, compared to $2,584 million (14.8%) in Q3 2024[80] - Managed Medicare revenue increased to $3,306 million (17.3%) in Q3 2025 from $2,949 million (16.9%) in Q3 2024[80] Operating Expenses and Efficiency - Salaries and benefits as a percentage of revenues decreased to 43.6% in the third quarter of 2025 from 45.0% in the same quarter of 2024[95] - Supplies as a percentage of revenues were 14.5% in the third quarter of 2025, down from 15.2% in the third quarter of 2024[96] - Other operating expenses as a percentage of revenues increased to 21.8% in the third quarter of 2025 from 21.2% in the same quarter of 2024[97] - The cost-to-charges ratio for patient care costs improved to 10.0% in Q3 2025 from 10.3% in Q3 2024[81] Cash Flow and Financing - Cash flows from operating activities increased by $901 million, from $3.515 billion in Q3 2024 to $4.416 billion in Q3 2025[71] - Cash provided by operating activities increased by $2.322 billion to $10.277 billion for the first nine months of 2025 compared to $7.955 billion in 2024, primarily due to an increase in net income of $811 million and a decline in income taxes paid of $1.259 billion[112] - Cash used in investing activities was $3.671 billion in the first nine months of 2025, slightly up from $3.587 billion in 2024, with planned capital expenditures expected to be approximately $5.0 billion in 2025[113] - Cash used in financing activities totaled $7.551 billion in the first nine months of 2025, compared to $2.419 billion in 2024, including a net increase of $1.305 billion in indebtedness and $7.509 billion for common stock repurchases[114] Share Repurchase and Dividends - The company repurchased 21.307 million shares of common stock in the first nine months of 2025[68] - HCA's Board of Directors authorized a share repurchase program for up to $10 billion, with $3.256 billion remaining available as of September 30, 2025[140] - During Q3 2025, HCA repurchased 6,514,283 shares at an average price of $383.34 per share[142] - A quarterly dividend of $0.72 per share was declared, payable on December 29, 2025[142] Debt and Interest - Total debt amounted to $44.511 billion as of September 30, 2025, with interest expense rising to $1.676 billion for the first nine months of 2025 from $1.533 billion in 2024[119] - The average effective interest rate for debt was 5.1% for the first nine months of 2025, up from 5.0% in 2024[108] - The estimated fair value of the company's debt was $43.898 billion at September 30, 2025, with a potential annualized reduction to future pretax earnings of approximately $22 million from a hypothetical 1% increase in interest rates[126] Regulatory and Market Risks - The OBBBA is expected to reduce federal health care spending, particularly in Medicaid, and may trigger a reduction in Medicare reimbursement of up to 4% in early 2026[72] - The federal government shutdown effective October 1, 2025, may cause delays in payments for services rendered[74] - HCA's management continues to monitor market risks as outlined in their financial condition discussions[135] - No material changes to risk factors were reported since the last annual report[139] Operational Controls - HCA's disclosure controls and procedures were evaluated as effective as of September 30, 2025[135] - There were no changes in internal control over financial reporting that materially affected HCA's reporting[136] - The average number of days admitted patients stayed in HCA hospitals was reported, indicating operational efficiency[134] - The percentage of patient revenues related to non-admitted patients was highlighted, reflecting service diversification[134] - HCA's emergency room patient treatment numbers and surgeries performed were tracked, indicating service demand trends[134]