Centene(US:CNC)2026-02-06 01:52Financial Performance - Centene Corporation reported a GAAP diluted loss per share of $(13.53) for the full year 2025, with an adjusted diluted earnings per share of $2.08[2]. - Total revenues for 2025 reached $194.8 billion, a 20% increase from $145.5 billion in 2024, driven by premium yield and membership growth[12]. - The company recorded non-cash impairment charges of $513 million related to the divestiture of Magellan Health businesses[4]. - GAAP net earnings attributable to Centene for the three months ended December 31, 2025, were $(1,101) million, compared to $283 million for the same period in 2024[20]. - Adjusted net earnings for the three months ended December 31, 2025, were $(583) million, while for the year ended December 31, 2025, it was $1,028 million[20]. - The company reported a goodwill impairment of $6,723 million for the year ended December 31, 2025, impacting overall financial performance significantly[23]. - The net loss attributable to Centene Corporation for the year was $6.674 billion, compared to a net income of $3.305 billion in 2024[39]. - Net earnings for the year ended December 31, 2025, were $(6,677) million, a decrease from $3,294 million in 2024[41]. Revenue and Membership - Total revenues for the year ended December 31, 2025, reached $194.777 billion, a 19.5% increase from $163.071 billion in 2024[39]. - Premium revenues for the same period were $171.556 billion, up 20.5% from $142.303 billion in 2024[39]. - Centene's total at-risk membership decreased to 27.6 million in 2025 from 28.6 million in 2024, with a notable decline in traditional Medicaid membership[6]. - Total at-risk membership reached 27,633,500 in Q4 2025, compared to 25,853,600 in Q4 2024, reflecting a growth of approximately 6.9% year-over-year[43]. Cost and Expense Management - The health benefits ratio (HBR) for the full year 2025 was 91.9%, up from 88.3% in 2024, primarily due to increased medical costs in Medicaid and Marketplace[12]. - The SG&A expense ratio improved to 7.4% for the full year 2025, down from 8.5% in 2024, reflecting better expense management[12]. - Selling, general and administrative expenses for the three months ended December 31, 2025, were $3,370 million, an increase from $3,231 million in the same period of 2024[29]. - The SG&A expense ratio improved to 7.5% in Q4 2025 from 8.9% in Q4 2024[43]. - Centene's adjusted SG&A expense ratio is calculated as adjusted selling, general and administrative expenses divided by premium and service revenues, providing insight into cost management[30]. Future Outlook - For 2026, Centene expects adjusted diluted EPS to exceed $3.00, indicating a positive outlook for earnings growth[1]. - Total revenues guidance for 2026 is projected between $186.5 billion and $190.5 billion[14]. - Premium and service revenues for 2026 are expected to be between $170.0 billion and $174.0 billion[14]. - The effective tax rate for 2026 is anticipated to be between 27.0% and 28.0%[14]. - The company anticipates adjusted diluted earnings per share for the year ending December 31, 2026, to be greater than $3.00[24]. Asset and Liability Management - Total assets decreased to $76.747 billion as of December 31, 2025, from $82.445 billion in 2024[37]. - Total liabilities increased to $56.691 billion in 2025, compared to $55.935 billion in 2024[37]. - Cash and cash equivalents rose to $17.888 billion in 2025, up from $14.063 billion in 2024[37]. - The company reported an impairment of $7.311 billion for the year, significantly higher than the $13 million in 2024[39]. - Centene's total stockholders' equity decreased to $20.033 billion in 2025 from $26.500 billion in 2024[37]. Medical Costs and Claims - Medical costs increased to $157.702 billion in 2025, compared to $125.707 billion in 2024, reflecting a 25.4% rise[39]. - The company incurred total medical claims of $157,794 million for the year ended December 31, 2025[44]. - Medical claims liability increased to $20,544 million by December 31, 2025, up from $18,308 million at the end of 2024[44]. - The Health Benefits Ratio (HBR) for Medicaid was 93.0% in Q4 2025, slightly improved from 93.4% in Q4 2024[43].