Brentwood, Tenn.-based Surgery Partners has revised its full-year 2025 guidance downward to $3.275 billion to $3.3 billion in revenue and $535 million to $540 million in adjusted EBITDA, CEO Eric Evans said in a Nov. 10 earnings call transcribed by The Motley Fool.
Mr. Evans said the revision “reflects timing-related impacts of capital activity and a prudent stance on fourth-quarter mix and volume.”
Roughly 60% of the guidance reduction stems from delayed deal deployment and ASC-sale proceeds, while about 40% is tied to softer-than-expected commercial volume and payer mix, he added.
Here are five more notes to know:
1. Year-to-date, Surgery Partners has deployed $71 million toward acquisitions and completed three ASC divestitures, generating $45 million in cash and reducing debt by $5 million, according to Mr. Evans.
2. The company is pursuing “divestitures or partnerships for non-core hospital assets” with higher capital intensity — a move designed to reduce leverage and boost cash flow, Mr. Evans said.
3. Surgery Partners opened two de novo facilities in the third quarter, has nine under construction and more than a dozen in development. These centers are primarily orthopedic-focused and higher-acuity ASCs, though construction and regulatory delays have slowed their path to breakeven.
4. The company has added 500 new physicians year-to-date, with a strong focus on orthopedics and other high-acuity specialties, supporting continued growth in total joint procedures.
5. Chief Financial Officer Dave Doherty said in the call that liquidity remains strong, with $203.4 million in cash and $405.9 million in revolver capacity, totaling more than $600 million in available liquidity.
