UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES 2025 FIRST QUARTER FINANCIAL RESULTS

Rhea-AI Summary

Universal Health Services (UHS) reported strong Q1 2025 financial results, with net income reaching $316.7 million ($4.80 per diluted share), up from $261.8 million in Q1 2024. Net revenues increased 6.7% to $4.1 billion.

Key performance highlights:

• Adjusted net income: $319.5 million ($4.84 per share)
• EBITDA: $603.9 million, up from $525.9 million
• Acute care facilities saw 2.4% increase in adjusted admissions
• Behavioral health facilities experienced slight decline in admissions (-1.6%)

The company's operating cash flow was $360 million, down from $396 million in Q1 2024. UHS continued its stock repurchase program, buying back 1.0 million shares for approximately $180.6 million. The company maintains strong liquidity with $1.02 billion available borrowing capacity on its revolving credit facility.

Positive

• Net income increased 21% to $316.7M in Q1 2025 vs $261.8M in Q1 2024
• Revenue grew 6.7% to $4.1B in Q1 2025 from $3.84B in Q1 2024
• Adjusted EBITDA improved to $598.2M from $525.8M year-over-year
• Acute care facilities showed 2.4% increase in adjusted admissions
• Net revenue per adjusted admission in acute care up 2.5%
• Strong liquidity with $1.02B available borrowing capacity
• Behavioral health revenue increased 5.5% on same facility basis

Negative

• Cash from operations decreased to $360M from $396M year-over-year
• Behavioral health adjusted admissions declined 1.6%
• $144M unfavorable change in accounts receivable due to Medicaid payment delays
• Rising interest rates impacting borrowing costs and free cash flow
• Ongoing litigation risks with Cumberland Hospital and Pavilion Behavioral Health System
• Stock buybacks of $180.6M reducing cash reserves

Insights

Financial Analyst

UHS delivers outstanding Q1 with 21% net income growth and 6.7% revenue increase despite volume challenges in behavioral health.

Universal Health Services' Q1 2025 results demonstrate exceptional financial performance with net income rising 21% to $316.7 million compared to Q1 2024's $261.8 million. Diluted EPS increased even more dramatically, up 25.7% to $4.80. Revenue growth was solid at 6.7%, reaching $4.1 billion.

The company's adjusted figures show even stronger improvement, with adjusted EPS climbing 30.8% to $4.84. EBITDA metrics similarly impressed, with adjusted EBITDA net of NCI up 13.8% to $598.2 million.

Segment performance reveals different growth drivers. The acute care division delivered volume growth of 2.4% in adjusted admissions combined with pricing gains of 2.5% in revenue per admission. This balanced growth resulted in 6.5% higher acute care revenues.

The behavioral health segment presents a contrasting picture: despite volume declines of 1.6% in adjusted admissions, substantial pricing strength of 7.2% in revenue per admission generated 5.5% revenue growth. This pricing power in behavioral health represents a significant strength.

Cash flow metrics reveal a temporary challenge with operating cash flow decreasing to $360 million from $396 million. This decline primarily stems from a $144 million unfavorable change in accounts receivable, with $82 million tied to delayed Medicaid supplemental payments that have since been approved.

UHS continues allocating capital to shareholder returns, repurchasing 1 million shares for $180.6 million during Q1, with $643.7 million remaining in repurchase authorization. The company maintains strong liquidity with $1.02 billion in available borrowing capacity.

Healthcare Operations Expert

UHS shows operational excellence with divergent segment strategies: volume growth in acute care and strong pricing in behavioral health.

UHS's Q1 2025 operational metrics reveal a company effectively executing different strategies across its two main segments. In acute care, the 2.4% increase in adjusted admissions alongside a more modest 0.3% growth in adjusted patient days indicates a declining average length of stay. This suggests either improved treatment efficiency or a shift toward less complex cases that require shorter hospitalizations.

The acute care segment's 2.5% increase in revenue per admission points to effective pricing strategies or a favorable shift in case mix toward higher-reimbursement services. Combined with the volume growth, this yielded 6.5% higher acute care revenues - a strong performance in a traditionally competitive market.

The behavioral health division presents an intriguing operational picture. Despite a 1.6% decline in adjusted admissions, revenue per admission surged by 7.2%. This substantial pricing improvement more than compensated for the volume dip, resulting in 5.5% revenue growth. This exceptional pricing power suggests either successful service mix optimization toward higher-acuity care, improved payor contracts, or enhanced revenue cycle management.

The temporary cash flow reduction warrants attention but appears manageable. The $82 million receivables issue related to Nevada's Medicaid program has already been addressed with program approval in April 2025, indicating this is a timing issue rather than a fundamental concern.

The company's operational execution has translated into impressive bottom-line results, with adjusted EBITDA increasing 13.8% to $598.2 million. This demonstrates UHS's ability to effectively manage costs while driving revenue growth through complementary volume and pricing strategies across its facility portfolio.

Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended March 31, 2025 and 2024:

KING OF PRUSSIA, Pa., April 28, 2025 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $316.7 million, or $4.80 per diluted share, during the first quarter of 2025, as compared to $261.8 million, or $3.82 per diluted share, during the first quarter of 2024. Net revenues increased by 6.7% to $4.100 billion during the first quarter of 2025, as compared to $3.844 billion during the first quarter of 2024.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income attributable to UHS during the first quarter of 2025 was $319.5 million, or $4.84 per diluted share, as compared to $253.1 million, or $3.70 per diluted share, during the first quarter of 2024.

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2025 were: (i) an unrealized after-tax loss of $3.3 million, or $.05 per diluted share ($4.3 million pre-tax), resulting from a decrease in the market value of certain equity securities (included in "Other (income) expense, net"), and; (ii) a favorable net after-tax impact of $0.5 million, or $.01 per diluted share, resulting from the net tax benefit recorded in connection with "ASU 2016-09", Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m).

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2024 were: (i) a favorable after-tax impact of $9.2 million, or $.13 per diluted share, resulting from the tax benefit recorded in connection with employee share-based payments pursuant to ASU 2016-09, and; (ii) an unrealized after-tax loss of $0.4 million, or $.01 per diluted share ($0.6 million pre-tax), resulting from a decrease in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI", NCI is net income attributable to noncontrolling interests), was $603.9 million during the first quarter of 2025, as compared to $525.9 million during the first quarter of 2024. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $598.2 million during the first quarter of 2025, as compared to $525.8 million during the first quarter of 2024.

Acute Care Services – Three-month periods ended March 31, 2025 and 2024:

During the first quarter of 2025, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased by 2.4% while adjusted patient days increased by 0.3%, as compared to the first quarter of 2024. At these facilities, during the first quarter of 2025, net revenue per adjusted admission increased by 2.5% while net revenue per adjusted patient day increased by 4.7%, as compared to the first quarter of 2024. Net revenues generated from our acute care services, on a same facility basis, increased by 6.5% during the first quarter of 2025, as compared to the first quarter of 2024.

Behavioral Health Care Services – Three-month periods ended March 31, 2025 and 2024:

During the first quarter of 2025, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased by 1.6% while adjusted patient days decreased by 0.3%, as compared to the first quarter of 2024. At these facilities, during the first quarter of 2025, net revenue per adjusted admission increased by 7.2% and net revenue per adjusted patient day increased by 5.8%, as compared to the first quarter of 2024. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 5.5% during the first quarter of 2025, as compared to the first quarter of 2024.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the three-month period ended March 31, 2025, our net cash provided by operating activities was $360 million as compared to $396 million during the first quarter of 2024. The $36 million net decrease in our net cash provided by operating activities consisted of: (i) a favorable change of $69 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gains on sales of assets and businesses; (ii) an unfavorable change of $144 million in accounts receivable due, in part, to delays in receipt of funds in connection with certain Medicaid supplement payment programs in various states (approximately $82 million of which related to the Nevada state directed payment program which was approved by the Centers for Medicare and Medicaid Services in April, 2025, retroactive to January 1, 2025); (iii) a favorable change of $20 million in other assets and deferred charges; (iv) a favorable change of $16 million in accrued and deferred income taxes, and; (v) $3 million of other combined net favorable changes.     

Liquidity:

As of March 31, 2025, we had $1.02 billion of aggregate available borrowing capacity pursuant to our $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit.       

Stock Repurchase Program:

In connection with our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions. 

Pursuant to this program, during the first quarter of 2025, we have repurchased approximately 1.0 million shares at an aggregate cost of approximately $180.6 million (average price of approximately $181 per share).

As of March 31, 2025, we had an aggregate available repurchase authorization of approximately $643.7 million pursuant to our stock repurchase program.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 29, 2025. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation's largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. (the "Company") has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2024 were $15.8 billion. UHS ranked #299 on the Fortune 500; and #399 on Forbes' list of America's Largest Public Companies. In 2025, UHS was again recognized as one of the World's Most Admired Companies by Fortune.  

Our operating philosophy is as effective today as it was upon the Company's founding in 1979, enabling us to provide compassionate care to our patients and their loved ones.  Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has approximately 99,300 employees and, through its subsidiaries, operates 29 inpatient acute care hospitals, 334 inpatient behavioral health facilities, 60 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT).  For additional information visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations.  Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2024), may cause the results to differ materially from those anticipated in the forward-looking statements.  These statements are subject to risks and uncertainties and therefore actual results may differ materially.  Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof.  We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. 

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:  

• A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions.  Changes to these programs, if adopted, could materially affect program payments which could materially impact our results of operations. In addition, we receive substantial reimbursement from multiple states in connection with various supplemental Medicaid payment programs. Failure to renew these programs beyond their scheduled termination dates, failure of the public hospitals to provide the necessary Inter-Governmental Transfers for the states' share of the Medicaid disproportionate share hospital programs, failure of our hospitals that currently receive supplemental Medicaid revenues to qualify for future funds under these programs, the adoption of certain proposed reductions of federal funding for Medicaid, or reductions in other reimbursements, could cause our actual results of operations for the year ended December 31, 2025 to differ materially from our 2025 operating results forecast.
• The increase in interest rates during the past few years has increased our interest expense significantly thereby reducing our free cash flow. As such, although interest rates have moderated more recently, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations and our ability to access the capital markets on favorable terms.
• Changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where our products or materials are made (either directly or through our suppliers) could have an impact on our competitive position, business operations and financial results.
• The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the matters related to Cumberland Hospital for Children and Adolescents, located in New Kent, Virginia, as previously disclosed on Form 8-K on September 30, 2024, Form 10-Q for the quarterly period ended September 30, 2024 and Form 10-K for the year ended December 31, 2024; and the matter related to the Pavilion Behavioral Health System ("Pavilion"), located in Champaign, Illinois, as previously disclosed on Forms 8-K on April 1, 2024, September 30, 2024 and October 11, 2024, Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024 and September 30, 2024 and Form 10-K for the year ended December 31, 2024. We have reached an agreement in principle with respect to the Pavilion matter which is subject to the execution of a final settlement agreement and court approval of that agreement. Although the terms of the settlement are confidential, we expect that the settlement, if finalized and approved by the court, will be covered by our commercial excess insurance and our existing reserves for that matter. Although we can make no assurances regarding the ultimate outcome of these matters, or what damages will ultimately be awarded, the final resolution of these matters could have a material adverse effect on the Company.

We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, net of the impact of executive compensation limitations pursuant to IRC section 162(m), and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2024. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

 

Universal Health Services, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
	Three months
	ended March 31,
	2025		2024
Net revenues	$4,099,720		$3,843,582
Operating charges:
Salaries, wages and benefits	1,951,104		1,842,624
Other operating expenses	1,105,752		1,032,170
Supplies expense	402,881		403,573
Depreciation and amortization	148,345		141,003
Lease and rental expense	36,813		35,450
	3,644,895		3,454,820
Income from operations	454,825		388,762
Interest expense, net	40,056		52,826
Other (income) expense, net	(5,659)		(150)
Income before income taxes	420,428		336,086
Provision for income taxes	98,800		70,264
Net income	321,628		265,822
Less:  Net income (loss) attributable to
noncontrolling interests ("NCI")	4,948		3,988
Net income attributable to UHS	$316,680		$261,834
Basic earnings per share attributable to UHS (a)	$4.87		$3.90
Diluted earnings per share attributable to UHS (a)	$4.80		$3.82

 

Universal Health Services, Inc.
Footnotes to Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
	Three months
(a) Earnings per share calculation:	ended March 31,
	2025		2024
Basic and diluted:
Net income attributable to UHS	$316,680		$261,834
Less: Net income attributable to unvested restricted share grants	0		(45)
Net income attributable to UHS - basic and diluted	$316,680		$261,789
Weighted average number of common shares - basic	64,970		67,204
Basic earnings per share attributable to UHS:	$4.87		$3.90
Weighted average number of common shares	64,970		67,204
Add: Other share equivalents	1,067		1,278
Weighted average number of common shares and equiv. - diluted	66,037		68,482
Diluted earnings per share attributable to UHS:	$4.80		$3.82

 

Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Three Months ended March 31, 2025 and 2024
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")
	Three months ended		% Net		Three months ended		% Net
	March 31, 2025		revenues		March 31, 2024		revenues
Net income attributable to UHS	$316,680				$261,834
Depreciation and amortization	148,345				141,003
Interest expense, net	40,056				52,826
Provision for income taxes	98,800				70,264
EBITDA net of NCI	$603,881		14.7 %		$525,927		13.7 %
Other (income) expense, net	(5,659)				(150)
Adjusted EBITDA net of NCI	$598,222		14.6 %		$525,777		13.7 %
Net revenues	$4,099,720				$3,843,582
Calculation of Adjusted Net Income Attributable to UHS
	Three months ended				Three months ended
	March 31, 2025				March 31, 2024
			Per				Per
	Amount		Diluted Share		Amount		Diluted Share
Net income attributable to UHS	$316,680		$4.80		$261,834		$3.82
Plus/minus after-tax adjustments:
Unrealized loss on equity securities	3,285		0.05		444		0.01
Impact of ASU 2016-09, net	(461)		(0.01)		(9,156)		(0.13)
Subtotal adjustments	2,824		0.04		(8,712)		(0.12)
Adjusted net income attributable to UHS	$319,504		$4.84		$253,122		$3.70

 

Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
			March 31,			December 31,
			2025			2024
Assets
Current assets:
Cash and cash equivalents		$	126,753		$	125,983
Accounts receivable, net			2,411,524			2,177,751
Supplies			221,991			220,940
Other current assets			317,106			291,614
Total current assets			3,077,374			2,816,288
Property and equipment			12,905,358			12,643,283
Less: accumulated depreciation			(6,208,744)			(6,071,058)
			6,696,614			6,572,225
Other assets:
Goodwill			3,948,178			3,932,879
Deferred income taxes			133,244			118,449
Right of use assets-operating leases			409,458			418,719
Deferred charges			9,186			9,404
Other			601,376			601,785
Total Assets		$	14,875,430		$	14,469,749
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt		$	40,410		$	40,059
Accounts payable and other liabilities			2,092,451			2,081,479
Operating lease liabilities			75,929			74,649
Federal and state taxes			121,462			14,219
Total current liabilities			2,330,252			2,210,406
Other noncurrent liabilities			681,654			655,806
Operating lease liabilities noncurrent			368,518			376,239
Long-term debt			4,609,272			4,464,482
Redeemable noncontrolling interest			13,324			13,293
UHS common stockholders' equity			6,785,604			6,666,207
Noncontrolling interest			86,806			83,316
Total equity			6,872,410			6,749,523
Total Liabilities and Stockholders' Equity		$	14,875,430		$	14,469,749

 

Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Three months
	ended March 31,
	2025		2024
Cash Flows from Operating Activities:
Net income	$321,628		$265,822
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation & amortization	148,345		141,003
Gains on sales of assets and businesses	0		(3,725)
Stock-based compensation expense	21,595		19,630
Changes in assets & liabilities, net of effects from
acquisitions and dispositions:
Accounts receivable	(218,374)		(74,446)
Accrued interest	11,086		3,453
Accrued and deferred income taxes	88,641		72,193
Other working capital accounts	(42,824)		(33,291)
Other assets and deferred charges	(489)		(20,307)
Other	3,811		8,897
Accrued insurance expense, net of commercial premiums paid	47,334		51,112
Payments made in settlement of self-insurance claims	(20,705)		(33,935)
Net cash provided by operating activities	360,048		396,406
Cash Flows from Investing Activities:
Property and equipment additions	(239,026)		(208,539)
Proceeds received from sales of assets and businesses	0		5,428
Acquisition of businesses and property	(8,314)		0
(Outflows) inflows from foreign exchange contracts that hedge our net U.K. investment	(23,695)		8,319
(Increase) decrease in capital reserves of commercial insurance subsidiary	(264)		155
Net cash used in investing activities	(271,299)		(194,637)
Cash Flows from Financing Activities:
Repayments of long-term debt	(9,113)		(63,905)
Additional borrowings	152,454		12,038
Repurchase of common shares	(223,385)		(142,084)
Dividends paid	(13,534)		(13,601)
Issuance of common stock	3,658		3,241
Profit distributions to noncontrolling interests	(5,912)		(4,480)
Purchase (sale) of ownership interests by (from) minority members	4,412		(156)
Net cash used in financing activities	(91,420)		(208,947)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,645		(492)
Decrease in cash, cash equivalents and restricted cash	(1,026)		(7,670)
Cash, cash equivalents and restricted cash, beginning of period	224,752		214,470
Cash, cash equivalents and restricted cash, end of period	$223,726		$206,800
Supplemental Disclosures of Cash Flow Information:
Interest paid	$27,718		$48,116
Income taxes paid, net of refunds	$5,638		$2,671
Noncash purchases of property and equipment	$116,196		$60,125

 

Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
					% Change
					Three Months ended
Same Facility:					3/31/2025
Acute Care Hospitals
Revenues					6.5 %
Adjusted Admissions					2.4 %
Adjusted Patient Days					0.3 %
Revenue Per Adjusted Admission					2.5 %
Revenue Per Adjusted Patient Day					4.7 %
Behavioral Health Hospitals
Revenues					5.5 %
Adjusted Admissions					-1.6 %
Adjusted Patient Days					-0.3 %
Revenue Per Adjusted Admission					7.2 %
Revenue Per Adjusted Patient Day					5.8 %
UHS Consolidated			Three Months ended
			3/31/2025		3/31/2024
Revenues			$4,099,720		$3,843,582
EBITDA net of NCI			$603,881		$525,927
EBITDA Margin net of NCI			14.7 %		13.7 %
Adjusted EBITDA net of NCI			$598,222		$525,777
Adjusted EBITDA Margin net of NCI			14.6 %		13.7 %
Cash Flow From Operations			$360,048		$396,406
Capital Expenditures			$239,026		$208,539
Days Sales Outstanding			53		54
Debt			$4,649,682		$4,861,805
UHS' Shareholders Equity			$6,785,604		$6,256,697
Debt / Total Capitalization			40.7 %		43.7 %
Debt / EBITDA net of NCI (1)			2.00		2.65
Debt / Adjusted EBITDA net of NCI (1)			2.01		2.63
Debt / Cash From Operations (1)			2.29		3.54

(1) Latest 4 quarters.

 

Universal Health Services, Inc.
Acute Care Hospital Services
For the Three months ended
March 31, 2025 and 2024
(in thousands)
(unaudited)
Same Facility Basis - Acute Care Hospital Services
		Three months ended				Three months ended
		March 31, 2025				March 31, 2024
		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues		$2,244,062		100.0 %		$2,108,045		100.0 %
Operating charges:
Salaries, wages and benefits		894,101		39.8 %		861,086		40.8 %
Other operating expenses		630,025		28.1 %		577,582		27.4 %
Supplies expense		343,470		15.3 %		347,130		16.5 %
Depreciation and amortization		88,084		3.9 %		90,283		4.3 %
Lease and rental expense		25,071		1.1 %		23,833		1.1 %
Subtotal-operating expenses		1,980,751		88.3 %		1,899,914		90.1 %
Income from operations		263,311		11.7 %		208,131		9.9 %
Interest expense, net		2,262		0.1 %		1,300		0.1 %
Other (income) expense, net		(8,572)		(0.4) %		160		0.0 %
Income before income taxes		$269,621		12.0 %		$206,671		9.8 %
All Acute Care Hospital Services
		Three months ended				Three months ended
		March 31, 2025				March 31, 2024
		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues		$2,349,229		100.0 %		$2,185,081		100.0 %
Operating charges:
Salaries, wages and benefits		910,724		38.8 %		861,547		39.4 %
Other operating expenses		715,340		30.4 %		654,983		30.0 %
Supplies expense		348,393		14.8 %		347,004		15.9 %
Depreciation and amortization		94,647		4.0 %		90,312		4.1 %
Lease and rental expense		25,339		1.1 %		23,833		1.1 %
Subtotal-operating expenses		2,094,443		89.2 %		1,977,679		90.5 %
Income from operations		254,786		10.8 %		207,402		9.5 %
Interest expense, net		2,262		0.1 %		1,300		0.1 %
Other (income) expense, net		(8,267)		(0.4) %		634		0.0 %
Income before income taxes		$260,791		11.1 %		$205,468		9.4 %

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2024.

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

 

Universal Health Services, Inc.
Behavioral Health Care Services
For the Three months ended
March 31, 2025 and 2024
(in thousands)
(unaudited)
Same Facility Basis - Behavioral Health Care Services
		Three months ended				Three months ended
		March 31, 2025				March 31, 2024
		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues		$1,705,862		100.0 %		$1,616,241		100.0 %
Operating charges:
Salaries, wages and benefits		925,537		54.3 %		868,656		53.7 %
Other operating expenses		321,446		18.8 %		314,001		19.4 %
Supplies expense		55,379		3.2 %		56,709		3.5 %
Depreciation and amortization		51,368		3.0 %		47,597		2.9 %
Lease and rental expense		11,127		0.7 %		11,454		0.7 %
Subtotal-operating expenses		1,364,857		80.0 %		1,298,417		80.3 %
Income from operations		341,005		20.0 %		317,824		19.7 %
Interest expense, net		1,074		0.1 %		1,027		0.1 %
Other (income) expense, net		(825)		(0.0) %		(676)		(0.0) %
Income before income taxes		$340,756		20.0 %		$317,473		19.6 %
All Behavioral Health Care Services
		Three months ended				Three months ended
		March 31, 2025				March 31, 2024
		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues		$1,747,649		100.0 %		$1,656,067		100.0 %
Operating charges:
Salaries, wages and benefits		928,166		53.1 %		872,196		52.7 %
Other operating expenses		363,584		20.8 %		347,268		21.0 %
Supplies expense		55,447		3.2 %		56,924		3.4 %
Depreciation and amortization		51,408		2.9 %		47,872		2.9 %
Lease and rental expense		11,369		0.7 %		11,518		0.7 %
Subtotal-operating expenses		1,409,974		80.7 %		1,335,778		80.7 %
Income from operations		337,675		19.3 %		320,289		19.3 %
Interest expense, net		1,075		0.1 %		1,027		0.1 %
Other (income) expense, net		(825)		(0.0) %		(676)		(0.0) %
Income before income taxes		$337,425		19.3 %		$319,938		19.3 %

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2024.

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

 

Universal Health Services, Inc.
Selected Hospital Statistics
For the Three Months ended
March 31, 2025 and 2024
(unaudited)
AS REPORTED:
		ACUTE						BEHAVIORAL HEALTH
		3/31/25		3/31/24		%  change		3/31/25		3/31/24		%  change
Hospitals owned and leased		28		27		3.7 %		334		333		0.3 %
Average licensed beds		6,854		6,657		3.0 %		24,223		24,378		-0.6 %
Average available beds		6,682		6,485		3.0 %		24,123		24,278		-0.6 %
Patient days		420,687		415,327		1.3 %		1,596,888		1,608,992		-0.8 %
Average daily census		4,674.3		4,564.0		2.4 %		17,743.2		17,681.2		0.4 %
Occupancy-licensed beds		68.2 %		68.6 %		-0.5 %		73.2 %		72.5 %		1.0 %
Occupancy-available beds		70.0 %		70.4 %		-0.6 %		73.6 %		72.8 %		1.0 %
Admissions		86,652		83,581		3.7 %		117,788		119,930		-1.8 %
Length of stay		4.9		5.0		-2.0 %		13.6		13.4		1.5 %
SAME FACILITY:
		ACUTE						BEHAVIORAL HEALTH
		3/31/25		3/31/24		%  change		3/31/25		3/31/24		%  change
Hospitals owned and leased		27		27		0.0 %		333		333		0.0 %
Average licensed beds		6,704		6,657		0.7 %		24,097		23,914		0.8 %
Average available beds		6,532		6,485		0.7 %		23,997		23,814		0.8 %
Patient days		414,738		415,327		-0.1 %		1,586,691		1,584,255		0.2 %
Average daily census		4,608.2		4,564.0		1.0 %		17,629.9		17,409.4		1.3 %
Occupancy-licensed beds		68.7 %		68.6 %		0.3 %		73.2 %		72.8 %		0.5 %
Occupancy-available beds		70.5 %		70.4 %		0.2 %		73.5 %		73.1 %		0.5 %
Admissions		85,244		83,581		2.0 %		117,075		118,408		-1.1 %
Length of stay		4.9		5.0		-2.0 %		13.6		13.4		1.5 %

 

View original content:https://www.prnewswire.com/news-releases/universal-health-services-inc-announces-2025-first-quarter-financial-results-302440151.html

SOURCE Universal Health Services, Inc.

FAQ

How much did Universal Health Services (UHS) earnings grow in Q1 2025?

UHS earnings grew significantly, with net income reaching $316.7 million ($4.80 per diluted share) in Q1 2025, up from $261.8 million ($3.82 per diluted share) in Q1 2024, representing a 21% increase.

What is UHS stock buyback program status in 2025?

In Q1 2025, UHS repurchased 1.0 million shares at approximately $180.6 million (average $181 per share), with $643.7 million remaining in the buyback authorization as of March 31, 2025.

How did UHS hospital admissions perform in Q1 2025?

UHS acute care hospitals saw adjusted admissions increase by 2.4%, while behavioral health facilities experienced a 1.6% decrease in adjusted admissions compared to Q1 2024.

What was UHS revenue growth in first quarter 2025?

UHS revenues increased by 6.7% to $4.100 billion in Q1 2025, compared to $3.844 billion in Q1 2024, with acute care revenues up 6.5% and behavioral health revenues up 5.5% on a same facility basis.

How much cash does UHS have available for borrowing in 2025?

As of March 31, 2025, UHS had $1.02 billion of available borrowing capacity through its $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit.