Select Medical Posts Strong 2025 Results Amid Strategic Shifts — Select Medical Holdings Corporation

Event summary

Select Medical reported a 6.4% revenue increase in Q4 2025, with income from continuing operations before other income and expense surging 203.1%.
Full-year 2025 revenue grew 5.1% to $5.45 billion, while adjusted EBITDA declined slightly to $493.2 million.
The company completed a tax-free distribution of Concentra shares in November 2024 and received a non-binding takeover proposal from Executive Chairman Robert A. Ortenzio in November 2025.
Select Medical's rehabilitation hospital segment saw the strongest growth, with revenue up 16.1% for the year.

The big picture

Select Medical's strong financial performance in 2025 comes amid significant strategic shifts, including the spin-off of Concentra and a potential takeover proposal. The company's focus on rehabilitation services aligns with broader industry trends toward specialized care, but it must navigate governance changes and operational challenges to maintain momentum.

What we're watching

Governance Dynamics: How the Board's evaluation of Robert A. Ortenzio's takeover proposal will impact Select Medical's strategic direction.
Operational Efficiency: Whether the company can sustain its strong rehabilitation hospital segment growth while addressing declining margins in outpatient services.
Financial Strategy: The pace at which Select Medical will execute its $1 billion stock repurchase program and how it balances this with potential acquisition opportunities.