Universal Health Services, Inc. Reports Strong Financial Growth for 2024 and Forecasts 2025 Outlook

Universal Health Services, Inc. (NYSE: UHS) has unveiled impressive financial results for the fourth quarter and the full year of 2024, demonstrating significant growth in both net income and revenues. The company reported a net income attributable to UHS of $332.4 million for the fourth quarter of 2024, translating to a robust $4.96 per diluted share, compared to $216.4 million or $3.16 per diluted share in the same quarter of 2023. Similarly, the net revenues surged by 11.1%, hitting $4.114 billion in the fourth quarter of 2024, up from $3.704 billion the previous year.

Throughout 2024, Universal Health Services' total net income reached $1.142 billion or $16.82 per diluted share, a significant boost from $717.8 million or $10.23 per share in 2023. The company's annual revenues reflected a similar upward trajectory, ascending by 10.8% to a total of $15.828 billion, up from $14.282 billion the previous year.

Earnings Break Down

The financial results were bolstered by increases in adjusted net income, which stood at $329.9 million ($4.92 per diluted share) in the fourth quarter of 2024. This was an improvement from $214.9 million or $3.13 per diluted share during the same quarter in 2023. Notably, the company experienced an unrealized after-tax gain of approximately $2.1 million in the recent fourth quarter, reflecting an increase in market value of its equity securities.

An encouraging trend was also witnessed in the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). The EBITDA net of non-controlling interests surged to $620.2 million in Q4 2024, compared to $476.9 million in Q4 2023. Excluding various expenses, the adjusted EBITDA reached $614.6 million in Q4 2024, a rise from $473.4 million a year earlier.

Operational Performance Highlights

In terms of operations, the adjustments for acute care hospitals showed a 2.2% increase in adjusted admissions and a 0.1% increment in adjusted patient days on a same facility basis. Furthermore, the net revenue per adjusted admission improved by 5.3%, highlighting the organization's effective pricing and service delivery strategies.

The behavioral health segment also showed positive movement, with adjusted admissions increasing by 2.0% and adjusted patient days by 1.6% in the fourth quarter. The segment generated a substantial revenue increase of 11.1%, reflecting the growing demand for behavioral health services.

Strong Cash Flow and Liquidity

The company reported a notable cash flow from operating activities amounting to $2.067 billion during 2024, representing a significant increase from $1.268 billion registered in 2023. This surge was largely driven by improvements in net income alongside efficient working capital management. As of December 31, 2024, UHS reported an available borrowing capacity of $1.17 billion under its revolving credit facility, further reinforcing its strong liquidity position.

Future Outlook for 2025

In its outlook for 2025, Universal Health Services is optimistic, forecasting net revenues between $17.020 billion and $17.364 billion, signifying an estimated growth of 7.5% to 9.7% compared to the previous year. Moreover, the projected Adjusted EBITDA net of non-controlling interests is expected to be in the range of $2.357 billion to $2.484 billion. Additionally, expected earnings per diluted share are projected to rise to between $18.45 and $19.95, marking an estimated increase of 11.1% to 20.1% over 2024’s adjusted earnings.

As the company continues its strategic approach to expanding and enhancing service quality across its facilities, investors and stakeholders can look forward to a promising year ahead. Universal Health Services remains committed to providing compassionate care in the healthcare sector while driving strong financial performance.

For more detailed financial disclosures and updates, stakeholders are encouraged to attend UHS’s upcoming conference call scheduled for February 27, 2025, which will be available via live webcast on their official website at www.uhs.com.

Universal Health Services, headquartered in King of Prussia, PA, continues to be one of the nation's largest and most respected providers of hospital and healthcare services, employing approximately 99,000 individuals across various sectors.