Ardent Health (ARDT) investor relations material

Key performance drivers and challenges in 2025

• Achieved strong growth in admissions, surgeries, and ER visits, with leading market share in most markets.

• Expanded outpatient footprint through acquisitions of urgent care centers and new developments.

• Faced persistent payer headwinds, including elevated denials and underpayments, especially in the second half of the year.

• Encountered challenges from a difficult medical malpractice environment in New Mexico.

• IMPACT programs drove incremental improvements in margins, performance, and care transformation.

2026 outlook and strategic focus

• Building on labor performance momentum and selective outpatient growth.

• Core growth rate set at 4%, with strong population and economic trends in key markets.

• Anticipates a $35 million headwind from the loss of exchange subsidies, assuming a 20% loss in HIX enrollment.

• Prudent assumptions on patient migration and utilization reductions due to subsidy changes.

• Guidance midpoint for 2026 EBITDA is $510 million, factoring in headwinds and tailwinds.

Financial dynamics and margin initiatives

• 2025 EBITDA was $545 million; 2026 guidance reflects $50 million headwind from payer/pro fee issues and $18–$20 million for restored incentives.

• IMPACT initiatives expected to deliver $55 million in margin enhancements, mainly from labor and supply chain.

• Return to EBITDA growth anticipated in 2027 as payer/pro fee pressures normalize.

• Revenue cycle improvements and AI partnerships are expected to further enhance efficiency.