Tenet Healthcare (THC) investor relations material

Business performance and guidance

• Confidence in full-year guidance was reiterated, including raised EBITDA, free cash flow, and M&A targets for USPI after Q2.

• Margin expansion has been significant, driven by a high acuity strategy and strong operational execution.

• Core operating performance, not just Medicaid supplemental payments, drove most of the guidance increase.

• Expense management and nimble operations have enabled consistent earnings despite volume fluctuations.

• No changes to demand forecasts for the second half; operations remain solid with continued focus on earnings drivers.

Policy and regulatory environment

• Extension of exchange premium tax credits is a key near-term policy focus, with growing bipartisan recognition of its importance for individuals and small businesses.

• Momentum is building for subsidy extension, supported by polling and economic rationale for small business competitiveness.

• Contingency planning for policy outcomes includes monitoring timing, subsidy changes, and potential regulatory adjustments.

• Medicaid supplemental payment programs are progressing, with potential for further approvals to benefit future guidance.

• OBBB-related Medicaid changes are delayed to 2027-2028, with ongoing organic growth in Medicaid business.

Capital allocation and investment strategy

• Asset sales have optimized the hospital portfolio, and current assets are considered well-positioned.

• CapEx per bed has increased post-divestitures, reflecting targeted investment in high-return markets.

• Strong free cash flow and balance sheet enable flexible capital deployment, including pulling forward investments and supporting growth.

• Capital is being allocated to both hospital and USPI businesses, with a strong M&A pipeline and increased guidance.

• Shareholder returns remain a priority, with excess cash flow supporting buybacks alongside strategic investments.