Tenet Healthcare (THC) investor relations material

Business performance and financial outlook

• Earnings guidance for the year was reiterated and raised after Q2, reflecting strong EBITDA, free cash flow, and M&A progress for USPI.

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

• Core operating performance, including strong volumes and expense controls, accounted for most of the guidance increase, with Medicaid supplemental payments contributing about a third.

• Despite weaker industry volumes in Q2, operational excellence and focus on high-acuity services led to earnings that exceeded expectations.

• Leverage remains just above three times EBITDA minus NCI, supporting a strong balance sheet.

Policy and regulatory environment

• Extension of enhanced 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 the continuation of these credits, which are seen as vital subsidies for small business competitiveness.

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

• Components of the OBBB affecting Medicaid state-directed payments have been delayed to late 2027 or early 2028.

Capital allocation and investment strategy

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

• CapEx per bed has increased despite divestitures, reflecting confidence in the investability of the portfolio.

• The company has flexibility to adjust CapEx based on opportunities, supported by strong cash flow and balance sheet.

• Capital is being deployed ahead of schedule in clinical technologies and growth initiatives, with a strong M&A pipeline for USPI.

• Free cash flow beyond investment needs is being actively returned to shareholders, with continued discipline in capital deployment.