Aveanna Healthcare (AVAH) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic Transformation and Growth Drivers

• Completed year three of a strategic transformation, focusing on preferred payer and government affairs strategies, cost efficiencies, and modernization across all business segments.

• Achieved 10.3% five-year revenue CAGR and 25.5% adjusted EBITDA CAGR, with 2025 EBITDA rising from $185M to a normalized $300M.

• Thrive Skilled Pediatrics acquisition integrated successfully, serving as a model for future tuck-in M&A and geographic expansion.

• Preferred payer agreements and value-based agreements expanded across all segments, supporting organic growth, tighter alignment with payer needs, and reimbursement wins in at least 10 states.

• Leadership emphasizes a national platform and value-based care as core to growth, with technology investments and government affairs strategies supporting scalable, sustainable expansion.

Segment Performance and Operational Outlook

• Private Duty Services represents 82% of revenue, with expected organic growth at the upper end of the 3%-5% range in early 2026, and gross margin expected to normalize at 27%-28%.

• Medical Solutions, 8% of revenue, is expected to return to 8%-10% organic growth in 2026 as modernization efforts conclude.

• Home Health and Hospice, 10% of revenue, saw double-digit growth in 2025, expected to moderate to 5%-7% in 2026, with gross margin at 50%-52%.

• Wage pass-throughs and recruitment/retention initiatives remain key, with ongoing advocacy in challenging markets like California.

• Operates in 38 states with 366 locations, serving pediatric, adult, and geriatric patients.

Financial Performance, Guidance, and Capital Structure

• Q3 2025 revenue grew 22.2% year-over-year to $621.9 million; adjusted EBITDA up 67.5% to $80.1 million.

• 2025 revenue guidance raised to $2.425B-$2.445B and adjusted EBITDA to $318M-$322M; 2026 guidance set at $2.54B-$2.56B revenue and $318M-$322M EBITDA.

• Free cash flow exceeded $100M in 2025, with similar expectations for 2026; CapEx remains low and collections efficiency improved via technology and AI.

• Liquidity exceeds $478M, with $1.49B in variable-rate debt mostly hedged; leverage reduced to 4.6x with a target below 4x.

• Cash flow will be used for tuck-in acquisitions or debt paydown, aiming for leverage in the mid to low threes over the next two years.