Aveanna Healthcare (AVAH) Bank of America Home Care Conference summary

Strategic vision and business model

• Focused on scaling a diversified national platform, serving over 80,000 patients across 38 states with pediatric, adult, and geriatric home care services.

• Recent acquisition of ThriveSkill Pediatrics expanded pediatric services into Kansas and New Mexico and increased density in five other states.

• Maintains a diversified payer mix, with no single payer contributing more than 10% of revenue and 93 preferred payer agreements across business segments.

• Strategic plan for 2025 centers on enhancing government and payer partnerships, cost efficiencies, business modernization, capital management, and employee engagement.

• Long-term organic growth target is 5%-7%, with upside from value-based agreements and strategic tuck-in acquisitions.

Financial performance and outlook

• Updated 2025 guidance: revenue expected to exceed $2.375 billion and Adjusted EBITDA above $300 million.

• Q3 2025 marked the 11th consecutive quarter of beating and raising guidance.

• Q3 revenue grew 22.2% year-over-year to $622 million, with EBITDA up 67.5% to $80.1 million.

• Strong liquidity position with nearly $480 million available, including $146 million in cash and undrawn revolver.

• Deleveraged by three full turns in 2023, with net leverage at 4.6x and a goal to be below 4x.

Segment performance and growth drivers

• Private Duty Services (PDS) is the largest segment, representing 82% of revenue, with current organic growth in the high single digits.

• Medical Solutions, 8% of revenue, is undergoing modernization, with growth expected to return to 8%-10% after Q1 2025.

• Home Health and Hospice, 10% of revenue, is experiencing double-digit organic growth, expected to normalize to 5%-7% long term.

• Preferred payer strategy has driven PDS managed care volumes from under 10% to nearly 60% in three years, with a target of mid-60s% in 2026 and potential to reach 80%+ in 2-3 years.

• Value-based agreements and state reimbursement rate wins support growth and alignment with payer partners.