Surgery Partners (SGRY) Q4 2024 earnings summary

Executive summary

• Achieved record full-year revenue of $3.1 billion and Adjusted EBITDA of $508.2 million in 2024, with 13.5% and 16% year-over-year growth, respectively.

• Growth driven by strong organic performance, robust M&A activity, and margin improvement initiatives.

• Opened eight de novo facilities and added 14 surgical robots, expanding high-acuity capabilities.

• Added over 750 new physicians, with a focus on orthopedics, supporting future growth.

• Maintained a conservative business model with minimal Medicaid exposure and strong liquidity.

Financial highlights

• Q4 revenue grew 17.5% year-over-year to $864.4 million; full-year revenue reached $3.1 billion, up 13.5%.

• Q4 Adjusted EBITDA was $163.8 million (18.9% margin); full-year Adjusted EBITDA was $508.2 million, up 16%.

• Same-facility revenue grew 8% for the year; same-facility cases increased 3.9%.

• Operating cash flow was $300.1 million; ended Q4 with $269.5 million in cash and $770 million in total liquidity.

• Distributed $171 million to physician partners and incurred $45 million in maintenance capex.

Outlook and guidance

• 2025 revenue guidance: $3.3–$3.45 billion; Adjusted EBITDA: $555–$565 million.

• Guidance includes ~$11 million Adjusted EBITDA from late 2024 divestitures.

• Expect double-digit Adjusted EBITDA growth and continued margin expansion.

• Plan to deploy at least $200 million in M&A; $53 million already spent in Q1.

• Capital expenditures for maintenance expected between $40–$50 million.