Community Health Systems (CYH) Earnings Call | The Motley Fool

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 19, 2026

AI-Generated Deep Dive Summary

Community Health Systems (CYH) recently reported its fourth-quarter earnings during an investor call, highlighting mixed but generally positive results. While same-store net revenue grew 2.1% year over year, driven by rate increases and margin improvements, key metrics like inpatient admissions, adjusted admissions, and surgeries saw slight declines. Emergency department visits also dropped significantly, falling 3.6%. Notably, after adjusting for divested Pennsylvania operations, same-store admissions remained flat, with surgeries only down 0.4%, indicating some stabilization in these areas. The company’s financial performance improved on several fronts. Adjusted EBITDA reached $395 million for the quarter, with a margin of 12.7%. Full-year cash flows from operations totaled $543 million, while adjusted free cash flow came in at $150 million. Net leverage has also improved, dropping from 7.4x at the end of 2024 to 6.6x by year-end 2025. This reflects CYH’s ongoing efforts to reduce debt and improve financial stability. The company expects net debt to decrease further in 2026, reaching $9.2 billion from $10.1 billion at the end of 2025. Cost management initiatives have played a significant role in these improvements. Supply expenses fell by 110 basis points year over year, reaching 14.4% of net revenue. Contract labor spending remained stable, both sequentially and annually. However, medical specialist fees rose 4.6% in the fourth quarter, driven by higher costs in radiology and anesthesia. The company projects a 5%-8% increase in these fees for 2026, which could weigh on margins. CYH’s operational improvements and investments have yielded positive results in specific markets. For instance, Grandview Medical Center saw a 20% rise in births, while Carlsbad experienced a 35% increase in inbound transfers. Longview also reported a 16% surge in heart surgeries, attributed to targeted capital allocations. Additionally, the implementation of an ERP system has delivered $50 million in annual cost savings

Verticals

financeinvesting

Originally published on The Motley Fool on 2/19/2026