...December 1, 2025 This report does not constitute a rating action. Revenue growth was slower than expected in 2025, but profitability improved. We expect Surgery Partners Inc. to report lower than anticipated revenue, with improvement slowing to about 6.3%. This is because of timing related impact of divestitures completed in the last quarter of 2024 and first half of 2025, fewer mergers and acquisitions, and a weaker ramp-up in new (de novo) locations. We believe EBITDA will be slightly above our previous expectations, improving S&P Global Ratings-adjusted EBITDA margin by about 80 basis points to 15.7% from 14.9% in 2024. We believe revenue in 2026 will increase about 7.5% due to organic growth, contributions from de novo facilities and an uptick in mergers and acquisitions, slightly offset by the full-year impact of divestitures completed this year. We anticipate EBITDA margin will improve above 16% in 2026 and 2027 from the expected break- even with de novos. We expect higher same-facility...
