Aveanna Healthcare Holdings Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Benjamin Rossi - JPMorgan Chase & Co - Analyst : Just first glance at 2025 guidance, so projected EBITDA now up to 50% year over year. Could you just talk us through what is being contemplated in that $63 million increase in guidance in terms of aggregate improvements and either clients and pricing across two segments? And then for cadence, we have the $26 million in one-time items during 1Q and 2Q that you described. Is there any other year-over-year dynamics to consider or expected M&A within the skies for the back half of the year?

Question: Benjamin Rossi - JPMorgan Chase & Co - Analyst : Understood. So just I guess tying on the rates. So last quarter you mentioned an expectation of the spread rate in PDS normalizing in the sub-11 range during 3Q. Obviously, with the $15 million combined favorable one-times and maybe some of that M&A in there, seeing the rates stay elevated during 2Q, is there any way to think about where your core spread rate currently sits excluding those items? Just trying to understand the lift you're getting purely from your previous payer contracting efforts there.

Question: Andrew Mok - Barclays Services Corp - Analyst : As we think about the right jump off point for EBITDA for next year, is $270 million less, I think, $20 million items that you've called out year-to-date, that gets you to $250 million. Is that the right number to think about as we contemplate kind of growth for next year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 2:00PM, AVAH.OQ - Q2 2025 Aveanna Healthcare Holdings Inc Earnings Call

Question: Andrew Mok - Barclays Services Corp - Analyst : Got it. And maybe related to that point, you mentioned passing through the caregiver wages. Do you expect to get back to the $10 to $10.50 spread this year? Just curious at like timing and progression of what that looks like from here.

Question: Pito Chickering - Deutsche Bank AG - Analyst : Nice job this quarter. I guess sitting back here, looking at the rate increases, looking at the preferred providers that you've been doing, how much demand remains left there? I mean, what ending are we in for getting patients out of the hospitals? Are we in the early innings, the latter inning? How much more demand is there going to be as these rates are coming up into levels that you guys are able to staff better?

Question: Pito Chickering - Deutsche Bank AG - Analyst : Okay, great. Then a follow up here this is asked a couple of different ways. I'll go differently. In the script, you talked about discussions with state medical directors as they look for changes next year with lower dollars. I mean, what areas could they do to impact you guys? Would it go back to lower rates? Would they put different screening mechanisms? I mean, what could the state medical directors do next year as the Medicaid dollar pool gets smaller that could negatively impact you guys?

Question: David MacDonald - Truist Securities - Analyst : Just one question left. Wanted to come back to labor for a quick minute. And just see -- can you guys give us some sense, just some framing, in terms of whether it's number of hires, percentage of demand you're able to service, retention you mentioned during the prepared remarks? Just -- can you give us a sense of where you were, let's say, 12 to 18 months ago and where you are now, given all the success that you've had on the rate side?

Question: David MacDonald - Truist Securities - Analyst : And then guys, just one quick follow up just with regards to Thrive and the M&A environment. Look, you obviously improved financial flexibility. Can you just talk a little bit about just how you're thinking about -- if you were to see another unique opportunity like a Thrive -- I mean, obviously, in home health with some of the challenge visibility in the near term, I assume nothing to think about there. But just when you think about PDS and potentially incremental M&A, just any high level thoughts there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 07, 2025 / 2:00PM, AVAH.OQ - Q2 2025 Aveanna Healthcare Holdings Inc Earnings Call