Acadia Healthcare cuts 2025 guidance on higher liability costs

Acadia Healthcare Company Inc (NASDAQ: ACHC) reduced its 2025 financial guidance following an annual actuarial review that identified increased professional and general liability expenses primarily related to patient litigation.

The behavioral healthcare provider now expects full-year 2025 adjusted EBITDA of $601 million to $611 million, down from its previous guidance of $650 million to $660 million. Adjusted earnings per share guidance was revised to $1.94 to $2.04, compared to the prior range of $2.35 to $2.45.

The company projects 2025 professional and general liability expenses of approximately $116 million, up from $54 million in 2024. This represents a year-over-year increase of about $62 million driven by higher settlement costs for claims from prior policy years, a 168% increase in claim frequency during the current policy year, elevated reserves for unreported claims, and less favorable reinsurance terms.

"As noted on our November 6, 2025, earnings call, we anticipated additional PLGL pressure in 2025 due to trends observed across our industry; however, the magnitude identified in the final actuarial report exceeded our expectations," said Todd Young, chief financial officer.

Acadia expects its net professional and general liability balance sheet position to increase from $78 million at December 31, 2024, to $145 million to $165 million by December 31, 2025. For 2026, the company anticipates these expenses will range between $100 million and $110 million.

The company operates 278 behavioral healthcare facilities with approximately 12,500 beds across 40 states and Puerto Rico as of September 30, 2025.

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