Acadia Healthcare's (ACHC) plans to reduce its capital expenditures by $300 million year-on-year in 2026 should allow the company to reach positive adjusted cash flow next year, RBC said in a Tuesday note.

The company's management also noted expectations of further decline in capital expenditures in 2027 from 2026 levels with the company estimating the opening of only 150 to 200 new beds in 2027, RBC said.

With Acadia Healthcare lowering its full-year forecast, RBC said that primary driver of guidance revision is lower volume growth expectations, which are now expected to be to at the low-end of the previous 2% to 3% growth range.

The brokerage lowered its 2025 revenue estimate to $3.291 billion and adjusted EBITDA estimate to $655.1 million, from $3.325 billion and $687.4 million previously.

RBC also lowered its 2026 adjusted EBITDA estimate to $664.6 million, from $744.1 million previously, on account of continued payor reimbursement headwinds and volume softness.

The firm rated Acadia Healthcare as outperform but lowered its price target to $22 from $28.

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