By Terell Wright
Acadia Healthcare lowered its full-year outlook, citing higher-than-expected costs from patient-related litigation.
The behavioral healthcare services company lowered its full-year adjusted earnings guidance to a range of $1.94 to $2.04 a share, down from the previous range of $2.35 to $2.45 a share. Analysts polled by FactSet expect an adjusted earnings of $2.35 a share.
Acadia also cut its adjusted earnings before interest, taxes, depreciation, and amortization outlook to a range of $601 million to $611 million, compared to its prior guidance of $650 million to $660 million, reflecting an extra $49 million in legal costs.
Shares fell 23% to $12.74 in after hours trading. The stock had lost 58% so far this year through Tuesday's close.
Chief Financial Officer Todd Young said the company expected higher legal costs in 2025, but the final amount was much higher than anticipated.
The company said increased claims frequency, higher settlement costs for old claims and less favorable reinsurance terms raised legal costs.
Acadia Healthcare now projects its full-year professional and general liability expenses of approximately $116 million, compared to $54 million in 2024.
Write to Terell Wright at terell.wright@wsj.com
(END) Dow Jones Newswires
December 02, 2025 17:44 ET (22:44 GMT)
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