Acadia Healthcare

Reinvestment: management has prioritized de novos, JVs and expansions; 2025 capex was 572 million dollars (mostly growth), with 2026 guided to 255 to 280 million dollars. If ramp executes, slides point to >200 million dollars of embedded EBITDA as new beds mature, but this is inherently execution‑ and policy‑dependent.

Buybacks: a 300 million dollar authorization was approved in 2025 and ~50 million dollars was repurchased at depressed prices, leaving 250 million dollars authorized.

Dilution: equity comp was ~32 million dollars in 2025. M&A and legacy: the 2025 goodwill impairment (1.01 billion dollars) indicates past capital allocation missteps or changed outlooks; legal settlements and PLGL costs absorb cash that otherwise could compound. On balance, we see disciplined intentions with mixed outcomes so far.