Acadia Healthcare now expects $350 million to $400 million in operating cash flow this year. The behavioral health company set that range in July, up from an earlier forecast of $285 million to $325 million.

At the midpoint, that’s about $70 million more. Acadia, chaired by founder Reeve Waud, uses that cash to pay down debt and to build new hospitals across the country.

More Coming In, Less Going Out

Operating cash flow hit $162.1 million in the second quarter, up from $133.5 million a year before. Capital spending dropped to $38.6 million from $167.7 million. A year earlier, capital spending had run ahead of operating cash flow. The full-year capital budget was cut to $235 million to $255 million, from $255 million to $280 million.

Zacks put second-quarter free cash flow at $124 million, helped by working-capital trends. Another $113 million was directed toward debt, and the company expects positive free cash flow in the second half too.

The Newer Hospitals

Facilities Acadia opened over the past few years are doing much of the lifting. Once they fill, Zacks reported, the company expects them to add about $200 million in adjusted EBITDA compared with 2025.

Two of them opened in the second quarter alone: a 144-bed hospital in Florida and a 96-bed hospital in Iowa. Zacks reported Acadia is on track for 500 to 600 new beds in 2026.

Demand helped. Acute inpatient volume grew 5.5% in the second quarter, and total revenue of $865.8 million was up 2.8% once prior-year supplemental payments are set aside.

“We made significant progress on our key priorities during the second quarter, including opening two new facilities with JV partners, continuing to ramp occupancy at our new facilities opened over the last few years, and generating strong free cash flow,” CEO Debbie Osteen said.

The Chairman’s Other Job

Reeve Waud founded Acadia in 2005 and took it public in 2011. He’s chaired its board while running Waud Capital Partners, a private equity firm that makes control investments of $75 million to $200 million in North American middle-market companies. Reeve Waud’s firm completed its 500th investment in 2025.

Investors have noticed the cash story. Acadia shares were up 28.8% over the 12 months through September 22, according to Zacks, compared with 14.2% for the industry. Acadia trades at 16.55 times forward earnings, against an industry average of 11. Reeve Waud’s company gives its next cash flow update with third-quarter results on November 4, after the market closes.