Encompass Health reports results for second quarter 2025
Encompass Health (NYSE:EHC), the largest U.S. inpatient rehabilitation hospital operator, reported strong Q2 2025 results with significant growth across key metrics. Net operating revenue increased 12.0% to $1.46 billion, driven by a 7.2% rise in total discharges and 4.2% growth in net patient revenue per discharge.
The company demonstrated robust financial performance with adjusted earnings per share growing 26.1% to $1.40, while adjusted EBITDA increased 17.2% to $318.6 million. Operating cash flows improved 24.3% to $270.2 million. During Q2, EHC expanded its operations by opening a new 60-bed hospital in Fort Myers, Florida, and adding 26 beds to an existing facility.
Following these strong results, Encompass Health raised its full-year 2025 guidance, now expecting net operating revenue of $5.88-5.98 billion and adjusted earnings per share of $5.12-5.34.
Encompass Health (NYSE:EHC), il principale operatore statunitense di ospedali di riabilitazione per pazienti ricoverati, ha riportato risultati solidi nel secondo trimestre 2025 con una crescita significativa nei principali indicatori. I ricavi netti operativi sono aumentati del 12,0% raggiungendo 1,46 miliardi di dollari, grazie a un incremento del 7,2% delle dimissioni totali e a una crescita del 4,2% dei ricavi netti per paziente per dimissione.
L'azienda ha mostrato una solida performance finanziaria con un utile per azione rettificato in crescita del 26,1% a 1,40 dollari, mentre l'EBITDA rettificato 猫 aumentato del 17,2% raggiungendo 318,6 milioni di dollari. I flussi di cassa operativi sono migliorati del 24,3% a 270,2 milioni di dollari. Nel corso del secondo trimestre, EHC ha ampliato le sue attivit脿 inaugurando un nuovo ospedale da 60 posti letto a Fort Myers, in Florida, e aggiungendo 26 posti letto a una struttura esistente.
A seguito di questi risultati positivi, Encompass Health ha rivisto al rialzo le previsioni per l'intero anno 2025, prevedendo ora ricavi netti operativi compresi tra 5,88 e 5,98 miliardi di dollari e un utile per azione rettificato tra 5,12 e 5,34 dollari.
Encompass Health (NYSE:EHC), el mayor operador de hospitales de rehabilitaci贸n para pacientes hospitalizados en EE. UU., report贸 s贸lidos resultados en el segundo trimestre de 2025 con un crecimiento significativo en m茅tricas clave. Los ingresos netos operativos aumentaron un 12,0% hasta 1.460 millones de d贸lares, impulsados por un incremento del 7,2% en las altas totales y un crecimiento del 4,2% en los ingresos netos por paciente dado de alta.
La compa帽铆a mostr贸 un s贸lido desempe帽o financiero con una ganancia ajustada por acci贸n que creci贸 un 26,1% hasta 1,40 d贸lares, mientras que el EBITDA ajustado aument贸 un 17,2% hasta 318,6 millones de d贸lares. Los flujos de caja operativos mejoraron un 24,3% hasta 270,2 millones de d贸lares. Durante el segundo trimestre, EHC ampli贸 sus operaciones abriendo un nuevo hospital de 60 camas en Fort Myers, Florida, y agregando 26 camas a una instalaci贸n existente.
Tras estos s贸lidos resultados, Encompass Health elev贸 su gu铆a para todo el a帽o 2025, esperando ahora ingresos netos operativos de 5,88 a 5,98 mil millones de d贸lares y ganancias ajustadas por acci贸n de 5,12 a 5,34 d贸lares.
Encompass Health (NYSE:EHC)電� 氙戈淡 斓滊寑鞚� 鞛呾洂 鞛櫆 氤戩洂 鞖挫榿鞐呾泊搿滌劀, 2025雲� 2攵勱赴鞐� 欤检殧 歆�響� 鞝勲皹鞐� 瓯胳硱 靸侂嫻頃� 靹膘灔鞚� 旮半頃橂┌ 臧曤牓頃� 鞁れ爜鞚� 氚滍憸頄堨姷雼堧嫟. 靾滌榿鞐呾垬鞚奠潃 齑� 韲挫洂 頇橃瀽 靾橁皜 7.2% 歃濌皜頃橁碃 韲挫洂雼� 靾滍櫂靾橃澋鞚� 4.2% 靹膘灔頃棎 霐半澕 12.0% 歃濌皜頃� 14鞏� 6觳滊 雼煬毳� 旮半頄堨姷雼堧嫟.
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鞚措煬頃� 臧曤牓頃� 鞁れ爜鞐� 頌橃瀰鞏� Encompass Health電� 2025雲� 鞝勳泊 鞐瓣皠 臧�鞚措崢鞀るゼ 靸來枼 臁办爼頃橃棳 靾滌榿鞐呾垬鞚奠潉 58鞏� 8觳滊 雼煬鞐愳劀 59鞏� 8觳滊 雼煬, 臁办爼 欤茧嫻靾滌澊鞚奠潉 5.12雼煬鞐愳劀 5.34雼煬搿� 鞓堨儊頃橁碃 鞛堨姷雼堧嫟.
Encompass Health (NYSE:EHC), le plus grand op茅rateur am茅ricain d'h么pitaux de r茅adaptation pour patients hospitalis茅s, a publi茅 de solides r茅sultats pour le 2e trimestre 2025 avec une croissance significative sur les indicateurs cl茅s. Le chiffre d'affaires net d'exploitation a augment茅 de 12,0% pour atteindre 1,46 milliard de dollars, port茅 par une hausse de 7,2% du nombre total de sorties et une croissance de 4,2% du revenu net par patient et par sortie.
L'entreprise a d茅montr茅 une performance financi猫re robuste avec un b茅n茅fice ajust茅 par action en hausse de 26,1% 脿 1,40 dollar, tandis que l'EBITDA ajust茅 a progress茅 de 17,2% 脿 318,6 millions de dollars. Les flux de tr茅sorerie op茅rationnels se sont am茅lior茅s de 24,3% pour atteindre 270,2 millions de dollars. Au cours du 2e trimestre, EHC a 茅tendu ses op茅rations en ouvrant un nouvel h么pital de 60 lits 脿 Fort Myers, en Floride, et en ajoutant 26 lits 脿 une installation existante.
Suite 脿 ces r茅sultats solides, Encompass Health a relev茅 ses pr茅visions pour l'ensemble de l'ann茅e 2025, pr茅voyant d茅sormais un chiffre d'affaires net d'exploitation compris entre 5,88 et 5,98 milliards de dollars et un b茅n茅fice ajust茅 par action entre 5,12 et 5,34 dollars.
Encompass Health (NYSE:EHC), der gr枚脽te Betreiber von station盲ren Rehabilitationskrankenh盲usern in den USA, meldete starke Ergebnisse f眉r das 2. Quartal 2025 mit erheblichem Wachstum bei den wichtigsten Kennzahlen. Der Nettoumsatz stieg um 12,0% auf 1,46 Milliarden US-Dollar, angetrieben durch einen Anstieg der Gesamtentlassungen um 7,2% und ein Wachstum des Nettoumsatzes pro Entlassung um 4,2%.
Das Unternehmen zeigte eine robuste finanzielle Leistung mit einem bereinigten Gewinn je Aktie, der um 26,1% auf 1,40 US-Dollar stieg, w盲hrend das bereinigte EBITDA um 17,2% auf 318,6 Millionen US-Dollar zunahm. Die operativen Cashflows verbesserten sich um 24,3% auf 270,2 Millionen US-Dollar. Im 2. Quartal erweiterte EHC seine Aktivit盲ten durch die Er枚ffnung eines neuen Krankenhauses mit 60 Betten in Fort Myers, Florida, und die Hinzuf眉gung von 26 Betten zu einer bestehenden Einrichtung.
Nach diesen starken Ergebnissen hat Encompass Health seine Prognose f眉r das Gesamtjahr 2025 angehoben und erwartet nun einen Nettoumsatz von 5,88 bis 5,98 Milliarden US-Dollar und einen bereinigten Gewinn je Aktie von 5,12 bis 5,34 US-Dollar.
- Net operating revenue grew 12.0% year-over-year to $1.46 billion
- Adjusted earnings per share increased 26.1% to $1.40
- Total discharges grew 7.2% with same-store growth of 4.7%
- Operating cash flows improved 24.3% to $270.2 million
- Raised full-year 2025 guidance for revenue and earnings
- Expanded capacity with new hospital and additional beds
- None.
Insights
Encompass Health delivered exceptional Q2 results with 12% revenue growth and raised full-year guidance, indicating strong operational momentum.
Encompass Health has reported a stellar second quarter with impressive growth metrics across all key financial indicators. Revenue jumped
Profitability metrics show even stronger performance than the topline growth. Income from continuing operations per diluted share increased by
The
Most significantly, management has raised full-year guidance across all metrics. Revenue guidance increased from
Increases full-year guidance
Summary results
Growth | |||||||
Q2 2025 | Q2 2024 | Dollars | Percent | ||||
(In Millions, Except Per Share Data) | |||||||
Net operating revenue | $听听听听听 1,457.7 | $听听听听听 1,301.2 | $听听听听 156.5 | 12.0听% | |||
Income from continuing operations attributable to | 1.40 | 1.13 | 0.27 | 23.9听% | |||
Adjusted earnings per share | 1.40 | 1.11 | 0.29 | 26.1听% | |||
Cash flows provided by operating activities | 270.2 | 217.4 | 52.8 | 24.3听% | |||
Adjusted EBITDA | 318.6 | 271.8 | 46.8 | 17.2听% | |||
Adjusted free cash flow | 185.9 | 142.5 | 43.4 | 30.5听% | |||
(Actual Amounts) | |||||||
Discharges | 65,237 | 60,833 | 7.2听% | ||||
听听 Same-store discharge growth | 4.7听% | ||||||
Net patient revenue per discharge | $听听听听听听 21,670 | $听听听听听听 20,803 | 4.2听% | ||||
See attached supplemental information for calculations of non-GAAP measures and reconciliations to their most comparable GAAP measure.
- Revenue growth of
12.0% resulted from increased discharges and pricing. Total discharges grew7.2% , inclusive of same-store growth of4.7% . Net patient revenue per discharge grew4.2% . - Cash flows provided by operating activities increased
24.3% to$270.2 million - Adjusted EBITDA increased
17.2% from increased revenue and expense leverage.
"During the quarter, we further increased our capacity to serve patients in need of inpatient rehabilitation care, opening a new 60-bed hospital in
"Our clinical expertise and commitment to delivering high-quality, cost-effective care continues to benefit our patients, referral sources and payors."听
2025 Guidance听
The Company increased its full-year guidance as follows:
Full-Year 2025 Guidance | |||
Previous Guidance | Updated Guidance | ||
(In Millions, Except Per Share Data) | |||
Net operating revenue | |||
Adjusted EBITDA | |||
Adjusted earnings per share from continuing operations | |||
For considerations regarding the Company's 2025 guidance, see the supplemental information posted on the Company's website at . See also the "Other information" section below for an explanation of why the Company does not provide guidance for comparable GAAP measures for Adjusted EBITDA and adjusted earnings per share.
Earnings conference call and webcast
The Company will host an investor conference call at 10:00 a.m. Eastern Time on Tuesday, August听5, 2025 to discuss its results for the second quarter of 2025. For reference during the call, the Company will post certain supplemental information at .
The conference call may be accessed by dialing 800 343-4849 and giving the conference ID EHCQ225. International callers should dial 203 518-9848 and give the same conference ID.听Please call approximately ten minutes before the start of the call to ensure you are connected.听The conference call will also be webcast live and will be available for on-line replay at by clicking on an available link.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in
1听Fortune 漏 2025 Fortune Media IP Limited. All rights reserved. 贵辞谤迟耻苍别庐 is a registered trademark and Fortune World's Most Admired Companies鈩� is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse products or services of, Encompass Health.听 Forbes 漏 2024 Forbes Media LLC. All rights reserved. Used under license. |
Other information
The information in this press release is summarized and should be read in conjunction with the Company's Quarterly Report on Form 10-Q for the quarter ended June听30, 2025 (the "June 2025 Form 10-Q"), when filed, as well as the Company's Current Report on Form 8-K filed on August听4, 2025 (the "Q2 Earnings Form 8-K"), to which this press release is attached as Exhibit听99.1. In addition, the Company will post supplemental information today on its website at for reference during its August听5, 2025 earnings call.
The financial data contained in the press release and supplemental information include non-GAAP financial measures, including the Company's adjusted earnings per share, leverage ratio, Adjusted EBITDA, and adjusted free cash flow. Reconciliations to their most comparable GAAP measure, except with regard to non-GAAP guidance, are included below or in the Q2 Earnings Form 8-K. Readers are encouraged to review the "Note Regarding Presentation of Non-GAAP Financial Measures" included in the Q2 Earnings Form 8-K which provides further explanation and disclosure regarding the Company's use of these non-GAAP financial measures.
Excluding net operating revenues, the Company does not provide guidance on a GAAP basis because it is unable to predict, with reasonable certainty, the future impact of items that are deemed to be outside the control of the Company or otherwise not indicative of its ongoing operating performance. Such items include government, class action, and related settlements; professional fees鈥攁ccounting, tax, and legal; mark-to-market adjustments for stock appreciation rights; gains or losses related to hedging instruments; loss on early extinguishment of debt; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the Company believes to be not indicative of its ongoing operations. These items cannot be reasonably predicted and will depend on several factors, including industry and market conditions, and could be material to the Company's results computed in accordance with GAAP.
However, the following reasonably estimable GAAP measures for 2025 would be included in a reconciliation for Adjusted EBITDA if the other reconciling GAAP measures could be reasonably predicted:
- Interest expense and amortization of debt discounts and fees - approximately
$125 million - Amortization of debt-related items - approximately
$10 million
The Q2 Earnings Form 8-K and, when filed, the June 2025 Form 10-Q can be found on the Company's website at and the SEC's website at .
Encompass Health Corporation and Subsidiaries | |||||||
Three Months | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(In Millions, Except Per Share Data) | |||||||
Net operating revenues | $听 1,457.7 | $听 1,301.2 | $听 2,913.1 | $听 2,617.2 | |||
Operating expenses: | |||||||
Salaries and benefits | 767.7 | 700.5 | 1,530.0 | 1,412.1 | |||
Other operating expenses | 213.8 | 189.9 | 431.3 | 393.8 | |||
Occupancy costs | 14.7 | 14.2 | 29.6 | 28.2 | |||
Supplies | 63.1 | 57.6 | 125.3 | 116.1 | |||
General and administrative expenses | 59.4 | 50.5 | 111.7 | 100.7 | |||
Depreciation and amortization | 79.9 | 72.9 | 159.1 | 143.2 | |||
Total operating expenses | 1,198.6 | 1,085.6 | 2,387.0 | 2,194.1 | |||
Interest expense and amortization of debt discounts and fees | 30.4 | 34.3 | 62.2 | 69.5 | |||
Other income | (6.7) | (3.3) | (9.2) | (8.7) | |||
Equity in net income of nonconsolidated affiliates | (1.4) | (1.4) | (2.3) | (2.1) | |||
Income from continuing operations before income tax expense | 236.8 | 186.0 | 475.4 | 364.4 | |||
Provision for income tax expense | 51.0 | 38.3 | 92.6 | 76.6 | |||
Income from continuing operations | 185.8 | 147.7 | 382.8 | 287.8 | |||
Loss from discontinued operations, net of tax | (0.9) | (1.2) | (1.4) | (2.5) | |||
Net income | 184.9 | 146.5 | 381.4 | 285.3 | |||
Less: Net income attributable to noncontrolling interests | (42.8) | (32.4) | (87.8) | (58.7) | |||
Net income attributable to Encompass Health | $听听听听 142.1 | $听听听听 114.1 | $听听听听 293.6 | $听听听听 226.6 | |||
Weighted average common shares outstanding: | |||||||
Basic | 100.6 | 99.9 | 100.6 | 99.9 | |||
Diluted | 102.3 | 102.0 | 102.2 | 102.1 | |||
Earnings per common share: | |||||||
Basic earnings per share attributable to Encompass Health common shareholders: | |||||||
Continuing operations | $听听听听听听 1.42 | $听听听听听听 1.14 | $听听听听听听 2.92 | $听听听听听听 2.28 | |||
Discontinued operations | (0.01) | (0.01) | (0.01) | (0.03) | |||
Net income | $听听听听听听 1.41 | $听听听听听听 1.13 | $听听听听听听 2.91 | $听听听听听听 2.25 | |||
Diluted earnings per share attributable to Encompass Health common shareholders: | |||||||
Continuing operations | $听听听听听听 1.40 | $听听听听听听 1.13 | $听听听听听听 2.88 | $听听听听听听 2.24 | |||
Discontinued operations | (0.01) | (0.01) | (0.01) | (0.02) | |||
Net income | $听听听听听听 1.39 | $听听听听听听 1.12 | $听听听听听听 2.87 | $听听听听听听 2.22 | |||
Amounts attributable to Encompass Health common shareholders: | |||||||
Income from continuing operations | $听听听听 143.0 | $听听听听 115.3 | $听听听听 295.0 | $听听听听 229.1 | |||
Loss from discontinued operations, net of tax | (0.9) | (1.2) | (1.4) | (2.5) | |||
Net income attributable to Encompass Health | $听听听听 142.1 | $听听听听 114.1 | $听听听听 293.6 | $听听听听 226.6 | |||
听
Encompass Health Corporation and Subsidiaries | |||
June 30, 2025 | December 31, 2024 | ||
(In Millions) | |||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $听听听听听听听听听听听听听 99.1 | $听听听听听听听听听听听听听听听 85.4 | |
Restricted cash | 38.3 | 37.7 | |
Accounts receivable | 612.5 | 598.8 | |
Other current assets | 168.2 | 165.0 | |
Total current assets | 918.1 | 886.9 | |
Property and equipment, net | 3,820.3 | 3,643.1 | |
Operating lease right-of-use assets | 215.5 | 203.7 | |
Goodwill | 1,303.0 | 1,284.0 | |
Intangible assets, net | 295.9 | 297.8 | |
Other long-term assets | 232.9 | 219.2 | |
Total assets | $听听听听听听听听听 6,785.7 | $听听听听听听听听听听 6,534.7 | |
Liabilities and Shareholders' Equity | |||
Current liabilities: | |||
Current portion of long-term debt | $听听听听听听听听听听听听 139.2 | $听听听听听听听听听听听听听 138.6 | |
Current operating lease liabilities | 25.5 | 26.3 | |
Accounts payable | 174.5 | 171.0 | |
Accrued expenses and other current liabilities | 525.9 | 505.1 | |
Total current liabilities | 865.1 | 841.0 | |
Long-term debt, net of current portion | 2,320.3 | 2,359.2 | |
Long-term operating lease liabilities | 200.7 | 189.7 | |
Deferred income tax liabilities | 110.6 | 105.2 | |
Other long-term liabilities | 200.8 | 190.4 | |
Total liabilities | 3,697.5 | 3,685.5 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 55.1 | 56.5 | |
Shareholders' equity: | |||
Encompass Health shareholders' equity | 2,280.1 | 2,067.0 | |
Noncontrolling interests | 753.0 | 725.7 | |
Total shareholders' equity | 3,033.1 | 2,792.7 | |
Total liabilities and shareholders' equity | $听听听听听听听听听 6,785.7 | $听听听听听听听听听听 6,534.7 | |
听
Encompass Health Corporation and Subsidiaries | |||
Six Months Ended June 30, | |||
2025 | 2024 | ||
(In Millions) | |||
Cash flows from operating activities: | |||
Net income | $听听听听听听听听听听听听听 381.4 | $听听听听听听听听听听听听听 285.3 | |
Loss from discontinued operations, net of tax | 1.4 | 2.5 | |
Adjustments to reconcile net income to net cash provided by operating activities鈥� | |||
Depreciation and amortization | 159.1 | 143.2 | |
Stock-based compensation | 23.8 | 22.9 | |
Deferred tax expense | 5.3 | 4.2 | |
Other, net | 1.1 | 14.2 | |
Change in assets and liabilities, net of acquisitions鈥� | |||
Accounts receivable | (15.7) | 0.9 | |
Other assets | (16.5) | (48.4) | |
Accounts payable | (2.5) | 1.8 | |
Other liabilities | 23.3 | 32.3 | |
Net cash used in operating activities of discontinued operations | (1.9) | (2.7) | |
Total adjustments | 176.0 | 168.4 | |
Net cash provided by operating activities | 558.8 | 456.2 | |
Cash flows from investing activities: | |||
Purchases of property, equipment, and intangible assets | (320.0) | (296.3) | |
Proceeds from sale of restricted investments | 132.0 | 17.0 | |
Purchases of restricted investments | (127.8) | (8.2) | |
Other, net | (8.1) | (0.6) | |
Net cash used in investing activities | (323.9) | (288.1) | |
Cash flows from financing activities: | |||
Principal payments on debt, including pre-payments | (10.7) | (2.4) | |
Borrowings on revolving credit facility | 60.0 | 50.0 | |
Payments on revolving credit facility | (80.0) | (50.0) | |
Principal payments under finance lease obligations | (11.6) | (10.7) | |
Repurchases of common stock, including fees and expenses | (56.8) | (16.8) | |
Dividends paid on common stock | (35.1) | (30.8) | |
Distributions paid to noncontrolling interests of consolidated affiliates | (73.3) | (52.5) | |
Taxes paid on behalf of employees for shares withheld | (19.9) | (12.1) | |
Contributions from noncontrolling interests of consolidated affiliates | 鈥� | 33.3 | |
Other, net | 6.8 | 1.8 | |
Net cash used in financing activities | (220.6) | (90.2) | |
Increase in cash, cash equivalents, and restricted cash | 14.3 | 77.9 | |
Cash, cash equivalents, and restricted cash at beginning of period | 123.1 | 104.2 | |
Cash, cash equivalents, and restricted cash at end of period | $听听听听听听听听听听听听听 137.4 | $听听听听听听听听听听听听听 182.1 | |
听
Encompass Health Corporation and Subsidiaries | |||||||
Three Months | Six Months | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(In Millions, Except Per Share Data) | |||||||
Adjusted EBITDA | $听听听听 318.6 | $听听听听 271.8 | $听听听听 632.2 | $听听听听 544.8 | |||
Depreciation and amortization | (79.9) | (72.9) | (159.1) | (143.2) | |||
Interest expense and amortization of debt discounts and fees | (30.4) | (34.3) | (62.2) | (69.5) | |||
Stock-based compensation | (14.3) | (13.6) | (23.8) | (22.9) | |||
(Loss) gain on disposal or impairment of assets | (0.3) | 3.0 | (0.5) | (10.7) | |||
193.7 | 154.0 | 386.6 | 298.5 | ||||
Items not indicative of ongoing operating performance: | |||||||
Change in fair market value of equity securities | 0.3 | (0.4) | 1.0 | (0.1) | |||
Asset impairment impact on noncontrolling interests | 鈥� | 鈥� | 鈥� | 7.3 | |||
Pre-tax income | 194.0 | 153.6 | 387.6 | 305.7 | |||
Income tax expense | (51.0) | (38.3) | (92.6) | (76.6) | |||
Income from continuing operations (1) | $听听听听 143.0 | $听听听听 115.3 | $听听听听 295.0 | $听听听听 229.1 | |||
Basic shares | 100.6 | 99.9 | 100.6 | 99.9 | |||
Diluted shares | 102.3 | 102.0 | 102.2 | 102.1 | |||
Basic earnings per share (1) | $听听听听听听 1.42 | $听听听听听听 1.14 | $听听听听听听 2.92 | $听听听听听听 2.28 | |||
Diluted earnings per share (1) | $听听听听听听 1.40 | $听听听听听听 1.13 | $听听听听听听 2.88 | $听听听听听听 2.24 | |||
(1) | Income from continuing operations attributable to Encompass Health |
听
Encompass Health Corporation and Subsidiaries | |||||||
Q2 | 6 Months | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Earnings per share, as reported | $听听听听听 1.40 | $听听听 1.13 | $听听听听听 2.88 | $听听听听听 2.24 | |||
Adjustments, net of tax: | |||||||
Asset impairment impact | 鈥� | 鈥� | 鈥� | 0.02 | |||
Income tax adjustments | 鈥� | (0.02) | (0.11) | (0.03) | |||
Change in fair market value of equity securities | 鈥� | 鈥� | (0.01) | 鈥� | |||
Adjusted earnings per share* | $听听听听听 1.40 | $听听听 1.11 | $听听听听听 2.77 | $听听听听听 2.23 | |||
*听听听听 Adjusted EPS may not sum due to rounding. |
听
Encompass Health Corporation and Subsidiaries | |||||||
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(In Millions) | |||||||
Net cash provided by operating activities | $听听听听 270.2 | $听听听听 217.4 | $听听听听 558.8 | $听听听听 456.2 | |||
Interest expense and amortization of debt discounts and fees | 30.4 | 34.3 | 62.2 | 69.5 | |||
Gain (loss) on sale of investments, excluding impairments | 3.3 | (0.1) | 3.2 | 1.2 | |||
Equity in net income of nonconsolidated affiliates | 1.4 | 1.4 | 2.3 | 2.1 | |||
Net income attributable to noncontrolling interests in continuing operations | (42.8) | (32.4) | (87.8) | (58.7) | |||
Amortization of debt-related items | (2.4) | (2.5) | (4.8) | (4.9) | |||
Distributions from nonconsolidated affiliates | (0.9) | (1.2) | (1.4) | (2.0) | |||
Current portion of income tax expense | 54.5 | 40.6 | 87.3 | 72.4 | |||
Change in assets and liabilities | 3.9 | 11.8 | 11.4 | 13.4 | |||
Cash used in operating activities of discontinued operations | 1.2 | 2.0 | 1.9 | 2.7 | |||
Asset impairment impact on noncontrolling interests | 鈥� | 鈥� | 鈥� | (7.3) | |||
Change in fair market value of equity securities | (0.3) | 0.4 | (1.0) | 0.1 | |||
Other | 0.1 | 0.1 | 0.1 | 0.1 | |||
Adjusted EBITDA | $听听听听 318.6 | $听听听听 271.8 | $听听听听 632.2 | $听听听听 544.8 | |||
听
Encompass Health Corporation and Subsidiaries | |||||||
For the Three Months Ended June 30, 2025 | |||||||
Adjustments | |||||||
As | Income Tax | Change in Fair | As | ||||
(In Millions, Except Per Share Amounts) | |||||||
Adjusted EBITDA* | $听听听 318.6 | $听听听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听听听听听听 鈥� | $听听听听 318.6 | |||
Depreciation and amortization | (79.9) | 鈥� | 鈥� | (79.9) | |||
Interest expense and amortization of debt discounts and fees | (30.4) | 鈥� | 鈥� | (30.4) | |||
Stock-based compensation | (14.3) | 鈥� | 鈥� | (14.3) | |||
Loss on disposal or impairment of assets | (0.3) | 鈥� | 鈥� | (0.3) | |||
Change in fair market value of equity securities | 0.3 | 鈥� | (0.3) | 鈥� | |||
Income from continuing operations before income tax expense | 194.0 | 鈥� | (0.3) | 193.7 | |||
Provision for income tax expense | (51.0) | 0.4 | 0.1 | (50.5) | |||
Income from continuing operations attributable to Encompass Health | $听听听 143.0 | $听听听听听听听听听听听听 0.4 | $听听听听听听听听听听听听听听 (0.2) | $听听听听 143.2 | |||
Diluted earnings per share from continuing operations** | $听听听听听 1.40 | $听听听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听听听听听听 鈥� | $听听听听听听 1.40 | |||
Diluted shares used in calculation | 102.3 | ||||||
*听听听听 See reconciliation of net income to Adjusted EBITDA. |
**听听听 Adjusted EPS may not sum across due to rounding. |
听
Encompass Health Corporation and Subsidiaries | |||||||
For the Three Months Ended June 30, 2024 | |||||||
Adjustments | |||||||
As | Income Tax | Change in Fair | As | ||||
(In Millions, Except Per Share Amounts) | |||||||
Adjusted EBITDA* | $听听听 271.8 | $听听听听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听听听听听听 鈥� | $听听听听 271.8 | |||
Depreciation and amortization | (72.9) | 鈥� | 鈥� | (72.9) | |||
Interest expense and amortization of debt discounts and fees | (34.3) | 鈥� | 鈥� | (34.3) | |||
Stock-based compensation | (13.6) | 鈥� | 鈥� | (13.6) | |||
Gain on disposal or impairment of assets | 3.0 | 鈥� | 鈥� | 3.0 | |||
Change in fair market value of equity securities | (0.4) | 鈥� | 0.4 | 鈥� | |||
Income from continuing operations before income tax expense | 153.6 | 鈥� | 0.4 | 154.0 | |||
Provision for income tax expense | (38.3) | (2.4) | (0.1) | (40.8) | |||
Income from continuing operations attributable to Encompass Health | $听听听 115.3 | $听听听听听听听听听听听听 (2.4) | $听听听听听听听听听听听听听听听 0.3 | $听听听听 113.2 | |||
听 Diluted earnings per share from continuing operations** | $听听听听听 1.13 | $听听听听听听听听听听 (0.02) | $听听听听听听听听听听听听听听听听听听 鈥� | $听听听听听听 1.11 | |||
听 Diluted shares used in calculation | 102.0 | ||||||
*听听听听 See reconciliation of net income to Adjusted EBITDA. |
**听听听 Adjusted EPS may not sum across due to rounding. |
听
Encompass Health Corporation and Subsidiaries | |||||||
For the Six Months Ended June 30, 2025 | |||||||
Adjustments | |||||||
As | Income Tax | Change in Fair | As | ||||
(In Millions, Except Per Share Amounts) | |||||||
Adjusted EBITDA* | $听听听 632.2 | $听听听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听听听听听听 鈥� | $听听听听 632.2 | |||
Depreciation and amortization | (159.1) | 鈥� | 鈥� | (159.1) | |||
Interest expense and amortization of debt discounts and fees | (62.2) | 鈥� | 鈥� | (62.2) | |||
Stock-based compensation | (23.8) | 鈥� | 鈥� | (23.8) | |||
Loss on disposal or impairment of assets | (0.5) | 鈥� | 鈥� | (0.5) | |||
Change in fair market value of equity securities | 1.0 | 鈥� | (1.0) | 鈥� | |||
Income from continuing operations before income tax expense | 387.6 | 鈥� | (1.0) | 386.6 | |||
Provision for income tax expense | (92.6) | (11.6) | 0.3 | (103.9) | |||
Income from continuing operations attributable to Encompass Health | $听听听 295.0 | $听听听听听听听听 (11.6) | $听听听听听听听听听听听听听听 (0.7) | $听听听听 282.7 | |||
Diluted earnings per share from continuing operations** | $听听听听听 2.88 | $听听听听听听听听 (0.11) | $听听听听听听听听听听听听 (0.01) | $听听听听听听 2.77 | |||
Diluted shares used in calculation | 102.2 | ||||||
*听听听听 See reconciliation of net income to Adjusted EBITDA. |
**听听听 Adjusted EPS may not sum across due to rounding. |
听
Encompass Health Corporation and Subsidiaries | ||||||||||
For the Six Months Ended June 30, 2024 | ||||||||||
Adjustments | ||||||||||
As | Asset | Income Tax | Change in Fair | As | ||||||
(In Millions, Except Per Share Amounts) | ||||||||||
Adjusted EBITDA* | $听听听 544.8 | $听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听听听听 鈥� | $听听听听听听听听听听听听听听听听听听 鈥� | $听听听听 544.8 | |||||
Depreciation and amortization | (143.2) | 鈥� | 鈥� | 鈥� | (143.2) | |||||
Interest expense and amortization of debt discounts and fees | (69.5) | 鈥� | 鈥� | 鈥� | (69.5) | |||||
Stock-based compensation | (22.9) | 鈥� | 鈥� | 鈥� | (22.9) | |||||
Loss on disposal or impairment of assets | (10.7) | 10.4 | 鈥� | 鈥� | (0.3) | |||||
Change in fair market value of equity securities | (0.1) | 鈥� | 鈥� | 0.1 | 鈥� | |||||
Asset impairment impact on noncontrolling interests | 7.3 | (7.3) | 鈥� | 鈥� | 鈥� | |||||
Income from continuing operations before income tax expense | 305.7 | 3.1 | 鈥� | 0.1 | 308.9 | |||||
Provision for income tax expense | (76.6) | (1.3) | (3.0) | 鈥� | (80.9) | |||||
Income from continuing operations attributable to Encompass Health | $听听听 229.1 | $听听听听听听听听听听 1.8 | $听听听听听听听听听听听听 (3.0) | $听听听听听听听听听听听听听听听 0.1 | $听听听听 228.0 | |||||
听 Diluted earnings per share from continuing operations** | $听听听听听 2.24 | $听听听听听听听听 0.02 | $听听听听听听听听听听 (0.03) | $听听听听听听听听听听听听听听听听听听 鈥� | $听听听听听听 2.23 | |||||
听 Diluted shares used in calculation | 102.1 | |||||||||
*听听听听 See reconciliation of net income to Adjusted EBITDA. |
**听听听 Adjusted EPS may not sum across due to rounding. |
听
Encompass Health Corporation and Subsidiaries | |||||||
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(In Millions) | |||||||
Net income | $听听听听 184.9 | $听听听 146.5 | $听听听 381.4 | $听听听听 285.3 | |||
Loss from discontinued operations, net of tax, attributable to Encompass Health | 0.9 | 1.2 | 1.4 | 2.5 | |||
Net income attributable to noncontrolling interests included in continuing operations | (42.8) | (32.4) | (87.8) | (58.7) | |||
Provision for income tax expense | 51.0 | 38.3 | 92.6 | 76.6 | |||
Interest expense and amortization of debt discounts and fees | 30.4 | 34.3 | 62.2 | 69.5 | |||
Depreciation and amortization | 79.9 | 72.9 | 159.1 | 143.2 | |||
Loss (gain) on disposal or impairment of assets | 0.3 | (3.0) | 0.5 | 10.7 | |||
Stock-based compensation | 14.3 | 13.6 | 23.8 | 22.9 | |||
Change in fair market value of equity securities | (0.3) | 0.4 | (1.0) | 0.1 | |||
Asset impairment impact on noncontrolling interests | 鈥� | 鈥� | 鈥� | (7.3) | |||
Adjusted EBITDA | $听听听听 318.6 | $听听听 271.8 | $听听听 632.2 | $听听听听 544.8 | |||
听
Encompass Health Corporation and Subsidiaries | |||||||
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(In Millions) | |||||||
Net cash provided by operating activities | $听听听听 270.2 | $听听听听 217.4 | $听听听听 558.8 | $听听听听 456.2 | |||
Impact of discontinued operations | 1.2 | 2.0 | 1.9 | 2.7 | |||
Net cash provided by operating activities of continuing operations | 271.4 | 219.4 | 560.7 | 458.9 | |||
Capital expenditures for maintenance | (45.1) | (48.9) | (79.1) | (87.6) | |||
Distributions paid to noncontrolling interests of consolidated affiliates | (40.4) | (27.8) | (73.3) | (52.5) | |||
Items not indicative of ongoing operating performance: | |||||||
Transaction costs and related liabilities | 鈥� | (0.2) | 鈥� | (8.7) | |||
Adjusted free cash flow | $听听听听 185.9 | $听听听听 142.5 | $听听听听 408.3 | $听听听听 310.1 | |||
For the three months ended June听30, 2025, net cash used in investing activities was
For the three months ended June听30, 2024, net cash used in investing activities was
For the six months ended June听30, 2025, net cash used in investing activities was
For the six months ended June听30, 2024, net cash used in investing activities was
Encompass Health Corporation and Subsidiaries
Forward-Looking Statements
Statements contained in this press release and the supplemental information which are not historical facts, such as those relating to the business, strategy, outlook, growth targets and guidance considerations, dividend strategies, effective income tax rates, cost trends, legislative and regulatory developments or their impacts, financial guidance, ability to return value to shareholders, projected capital expenditures, acquisition opportunities, development projects, addressable market size, other balance sheet and cash flow plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, infectious disease outbreak, including the speed, depth, geographic reach and duration of its spread, which could decrease our patient volumes and revenues and lead to staffing and supply shortages and associated cost increases; Encompass Health's infectious disease prevention and control efforts; the demand for Encompass Health's services, including based on any downturns in the economy, consumer confidence, or the capital markets; the price of Encompass Health's common stock as it affects Encompass Health's willingness and ability to repurchase shares and the financial and accounting effects of any repurchases; any adverse outcome of various lawsuits, claims, and legal or regulatory proceedings involving Encompass Health, including any matters related to yet undiscovered issues, if any, in acquired operations; Encompass Health's ability to attract and retain key management personnel; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's or its vendors' or partners' information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information or inability to provide patient care because of system unavailability; Encompass Health's ability to successfully complete and integrate de novo developments, acquisitions, investments, and joint ventures consistent with its growth strategy; Encompass Health's ability to realize construction time and cost savings from prefabrication of hospitals; increases in Medicare audit activity, including increased use of sampling and extrapolation, resulting in additional unpaid reimbursement claims and an increase in the backlog of appealed claims denials; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; changes in the regulation of the healthcare industry at either or both of the federal and state levels, including as part of national healthcare reform and deficit reduction and Encompass Health's ability to adapt operations to those changes, including in connection with the CMS inpatient rehabilitation review choice demonstration project; competitive pressures in the healthcare industry and Encompass Health's response thereto; Encompass Health's ability to obtain and retain favorable arrangements with third-party payors; Encompass Health's ability to control costs, particularly labor and employee benefit costs, including group medical expenses; adverse effects resulting from coverage determinations made by Medicare Administrative Contractors regarding its Medicare reimbursement claims and lengthening delays in Encompass Health's ability to recover improperly denied claims through the administrative appeals process on a timely basis; Encompass Health's ability to adapt to changes in the healthcare delivery system, including value-based purchasing and involvement in coordinated care initiatives or programs that may arise with its referral sources; Encompass Health's ability to attract and retain nurses, therapists, and other healthcare professionals in a highly competitive environment with often severe staffing shortages, which may be worsened by infectious disease outbreaks, and the impact on Encompass Health's labor expenses from potential union activity, staffing shortages, and competitive compensation practices; general conditions in the economy and capital markets, including any instability or uncertainty related to trade war, armed conflict or an act of terrorism, governmental impasse over approval of
Media Contact
Polly Manuel, 205 969-4532
[email protected]听
Investor Relations Contact
Mark Miller, 205 970-5860
[email protected]听
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FAQ
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