Encompass Health (EHC) Company Report

Encompass Health reported net operating revenue of $1,477.5 million for Q3 2025, an increase of 9.4% compared to Q3 2024, and $4,390.6 million for the nine months ended September 30, 2025, up 10.6% year-over-year.
Adjusted EBITDA for Q3 2025 grew 11.4% to $300.1 million, while Adjusted EPS increased 19.4% to $1.23. For the nine months, Adjusted EBITDA rose 14.5% to $932.3 million and Adjusted EPS increased 22.4% to $3.99.
The company updated its 2025 guidance as of October 29, 2025, raising Net Operating Revenue to $5,905 to $5,955 million, Adjusted EBITDA to $1,235 to $1,255 million, and Adjusted EPS to $5.22 to $5.37.
In Q3 2025, Encompass Health opened three de novo hospitals and one satellite hospital, contributing to a total of 240 beds opened year-to-date from four de novo hospitals and one satellite hospital.
The company retired $100 million of 5.75% Senior Notes due 2025 and repurchased 787,418 shares of common stock for $81.7 million year-to-date as of Q3 2025.

Oct 30, 2025, 2:00 PM

Presentation

Encompass Health Reports Strong Q3 2025 Results and Raises Full-Year Guidance

EHC

Earnings

Guidance Update

New Projects/Investments

Encompass Health reported a 9.4% increase in Q3 2025 revenue and 11.4% growth in adjusted EBITDA, reaching $300.1 million.
The company raised its 2025 guidance, now expecting net operating revenue of $5.905 to $5.955 billion, adjusted EBITDA of $1.235 to $1.255 billion, and adjusted EPS of $5.22 to $5.37.
EHC is accelerating capacity expansion, increasing estimated bed additions to existing hospitals to approximately 127 for 2025 and 150 to 200 for both 2026 and 2027.
In Q3 2025, Encompass Health repurchased approximately 221,000 shares for about $25 million and declared a cash dividend of $0.19 per share.

Oct 30, 2025, 2:00 PM

Transcript

Encompass Health Reports Strong Q3 2025 Results and Raises Full-Year Guidance

EHC

Earnings

Guidance Update

New Projects/Investments

Encompass Health reported strong financial performance for Q3 2025, with revenue increasing 9.4% and adjusted EBITDA growing 11.4%. Year-to-date, revenue grew 10.6% and adjusted EBITDA grew 14.5%.
The company raised its full-year 2025 guidance, now expecting net operating revenue of $5.905 to $5.955 billion, adjusted EBITDA of $1.235 to $1.255 billion, adjusted EPS of $5.22 to $5.37, and adjusted free cash flow of $730 to $810 million.
Operational expansion continued with three new hospitals opened and 39 beds added in Q3 2025. The company increased its expected bed additions to 127 beds in 2025 and 150 to 200 in both 2026 and 2027.
Encompass Health repurchased approximately 221,000 shares for about $25 million in Q3, bringing the year-to-date total to approximately $82 million, and declared a cash dividend of $0.19 per share.

Oct 30, 2025, 2:00 PM

Transcript

Encompass Health Reports Strong Q3 2025 Results, Raises Full-Year Guidance, and Expands Capacity

EHC

Earnings

Guidance Update

New Projects/Investments

Encompass Health reported strong Q3 2025 financial results, with revenue increasing 9.4% and adjusted EBITDA growing 11.4% to $300.1 million.
The company increased its 2025 guidance for net operating revenue to $5.905 billion-$5.955 billion, adjusted EBITDA to $1.235 billion-$1.255 billion, and adjusted EPS to $5.22-$5.37.
Encompass Health is significantly expanding capacity, expecting to add approximately 127 beds to existing hospitals in 2025 and 150-200 beds in both 2026 and 2027, alongside new hospital openings.
The company noted favorable labor trends, with Q3 2025 annualized RN turnover at 20.2% and therapist turnover at 7.8%, and premium labor costs declining $5.6 million from Q3 2024.

Oct 30, 2025, 2:00 PM

Transcript

Encompass Health Reports Strong Q3 2025 Results and Raises Full-Year Guidance

EHC

Earnings

Guidance Update

Share Buyback

Encompass Health reported net operating revenue of $1,477.5 million for Q3 2025, marking a 9.4% increase from Q3 2024, and Adjusted EBITDA grew 11.4% to $300.1 million.
Adjusted earnings per share for Q3 2025 increased 19.4% to $1.23 compared to $1.03 in Q3 2024.
The company increased its full-year 2025 guidance for net operating revenue to $5,905 to $5,955 million, Adjusted EBITDA to $1,235 to $1,255 million, and Adjusted earnings per share to $5.22 to $5.37.
During Q3 2025, Encompass Health expanded its capacity by opening three new hospitals and adding 39 beds to existing facilities, contributing to a 5.0% increase in discharges.
Encompass Health repurchased 221,301 shares for $24.9 million in Q3 2025 and paid a $0.19 per share quarterly dividend in October 2025.

Oct 29, 2025, 8:22 PM

8-K

Encompass Health Reports Strong Q3 2025 Results and Raises Full-Year Guidance

EHC

Earnings

Guidance Update

New Projects/Investments

Encompass Health reported net operating revenue of $1,477.5 million for the third quarter ended September 30, 2025, marking a 9.4% increase compared to Q3 2024. Adjusted earnings per share for Q3 2025 was $1.23, an increase of 19.4% from the prior year period.
The company's Adjusted EBITDA for Q3 2025 was $300.1 million, up 11.4% from Q3 2024, and cash flows provided by operating activities were $270.8 million.
Encompass Health increased its full-year 2025 guidance for net operating revenue to a range of $5,905 million to $5,955 million, Adjusted EBITDA to $1,235 million to $1,255 million, and adjusted earnings per share from continuing operations to $5.22 to $5.37.
Operationally, during Q3 2025, the company opened three new hospitals and added 39 beds to existing hospitals, including its first in Connecticut.

Oct 29, 2025, 8:20 PM

Press Release

Encompass Health Corporation Reiterates Full-Year 2025 Guidance

EHC

Guidance Update

Encompass Health Corporation (EHC) filed an 8-K on September 12, 2025, reiterating its full-year 2025 guidance.
The company continues to expect full-year 2025 net operating revenue to be between $5,880 million and $5,980 million.
Full-year 2025 Adjusted EBITDA is projected to range from $1,220 million to $1,250 million.
Adjusted earnings per share from continuing operations attributable to Encompass Health are anticipated to be between $5.12 and $5.34 for full-year 2025.

Sep 12, 2025, 12:02 PM

8-K

Encompass Health Reports Strong Q2 2025 Results and Raises Full-Year Guidance

EHC

Earnings

Guidance Update

New Projects/Investments

Encompass Health reported strong second quarter 2025 financial results, with revenue increasing 12% to $1.46 billion and adjusted EBITDA rising 17.2% to $318.6 million. Total discharges grew 7.2%, including 4.7% in same-store.
Based on its strong Q2 performance, the company raised its full-year 2025 guidance, now expecting net operating revenue of $5.88 billion to $5.98 billion, adjusted EBITDA of $1.22 billion to $1.25 billion, and adjusted earnings per share of $5.12 to $5.34. Adjusted free cash flow guidance was also increased to a range of $705 million to $795 million.
The company is continuing its capacity expansion, increasing its 2025 anticipated growth CapEx by $30 million and planning to open five additional hospitals and add 30-50 beds to existing hospitals by year-end.
Encompass Health increased its quarterly dividend to $0.19 per share, payable in October, and repurchased approximately 232,000 shares of common stock for $24.7 million in Q2. The company anticipates further share repurchase activity due to favorable cash flow from bonus depreciation.
The CMS 2026 IRF final rule included a net market basket update of 2.6%, which is estimated to result in approximately a 2.7% increase in net revenue per discharge for Medicare patients beginning October 1, 2025.

Aug 5, 2025, 7:35 PM

Encompass Health Publishes Investor Reference Book Detailing Growth Strategy and Financial Position

EHC

New Projects/Investments

Guidance Update

Encompass Health Corporation published an Investor Reference Book on June 25, 2025, providing an overview of its business outlook, growth strategy, and operational initiatives.
The company projects significant growth, targeting 6 to 10 new Inpatient Rehabilitation Facilities (de novos) and 80 to 120 bed additions annually, aiming for a 6% to 8% discharge CAGR.
Financially, Encompass Health reported $690.3 million in Adjusted Free Cash Flow for 2024 and maintained a leverage ratio of 2.3x. As of March 31, 2025, it had $953 million available on its $1 billion revolving credit facility.
The company's real estate strategy involves owning approximately 79% of its IRF facilities, with 132 owned and 36 leased out of 168 IRFs as of June 13, 2025, providing flexibility and cost control.

Jun 25, 2025, 12:00 AM

8-K

Encompass Health Reaffirms 2025 Guidance and Schedules Investor Meetings

EHC

Guidance Update

Encompass Health reaffirms its full-year 2025 guidance with net operating revenue expected between $5,850M and $5,925M, adjusted EBITDA between $1,185M and $1,220M, and adjusted EPS from $4.85 to $5.10.
The company’s senior management is scheduled to meet with investors on June 4, 2025 and June 18, 2025 as disclosed in the filing.

Jun 3, 2025, 12:00 AM

8-K

Filings & Transcripts

View All Documents

Recent SEC filings and earnings call transcripts for EHC.

No recent filings or transcripts found for EHC.