Encompass Health reports results for second quarter 2025

Increases full-year guidance

BIRMINGHAM, Ala., Aug. 4, 2025 /PRNewswire/ — Encompass Health Corporation (NYSE:EHC), the largest owner and operator of inpatient rehabilitation hospitals in the United States, today reported its results of operations for the second quarter ended June 30, 2025.

Summary results

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 grew 7.2%, inclusive of same-store growth of 4.7%. Net patient revenue per discharge grew 4.2%.
• Cash flows provided by operating activities increased 24.3% to $270.2 million, primarily due to an increase in net income.
• 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 Fort Myers, Florida, and adding 26 beds to an existing hospital,” said President and Chief Executive Officer Mark Tarr.

“Our clinical expertise and commitment to delivering high-quality, cost-effective care continues to benefit our patients, referral sources and payors.” 

2025 Guidance 

The Company increased its full-year guidance as follows:

For considerations regarding the Company’s 2025 guidance, see the supplemental information posted on the Company’s website at http://investor.encompasshealth.com. 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 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 http://investor.encompasshealth.com.

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. Please call approximately ten minutes before the start of the call to ensure you are connected. The conference call will also be webcast live and will be available for on-line replay at http://investor.encompasshealth.com by clicking on an available link.

About Encompass Health

Encompass Health (NYSE:EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 169 hospitals in 38 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is ranked as one of Fortune’s World’s Most Admired Companies™, and Forbes’ Most Trusted Companies in America.¹ For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.

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 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 4, 2025 (the “Q2 Earnings Form 8-K”), to which this press release is attached as Exhibit 99.1. In addition, the Company will post supplemental information today on its website at http://investor.encompasshealth.com for reference during its August 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—accounting, 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 http://investor.encompasshealth.com and the SEC’s website at www.sec.gov.

 

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