Encompass Health's Third Quarter 2025 Results Show Significant Growth and Future Plans
Encompass Health Corporation (NYSE: EHC), the leading operator of inpatient rehabilitation hospitals in the United States, recently unveiled its financial results for the third quarter that concluded on September 30, 2025. The report indicated a substantial increase in net operating revenue, reaching $1,477.5 million, which marks a significant growth of 9.4% compared to the same period last year where it stood at $1,351.0 million.
The company's income from continuing operations attributable to Encompass Health per diluted share also experienced a notable rise, climbing to $1.24, a 15.9% increase from $1.07 in Q3 2024. Furthermore, adjusted earnings per share rose to $1.23, representing a 19.4% jump from $1.03. This consistent upward trend underscores the company's solid operational capabilities despite the challenging healthcare landscape.
Encompass Health's cash flows from operating activities reported $270.8 million, reflecting a marginal increase of 1.1% compared to $267.8 million in the same quarter of the prior year. Additionally, the adjusted EBITDA for Q3 2025 reached $300.1 million, which is an 11.4% increase from the $269.3 million recorded in Q3 2024.
During the quarter, the company took proactive steps to enhance its capacity for inpatient rehabilitation care. This included the opening of three new hospitals and the addition of 39 beds across existing facilities. The new establishments included a 40-bed hospital in Danbury, Connecticut, and two 50-bed hospitals located in Daytona Beach and Wildwood (The Villages), Florida. According to President and CEO Mark Tarr, these developments affirm their operational strategy and long-term optimism for the company.
Adding to their accomplishments, Encompass Health has been recognized as 'America's Most Awarded Leader in Inpatient Rehabilitation' for the sixth consecutive year, according to Newsweek and Statista. This accolade reflects the company's unwavering dedication to delivering high-quality patient care and favorable patient outcomes.
Looking ahead, Encompass Health has revised its full-year guidance, expecting net operating revenue in the range of $5,905 million to $5,955 million, an increase from the previous guidance of $5,880 million to $5,980 million. The company is also anticipating an increase in adjusted EBITDA, now projected between $1,235 million and $1,255 million, up from earlier estimates of $1,220 million to $1,250 million.
During a conference call scheduled for October 30, 2025, the company will elaborate on these results and provide further insights into its ongoing strategies and future expectations. Investors and stakeholders have been advised to access supplemental information that will be made available during this call.
In summary, Encompass Health's performance in Q3 2025 illustrates its resilience and commitment to developing enhanced rehabilitation services. With a strong operational foundation and ambitious expansion plans, the company is poised for sustained growth and continued recognition in the healthcare sector. For additional information about Encompass Health and its initiatives, visit encompasshealth.com or follow them across various social media platforms.
The company's income from continuing operations attributable to Encompass Health per diluted share also experienced a notable rise, climbing to $1.24, a 15.9% increase from $1.07 in Q3 2024. Furthermore, adjusted earnings per share rose to $1.23, representing a 19.4% jump from $1.03. This consistent upward trend underscores the company's solid operational capabilities despite the challenging healthcare landscape.
Encompass Health's cash flows from operating activities reported $270.8 million, reflecting a marginal increase of 1.1% compared to $267.8 million in the same quarter of the prior year. Additionally, the adjusted EBITDA for Q3 2025 reached $300.1 million, which is an 11.4% increase from the $269.3 million recorded in Q3 2024.
During the quarter, the company took proactive steps to enhance its capacity for inpatient rehabilitation care. This included the opening of three new hospitals and the addition of 39 beds across existing facilities. The new establishments included a 40-bed hospital in Danbury, Connecticut, and two 50-bed hospitals located in Daytona Beach and Wildwood (The Villages), Florida. According to President and CEO Mark Tarr, these developments affirm their operational strategy and long-term optimism for the company.
Adding to their accomplishments, Encompass Health has been recognized as 'America's Most Awarded Leader in Inpatient Rehabilitation' for the sixth consecutive year, according to Newsweek and Statista. This accolade reflects the company's unwavering dedication to delivering high-quality patient care and favorable patient outcomes.
Looking ahead, Encompass Health has revised its full-year guidance, expecting net operating revenue in the range of $5,905 million to $5,955 million, an increase from the previous guidance of $5,880 million to $5,980 million. The company is also anticipating an increase in adjusted EBITDA, now projected between $1,235 million and $1,255 million, up from earlier estimates of $1,220 million to $1,250 million.
During a conference call scheduled for October 30, 2025, the company will elaborate on these results and provide further insights into its ongoing strategies and future expectations. Investors and stakeholders have been advised to access supplemental information that will be made available during this call.
In summary, Encompass Health's performance in Q3 2025 illustrates its resilience and commitment to developing enhanced rehabilitation services. With a strong operational foundation and ambitious expansion plans, the company is poised for sustained growth and continued recognition in the healthcare sector. For additional information about Encompass Health and its initiatives, visit encompasshealth.com or follow them across various social media platforms.
Topics Health）
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