Encompass Health Posts Impressive Q4 2024 Earnings and Future Growth Outlook
On February 6, 2025, Encompass Health Corporation (NYSE: EHC), the leading owner and operator of inpatient rehabilitation hospitals across the United States, announced its operational results for the fourth quarter ending December 31, 2024. The company reported a robust performance, showcasing a notable increase in both revenues and profits compared to the previous year.
Financial Highlights
For the fourth quarter of 2024, Encompass Health reported net operating revenues of $1.405 billion, representing a 12.7% increase from the $1.247 billion recorded in Q4 2023. This impressive revenue growth was primarily driven by a discharge growth of 7.8%, which includes a same-store discharge growth of 5.8%. The company also reported a 25.5% increase in income from continuing operations attributable to Encompass Health per diluted share, rising from $0.94 in Q4 2023 to $1.18 in the latest quarter. Adjusted earnings per share similarly increased, reaching $1.17 compared to $0.95 in the previous year.
The company's cash flow from operating activities surged to $278.8 million, a significant 38.7% rise from the $201 million reported in Q4 2023. Furthermore, adjusted EBITDA rose by 13.6%, reaching $289.6 million compared to the $255 million in Q4 2023.
Operational Capacity Expansion
During 2024, Encompass Health added a total of 427 beds through new hospital constructions and the expansion of existing facilities. This capacity ramp-up is aligned with the company's strategic focus on enhancing its rehabilitative care offerings to meet growing patient demand. Mark Tarr, President and CEO of Encompass Health, expressed pride in the company's robust finish to Q4 2024, noting the ongoing validation of their operating strategy and their positive outlook on long-term business prospects.
2025 Forecast
Looking ahead, Encompass Health has outlined its guidance for 2025, projecting net operating revenues in the range of $5.8 billion to $5.9 billion. The forecast also includes adjusted EBITDA expectations of $1.16 billion to $1.2 billion and adjusted earnings per share from continuing operations projected between $4.67 and $4.96.
The earnings conference call to discuss these results will take place on February 7, 2025, at 10:00 AM ET, and will also be accessible via live webcast for interested investors.
About Encompass Health
Encompass Health Corporation, established with a mission to provide high-quality, compassionate rehabilitative care, operates 166 hospitals in 38 states and Puerto Rico. Renowned as one of Fortune's World's Most Admired Companies and Becker's Hospital Review's 150 Top Places to Work in Healthcare, the organization remains committed to maximizing recovery for individuals recovering from major injuries or illnesses by leveraging advanced technology and innovative treatments. For additional details about the company, please visit encompasshealth.com or follow them on their social media platforms.
Financial Highlights
For the fourth quarter of 2024, Encompass Health reported net operating revenues of $1.405 billion, representing a 12.7% increase from the $1.247 billion recorded in Q4 2023. This impressive revenue growth was primarily driven by a discharge growth of 7.8%, which includes a same-store discharge growth of 5.8%. The company also reported a 25.5% increase in income from continuing operations attributable to Encompass Health per diluted share, rising from $0.94 in Q4 2023 to $1.18 in the latest quarter. Adjusted earnings per share similarly increased, reaching $1.17 compared to $0.95 in the previous year.
The company's cash flow from operating activities surged to $278.8 million, a significant 38.7% rise from the $201 million reported in Q4 2023. Furthermore, adjusted EBITDA rose by 13.6%, reaching $289.6 million compared to the $255 million in Q4 2023.
Operational Capacity Expansion
During 2024, Encompass Health added a total of 427 beds through new hospital constructions and the expansion of existing facilities. This capacity ramp-up is aligned with the company's strategic focus on enhancing its rehabilitative care offerings to meet growing patient demand. Mark Tarr, President and CEO of Encompass Health, expressed pride in the company's robust finish to Q4 2024, noting the ongoing validation of their operating strategy and their positive outlook on long-term business prospects.
2025 Forecast
Looking ahead, Encompass Health has outlined its guidance for 2025, projecting net operating revenues in the range of $5.8 billion to $5.9 billion. The forecast also includes adjusted EBITDA expectations of $1.16 billion to $1.2 billion and adjusted earnings per share from continuing operations projected between $4.67 and $4.96.
The earnings conference call to discuss these results will take place on February 7, 2025, at 10:00 AM ET, and will also be accessible via live webcast for interested investors.
About Encompass Health
Encompass Health Corporation, established with a mission to provide high-quality, compassionate rehabilitative care, operates 166 hospitals in 38 states and Puerto Rico. Renowned as one of Fortune's World's Most Admired Companies and Becker's Hospital Review's 150 Top Places to Work in Healthcare, the organization remains committed to maximizing recovery for individuals recovering from major injuries or illnesses by leveraging advanced technology and innovative treatments. For additional details about the company, please visit encompasshealth.com or follow them on their social media platforms.
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